Automotive Power Modules Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The increasing emission standards across the world are likely to drive more electric vehicle sales during the forecast period. Thus, to meet the growing demand for EVs, the manufacturers of automotive power modules have started investing in extending their production capacity, majorly in Asia-Pacific, owing to its highest sales and large exports of vehicles across the world, as well as non-tariff on EV parts among ASEAN countries.

The production of automotive power modules is likely to be carried out majorly in Japan and China during the forecast period. For instance, Imasen Electric Industrial Co. Ltd, a Japan-based company, planned to start the production of electric control units for the battery management system of automotive lithium-ion batteries at its Hiroshima Plant in 2018.

The imports of automotive power modules across the ASEAN countries are likely to rise during the forecast period, due to the free trade agreement between ASEAN and China, as well as non-tariff barrier measures in ASEAN countries. For instance, in Thailand, the Board of Investment (BOI) approved promotional privileges for electric vehicles in 2017, including tax holidays of 5-8 years. The promotion includes cars, pickup trucks, and buses, with different rates of privileges based on production technology. The BOI also agreed to add 10 more important EV parts that will offer corporate income tax exemption for 8 years. The EV parts include batteries, traction motors, DC-DC converters, inverters, battery management services, electric circuit breakers, portable electric vehicle chargers, and EV smart charging systems. The above non-tariff barrier measures in Thailand are likely to drive EV parts imports from China, majorly in the light of the ASEAN-China free trade agreement.