Automotive Power Electronics Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The Automotive Power Electronics Market is expected to grow at a CAGR of around 6.1%, from $32.55 billion in 2024 to $65.41 billion by 2035. The market is expected to grow at a CAGR of 6.5% from 2025 to 2035. This is due to the growing demand for electric vehicles and the need for energy-efficient power management systems. Power electronics play an important role in improving vehicle performance and efficiency. The development of semiconductor materials and the integration of smart power electronics are expected to drive the market. For example, the development of wide bandgap semiconductors is expected to provide higher efficiency and better cooling, which is needed for next-generation electric and hybrid vehicles. The leading companies in the market, such as Infineon, Texas Instruments, and ST Microelectronics, are actively investing in R & D, forming strategic alliances, and launching new products to take advantage of these opportunities. These activities not only help the company's position in the market, but also help the industry's development.

Regional Market Size

Regional Deep Dive

The world market for automobile power electronics is growing rapidly on account of the increasing demand for electric vehicles, the development of semiconductor technology, and the shift towards more energy-efficient automobile systems. The market is characterized by the diversity of local regulations, technological developments, and preferences. North America is focusing on the acceptance of electric vehicles and the development of charging infrastructure. Europe is the leader in terms of the framework for regulating emissions. Asia-Pacific is a center for production and innovation. The Middle East and Africa are gradually adopting electric mobility. And Latin America is searching for sustainable mobility solutions.

Europe

• The European Union has implemented the Green Deal, which aims to make Europe the first climate-neutral continent by 2050, significantly impacting the automotive sector and accelerating the adoption of power electronics in EVs.
• Companies like Volkswagen and BMW are investing in research and development for advanced power electronics, focusing on improving energy efficiency and reducing the carbon footprint of their vehicles.

Asia Pacific

• China is rapidly expanding its electric vehicle market, with government policies supporting the development of power electronics technologies, making it a global leader in EV production and innovation.
• Japanese firms such as Toyota and Panasonic are collaborating on next-generation power electronics solutions, including solid-state batteries, which are expected to revolutionize the automotive industry.

Latin America

• Brazil is seeing a rise in electric vehicle adoption, supported by government incentives and local manufacturing initiatives, which is driving the demand for automotive power electronics.
• Companies like BYD are establishing production facilities in Latin America, focusing on electric buses and vehicles, which will require advanced power electronics for efficient operation.

North America

• The U.S. government has introduced various incentives for electric vehicle purchases, which is driving the demand for automotive power electronics, particularly in states like California that have stringent emissions regulations.
• Major companies such as Tesla and General Motors are investing heavily in power electronics technology to enhance the efficiency and performance of their electric vehicles, leading to innovations in battery management systems and power converters.

Middle East And Africa

• Countries like the UAE are investing in electric vehicle infrastructure, including charging stations, which is expected to boost the demand for automotive power electronics in the region.
• Local initiatives, such as Saudi Arabia's Vision 2030, aim to diversify the economy and promote sustainable transportation, leading to increased interest in electric mobility and related technologies.

Did You Know?

“Did you know that the automotive power electronics market is expected to play a crucial role in the transition to electric mobility, with power electronics accounting for up to 30% of the total cost of electric vehicles?” — International Energy Agency (IEA)

Segmental Market Size

Power electronics play a crucial role in the automotive market, especially in the field of electrification and advanced driver assistance systems. In the meantime, the growth of this market is being driven by the growing demand for electric vehicles and the increasingly stringent requirements on reducing CO2 emissions. The demand for sustainable mobility solutions is based on the increasing preference of consumers for sustainable mobility solutions, as well as the development of power semiconductors that increase the efficiency and performance of power conversion. In the meantime, the introduction of power electronics in vehicles is at the stage of industrialization. Tesla and Volkswagen are at the forefront of integrating this technology into their EV models. The main applications are the electric drivetrain, the battery management system and the power conversion system, which is essential for the energy-efficient operation of the vehicle. The macro-economic factors such as zero-emission vehicle policies and the drive for sustainability will also accelerate the development of this market. Furthermore, the development of wide-bandgap semiconductors and the integration of power devices will bring about a more efficient and compact design of modern vehicles.

Future Outlook

“In the period 2024 to 2035, the market for automobile power electronics is expected to grow at a strong CAGR of 6.55%. This growth is mainly due to the increasing shift towards electric vehicles and hybrid electric vehicles, which are expected to dominate the automobile market in the future. By 2035, it is expected that electric and hybrid vehicles will account for more than 30 % of the total global vehicle sales, which will require the development of new and more efficient power electronics solutions for energy management, battery management and electric drivetrains. The development of wide bandgap semiconductors (such as silicon carbide and gallium nitride) is expected to revolutionize power electronics by increasing efficiency and reducing heat losses. In addition, government support for the reduction of carbon dioxide emissions and the promotion of sustainable transport will further drive the market growth. The integration of power electronics into smart grids and the development of self-driving vehicles will also play an important role in shaping the future market landscape for automobile power electronics. As the industry evolves, the market players need to keep their finger on the pulse of the industry and seize the opportunity to provide the world with more and more efficient power solutions.