Automotive Power Electronics Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Automotive Power Electronics Market Analysis

The Automotive Power Electronics Market is expected to register a CAGR of greater than 4% during the forecast period.

The automotive power electronics industry is experiencing a transformative phase driven by technological advancements and sustainability initiatives. The integration of advanced semiconductor materials, particularly Silicon Carbide (SiC), is revolutionizing power electronics in automotive design and efficiency. This shift is evidenced by numerous strategic collaborations, such as the July 2023 agreement between Magna International and Onsemi for integrating EliteSiC intelligent power solutions into eDrive systems, enabling better cooling performance and faster acceleration rates. The industry's focus on sustainable technologies is further reinforced by predictions that battery pack costs will decrease significantly to USD 104/kWh by 2025 and USD 72/kWh by 2030, making automotive power solutions more economically viable.

The market is witnessing substantial developments in power management and control systems, particularly in advanced driver assistance systems (ADAS) and autonomous driving capabilities. Major industry players are investing heavily in research and development, as demonstrated by Pioneer Corporation's July 2023 expansion of R&D facilities in India, focusing on infotainment, safety products, telematics, and connected solutions for both conventional and electric vehicles. The integration of artificial intelligence and cloud services in automotive power electronics is enabling sophisticated features like emotional and behavioral recognition, enhancing both safety and user experience.

Consumer preferences are increasingly shifting towards vehicles with advanced electronic features and connectivity options. This trend is particularly evident in the Nordic region, where Norway has achieved remarkable progress in electronic vehicle adoption, with over 470,000 registered battery electric cars by 2022. The market is responding to these changing preferences through innovations in power electronics architecture, including the development of more efficient power distribution systems and advanced battery management solutions. Manufacturers are focusing on developing compact, efficient, and reliable automotive power components to meet the growing demand for sophisticated vehicle electronics.

The industry is experiencing significant technological convergence, with power electronics becoming increasingly integrated with other vehicle systems. This integration is driving innovations in thermal management, power density optimization, and system reliability. Recent developments include Infineon's April 2023 collaboration with Schweizer Electronic AG to develop more efficient silicon carbide chips for automotive solutions, focusing on embedding 1200V CoolSiC chips directly onto printed circuit boards. The Latin American market is also showing promising growth, with Brazil reporting a 41% increase in electric and hybrid vehicle sales in 2022, indicating expanding opportunities for automotive powertrain electronics applications in emerging markets.

Automotive Power Electronics Market Trends

RISING EV SALES TO FUEL POWER ELECTRONICS AND COMPONENTS DEMAND

The exponential growth in electric vehicle adoption is creating unprecedented demand for automotive power electronics and components. Global sales of electric cars witnessed a remarkable surge of 60% in 2022 compared to 2021, surpassing 10 million units for the first time, despite overall softness in car sales. This momentum has continued into 2023, with more than 2.3 million electric cars sold during the first quarter alone, representing approximately 25% year-over-year growth. The increasing cost advantages of electric vehicles over conventional vehicles, coupled with projected decreases in battery pack prices to USD 104/kWh by 2025 and USD 72/kWh by 2030 in the United States, are creating substantial development opportunities for industry participants in the power electronics market.

Leading automotive manufacturers have made ambitious commitments that will drive sustained demand for power electronics components. Toyota aims to roll out 30 BEV models to reach 3.5 million annual electric car sales by 2030, while Volkswagen has targeted over 70% electric vehicle sales in Europe and 50% in China and US markets by 2030. Ford expects one-third of its European sales to be fully electric by 2026 and 50% by 2030, while General Motors has announced plans for 30 EV models and installed BEV production capacity of 1 million units in North America by 2025. Hyundai is targeting sales of 1.9 million BEVs annually by 2030 to secure a 7% global market share. These commitments from major manufacturers, combined with supportive government policies and growing consumer acceptance, are creating a robust long-term demand outlook for automotive power electronics suppliers.

GROWING ADVANCEMENT IN INFOTAINMENT SYSTEMS

The rapid evolution of automotive infotainment systems is driving significant demand for power electronics components across the automotive industry. With over 90% of adults in North America and Europe having access to the Internet, there is growing integration of smartphone functions into in-vehicle infotainment systems like Android Auto and Apple CarPlay. Vehicle occupants increasingly expect to be engaged, connected, and able to quickly access information and content from multiple sources, pushing manufacturers to address safety concerns while building comprehensive automotive communication and networking solutions that require sophisticated automotive power electronics.

Manufacturers are introducing advanced touchscreen infotainment systems that are completely transforming the in-cabin experience. Recent launches showcase this trend, such as Acura MDX Type S's new version featuring a touchpad infotainment system with an impressive OLED display, and Maruti's all-new Baleno equipped with Smart Play Pro+, a top-of-the-line 9-inch touchscreen infotainment system. The integration of artificial intelligence and cloud services is driving further technological advancements in automotive infotainment systems. Additionally, there is growing demand for rear seat entertainment systems, with manufacturers giving control over these systems through smartphones to improve the penetration of infotainment systems built into cars. These technological advances and the increasing integration of infotainment systems in mass-market vehicles are creating sustained demand for automotive electronics market size and automotive body electronics market.

Segment Analysis: By Device Type

Module Segment in Automotive Power Electronics Market

The module segment dominates the automotive power electronics market, commanding approximately 63% market share in 2024. Power modules are critical assemblies of high-power electrical components containing single or several components combined into functional, isolated units. These modules incorporate transistors and diodes, with field-effect transistors, transistors, and silicon-controlled rectifiers being some of the most common switching elements. The segment's dominance is driven by the growing adoption of electric motors in hybrid electric vehicles and the increasing demand for plug-in hybrid vehicles globally. Major manufacturers are actively developing next-generation power modules optimized for electric vehicle applications, with companies like BorgWarner supplying integrated drive modules to leading automakers for their new energy vehicles.

Power IC Segment in Automotive Power Electronics Market

The Power IC segment is projected to experience the fastest growth in the automotive power electronics market from 2024-2029. This growth is primarily driven by the increasing integration of advanced driver assistance systems (ADAS) and the rising demand for sophisticated power management solutions in modern vehicles. Power ICs play a crucial role in various automotive applications, including motor control units, battery management systems, on-board chargers, and other automotive power electronics. The segment's growth is further supported by technological advancements in semiconductor materials and manufacturing processes, particularly in the development of silicon carbide (SiC) and gallium nitride (GaN) based power ICs, which offer improved efficiency and higher power density compared to traditional silicon-based solutions.

Remaining Segments in Device Type

The discrete segment, while smaller in market share, plays a vital role in the automotive power electronics ecosystem. Discrete components are designed to accelerate, decelerate, or maintain constant speed of devices, with a focus on regulating voltages and optimizing power consumption. These components are particularly important in electric vehicle charging infrastructure and powertrain applications. The segment's growth is supported by increasing demand for electric vehicles and the expansion of charging infrastructure globally. Discrete components offer advantages in terms of design flexibility and cost-effectiveness for specific applications, making them an essential part of the automotive power electronics landscape despite their smaller market share.

Segment Analysis: By Application Type

Powertrain Segment in Automotive Power Electronics and Components Market

The powertrain segment dominates the automotive powertrain electronics and components market, commanding approximately 55% market share in 2024. This segment's prominence is driven by the increasing electrification of vehicle powertrains and the growing adoption of electric vehicles globally. Powertrain systems, which comprise all components that produce and transfer power to the wheels, are experiencing significant technological advancements, particularly in electric and hybrid vehicles. The integration of sophisticated power electronics in modern powertrains enables improved efficiency, better performance, and reduced emissions. Major automotive manufacturers are investing heavily in powertrain electrification technologies, with companies focusing on developing more efficient electric motors, power converters, and control systems. The segment's growth is further supported by stringent emission regulations worldwide and the automotive industry's shift toward sustainable transportation solutions.

Remaining Segments in Application Type

The safety and security electronics segment represents the second-largest application area, focusing on advanced driver assistance systems (ADAS), collision avoidance systems, and various safety features that require sophisticated power electronic components. Automotive body electronics applications encompass various vehicle functions including lighting systems, climate control, and comfort features, contributing significantly to the overall market growth. The battery management system segment, while smaller in market share, plays a crucial role in electric and hybrid vehicles, managing power distribution and ensuring optimal battery performance. These segments are experiencing steady growth driven by increasing vehicle electrification, rising safety standards, and growing consumer demand for advanced automotive features. The continuous evolution of automotive technology and increasing integration of electronic systems in vehicles are expected to further drive the development and adoption of power electronics across these application segments.

Segment Analysis: By Vehicle Type

Passenger Cars Segment in Automotive Power Electronics and Components Market

The passenger cars segment continues to dominate the automotive power electronics and components market, commanding approximately 98% market share in 2024. This overwhelming dominance is driven by the rapid electrification of passenger vehicles globally and increasing integration of advanced electronic systems in modern cars. The segment's growth is further bolstered by stringent emission regulations worldwide pushing automakers to develop more efficient power electronic solutions for passenger vehicles. Major automotive manufacturers are actively expanding their electric vehicle portfolios and enhancing the electronic content in conventional vehicles, which has significantly increased the demand for power electronics components in passenger cars. The integration of advanced features like ADAS, infotainment systems, and sophisticated powertrain controls in passenger vehicles has also contributed to the segment's commanding position in the market. Additionally, the rising consumer preference for premium features and smart connectivity solutions in passenger cars has created a strong demand for advanced power electronic components.

Commercial Vehicles Segment in Automotive Power Electronics and Components Market

The commercial vehicles segment is projected to witness the fastest growth in the automotive power electronics and components market during 2024-2029, with an expected growth rate of approximately 25%. This accelerated growth is primarily driven by the increasing electrification of commercial vehicle fleets and the adoption of stringent emission norms worldwide. Fleet operators and logistics companies are increasingly transitioning to electric and hybrid commercial vehicles to reduce operational costs and meet sustainability goals. The segment is experiencing rapid technological advancements in power electronics solutions specifically designed for the unique requirements of commercial vehicles, including high-power applications and robust performance needs. The growing emphasis on fleet electrification by major logistics and transportation companies is creating substantial opportunities for power electronics manufacturers. Additionally, government initiatives promoting the adoption of electric buses and trucks for public transportation and goods movement are further accelerating the growth of this segment. The development of advanced charging infrastructure specifically designed for commercial vehicles is also contributing to the segment's rapid expansion.

Segment Analysis: By Component

Powertrain Segment in Automotive Power Electronics and Components Market

The powertrain segment dominates the automotive powertrain electronics and components market, commanding approximately 40% market share in 2024. This segment's leadership position is driven by the increasing electrification of vehicle powertrains and the growing adoption of electric and hybrid vehicles globally. The powertrain system, being one of the main components of automobiles, comprises all components that produce and transfer power to the wheels. The segment's growth is further accelerated by stringent emission norms and the automotive industry's shift toward electric mobility solutions. Major automotive manufacturers are investing heavily in powertrain technologies and expanding their facilities across regions, with companies like Hanon Systems investing nearly USD 170 million in 2023 to establish manufacturing presence for thermal and energy management solutions. Additionally, strategic partnerships like the one between Nidec Corporation and Renesas Electronics Corporation in 2023 for developing semiconductor solutions for next-generation e-Axles demonstrate the industry's commitment to powertrain innovation.

Remaining Segments in Automotive Power Electronics Components Market

The market encompasses several other vital components including in-car electronics, brushless motors (BLDC), forward lighting, brushed motors, battery management systems, and rear lighting. In-car electronics represents the second-largest segment, driven by increasing integration of advanced infotainment systems and connectivity solutions. The brushless motor segment is gaining prominence due to its superior efficiency and reliability compared to traditional motors, particularly in electric vehicle applications. Forward lighting systems are evolving with adaptive technologies and LED solutions, while battery management systems are becoming increasingly crucial for electric vehicle performance and safety. Rear lighting components continue to advance with smart lighting technologies and enhanced safety features. The brushed motor segment, though traditional, maintains its importance in specific automotive applications where cost-effectiveness is prioritized. Each of these segments plays a crucial role in the overall automotive electronics ecosystem, contributing to vehicle performance, safety, and user experience.

Segment Analysis: By Drive Type

Battery Electric Vehicles Segment in Automotive Power Electronics Market

Battery Electric Vehicles (BEVs) have emerged as both the largest and fastest-growing segment in the automotive power electronics market, commanding approximately 54% market share in 2024. This dominant position is driven by strong government initiatives promoting electric mobility, favorable policies including subsidies and tax incentives, and increasing consumer awareness about environmental sustainability. Major automotive manufacturers are rapidly expanding their BEV portfolios and production capacities, with companies like Toyota aiming to roll out 30 BEV models to reach 3.5 million annual sales by 2030. The segment's growth is further supported by declining battery pack costs, which are predicted to decrease to USD 104/kWh by 2025 in the United States. Additionally, the development of charging infrastructure, technological advancements in power electronics components, and improving vehicle range capabilities are contributing to increased BEV adoption. The segment is experiencing robust growth across major markets, particularly in China, Europe, and North America, where stringent emission regulations and supportive government policies are accelerating the transition to electric mobility.

Remaining Segments in Drive Type

The automotive power electronics market includes several other significant drive type segments including Internal Combustion Engine (ICE), Hybrid Electric Vehicles (HEV), and Fuel Cell Electric Vehicles (FCEV). The ICE segment continues to maintain a substantial presence in the market, particularly in regions with developing charging infrastructure, though its share is gradually declining as electrification gains momentum. Hybrid Electric Vehicles represent a crucial transition technology, offering a bridge between conventional ICE vehicles and full electrification, with many manufacturers incorporating hybrid powertrains across their model ranges. The FCEV segment, while currently smaller, is gaining attention particularly in the commercial vehicle sector where longer range and faster refueling capabilities are advantageous. These segments collectively contribute to the diverse landscape of automotive power electronics, each serving specific market needs and regional preferences while supporting the industry's broader transition towards sustainable mobility solutions.

Automotive Power Electronics Market Geography Segment Analysis

Automotive Power Electronics Market in North America

The North American automotive power electronics market demonstrates robust growth driven by strong domestic demand for motor vehicles and increasing adoption of electric vehicles. The United States and Canada represent the key markets in this region, with both countries showing significant investments in charging infrastructure and electric mobility projects. The region benefits from advanced semiconductor manufacturing capabilities, established automotive supply chains, and supportive government policies promoting vehicle electrification. The presence of major automotive manufacturers and their ongoing investments in research and development of electric powertrains continues to drive market expansion across North America.

Automotive Power Electronics Market in the United States

The United States dominates the North American automotive power electronics market, holding approximately 89% market share in 2024. The country's market is characterized by strong domestic demand and rapid recovery from supply chain disruptions. The U.S. automotive sector benefits from extensive research and development facilities, advanced manufacturing capabilities, and a robust network of semiconductor suppliers. Major automotive manufacturers in the country are actively expanding their electric vehicle portfolios and investing in power electronics technologies. The integration of advanced driver assistance systems and a growing focus on vehicle electrification continue to drive demand for automotive electronics market components.

Automotive Power Electronics Market in Canada

Canada emerges as the fastest-growing market in North America, with a projected growth rate of approximately 24% from 2024 to 2029. The country's automotive manufacturing sector represents a significant portion of its manufacturing GDP and trade. Canada's competitive advantage includes lower cost structures and a reduced tax burden compared to other advanced nations. The government's commitment to zero-emission vehicles through programs like the Zero Emission Vehicle Infrastructure Program (ZEVIP) demonstrates strong support for market growth. Canadian authorities are actively working to expand charging infrastructure and promote electric vehicle adoption through various incentives and support programs.

Automotive Power Electronics Market in Europe

The European automotive power electronics market showcases strong growth potential driven by aggressive electric vehicle adoption targets and stringent emission regulations. Key markets, including Germany, the United Kingdom, France, and Spain, are witnessing significant developments in power electronics technologies. The region's focus on sustainable transportation and carbon neutrality goals has accelerated the transition toward electric vehicles. European automotive manufacturers are increasingly investing in power electronics research and development, particularly in areas such as silicon carbide technology and advanced battery management systems.

Automotive Power Electronics Market in Germany

Germany maintains its position as the largest market in Europe, commanding approximately 32% of the regional market share in 2024. As Europe's automotive powerhouse, Germany leads in high-tech automotive products, including self-driving technology and power electronics components. The country's auto industry demonstrates strong recovery through forward-looking measures and transformation initiatives. German automotive companies maintain extensive research and development capabilities, particularly in areas such as automated driving and battery technology.

Automotive Power Electronics Market in the United Kingdom

The United Kingdom represents the fastest-growing market in Europe, with an expected growth rate of approximately 26% from 2024 to 2029. The country's automotive sector is undergoing significant transformation with an increasing focus on electric vehicle production and advanced power electronics systems. The UK's commitment to phasing out conventional vehicles and strong government support for electric vehicle infrastructure development drives market growth. The presence of major automotive manufacturers and their ongoing investments in electric vehicle technology continues to strengthen the UK's position in the European market.

Automotive Power Electronics Market in Asia-Pacific

The Asia-Pacific region represents the largest and most dynamic market for automotive power electronics, driven by robust automobile manufacturing facilities and strong regional government support. Countries including China, India, Japan, and South Korea are witnessing significant developments in power electronics technologies. The region benefits from extensive manufacturing capabilities, technological advancements, and increasing domestic demand for electric vehicles. Government initiatives promoting electric mobility and sustainable transportation solutions further accelerate market growth across the Asia-Pacific region.

Automotive Power Electronics Market in China

China maintains its position as the dominant force in the Asia-Pacific automotive power electronics market. The country's market is characterized by extensive manufacturing capabilities, strong domestic demand, and supportive government policies promoting electric vehicle adoption. China's determination to reduce vehicle exhaust emissions and decrease reliance on oil imports drives the demand for power electronics components. The presence of major automotive manufacturers and their ongoing investments in research and development strengthens China's market position.

Automotive Power Electronics Market in India

India emerges as the fastest-growing market in the Asia-Pacific region. The country's automotive power electronics market is driven by increasing investments in electric mobility projects and growing domestic demand. Government initiatives promoting electric vehicle adoption and the development of charging infrastructure support market growth. The presence of leading semiconductor suppliers and Tier-1 manufacturers, coupled with the adoption of electronic components in advanced vehicles, strengthens India's position in the regional market.

Automotive Power Electronics Market in Rest of the World

The Rest of the World region, encompassing South America and the Middle East & Africa, shows promising growth potential in the automotive power electronics market. In South America, Brazil leads the market with significant potential for electric vehicle adoption and a focus on renewable power generation. The Middle East & Africa region demonstrates growth opportunities driven by increasing vehicle ownership rates and growing adoption of electric vehicles, particularly in countries like the United Arab Emirates and Saudi Arabia. Both regions benefit from constructive government support toward establishing electric vehicle infrastructure and rising customer demand for vehicle ownership.