Market Research Report
Automotive Power Electronics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)
|Automotive Power Electronics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)|
Published: July 1, 2021
Mordor Intelligence Pvt Ltd
Content info: 90 Pages
Delivery time: 2-3 business days
The Automotive Power Electronics Market was valued at USD 3 billion in 2020 and is expected to reach USD 5 billion by 2026 registering a CAGR of above 4% during the forecast period (2021 - 2026).
The COVID-19 pandemic has severely impacted the automotive industry across the world. The disruptions in supply chain activities, the interruption in large-scale manufacturing, restrictions on travel, and the declining sales of light vehicles during 2020, are responsible for the declining growth of the market.
Besides, the U.S.-China trade war and halt in the export of raw materials from China have impacted market revenue. However, as economic activities resumed post pandemic market is expected to regain its momentum during the forecast period.
Compliance with upcoming safety, vehicle emission mandates and increasing demand for vehicle connectivity, infotainment and powertrain electrification will drive the market for automotive power electronics. In addition, rising market for electric vehicles likely to drive the demand in market.
Asia-Pacific region is expected to dominate the market followed by Europe and North America during forecast period. Europe and North America to witness positive growth during forecast period owing to rising demand for electric vehicles in the region.
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 factors that are responsible for the dominance of passenger vehicle segment in the automotive power electronics market.
Asia-Pacific Automotive Power Electronics Market expected to hold significant share in market during the forecast period. 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 region 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. For instance,
Moreover, the region is a home of leading semiconductor suppliers and Tier-1 manufacturers. Hence, adoption of electronic components in advanced vehicles, post pandemic, expected to drive the market growth over the forecast period.
The Automotive power electronics market is moderately consolidated with major players dominating the market. Companies are focusing on expanding its product portfolio and are investing in R&D activities to develop advanced products. For instance,
Some of the major companies dominating the automotive power electronics market include NXP Semiconductors, Infineon Technologies AG, Texas Instruments Incorporated, Renesas Electronics Corporation, and STMicroelectronics.