Automotive Power Electronics Market Size & Share 2023 to 2032
Market Size by Device (Power IC, Power Module), by Component (Microcontroller, Sensor), by Material, by Application (Chassis & Powertrain, Safety & Security System, Infotainment & Telematics, Body Electronics), by Vehicle Type, by Propulsion Type & Forecast.
Report ID: GMI6796
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Published Date: September 2023
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Report Format: PDF
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Authors:
Suraj Gujar, Ankita Chavan
Automotive Power Electronics Market Size
Automotive Power Electronics Market size was valued at USD 4.8 billion in 2022 and is anticipated to grow at a CAGR of over 4.5% between 2023 & 2032. The increasing modernization of vehicles is a significant factor driving the global market growth. As vehicles become more advanced and sophisticated, the demand for power electronics components rises. These components are essential for efficient energy management, motor control, and the operation of electronic systems within vehicles. As modernization continues to enhance vehicle performance and features, the need for power electronics solutions is expected to grow steadily, propelling the overall industry forward.
Automotive Power Electronics Market Key Takeaways
Market Size & Growth
Key Market Drivers
Challenges
Automotive power electronics refers to a specialized branch of electronics focused on the design, development, and application of electronic systems & components in vehicles. Their primary purpose is to control and manage electrical energy within the vehicle, facilitating tasks such as power distribution, electric propulsion in electric & hybrid vehicles, efficient energy conversion, and the operation of various vehicle systems including engine control units, infotainment systems, and Advanced Driver Assistance Systems (ADAS). Automotive power electronics play a crucial role in enhancing vehicle efficiency, performance, and functionality while reducing emissions & improving the overall driving experience.
The increasing overall cost of vehicles can be a pitfall for the automotive power electronics market as it reduces consumer affordability. Higher vehicle costs, driven by expensive power electronics components, can deter potential buyers and slow down-market adoption. This price sensitivity can hinder the widespread integration of advanced power electronics technologies in vehicles, potentially limiting market growth and the industry's ability to achieve economies of scale.
COVID-19 Impact
The COVID-19 pandemic impacted several markets including the automotive power electronics market in 2020. Lockdowns and supply chain disruptions caused production delays, leading to reduced product availability. Lower consumer spending and economic uncertainties hampered vehicle sales, affecting the demand for power electronics. The pandemic also reduced manufacturing capacity and increased production costs, impacting market growth. Supply chain bottlenecks including semiconductor shortages further strained the industry, limiting the availability of critical components. The pandemic also prompted a shift in consumer priorities away from vehicle purchases, impacting the market's recovery. Overall, COVID-19 exposed vulnerabilities in the automotive supply chain and disrupted the growth trajectory of the market.
Automotive Power Electronics Market Trends
The automotive power electronics industry is witnessing the rapid adoption of electric vehicles, driven by heightened environmental awareness and government incentives. This surge has fueled the demand for advanced power electronics components, such as inverters and battery management systems, to enhance EV efficiency & range. The emergence of wide-bandgap semiconductor technologies, such as silicon carbide & gallium nitride, is improving power electronics performance, enabling higher power densities and longer battery life. The integration of autonomous driving features, growing interest in connected vehicles, and the continuous push for more energy-efficient solutions further define the evolving landscape of the market.
Automotive Power Electronics Market Analysis
Based on vehicle type, the automotive power electronics market is divided into passenger vehicle, light commercial vehicle, and heavy commercial vehicle. The passenger vehicle segment dominated the market with USD 3 billion in revenue in 2022. Passenger vehicles are witnessing substantial growth due to their pivotal role in the industry's electrification drive. The rising popularity of electric & hybrid passenger vehicles in the region is a primary factor driving market growth. These vehicles heavily rely on advanced power electronics for their propulsion systems & energy management. Additionally, the increasing consumer demand for eco-friendly & energy-efficient transportation solutions amplify the adoption of power electronics in passenger cars. The integration of sophisticated infotainment systems, safety features, and connectivity further escalates the need for power electronics. As governments worldwide promote emission reductions and offer incentives for electric vehicles, the passenger vehicle segment remains a key growth driver for the market.
Based on device, the automotive power electronics market is divided into power IC and power module. The power IC segment held a market share of over 70% and generated a market revenue of over USD 3 billion in 2022. It is expected to grow at a lucrative pace by 2032. Power ICs offer high power density and thermal performance, enabling better energy management in vehicles. Their integration simplifies circuitry, reducing the space required, which is crucial in modern vehicles with limited room. Power ICs also enhance reliability by reducing the number of discrete components, minimizing failure points. This streamlining benefits electric & hybrid vehicle, where power electronics are pivotal. Furthermore, power ICs align with automakers' goals for lightweight, energy-efficient systems. As automotive electrification develops, power ICs will continue to play a pivotal role in optimizing power management, contributing to the industry's growth.
Asia Pacific held a significant market share of over 30% in 2022. The region, home to major automotive manufacturers & a burgeoning middle class, is witnessing an increased demand for vehicles. Governments in countries such as China and India are promoting electric & hybrid vehicles to reduce emissions and dependency on fossil fuels. This push aligns with the global shift toward sustainable transportation. Additionally, advancements in technology and manufacturing capabilities in the region have made it a hub for automotive power electronics production. These factors, coupled with the region's vast market potential, make Asia Pacific a significant growth driver for the automotive power electronics market.
Automotive Power Electronics Market Share
Major companies operating in the automotive power electronics market are
The competitive landscape is characterized by continuous innovation as companies strive to improve their offerings with new technologies, integrations, and partnerships.
Automotive Power Electronics Industry News
The automotive power electronics market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue & volume (USD Million) and shipment (Million Units) from 2018 to 2032, for the following segments:
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By Device
By Component
By Material
By Application
By Vehicle Type
By Propulsion Type
The above information is provided for the following regions and countries:
Research methodology, data sources & validation process
This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.
Our 6-step research process
1. Research design & analyst oversight
At GMI, our research methodology is built on a foundation of human expertise, rigorous validation, and complete transparency. Every insight, trend analysis, and forecast in our reports is developed by experienced analysts who understand the nuances of your market.
Our approach integrates extensive primary research through direct engagement with industry participants and experts, complemented by comprehensive secondary research from verified global sources. We apply quantified impact analysis to deliver dependable forecasts, while maintaining complete traceability from original data sources to final insights.
2. Primary research
Primary research forms the backbone of our methodology, contributing nearly 80% to overall insights. It involves direct engagement with industry participants to ensure accuracy and depth in analysis. Our structured interview program covers regional and global markets, with inputs from C-suite executives, directors, and subject matter experts. These interactions provide strategic, operational, and technical perspectives, enabling well-rounded insights and reliable market forecasts.
3. Data mining & market analysis
Data mining is a key part of our research process, contributing nearly 20% to the overall methodology. It involves analysing market structure, identifying industry trends, and assessing macroeconomic factors through revenue share analysis of major players. Relevant data is collected from both paid and unpaid sources to build a reliable database. This information is then integrated to support primary research and market sizing, with validation from key stakeholders such as distributors, manufacturers, and associations.
4. Market sizing
Our market sizing is built on a bottom-up approach, starting with company revenue data gathered directly through primary interviews, alongside production volume figures from manufacturers and installation or deployment statistics. These inputs are then pieced together across regional markets to arrive at a global estimate that stays grounded in actual industry activity.
5. Forecast model & key assumptions
Every forecast includes explicit documentation of:
✓ Key growth drivers and their assumed impact
✓ Restraining factors and mitigation scenarios
✓ Regulatory assumptions and policy change risk
✓ Technology adoption curve parameter
✓ Macroeconomic assumptions (GDP growth, inflation, currency)
✓ Competitive dynamics and market entry/exit expectations
6. Validation & quality assurance
The final stages involve human validation, where domain experts manually review filtered data to identify nuances and contextual errors that automated systems might miss. This expert review adds a critical layer of quality assurance, ensuring data aligns with research objectives and domain-specific standards.
Our triple-layer validation process ensures maximum data reliability:
✓ Statistical Validation
✓ Expert Validation
✓ Market Reality Check
Trust & credibility
Verified data sources
Trade publications
Security & defense sector journals and trade press
Industry databases
Proprietary and third-party market databases
Regulatory filings
Government procurement records and policy documents
Academic research
University studies and specialist institution reports
Company reports
Annual reports, investor presentations, and filings
Expert interviews
C-suite, procurement leads, and technical specialists
GMI archive
13,000+ published studies across 30+ industry verticals
Trade data
Import/export volumes, HS codes, and customs records
Parameters studied & evaluated
Every data point in this report is validated through primary interviews, true bottom-up modelling, and rigorous cross-checks. Read about our research process →