The global automotive power electronics market is set to achieve a valuation of US$ 6 billion by 2033, advancing at 4.1% CAGR from 2023 to 2033, as per this new industry analysis by Fact.MR, a market research and competitive intelligence provider.
Power electronics is a general term that refers to a category of solid-state devices used for power regulation and conversions, such as silicon-controlled rectifiers (SCRs), diodes, thyristors, power MOSFETs, gate turn-off thyristors, and many others. They have a significant role in the control of automotive electronics. Automotive electronics is a sophisticated term formed from power electronic devices and their applications in modern electric power steering, seat control, braking systems, central body management, HEV main inverters, etc.
Increasing acceptance of electric vehicles (EVs) is the main factors driving the global automotive power electronics market. Electric vehicles are seen as a critical transition toward modern mobility solutions, providing a cleaner and more efficient method of transportation than traditional automotive. Depleting fuel resources and public uproar over rising pollution levels have fueled the demand for electric vehicles worldwide.
Compliance with safety and vehicle emission norms, as well as rising demand for vehicle connectivity, infotainment, and powertrain electrification, is expected to propel the global automotive power electronics market over the forecast period. The usage of electronics in powertrain systems is predicted to expand at a higher rate throughout the forecast period due to growing efforts by regional governments and environmental agencies to reduce emissions levels through the use of environmentally-friendly automobiles (i.e., hybrid and electric vehicles).
Key Takeaways from Market Study
- The global automotive power electronics market amounted to US$ 4 billion in 2023.
- Worldwide demand for automotive power electronics is estimated to increase at a CAGR of 4.1% from 2023 to 2033 (forecast period).
- The market is forecasted to reach a size of US$ 6 billion by 2033.
- Asia Pacific accounted for 38.7% share of the worldwide market in 2022.
- The passenger cars segment is predicted to evolve at a CAGR of 3.7% during the forecast period.
“Global automotive power electronics market projected to witness considerable growth due to increasing modernization of vehicles, expanding demand for vehicle electrification, and rising need for connected car devices,” says a Fact.MR analyst.
Asia Pacific is leading the global automotive power electronics market. Japan and South Korea are aiding the market growth in Asia Pacific due to the increasing production of automobiles.
The North American market is expanding significantly. The United States is ruling the North American market due to the presence of major electric vehicle makers such as Tesla. Furthermore, Germany is contributing substantially to the European market growth due to the growing adoption of electric vehicles.