Automotive Power Electronics Market is Growing at a 22% by 2027


The global automotive power electronics market is expected to grow at a CAGR of 22% over forecast period from 2020 to 2027 and to reach around US$ 24,218 million by 2027.

The increasing manufacturing and sale of plug-in hybrid electric vehicles (PHEVs) are expected to create significant opportunities for the power electronics market in the transportation application. Besides, the increasing number of charging stations propels the use of power electronic components, such as power management integrated circuits (PMICs), intelligent power modules (IPMs), insulated gate bipolar transistors (IGBT), and standard & power integrated modules. The advent of electric vehicles (EVs) is one of the most important steps in environmental conservation. They require an electric power supply instead of fossil fuel to function and, thus, are eco-friendly. This factor has fueled the growth of the electric vehicles market. As these vehicles completely rely on the electrical power supply, the adoption of electronic devices in the manufacturing of these vehicles is high. The growth of the EVs market is projected to have a significant impact on the power electronics market in the coming years.

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Increased Sales of E-vehicles to Propel Market Development

The major factor fueling the global automotive power electronics market is the surging demand for advanced technology power solutions for vehicles. Automotive power electronics are gadgets introduced in electric vehicles to control the high extent of voltage and to change varied electric power very proficiently. With the launch of high recurrence and high power changing gadgets, the uses of power electronic converters have increased exponentially.

Moreover, rising deployment upgraded convenience system and driver assistance framework and safety have been feeding development of automotive power electronics market.

Increased Cost of Electric Vehicles to Hamper Market Growth

Besides this, the increasing number of electric vehicles is as well a noteworthy factor propelling the development of automotive power electronics market. Electric vehicles are progressively getting to be well known as they are battery-based and don’t discharge harmful gases that harm the environment. Therefore, the automotive power electronics market is foreseen to observe significant development in the forthcoming years. For example, in the U.K., the revenue of petrol and diesel vehicles is foreseen to be prohibited by the 2040 as the government authorities are putting efforts improving the air quality in the environment. Because of this, the revenue of electric vehicles is probably going to shoot up significantly in the upcoming decade.

On the other hand, increased expense of electric vehicles fueling the sluggish growth is foreseen to test the automotive power electronics market.

The COVID-19 pandemic has led to the suspension of vehicle production and supply disruptions, which have brought the automotive industry to a halt. Lower vehicle sales will be a major concern for automotive OEMs for the next few quarters. According to experts, there is a slim chance of vehicle sale recovery in 2020. The automotive power electronics market, however, is expected to witness a significant boost in 2022 owing to the mandates by different countries. Before that, lower vehicle sales and abrupt stoppage in the development of new automotive technologies will result in sluggish growth of the automotive power electronics market in 2021.

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The passenger vehicle segment is expected to be the largest during the forecast period

The passenger vehicle segment makes a major contribution to the automotive power electronics market. The increased demand for safety systems and fuel efficient technology associated with vehicle power train in emerging markets are fueling factor for the dominance of passenger vehicle. From past 5 or 10 years, passenger vehicles are getting installed with number of safety, comfort, entertainment and vehicle management features. This is because of factor such as changing preferences of vehicle buyer supported by government legislations. OEMs are also quite active in launching new variants and new models of vehicle that will fulfill the need of customers. Increasing population in developing economies also encourage OEMs to add specific features in new models of passenger vehicles. This is done to highlight own products among other products available in the market. OEMs, Tier I and Tier II also try to deploy new technology or features in the mass produced vehicle among vehicle category, i.e. passenger vehicles. These are some of the factor that are responsible for the dominance of passenger vehicle segment in the automotive power electronics market.

Body control and comfort will have a major share in the automotive power electronics market during the forecast period

Body control and comfort application by application type segment dominates the automotive power electronics market. Body control and comfort comprise of sub-applications like TPMS, lighting, seat control, HVAC and start-stop module. Some of these are good to have applications/systems inside the vehicle. TPMS is a good to have feature for the safety of the vehicle. Lightings include both interior and exterior lightings. These are getting modern with the use of LED lights, Seat controls are getting advanced with the use of mechatronics actuators and control. HVAC is installed in almost every passenger vehicles now a days. Whereas, start-stop is growing rapidly specially in European and North American countries. Every sub-application of the body control and comfort segment is showing good growth. This because of most modern as well as customized features can be offered in these sub-applications. Customers across the globe like to have control of the vehicle interior and exterior features. These are some of the factors that fuel the market for body control and comfort and led this segment to hold maximum share in automotive power electronics market.

The Asia pacific automotive power electronics market is expected to hold the largest share by 2027.

China, South Korea, and Japan account for the largest share of the automotive power electronics market in the Asia Pacific region. The growth of the market in Asia Pacific can be attributed to the high vehicle production and increased use of advanced electronics in Japan, South Korea, and China. The governments of these countries have recognized the growth potential of the automotive industry and have consequently taken different initiatives to encourage major OEMs to enter their domestic markets. Several European and American automobile manufacturers such as Volkswagen (Germany), Mercedes Benz (Germany), and General Motors (US) have shifted their production plants to developing countries. Moreover, the region is a home of leading semiconductor suppliers. Easy availability of power electronics components and devices made the Asia Pacific the leading regional market for automotive power electronics.

Key Players

Prominent participants in the global automotive power electronics market include Infineon Technologies AG, Texas Instruments Inc., ON Semiconductor Corp., Renessa Electronics Corp., Mitsubishi Heavy Industries Ltd., Maxim Products Inc., NXP Semiconductors N.V., Qualcomm Ins., Robert Bosch GmbH, and Vishay Intertechnology Inc.

The global automotive power electronics market is segmented as below:

Electric Vehicle

  • Battery Electric Vehicles (BEV)
  • Hybrid Electric Vehicles (HEV)
  • Plug-in Hybrid Electric Vehicles (PHEV) 

Vehicle Type

  • Passenger Cars (PC)
  • Commercial Vehicles (CV)


  • Powertrain and Chassis
  • Body Electronics
  • Safety & Security Systems
  • Infotainment & Telematics
  • Others 


  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • The U.K
    • Germany
    • France
    • Norway
    • Rest of Europe
  • Asia Pacific (APAC)
    • India
    • China
    • Japan
    • Rest of APAC
  • Middle East and Africa (MEA)
    • GCC
    • South Africa
    • Rest of MEA
  • South America
    • Brazil
    • Rest of South America

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