It is anticipated that the global market for automotive power semiconductors will expand at a compound annual growth rate (CAGR) of 5.5% during the forecast period, of 2023 to 2030. Strict regulations, the rising cost of transportation as a result of supply chain distortion, and a reduction in production activities due to Covid 19 caused the market growth of automotive power semiconductor components to significantly slow down. The rising cost of raw materials is the primary element that is contributing to the market's unfavorable price environment for transportation. Furthermore, increasing taxes charged by governments on electronic and electrical components is the primary issue that poses a challenge to the market dynamics all over the world after the epidemic.
Superior Technical Capabilities of Power Semiconductors Driving the Market Revenues
A power semiconductor is, in its most basic form, a device that functions in the power electronics module as either a rectifier or a switch. Alternating current is changed into direct current by rectifiers, which do this by letting a high voltage pulse pass through a one-directional circuit. Switches are utilized in virtually all areas of the automotive industry, including the powertrain, the braking systems of passenger and commercial vehicles, and the inverters and battery charging systems of electric vehicles. Normal semiconductors and power semiconductors have quite distinct differences in terms of their nodal and internal circuit architectures. As a result, power semiconductors are employed for applications that require them to handle high voltages and power. Power semiconductors have an outstanding capacity for withstanding significant damage in automobile electronics. This is necessary because certain devices, such as power chargers and motor mechanisms, call for high voltage capacitance. The factors that are regarded to be driving the growth of the automotive power semiconductor market include the increasing adoption of car safety systems as well as certain technological standards. During the time of the forecast, the expansion of the market is anticipated to be driven primarily by the rapidly expanding semiconductors and electronics industries, as well as by automotive applications around the world.
Focus on Environment Policies Compelling Demand for Electric Vehicles
A rise in global demand for electric vehicles as a result of government programmes aimed at achieving sustainable development and an increase in investments made toward the establishment of appropriate infrastructure for these vehicles. The federal government of the United States has approved an investment of $ 4 billion for the development of infrastructure for electric vehicles, in addition to $170 billion for the construction of roads, bridges, and charging stations suitable for EVs throughout the United States. United States accounted for around 7.2% of the world's shipments of electric vehicles in 2019. In addition, the growing demand for handling power modules in electric vehicles is anticipated to enhance the demand for power semiconductors in the automotive power semiconductor market. It is anticipated that factors such as improved vehicle pollution levels and the requirement for fuel-efficient systems would provide opportunities in the industry. Additionally, the rising use of power semiconductors in advanced vehicle driving systems as well as car infotainment is one of the important development drivers that is predicted to increase the demand in the market.
The primary factor that is regarded to be restraining the growth of the automotive power semiconductor market is the rising price of power semiconductors as a result of the growing number of applications of power electronics in the EV segment.
Hybrid Electric Vehicles Segment Leading the Automotive Power Electronics Semiconductors
The sales of hybrid electric vehicles totalled around 6.5 billion USD in the year 2020, according to estimates. Because there is a growing demand for hybrid vehicles, more and more power semiconductors are being integrated into electric vehicles (EVs) by their makers. This allows for a more enjoyable driving experience for customers. Power semiconductors are an essential component of many major automotive equipment, including the charging and powertrain systems of the battery, the engines, the control units, and the inverter mechanisms. Because of the growing demand for hybrid electric vehicles in the market and, as a result, the growing number of power semiconductors applications provided by manufacturers, it is anticipated that the market for hybrid electric vehicles will expand at a CAGR of 8% during the forecast period of 2023 to 2030.
The Powertrains Segment Dominates the Application Market
Increase in the design of plug-in hybrid electric vehicles, electric vehicles that run on batteries, and hybrid vehicles have contributed to an increase in the market's need for powertrains. Crankshafts, clutches, gears, drive shafts, torque converters, and other components help a vehicle generate power, and powertrains are made up of all of these components and more. The Powertrains segment maintained its dominant position in the market in 2021, and is anticipated to grow at a CAGR of 13% during the forecast period.
SiC Holds the Largest Share Among Other Materials
SiC dominated the market by materials in 2021. SiC has relatively lower power losses compared to a wide variety of other semiconductor materials, such as GaN, GaP, CdS, and PbS. A study found that the power output of SiC material is nearly four times higher than the combined output of a number of other materials. In addition to this, the current resistance capacity of SiC is considerably larger in applications involving power semiconductors. The primary element that is regarded to be driving the expansion of the silicon carbide industry is the rising need for electric vehicles to have a greater driving range.
APAC Remains as the Global Leader
In the Automotive Power Semiconductor Market, Asia Pacific region held the largest share, with approximately 53% of the total market in 2021. This is primarily due to the increasing production of electric vehicles in significant regions of the market, such as China and Japan. In addition, the growing populations in the regions have contributed to an increase in the market's demand for automobiles. The expansion of the market can be attributed to a number of causes, including increasing levels of government assistance as well as high levels of local production rates in each country. Because China is the largest manufacturer of automotive components, its market is the most dominant in terms of volume share, which was around 54% in 2021. Because significant players' investments in the industry have the increased in Indian market it represented a relatively strong share of 36% among the APAC countries in 2021. Europe is the region that is expanding at the highest rate in the Automotive Power Semiconductor Market. The existence of important manufacturers of Automotive Power Semiconductors in this region is one of the factors that are contributing to the growth of the market. Germany has the greatest market share, accounting for around 55 % of revenues in the European Union region in 2021. The key drivers in this region include well-developed infrastructure for the production of automotive components and the growing disposable income of customers. Because of the high number of key players operating in the region and the special government assistance given to electric vehicle manufacturers in order to boost the region's capacity for sustainable development, the market share held by North America is the most significant.
Technical Innovation to Enhance Market Presence of Top Tier Players
The key strategy adopted by the top tier is technological innovation. Technical differentiation along with price efficiency is the need of the hour that key market participants are trying to achieve. Key market players include Infineon Technologies, ST Microelectronics, Texas Instruments, NXP Semiconductors, and Others.
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
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 Semiconductors market are as follows:
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.
| ATTRIBUTE | DETAILS |
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| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Million |
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Region Segment (2022-2032; US$ Million)
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Key questions answered in this report
