Market Overview

The automotive power electronics market is expected to register a CAGR of ~7%, during the forecast period, 2019-2024.

• The advent of high-frequency and high-power switching devices has brought a comprehensive application of power electronic converters, for energy conversion and motion control. Technological advancements, along with a reduction in cost and size of components and systems, are expected to play a pivotal role in the growth of the automotive power electronics in the electric vehicles market.
• The adoption of electronics in powertrain systems is expected to increase at a faster pace during the forecast period, owing to the increased efforts by the regional governments and environmental agencies to lower emission levels through the use of eco-friendly vehicles (i.e. hybrid and electric vehicles).
• With growing electrification in vehicles, the demand for power electronics has increased drastically in the past three years, thus, manufacturers who supply various systems, such as transmission system, battery management system, seat system, etc., are gearing up to acquire or establish partners with prominent local automotive power electronics suppliers or expand their production plant in power electronics to strongly compete in the market.
• Major players in the market include Texas Instruments Inc., NXP Semiconductors NV, and Infineon Technologies AG, etc. The major companies are consistently focusing and expanding their business strategies toward the development of vehicle power electronics. For instance, Infineon Technologies AG plans to develop new products and solutions for automotive power electronics, as well as artificial intelligence, by setting up new development center at its Dresden, Germany, and is expected to launch in the course of 2018.

Scope of the Report

The global car rental market has been segmented by device type, application type, drive type, vehicle type, and geography.

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Key Market Trends

Growing Vehicle Safety Standards

Organizations involved in car safety regulations are focusing on advanced driver assistance systems (ADAS) for enhanced safety of both passengers and pedestrians. The American New Car Assessment Program (NCAP) and the European New Car Assessment Program (Euro NCAP) have made some features, making ADAS, an important feature in new vehicles.

Due to the increase in the number of on-road accidents across the world, according to the World Health Organization, nearly 1.25 million people die annually, due to road accidents. The cause of these accidents is mostly attributed to the driver’s inability to judge certain conditions and make right decisions.

The efforts of various governments to reduce fatalities due to road accidents, have led to increased safety standards in new vehicles.

• In 2011, the American NCAP has declared forward collision warning (FCW), lane departure warning (LDW), and electronic stability control (ESC) as recommended features in new cars.
• Two years later, the Euro NCAP made speed assistance system (SAS) and seat belt reminder (SBR), a mandatory feature in all the new, as well as the existing vehicles.
• Later, in 2014, the American NCAP made ESC mandatory and the use of rear-view video system was highly recommended in the new vehicles. In the same year, the Euro NCAP made the use of automatic emergency breaking (AEB) and lane departure warning (LDW), a mandate.
• In 2016, the Euro NCAP made the use of Lane Keeping Assist, mandatory. The American NCAP is expected to make the use of rear-view video systems mandatory, by 2018.

NHTSA is conducting research on various ADAS features to increase the vehicle safety standards further. As part of these efforts, NHTSA included AEB to the list of vehicle safety standards, making it mandatory for a car to get a five-star safety rating.

With regard to other ADAS features, NHTSA is researching on inclusion of rear-end crash avoidance system (RECAS), collision mitigation breaking system (CMBS), blind spot detection, overtaking assistance system, and lane keeping and changing assistance systems. Furthermore, countries, such as Japan and China, are adopting various automotive safety regulations with regard to the ADAS features, as specified by the European Union.

With many countries taking utmost care for the road safety of passengers and increasing adoption of vehicles from the passengers, there exist huge opportunities for applications of power electronics in the automotive industry, during the forecast period.

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