The automotive power modules market is expected to grow at 13.5% CAGR from 2022 to 2029. It is expected to reach above USD 11.87 billion by 2029 from USD 3.8 billion in 2020.
The global automotive power modules market is expected to rise at a considerable rate during the forecast period. In 2021, the market is growing steadily and is expected to rise above the projected horizon because of the strategy adopted by key players. Power modules play a key role in minimizing power loss, improving battery efficiency, increasing power density, and extending driving range. It is considered an integral part of the automotive industry. Power module component manufacturers and automotive original equipment manufacturers (OEMs) are partnering to improve vehicle performance, safety, and efficiency. The collaboration is made to produce power electronics for electrical auxiliary units. The use of semiconductors in power modules is critical to achieve cost competitiveness in electric vehicle applications.
Rapid industrialization and rising trends regarding the use of electric vehicles are expected to drive the market growth. The demand for electric vehicles is developing rapidly to meet future power demands. The desire for sustainable transport plays a big role in the increasing demand for electric vehicles. The Electric Vehicle market has emerged as an important segment of the automotive industry and represents a way to achieve higher performance while reducing pollutant and other greenhouse gas emissions. Rising environmental concerns coupled with lucrative government initiatives are also some of the major factors contributing towards the growth of the market. Rise in improvements in energy efficient technologies are also expected to boost the market growth. Increasing vehicle production is accelerating the growth of the automotive power module market. In addition, the growth of this market is driven by the customer and the OEM's focus on minimizing strength loss, increasing current density and maximizing economic savings in power generation. One of the key factors driving the growth of this market is increasing resistance among companies issuing automotive power modules and increasing guidance on EV manufacturing by local governments. Sketch the body in car zones for different regions.
| ATTRIBUTE | DETAILS |
| Study period | 2020-2029 |
| Base year | 2021 |
| Estimated year | 2022 |
| Forecasted year | 2022-2029 |
| Historical period | 2018-2020 |
| Unit | Value (USD BILLION), (THOUSAND UNITS) |
| Segmentation | By type, by application, by region |
| By Module type
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| By Vehicle Type
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| By Region
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The growing adoption of power modules like smart power modules in the automotive sector worldwide, population growth, and improving economic systems in emerging and emerging economies provide ample opportunities for the growth of this market.
Lack of preferred protocols to improve power modules and increasing complexity of formats, impacting the upward trend in standard vehicle prices, are seen as the main aspects restraining the growth of this market.
The automotive industry had been adversely affected by the COVID-19 outbreak in December 2019. During the pandemic, many countries imposed lockdowns and closed businesses except for essential services (allowed with minimal staffing). However, many countries began gradually lifting lockdowns. COVID-19 led to a global economic crash; it had a significant impact on automotive power modules market. Due to a global shutdown the manufacturing and sales of connected trucks experienced a major downturn.
The pandemic led to disruptions in supply chain and there was a severe lack in the raw materials needed for the manufacturing of automotive power modules. Several operational constraints such as such as delivery delays were observed. The pandemic related uncertainty exerted a downward pressure on sales and revenues.
The automotive power module market is worth USD 4.89 billion and is forecasted to reach above USD 11.87 billion by 2029.
Asia-Pacific Test handler market was sized 2.68 billion in 2022 and is expected to grow at a rapid rate during the forecast period.
Rapid industrialization and rising trends regarding the use of electric vehicles are expected to drive the market growth. Rise in improvements in energy efficient technologies are also expected to boost the market growth. Increasing vehicle production is accelerating the growth of the automotive power module market. In addition, the growth of this market is driven by the customer and the OEM's focus on minimizing strength loss, increasing current density, and maximizing economic savings in power generation.
The automotive power module market key players include Infineon, Mitsubishi Electric, Fuji Electric, ON Semiconductor, STMicroelectronics, Hitachi Power Semiconductor Device, Semikron, Danfoss, ROHM, BYD, Starpower Semiconductor.
Automotive power devices are applied in various components, such as traction inverters, boost converters, air conditioners, on-board chargers, converters, and AC inverters. However, they have their main application in electric and hybrid vehicles.
Asia-Pacific region is forecasted to account for the maximum share and continue the trend during the forecast period. Asia-Pacific automotive power module market was sized 3.8 billion in 2020 and is expected to grow at a CAGR of 13.50% to USD 11.87 billion by 2029. The Asia-Pacific automotive power module market is experiencing rapid growth due to factors such as increased demand for electric and hybrid vehicles.
The automotive power modules market is segmented based on type, application and region, global trends and forecast.
By module type the market is bifurcated into intelligent power module (IPM) and power integrated module (PIM).
In terms of module type and power integrated module (PIM) dominates the market and holds around 51% of the total market share and is expected to show higher growth than intelligent power module in the forecast period.
In terms of Vehicle Type the market is divided into Passenger Cars and Commercial Vehicles.
Passenger cars segment holds the majority of market share is expected to show a higher growth in the forecast period due to the rise in demand of electric and hybrid vehicles.
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The automotive power module market key players include Infineon, Mitsubishi Electric, Fuji Electric, ON Semiconductor, STMicroelectronics, Hitachi Power Semiconductor Device, Semikron, Danfoss, ROHM, BYD, Starpower Semiconductor.
Recent Developments January 12, 2023; Mitsubishi Electric Corporation announced that it will invest 26.7 billion yen (about U.S.$ 222.5 BILLION), in its subsidiary company Mitsubishi Electric India Pvt. Ltd. to establish a factory to produce room air conditioners and compressors in India. Local production, targeted to start in October 2025, is expected to help the company meet growing demand in the Indian market. Initial annual capacity will total 300,000 room air conditioner outdoor units and, beginning in December 2025, 650,000 compressors. Dec 9, 2022 - STMicroelectronics presents new SiC power modulesSemiconductor company STMicroelectronics has introduced new silicon carbide (SiC) power modules. With five new module variants, OEMs are to be offered flexible options. The Hyundai Motor Group is the first customer on board. The Koreans use SiC technology in the Kia EV6, among others.
December 26, 2022; Mitsubishi Electric Corporation and Mitsubishi Heavy Industries, Ltd. announced that the two companies have reached a basic agreement to establish a joint venture to integrate their businesses in fields. It is expected that Mitsubishi Electric will be the majority shareholder and Mitsubishi Heavy Industries will be the minority shareholder of the new company.
Climate change caused by global warming has emerged as a common issue worldwide, and efforts to achieve carbon-neutrality, which would reduce greenhouse gas emissions to net zero, are accelerating around the world. Electricity demand is expected to increase due to economic growth mainly in emerging countries and awareness of energy security, and energy transitions has increased. In the future, existing thermal power generation will decarbonize its systems with fuel conversion to hydrogen, ammonia, and other carbon-free fuels focused on power generator systems.
The Test handler market by region includes North America, Asia-Pacific (APAC), Europe, South America, and Middle East & Africa (MEA).
Sales of electric vehicles are expected to increase during the forecast period due to rising emission standards across the globe. Automotive power module manufacturers are beginning to invest in expanding production capacity to meet the growing demand for electric vehicles. This is mainly done in the Asia-Pacific region due to the highest sales and high-volume exports of vehicles worldwide and in other countries. Tariffs on EV parts in ASEAN countries.
Automotive power module production is expected to occur primarily in Japan and China during the forecast period. The ASEAN countries module is the forecast period due to free trade agreements between ASEAN and China and non-tariff trade barriers for ASEAN countries.
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