Global Automotive Power Electronics Market to Grow with a CAGR of 4.6% through 2028
The Global Automotive Power
Electronics Market is propelled by the increasing adoption of electric and
hybrid vehicles, driven by emission standards and environmental concerns. Power
electronics is crucial for integrating advanced driver assistance systems and
autonomous driving technologies, ensuring precise control and energy
management. These factors drive market growth, in line with the industry's focus
on sustainability and innovation.
According to
TechSci Research report, “Global Automotive Power Electronics Market –
Global Industry Size, Share, Trends, Competition Forecast &
Opportunities, 2028”, the Global Automotive Power Electronics Market stood
at USD 3.3 Billion in 2022 and is anticipated to grow with a CAGR of 4.6% in
the forecast period, 2024-2028. The Global Automotive Power Electronics Market
is driven by several key factors. Firstly, there is a significant increase in demand
for energy-efficient battery-powered vehicles, as consumers seek eco-friendly
transportation options. This trend is further fueled by advancements in power
electronics technology, which enables improved efficiency and performance in
electric vehicles. Moreover, the implementation of stringent emission standards
worldwide has also contributed to the growth of the market. Governments and
regulatory bodies are imposing strict regulations on vehicle emissions, pushing
automakers to develop and adopt power electronics solutions that reduce carbon
footprint and comply with these standards.
Furthermore, the
rising popularity of electric and hybrid vehicles, driven by increasing
environmental awareness, has played a crucial role in propelling the market
forward. Consumers are becoming more conscious of the environmental impact of
traditional combustion engine vehicles and are embracing greener alternatives.
As a result, the demand for automotive power electronics, such as inverters and
converters, has witnessed a significant upsurge. Additionally, the integration
of advanced driver-assistance systems (ADAS) in modern vehicles has become a
necessity. These systems rely on power electronics components for their
operation, such as power modules and sensors. As the automotive industry
continues to evolve towards autonomous driving and enhanced safety features,
the reliance on power electronics technology will continue to grow, driving the
expansion of the market. In summary, the Global Automotive Power Electronics
Market is experiencing substantial growth due to the surge in demand for
energy-efficient vehicles, advancements in power electronics technology,
stringent emission standards, and the increasing popularity of electric and
hybrid vehicles. The integration of advanced driver-assistance systems further
contributes to the market's expansion, making power electronics a critical
component in the automotive industry's future.
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"Automotive Power Electronics Market.”
The global
automotive power electronics market has witnessed substantial growth and
transformation in recent years. This evolution can be attributed to several key
factors, including the increasing demand for electric and hybrid vehicles,
advancements in power electronic components and technologies, and growing
concerns about environmental sustainability. As the automotive industry
undergoes a significant shift towards electrification and automation, power
electronics have emerged as a critical enabler of these changes.
One of the
primary drivers of the automotive power electronics market's growth is the
rising adoption of electric and hybrid vehicles. The automotive industry is
experiencing a profound shift from traditional internal combustion engine
vehicles to electric vehicles (EVs) and hybrid electric vehicles (HEVs). This
transition is driven by a combination of factors, including stricter emissions
regulations, greater awareness of environmental concerns, and advances in
battery technology. Power electronics play a pivotal role in these vehicles, as
they are responsible for controlling and managing the power flow between the
battery, electric motor, and other vehicle components, ensuring efficient and
reliable operation.
Furthermore, the
global automotive power electronics market is benefiting from the ongoing
advancements in power electronic components and technologies. These
developments have led to improvements in efficiency, performance, and reliability
of power electronics systems used in automobiles. Silicon carbide (SiC) and
gallium nitride (GaN) power semiconductors, for example, have gained prominence
due to their ability to handle high power densities and operate at higher
temperatures. These materials are increasingly being integrated into power
electronic devices, contributing to higher energy efficiency and reduced heat
generation in EVs and HEVs.
Another notable
trend in the automotive power electronics market is the integration of power
electronic components into various vehicle systems to enhance performance and
safety. Advanced driver-assistance systems (ADAS), which include features like
adaptive cruise control, lane-keeping assistance, and collision avoidance, rely
heavily on power electronics to process and transmit data and signals. This
integration of power electronics is enhancing vehicle safety and paving the way
for autonomous driving capabilities.
Moreover, the
increasing consumer demand for connected and electrified vehicles is driving
the demand for power electronics in automotive infotainment systems and
telematics. Power electronics are used in these systems to manage the power
supply, control displays, and enable connectivity features. As consumers seek
more personalized and connected driving experiences, the role of power
electronics in enhancing vehicle connectivity and entertainment is becoming
increasingly important.
In addition to
the growth drivers, the automotive power electronics market faces certain
challenges. One significant challenge is the high cost of power electronic
components, particularly advanced semiconductors like SiC and GaN. While these
components offer substantial benefits in terms of efficiency and performance,
their cost can significantly impact the overall production cost of EVs and
HEVs. Manufacturers are working on reducing the cost of these components
through economies of scale and technological advancements.
Another
challenge is the need for standardization and interoperability in the
automotive power electronics ecosystem. As more power electronic components are
integrated into vehicles, ensuring compatibility and ease of integration
becomes crucial. Standardization efforts are underway to establish common
protocols and interfaces, enabling seamless communication between different
power electronics systems within a vehicle.
Furthermore, the
global automotive power electronics market is characterized by intense
competition among both established players and new entrants. Established
automotive suppliers are expanding their power electronics portfolios to meet
the growing demand, while startups and specialized companies are entering the
market with innovative solutions. This competitive landscape is driving
innovation and encouraging the development of more cost-effective and efficient
power electronics solutions.
Geographically,
the automotive power electronics market is witnessing significant growth in
regions that are at the forefront of electric vehicle adoption, such as North
America, Europe, and Asia-Pacific. These regions have robust charging
infrastructure, supportive government incentives, and a growing consumer base
for electric vehicles. As a result, automakers and power electronics
manufacturers are focusing their efforts on these markets to capitalize on the
electric vehicle trend.
In conclusion,
the global automotive power electronics market is experiencing remarkable
growth and transformation, driven by the shift towards electric and hybrid
vehicles, technological advancements, and the integration of power electronics
into various automotive systems. As the automotive industry continues to
evolve, power electronics will remain a critical enabler of electrification,
automation, and connectivity. Despite challenges such as cost and
standardization, the market is poised for further expansion, offering
opportunities for both established players and newcomers in the field. With the
ongoing commitment to innovation and sustainability, the automotive power
electronics market is expected to play a pivotal role in shaping the future of
the automotive industry.
Major companies
operating in Global Automotive Power Electronics Market are:
- Infineon Technologies AG
- Texas Instruments Incorporated
- Renesas Electronics Corporation
- NXP Semiconductors
- STMicroelectronics
- Microsemi Corporation
- Vishay Intertechnology Inc.
- Semiconductor Components Industries LLC
- Toyota Industries Corporation
- Valeo Group
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“The major
drivers for the Global Automotive Power Electronics Market comprise a surge in
demand for energy-efficient battery-powered vehicles, advancements in power
electronics technology, and stringent emission standards worldwide.
Additionally, the rising popularity of electric and hybrid vehicles due to
increasing environmental awareness also propels the market growth. Furthermore,
the integration of advanced driver-assistance systems (ADAS) in modern vehicles
necessitates the use of power electronics, thereby fostering the market
expansion.” said Mr. Karan Chechi, Research Director with TechSci Research, a
research-based management consulting firm.
“Global
Automotive Power Electronics Market By Device Type (Power IC, Module, and
Discrete), By Application Type (Body Electronics, Safety and Security
Electronics, and Powertrain), By Drive Type (IC Engine Vehicle and Electric
Vehicle), By Vehicle Type (Passenger Cars and Commercial Vehicles), By Regional, By
Competition, Forecast &
Opportunities, 2018-2028F”,
has evaluated the future growth potential of Global Automotive Power
Electronics Market and provides statistics & information on market size, structure,
and future market growth. The report intends to provide cutting-edge market
intelligence and help decision makers take sound investment decisions. Besides,
the report also identifies and analyzes the emerging trends along with
essential drivers, challenges, and opportunities in Global Automotive Power
Electronics Market.
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