|Fastest Growing Market:||Asia Pacific|
|Largest Market:||Asia Pacific|
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The Automotive DC-DC converter market was valued at USD 9.9 Billion in 2021 and is expected to reach USD 18.7 Billion by 2027 registering a CAGR of over 10% during the forecast period 2022-2027.
The COVID-19 pandemic caused several vehicles and component manufacturing facilities to shut down temporarily. This is hindering the growth of the automotive industry. However, with the gradual removal of lockdowns in several countries, the demand for vehicles has slightly increased which is expected to propel the market growth during the forecast period.
The growth of the market is fueled by the demand for electronic systems, such as infotainment and enhanced safety through the integration of ADAS in modern automobiles. The increasing adoption of electric vehicles, both battery-powered and hybrid, has enhanced the demand for DC-DC converters, as a DC-DC converter is vital for converting a 24V or 48V power supply into a 12V power supply to ensure safe and reliable operation of onboard electronic systems.
Prominent economies and vehicle manufacturing companies are investing in research and development of 200-450V converter which have features including fast circuit breaker control to comply with automotive safety. However, growth of the market may be limited by factors, such as fluctuations in global automotive production, resulting in an oversupply condition that could hamper the financial position of the market players.
Market players are trying to integrate the DC converter and inverter units as a single unit. Further, market is highly R&D-intensive and focused on the integration of DC-DC converters in larger vehicles. This has encouraged manufacturers of DC-DC converters to launch new product offerings to facilitate integration into commercial vehicles.
Asia-Pacific is anticipated to dominate the market, owing to the higher automotive production rate and annual sales in the region, particularly China. Moreover, The proliferation of ADAS and in-cabin infotainment has turned vehicles into complex electronic systems on wheels that require multi-level, and noise-free DC-DC converters to fuel growth of market.
Scope of the Report
A DC-DC converter comprises inductors, microcontroller units (MCUs), and magnetic core components that are encompassed in a block design for integration into vehicles. The DC-DC converter is connected to the ignition system of an automobile to effectively control the startup and shutdown of the engine to reduce emissions.
The scope of the report covers segmentation based on Vehicle type and Geography. By Vehicle Type, the market is segmented as Passenger Cars and Commercial Vehicles and by Geography the market is segmented as North America, Europe, Asia-Pacific and Rest of the World. For each segment, market sizing and forecast have been done on basis of value (USD billion) for all above segments.
Key Market Trends
Rising R&D Activities to Integrate DC-DC Converters into Commercial Vehicles
Growing adoption of stringent emission norms is driving the automotive OEMs to integrate advanced technologies in their vehicle offerings to enhance their fuel efficiency. This has resulted in the development of electric drivetrain for medium and heavy commercial vehicles (M&HCVs). The electric drivetrain mandates the integration of a DC-DC converter to ensure higher efficiency. The increase in sales of commercial vehicles has driven component manufacturers to upgrade their product offerings.
- On this note, recently, Prodrive launched a 48V to 12V DC-DC converter that is compliant to the ISO/DIS 21780 standard for 48V automotive systems. The converter can be configured to suit automotive networks, including CAN and FlexRay, and is available in multiple power options, ranging from 400W to 2.2kW.
- Similarly, Ricoh Europe (Netherlands) BV introduced the R1273L synchronous buck DC/DC converter, that can function efficiently over a wide input voltage range up to 34V to deliver a maximum output of 14A.
With increasing freight and logistics activities, the demand for pickup trucks has seen a significant demand from the logistics and municipal sectors. Recently, there has been observed a significant demand for electric pick-up trucks for personal applications, especially from the European and North American region. In context to this, automakers such as Ford, General Motors, and Volkswagen have sharpened their focus on electrified production vehicles. There have been several new companies/startups, which have announced plans to manufacture hybrid or fully electric pickup truck models in the coming years. For instance-
- Ford has announced that it is working on developing a fully electric pick-up truck, which is expected to have a 300 miles range. Although initially Ford has planned of developing a hybrid powertrain, the company has changed its plan from a hybrid to a fully electric truck. The F-150 electric is expected to be launched during 2022.
- Rivian, the American vehicle manufacturer and the automotive technology company has developed a fully electric pick-up truck, the RT1. This vehicle is expected to have a range of 450 miles and has level-3 autonomous features. The RT1 is expected to be delivered to customer by September 2022.
- In April 2022 G-Pulse, a leading automotive ECU solution and mobility service provider, came under constructive alliance with Silicon Mobility for design of high voltage multiphase DC-DC converter dedicated for upcoming new energy vehicles in the market. The high voltage DC-DC converter shall be compatible with FCEV, BEV, HEV and PHEV.
Various agreements, partnerships, and ventures between the component manufacturers are expected to benefit the electric vehicle high-voltage DC-DC converter market in the near future. For instance,
- In May 2020, ZF Friedrichshafen AG partnered with VisIC, an Israel technology company. The main focus of the joint effort is to produce inverters and high voltage DC converter systems for electric vehicles.
Considering the increased adoption of DC-DC converter in commercial vehicles, market is poise to register moderate growth during the forecast period.
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Asia Pacific Region to Play Prominent Role in the Market During the Forecast period
Asia-pacific region expected to hold dominant share in the market during the forecast period in wake of rising vehicle prodution and growing focus of major countries on electrification of vehicles. Further, some of the notable non-automotive companies, like Alibaba, are also entering the rapidly growing EV market in the country. For instance,
- In January 2021, Alibaba Group introduced two electric models in the country, under the IM label (Intelligence in Motion), in partnership with SAIC Motor. Battery cells for these vehicles are supplied by CATL
The Asia-Pacific electric passenger car market is also one of the largest, worldwide, and it has been growing rapidly over the last few years and is expected to grow higher in the forecast period, which is also going to have positive impact on the demand for high voltage DC-DC Converter Market. Several key players in the market are partnering with other players to develop power electronics components. For instance,
- In November 2021, G-Pulse and Silicon Mobility announced a partnership to develop a high voltage multiphase interleaving bidirectional DC-DC converter platform for new energy vehicles (NEVs), such as fuel cell electric vehicles (FCEVs), battery electric vehicles (BEVs), hybrid electric vehicles (HEVs), and plug-in hybrid electric vehicles (PHEVs) (PHEV).
- In May 2021, TDK Corporation (TDK) announced it entered a partnership with Contemporary AmperexTechnology Co., Limited (CATL) to strengthen its businesses, such as electric components for electric vehicles and DC-DC converters. TDK will supply automotive electrical components and power supply products to CATL for automotive power units.
- Hyundai Motors plans to invest USD 16 billion to increase its market share in the world by 2023. With the increase in the manufacturing and launching of new products, the demand for DC-DC converters is bound to increase in the upcoming years.
With most of the electric vehicles and components being manufactured locally and with the government's key national strategies and plans, it is expected that the country’s market will have a high growth rate during the forecast period. In addition, DC-DC converters play a primary role and are also used in different types of applications such as hybrid electric vehicles (HEV, Hybrid Electric Vehicle), and hence growing adoption of these converters coupled with notable launches from manufacturers expected to drive demand in the market. For instance,
- In November 2021, EPC Launches 2 kW, 48 V/12 V DC-DC Demonstration Board for More Efficient, Smaller, Faster, Bidirectional Converters for Cars. DC-DC converter is three times faster, greater than 35% smaller and lighter, and offers greater than 1.5% higher efficiency, and lower overall system costs compared to silicon MOSFET solutions.
Therefore, such aforementioned factors and instances likely to drive demand in Asia-pacific region during the forecast period.
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The market is moderately consolidated and is actively high competitive owing to presence of several active vendors competing for an enhanced market share based on product innovation. The vendors with sales directed prominently to mature markets are required to effectively innovate their product offerings to ensure low environmental impact and well-designed digital features.
- In March 2021, Infineon Technologies AG (Infineon) announced that it has launched the 650 V CoolSiC Hybrid Discrete for automotive. The device contains a 50 A TRENCHSTOP 5 fast-switching IGBT and a CoolSiC Schottky diode to enable a cost-efficient performance boost as well as high reliability.This makes the device ideal for fast switching automotive applications such as on-board chargers (OBC), power factor correction (PFC), DC-DC and DC-AC converters.
- In February 2021, Vitesco Technologies announced a new DC/DC converter, the heating discs of the electrically heated EMICAT catalyst can now also be supplied with electricity in high-voltage vehicles. The innovative e-catalyst enables lowest emissions in real operation – something that is becoming increasingly important considering forthcoming regulations such as Euro 7. The newly-developed DC/DC converter now generates the low voltage and power for the heating disc from the high voltage of the drive system.
Besides, the business operation models and product concepts of these vendors must also align with the specific requirements of emerging economies to encourage sustainability in high-growth, low-cost markets.
- In April 2022, Toyota Industries Corporation has developed a new compact and lightweight unit for battery electric vehicles (BEVs) that integrates an on-board charger and DC-DC converter. By integrating an on-board charger and DC-DC converter essential for BEV, the new unit is 23% smaller in size and 17% lighter in weight versus separately mounting the two devices. This improvement has also contributed to providing more interior space as well as lowering the center of gravity of the dedicated BEV platform adopted in the bZ series.
- In April 2022, DENSO Corporation announced it is providing key electrification components to Toyota and Subaru’s all-new, all-electric bZ4X and SOLTERRA, scheduled to be released in mid-2022 respectively.
- In December 2021, Hella announced that its 48-volt DC/DC converters allow bi-directional energy transfer between 48-volt and 12-volt on-board networks and enable that the recuperation energy recovered during braking is made available to the 12-volt network again, thus enabling the energy to be used efficiently. Hella has received numerous other orders for the product from well-known German car manufacturers. This further strengthens the company's position among the top 3 suppliers in this sector.
- In March 2021, Bosch announced that silicon wafers are passing through the fully automated fabrication process for the first time at the new Bosch semiconductor fab in Dresden. From these, the company will make power semiconductors for use in applications such as DC-DC converters in electric vehicles (EVs) and hybrid vehicles (HVs).
Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size in Value USD Billion)
5.1 Vehicle Type
5.1.1 Commercial Vehicle
5.1.2 Passenger Vehicle
5.2.1 North America
188.8.131.52 United States
184.108.40.206 Rest of North America
220.127.116.11 United Kingdom
18.104.22.168 Rest of Europe
22.214.171.124 South Korea
126.96.36.199 Rest of Asia-Pacific
5.2.4 Rest of the World
188.8.131.52 South America
184.108.40.206 Middle-East and Africa
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Toyota Industries Corporation
6.2.2 TDK Corporation
6.2.3 Continental AG
6.2.4 Robert Bosch GmbH
6.2.5 Denso Corporation
6.2.6 Panasonic Corporation
6.2.7 Infineon Technologies AG
6.2.8 Hella GmbH & Co. KGaA
6.2.9 Aptiv PLC
6.2.10 Alps Alpine Co. Ltd
6.2.11 Marelli Corporation
6.2.12 Valeo Group
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Automotive Dc Dc Converter Market market is studied from 2018 - 2027.
What is the growth rate of Automotive Dc Dc Converter Market?
The Automotive Dc Dc Converter Market is growing at a CAGR of >10% over the next 5 years.
What is Automotive Dc Dc Converter Market size in 2018?
The Automotive Dc Dc Converter Market is valued at 10 Billion USD in 2018.
What is Automotive Dc Dc Converter Market size in 2027?
The Automotive Dc Dc Converter Market is valued at 18 Billion USD in 2027.
Which region has highest growth rate in Automotive Dc Dc Converter Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Automotive Dc Dc Converter Market?
Asia Pacific holds highest share in 2021.
Who are the key players in Automotive Dc Dc Converter Market?
Denso Corporation, Toyota Industries Corporation, Robert Bosch GmbH, Continental AG, Hella GmbH & Co. KGaA are the major companies operating in Automotive Dc Dc Converter Market.