Automotive Power Electronics refers to the electronic components and systems in the vehicle utilizing their potential to establish highly regulated control systems, conversion, and management of electric power in an automobile. These components and systems include inverters, converters, voltage regulators, and motor controllers, among others. They are essential for the efficient and safe operation of electric and hybrid vehicles.
Automotive power electronics are used to control the electric motor that powers the vehicle, ensuring that it operates efficiently and reliably. These systems are used to capture and store energy that would otherwise be lost during braking or deceleration, allowing the vehicle to reuse that energy later. Further, it controls various safety systems in vehicles, such as airbags, anti-lock braking systems, and electronic stability control systems.
Globally there is a shift toward electric and hybrid vehicles that create a demand for automotive power electronics products. As these vehicles become more popular, the demand for power electronics components such as inverters, converters, and motor controllers are increasing rapidly. Since power electronics are essential for optimizing the energy efficiency of internal combustion engines, as well as for controlling the electric motors used in hybrid and electric vehicles. As fuel efficiency becomes increasingly important for both economic and environmental reasons, the need for automotive power electronics is expected to continue to grow.
The Global Automotive Power Electronics Market has reached a value of $4.16 billion in 2022. This market is projected to grow from $4.38 billion in 2023 to $6.24 billion in 2030 with a CAGR of 5.2% in the forecast period of 2023-2030. This market is estimated based on different key pointers that attribute to the growth which are device types including Microcontrollers, Gate drivers, Power Discrete, Power Module, Power IC, power electric components such as DC/DC, AC/DC, DC/AC, and vehicle type including Passenger Vehicle, Light & Heavy Commercial Vehicle, Electric Vehicle. The major competitors such as Robert Bosch, Continental AG, Infineon Technology, STMicroelectronics, Danfoss, and NXP Semiconductors are leading components and service providers in the power electronics market.
The device-type Intelligent Power Modules (IPMs) hold a larger market presence that enables the automotive power electronics market in the recent predicted years. Since they integrate various components such as power semiconductors, driver circuits, and protection circuits in a single package, simplify the design process and reduce the overall system cost. This integration also enables smaller form factors, making IPMs ideal for use in applications where space is limited. Further, power modules enable high levels of automation in the automobile sector, allowing for precise control of motor speed, torque, and power output leading to enhance growth in the Automotive Power Electronics Market in the coming years as predicted.
An increase in the demand for safety systems and fuel-efficient technology associated with vehicle powertrains. Additionally, the increasing population in developing economies is encouraging OEMs to add specific features to new models of passenger vehicles to differentiate themselves from other products in the market. As a result, the passenger vehicle segment dominates the automotive power electronics market.
Asia Pacific Region holds a major position in the Automotive Power Electronics Market compared to other regions. Since they are having a high demand for vehicle production, and enhanced use of advanced electronic systems especially in regions including Japan, South Korea, and China. On the other hand, the government understands the growth of automotive sectors and indulged in implementing new initiatives to encourage the major OEMs to come and invest in their domestic market.
Additionally, China has adapted quickly to the use of electric vehicles which are currently sustaining the largest electric vehicle market in the coming years. This brings leading companies to establish electronic manufacturing units in the China region. All these drive the automotive power electronics market in the upcoming years as predicted.
It is evident from the shift towards utilizing electric vehicles and establishing the field for hybrid vehicles has made automotive power electronics a rapidly evolving field. So, it is the need of the hour for significant companies to keep up with the latest technological advancements can gain a competitive edge. Investing in research and development can help them stay ahead of the curve and develop innovative solutions.
The leading automobile manufacturing companies should build effective collaborations with the advanced original equipment marketers for power electronics components to bring new development in the automotive sector. This opened up a huge opportunity for suppliers and distributors of the automotive sector to involve in marketing by focusing on the region of a larger population base. This eventually improve the growth of the Automotive Power Electronic Market in the coming years.