Automotive Power Electronics Market Report 2026

The automotive power electronics market size has grown strongly in recent years. It will grow from $4.53 billion in 2025 to $4.77 billion in 2026 at a compound annual growth rate (CAGR) of 5.5%. The growth in the historic period can be attributed to electric vehicle adoption, semiconductor advancements, powertrain electrification, automotive electronics integration, efficiency improvement initiatives.

The automotive power electronics market size is expected to see strong growth in the next few years. It will grow to $5.83 billion in 2030 at a compound annual growth rate (CAGR) of 5.1%. The growth in the forecast period can be attributed to accelerated ev penetration, adoption of silicon carbide devices, demand for fast charging, vehicle electrification mandates, power density optimization. Major trends in the forecast period include shift toward wide bandgap semiconductors, increasing integration of power modules, rising demand for high-efficiency inverters, miniaturization of power electronics, growth of advanced thermal management.

The increasing production of hybrid electric vehicles (HEVs) is expected to drive growth in the automotive power electronics market moving forward. HEVs are vehicles that combine an internal combustion engine with an electric motor, offering improved fuel efficiency and the flexibility to use both electric and traditional fuels, which appeals to environmentally-conscious and cost-conscious consumers. Automotive power electronics play a crucial role in HEVs by efficiently managing and optimizing the flow of electrical energy between the internal combustion engine, electric motor(s), battery pack, and other components. For example, in April 2024, the International Energy Agency reported a nearly 35% increase in electric car sales in China during the first quarter of 2024 compared to the same period in 2023, with plug-in hybrid sales rising by approximately 75%. This growth underscores the expanding adoption of HEVs globally, which in turn is propelling the automotive power electronics market forward.

Major companies in the automotive power electronics sector are increasingly focused on developing innovative technologies, such as highly scalable Internet-of-Things (IoT) Software-as-a-Service (SaaS) solutions. These advancements aim to enable smarter, more energy-efficient vehicle systems, improve vehicle connectivity, and optimize performance through real-time data analytics and cloud-based tools. Highly scalable IoT SaaS refers to cloud-based software that can efficiently handle and analyze large volumes of data from interconnected devices, allowing for real-time monitoring, automation, and improved decision-making across various applications. For example, in April 2024, Siemens AG, a technology leader based in Germany, introduced Electrification X, an advanced IoT and SaaS platform designed to support electrification across multiple industries. Electrification X integrates energy systems with innovative digital tools to enable the digital management and optimization of electric infrastructure. The platform provides solutions for problem detection, asset optimization, and load balancing, helping industries streamline their power management. Additionally, Electrification X supports energy efficiency and sustainability initiatives within e-mobility.

In February 2024, Infineon Technologies AG, a semiconductor manufacturing company headquartered in Germany, completed the acquisition of GaN Systems Inc., a Canada-based manufacturer specializing in automotive power electronics components utilizing gallium nitride (GaN) semiconductor technology. The acquisition was undertaken to enhance Infineon's GaN portfolio significantly, aiming to accelerate innovation in power electronics. Infineon plans to leverage GaN Systems' advanced technology in gallium nitride to strengthen its position in the market and drive forward the development of next-generation automotive power solutions.

Major companies operating in the automotive power electronics market report include Robert Bosch GmbH, Hitachi Automotive Systems Ltd., LG Electronics Inc., Panasonic Corporation, Continental AG, Hyundai Mobis, Magna International Inc., Mitsubishi Electric Corporation, ABB Ltd., Toshiba Corporation, Texas Instruments Incorporated, STMicroelectronics, Infineon Technologies AG, Infineon Technologies, NXP Semiconductors N.V., Delta Electronics Inc., Analog Devices Inc., Renesas Electronics Corporation, ON Semiconductor, Microchip Technology Inc., Rohm Semiconductor, Vishay Intertechnology, Maxim Integrated, Fairchild Semiconductor, Allegro Microsystems, Cree Inc.

Asia-Pacific was the largest region in the automotive power electronics market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the automotive power electronics market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the automotive power electronics market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The automotive power electronics market consists of sales inverters, battery management systems, motor controllers, power distribution units, and electric power steering (EPS) systems. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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