Market Trends of Automotive Power Electronics Industry
This section covers the major market trends shaping the Automotive Power Electronics Market according to our research experts:
The Passenger Vehicle Segment Anticipated To Hold Largest Market Share
The passenger vehicle segment significantly contributes to the automotive power electronics market. The increased demand for safety systems and fuel-efficient technology associated with vehicle power trains in emerging markets are fueling factors for the dominance of passenger vehicles.
For the past 5 or 10 years, passenger vehicles are getting installed with various safety, comfort, entertainment, and vehicle management features. This is because of factors such as changing preferences of vehicle buyers supported by government legislation towards enhancing vehicle safety. OEMs are also quite active in launching new variants and models of vehicles that will fulfill the need of customers. Increasing populations in developing economies also encourage OEMs to add specific features in new models of passenger vehicles.
This is done to highlight one's products among other products available in the market. OEMs, Tier I, and Tier II also try to deploy new technology or features in the mass-produced vehicle category, i.e., passenger vehicles. These factors are responsible for the dominance of the passenger vehicle segment in the automotive power electronics market.
The Asia-Pacific Region is Likely to Dominate the Market
The Asia-Pacific Automotive Power Electronics Market is expected to hold a significant share in the market during the forecast period. China, South Korea, and Japan account for the largest share of the automotive power electronics market in the Asia-Pacific region. The Asian-Pacific region's market growth can be attributed to the high vehicle production and increased use of advanced electronics in Japan, South Korea, and China.
These countries' governments have recognized the automotive industry's growth potential and have consequently taken different initiatives to encourage major OEMs to enter their domestic markets. For instance,
- The Ministry for Road Transport and Highways (India) planned to adopt automotive power electronics features by 2022.
Moreover, the region is home to leading semiconductor suppliers and Tier-1 manufacturers. Hence, adopting electronic components in advanced vehicles post-pandemic is expected to drive market growth over the forecast period.
