Automotive Power Electronics Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Automotive Power Electronics Market is projected to expand from USD 11.69 Billion in 2025 to USD 18.05 Billion by 2031, achieving a CAGR of 7.51%. These power electronics consist of solid-state devices that are essential for converting and controlling electric power in vehicles, serving as vital elements in onboard chargers, DC-DC converters, and inverters. The market is primarily driven by the rapid global shift toward vehicle electrification, which is fueled by strict government emission mandates and the need for greater powertrain energy efficiency. This transition is creating significant demand for high-voltage components. For instance, the China Association of Automobile Manufacturers reported that new energy vehicle sales hit 12.87 million units in 2024, a 35.5% increase year-on-year that directly boosts the use of power management technologies.

Despite this growth, the industry faces a major hurdle regarding the high production costs of wide-bandgap materials, such as Silicon Carbide, when compared to conventional silicon. These higher material costs can restrict widespread adoption in price-sensitive vehicle categories and impede the extensive market penetration needed for lasting global expansion.

Market Drivers

The rapid global uptake of electric and hybrid vehicles serves as the main catalyst for market growth, requiring a significant increase in the production of DC-DC converters, onboard chargers, and inverters. This momentum is spreading from passenger vehicles to the commercial transport sector, thereby expanding the demand for heavy-duty power modules. As noted by the International Energy Agency (IEA) in its 'Global EV Outlook 2024' from April 2024, global electric car sales are expected to hit 17 million units in 2024, highlighting the substantial volume need for drivetrain parts. This surge compels suppliers to boost their manufacturing capabilities for reliable power management systems. Furthermore, data from the European Automobile Manufacturers’ Association (ACEA) indicates that registrations of electrically chargeable trucks in the EU rose by 51.6% in the first half of 2024, demonstrating the growing reach of electrification.

Technological progress in wide-bandgap semiconductors, especially Silicon Carbide (SiC), acts as a second major driver by facilitating the move to 800V architectures. These materials provide better switching efficiency than silicon, enabling manufacturers to increase vehicle range and shorten charging times. The impact on the market is clear as chip producers shift focus to these high-value substrates. For example, Onsemi reported in its 'Fourth Quarter and Full Year 2023 Earnings' in February 2024 that its silicon carbide revenue grew fourfold year-over-year in 2023, confirming the swift industrial adoption of these components. As production yield issues are resolved, incorporating SiC modules into traction inverters is becoming the norm for high-performance electric platforms.

Market Challenges

The elevated manufacturing expenses linked to wide-bandgap materials like Silicon Carbide pose a significant barrier to the growth of the automotive power electronics industry. While these materials offer better efficiency, they are considerably more costly to produce than standard silicon alternatives. This cost gap compels suppliers to set higher prices for converters and inverters, which in turn raises the retail price of electric vehicles. Consequently, automakers struggle to lower vehicle costs sufficiently to enter mass-market segments, effectively restricting the technology to premium models.

This economic obstacle limits the widespread adoption necessary for sustained market expansion. If vehicle prices stay high because of component costs, consumer interest tends to plateau or drop, creating a ripple effect that reduces orders for power management systems. According to the European Automobile Manufacturers’ Association, registrations of new battery electric vehicles in the EU fell by 43.9 percent in August 2024. This decline in vehicle adoption illustrates how cost-related difficulties directly suppress the potential for volume and revenue growth among power electronics manufacturers worldwide.

Market Trends

The trend of consolidating components into integrated power electronics units is reshaping the supply chain as manufacturers move from separate devices to unified "X-in-1" systems. This approach physically combines the DC-DC converter, onboard charger, and traction inverter into one compact unit, which greatly decreases the weight of high-voltage cabling and enhances thermal management. By integrating these essential functions, companies can maximize chassis space for larger batteries and reduce the total bill of materials. The market's shift toward this architecture is reflected in the financial results of major suppliers adopting these solutions. BorgWarner, in its 'Third Quarter 2024 Earnings Release' from October 2024, anticipates its full-year 2024 eProduct sales will hit roughly $2.4 billion, a growth driven largely by the commercial success of these integrated drive modules.

At the same time, the move toward modular and scalable power distribution systems is becoming a key strategy for handling the complexity of growing electric vehicle lineups. Rather than creating custom power electronics for each model, OEMs are increasingly utilizing standardized, flexible platforms that can be adapted across different performance levels, ranging from economy sedans to commercial trucks. This method enables the quick rollout of electrification technologies while cutting down on research and development costs. The industry's strong dedication to this scalable approach is evident in long-term order data. Vitesco Technologies stated in its 'Annual Report 2023' from March 2024 that it holds a total order backlog of approximately €58 billion, with over half related to electrification solutions, highlighting the sector's clear shift toward adaptable high-voltage architectures.

Key Players Profiled in the Automotive Power Electronics Market

• Infineon Technologies AG
• Texas Instruments Incorporated
• Renesas Electronics Corporation
• NXP Semiconductors
• STMicroelectronics
• Microsemi Corporation
• Vishay Intertechnology Inc.
• Semiconductor Components Industries LLC
• Toyota Industries Corporation
• Valeo Group

Report Scope

In this report, the Global Automotive Power Electronics Market has been segmented into the following categories:

Automotive Power Electronics Market, by Device Type:

• Power IC
• Module
• Discrete

Automotive Power Electronics Market, by Application Type:

• Body Electronics
• Safety and Security Electronics
• Powertrain

Automotive Power Electronics Market, by Propulsion Type:

• IC Engine Vehicle
• Electric Vehicle

Automotive Power Electronics Market, by Vehicle Type:

• Passenger Cars
• Commercial Vehicles

Automotive Power Electronics Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Automotive Power Electronics Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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