Automotive power modules are expected to register a CAGR of more than 15% during the forecast period of 2022 to 2030. As a result of the decline in overall vehicle sales compared to the previous year, it is projected that the market for automotive power modules will experience consistent expansion. The power module is an essential component in the vehicle because of its contribution to the reduction of power losses, the enhancement of battery efficiency, the enhancement of power density, and the extension of mileage. It is recognised as an essential component of the automotive sector as a whole.
Exponential Demand for Electric Vehicle Remains as Key Driver
The urgency with which we must meet the energy demands of the future is driving a tremendous increase in consumer interest in electric vehicles. The demand for electric vehicles is being driven in large part by the imperative of developing environment friendly modes of transportation. Increasingly, the market for electric vehicles (EVs) is becoming recognised as an essential component of the automotive industry. This development paves the way for improved energy efficiency, as well as lower emissions of pollutants and other greenhouse gases.
Stringent Environment Regulations are Compelling the Focus on Electric Vehicles
The expansion of the market is being driven in large part by a number of causes, the most important of which are the growing number of concerns regarding the environment and the increasing number of programmes supported by the government. The increasing price of energy and the rivalry among new technologies that improve energy efficiency are also predicted to boost the expansion of this industry. In 2017, global sales of new electric automobiles surpassed the one million mark for the first time. When compared to 2016, this is an increase of almost 54 percent. In 2018, the sector surpassed the 2 million sales threshold for the first time.
Increasing Investment in R&D
As a result of this sea change in the automotive industry, companies are focusing on R&D initiatives with respect to electric vehicle power modules to check feasibility and launch new products. Infineon Technologies AG, Fuji Electric, Mitsubishi Electric, and Danfoss Group are some of the companies that are actively developing related products and that are expected to revamp their product portfolios over the course of the coming years. Other companies that are actively developing related products include Infineon Technologies AG and Danfoss Group. It is anticipated that this will contribute to the expansion of the market throughout the forecast period.
Passenger Vehicle Segment Dominated in 2021
The passenger vehicle segment dominated the market in 2021 and is also anticipated to account for the most revenue during the forecast period. Passenger vehicles make a dominant contribution in comparison to commercial vehicles. The increasing need for safety systems and technology that is efficient in its use of fuel that is related with vehicle power trains is one element that is propelling the domination of passenger vehicles. Over the past five or ten years, an increasing number of safety, comfort, entertainment, and vehicle control features have been made available for installation in passenger vehicles. This is due to a number of factors, one of which is the shifting preferences of vehicle buyers, reinforced by regulations passed by the government. The original equipment manufacturers (OEMs) are also quite active in the process of introducing new car models and variants that will satisfy the requirements of customers. Growing population in developing economies are another factor that encourages original equipment manufacturers to incorporate particular features into newer models of passenger vehicles. OEMs, Tier I companies, and Tier II companies all attempt to implement newly developed technologies and features in mass-produced vehicles that fall under the category of passenger vehicles. These are some of the factors that contribute to the passenger car segment of the automotive power electronics market holding the dominant position that it currently holds.
Asia Remains as the Global Leader
With almost 55% of the total market share, Asia-Pacific region remained as the largest market for automotive power modules in 2021. Following Asia in terms of market share is Europe, which accounted for approximately 22% in 2021. During the forecast period, it is anticipated that the majority of manufacture of automotive power modules will be from China and Japan. Because of the free trade agreement that exists between ASEAN and China, as well as the non-tariff barrier measures that exist in ASEAN nations, it is anticipated that the level of automotive power module imports into ASEAN countries will increase during the forecast period. The implementation of the aforementioned non-tariff barriers in Thailand is anticipated to encourage the importation of electric vehicle (EV) parts from China, particularly in light of the ASEAN-China free trade agreement.
Over Half of the Market Revenues Contributed by Top 3 Market Leaders
It is a highly consolidated market that is led by few market leaders.The businesses are broadening their position in the market by adopting mergers and acquisitions as the key strategy. Other strategy includes establishment of new production centres in order to meet the rising demand for power modules. Manufacturers of power module components and original equipment manufacturers (OEM) in the automobile industry have collaborated in an effort to enhance the functionality, safety, and efficiency of motor vehicles. They are taking united initiatives to develop power electronics for the electric auxiliary components. When it comes to electric vehicle applications, the utilisation of semiconductors in power modules is absolutely necessary in order to achieve cost competitiveness.The major participants include Infineon, Mitsubishi Electric, Fuji Electric, ON Semiconductor, STMicroelectronics, Hitachi Power Semiconductor Device, Semikron, Danfoss, ROHM, BYD, Starpower Semiconductor, and others. More than 50% of market share is contributed by top 3 players.
Historical & Forecast Period
This study report represents analysis of each segment from 2020 to 2030 considering 2021 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2022 to 2030.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Automotive Power Module market are as follows:
- Research and development budgets of manufacturers and government spending
- Revenues of key companies in the market segment
- Number of end users and consumption volume, price and value.
- Geographical revenues generate by countries considered in the report
- Micro and macro environment factors that are currently influencing the Automotive Power Module market and their expected impact during the forecast period.
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
Market Segmentation
By Module Type (2020-2030; US$ Million)
- Intelligent Power module
- Power Integrated module
By Vehicle Type (2020-2030; US$ Million)
- Passenger vehicles
- Light Commercial Vehicle
- Heavy Commercial Vehicle
By Drive Type (2020-2030; US$ Million)
- IC Engine vehicle
- Electric Propulsion
- Full Hybrid Vehicle
- Plug-in Hybrid Vehicle
- Battery Electric Vehicle
Region Segment (2020-2030; US$ Million)
- North America
- U.S.
- Canada
- Europe and UK
- UK
- Germany
- Spain
- Italy
- France
- RoE
- Asia Pacific
- China
- Japan
- India
- Australia
- South Korea
- RoAPAC
- Latin America
- Brazil
- Mexico
- RoLATAM
- Africa
- GCC
- Africa
- RoME
Global Impact of Covid-19 Segment (2020-2021; US$ Million )
- Pre Covid-19 situation
- Post Covid-19 situation
Key questions answered in this report
- What are the key micro and macro environmental factors that are impacting the growth of Automotive Power Module market?
- What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
- Estimated forecast and market projections up to 2030.
- Which segment accounts for the fastest CAGR during the forecast period?
- Which market segment holds a larger market share and why?
- Are low and middle-income economies investing in the Automotive Power Module market?
- Which is the largest regional market for Automotive Power Module market?
- What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
- Which are the key trends driving Automotive Power Module market growth?
- Who are the key competitors and what are their key strategies to enhance their market presence in the Automotive Power Module market worldwide?
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Table of Contents
Companies Mentioned
- Infineon
- Mitsubishi Electric
- Fuji Electric
- ON Semiconductor
- STMicroelectronics
- Hitachi Power Semiconductor Device
- Semikron
- Danfoss
- ROHM
- BYD
- Starpower Semiconductor
