Automotive Integrated Power Module Market Size - By Power, By Application, By Vehicle, By Sales Channel, Growth Forecast 2025 – 2034

Automotive Integrated Power Module Market Size

The global automotive integrated power module market size was valued at USD 3.6 billion in 2024 and is estimated to register a CAGR of 9.2% between 2025 and 2034. Targeting impediments in the sphere of electric vehicles is expected, to boost their procurement. Their increasing popularity is mainly driven by tighter emissions regulations and financial support from governments worldwide. Within EVs, Automotive Integrated Power Modules (AIPM) plays an essential role, as they manage the power flow to and from the battery and electric motor.
 

AIPM holders of electric vehicles dominate the global market with over 73% share. For example, IEA predicts total electric vehicle sales in 2023 to be roughly 14 million units. The proportion of electric cars sold out of total units increased from 4 in 100 cars in 2020 to 18% in 2023. This pattern is, with high probability, going to persist, if not enhance, as both consumers and automakers shift toward electric mobility.

Implementation of AIPM in some regions or countries is also driven by the need to introduce energy-efficient vehicles. With increasing positions of consumers on sustainability issues, automobile manufacturers now also direct efforts towards improving vehicle efficiency to decrease fuel use and carbon emissions. Electric and hybrid vehicle powertrains are further enhanced by integrated power modules which enable efficient power conversion. Energy input management optimizes vehicle efficiency actively. The tightening emissions requirement, coupled with the continuous emphasis on reducing fuel use, has resulted in the adoption of integrated power modules.
 

Automotive Integrated Power Module Market Trends

The emergence of new technologies like Silicon Carbide (SiC) and Gallium Nitride (GaN) semiconductors has improved power module performance and efficiency. These synthetic materials possess higher thermal conductivity, increased switching speeds, and improved energy efficiency compared to traditional silicon semiconductors. Integrated power modules that withstand and operate at high power densities and increased temperatures are now ideally suited for electric and hybrid vehicles with advanced powertrain systems.
 

In addition, improved system integration and miniaturization will contribute to the development of more compact and reliable integrated power modules which are economical and critical for next generation vehicles. Indeed, the complexity of thermal management is a major drawback for the market. Due to the switching and power conversion processes, Integrated power modules get high power loads and generate a lot of heat. To achieve reliability and module lifetime, efficient thermal management has to be put in place to ensure modules do not overheat. However, as vehicles are made more powerful, the effective heat management of IPMs becomes progressively difficult.
 

Automotive Integrated Power Module Market Analysis

Based on power, the market is divided into low power, medium power, and high power. In 2024, the medium power segment held a automotive integrated power module market share of over 40% and is expected to cross USD 3 billion by 2034. Medium power modules are important for effective energy transmission from the internal combustion engine (ICE) to the electric motor in HEVs.
 

A power module design for an HEV should be able to optimize the energy efficiency of both systems. Better power conversion, motor control, and battery management are some of the advancements made possible by medium power modules that improve vehicle performance and fuel economy.
 

Based on sales channel, the automotive integrated power module market is categorized into OEM and aftermarket. The OEM segment held a market share of around 74% in 2024. These advancements in power semiconductor technology are what is driving the segment growth. While power electronics have always been a core discipline for engineers in the automotive field, new advanced materials such as wide bandgap semiconductors are more efficient and cost effective than the conventional silicon semiconductors.
 

Therefore, more and more OEMs are using these advanced materials in the electric and hybrid vehicle powertrain systems. As automakers start to adopt these new technologies, the need for high performance modules is increasing.
 

U.S. dominated the North America automotive integrated power module market with a major share of over 80% in 2024 and the U.S. leads the market in the region. The growth of the market in the United States is propelled by the growth of automotive manufacturing for hybrid and electric vehicle platforms.
 

While automobile makers in the United States increase their spending into the production of hybrid and electric vehicles (HEV/EV), the market for electric power elements is starting to exist. In addition, the government of the United States is also spending on EV charger stations and giving incentives to those who purchase EVs which is increasing the production and use of EVs.
 

However, an important growth driver for the Europe automotive integrated power module market is the region’s devotion to environmental sustainability and strict emission laws. Europe is set to make much more aggressive cuts to carbon emissions than it has previously undertaken. Electric power components, especially in the automotive market are going to form a major part of the economy.
 

There is a tendency of Government legislation to attempt legislation enactment using the European Green Deal and the European Union's Fit for 55 plan which by 2030 aim to cut emissions by 55%. Because of this, there is a significant movement towards to electrification and reduction of emissions of the automotive industry, especially for gas and diesel engines, for which there are strong emphasis on electric and hybrid vehicles.
 

Industrialization and urbanization in emerging markets is fueling the growth of the Asia Pacific automotive integrated power module market. The region consisting of India, China, and Southeast Asia is reporting strong economic figures that correlate to an increase in the production and sales of vehicles. As these markets grow, the need for vehicles that are less harmful to the environment and more efficient increases as well, largely due to the rising pollution levels and governmental policies.
 

There is a growing need for thermal management and power efficiency in vehicles, and with these needs comes the requirement for automotive integrated power modules that are key to more energy efficient transport.
 

Automotive Integrated Power Module Market Share

Infineon and Mitsubishi hold a market share of over 10% in the automotive integrated power module industry. Infineon concentrates on the efficiency improvement and thermal management of IPMs powered by advanced semiconductors to achieve these goals. Serious investment in R&D is aimed at creating reliable, powerful, economical, and competitive electric and hybrid vehicles. Leading motor vehicle manufacturers allows Infineon to capture a larger market share due to its wide range of automotive applications, including IPMs.
 

Mitsubishi Electric pays particular attention to its unique power electronics developments in response to the heightened interest in electric mobility. The company is working on expanding its production resources and developing new smarts, efficient, and compact IPMs for both ICE and electric vehicles. Mitsubishi also cooperates with OEMs to offer specially designed, high-quality IPM products, thereby enhancing his competitiveness in the market.
 

Automotive Integrated Power Module Market Companies

Major players operating in the automotive integrated power module industry include:

• Denso
• Fuji
• Infineon
• Mitsubishi
• NXP Semiconductors
• ON Semiconductor
• Renesas
• Rohm
• STMicroelectronics
• Texas
   

Competitive analysis of the automotive industry integrated power modules market reveals that there are both international and regional competitors. There is also notable regional differentiation which makes it easier for manufacturers to serve specific customer segments in electric, hybrid and advanced internal combustion engine (ICE) vehicles.
 

International rivals are winning the competition through acquisition strategies and diversification by providing advanced power modules with several functions including power distribution, conversion, and control in a single small and efficient package. Their developments in thermal management, advanced lightweight materials, and next generation vehicle architectures help strengthen their market leadership in regions with a high demand for EV and stringent emission control regulations.
 

Regional vendors also actively participate by leveraging their knowledge of local market characteristics and provide affordable and customized solutions, for example, ensuring suitability for local vehicle models and compliance with local regulations. Nevertheless, the escalating need for improved efficiency, small size, and ruggedness of integrated power modules to accommodate sophisticated vehicle systems is forcing regional companies to either develop new technologies or seek alliances with stronger international competitors.
 

It is projected that the automotive integrated power module market will undergo extensive consolidation because of deepening M&A activity, which, on the one hand, is needed by local companies to catch up technologically and, on the other hand, to maintain or enhance competitive advantages. The integrated power module industry for automotive applications will, for sure, undergo deeper competitive restructuring because of this consolidation, which is anticipated to accelerate the implementation of new technology worldwide.
 

Automotive Integrated Power Module Industry News

• In September 2023, Vitesco Technologies released a novel power module. The company's innovative power module is based on the scalability and modularity of the power electronics at the Nuremberg electronics plant. Power module production started in Nuremberg, and delivery to a major global automobile manufacturer will begin in mid-2025.
   
• In January 2023, Renesas unveiled its latest automotive Intelligent Power Device (IPD) whose primary function is to enable flexible and safe power distribution control within the inside of vehicles. The new RAJ2810024H12HPD comes in a small size TO-252-7 package and takes approximately 40% lesser mounting area as compared to the conventional TO-263 package product.
   

The automotive integrated power module market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue ($Bn) and shipment (units) from 2021 to 2034, for the following segments:

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Market, By Power

• Low power
• Medium power
• High power

Market, By Application

• Powertrain system
• Battery management system
• Thermal management system
• Charging system
• Others

Market, By Vehicle

• Passenger vehicle
  • Hatchback
  • Sedan
  • SUV
• Commercial Vehicle
  • Light Commercial Vehicles (LCVs)
  • Heavy Commercial Vehicles (HCVs)

Market, By End Use

• OEM
• Aftermarket

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Southeast Asia 
• Latin America
  • Brazil
  • Mexico
  • Argentina 
• MEA
  • UAE
  • South Africa
  • Saudi Arabia