Automotive Power Electronics Market Size, Share, Growth Analysis, By Device(power IC, and module & discrete), By Application(ADAS & safety, body control & comfort, infotainment, telematics), By Region - Industry Forecast 2024-2031

Global Automotive Power Electronics Market size was valued at USD 4.17 billion in 2022 and is poised to grow from USD 4.37 billion in 2023 to USD 6.30 billion by 2031, growing at a CAGR of 4.7% during the forecast period (2024-2031).

Power electronics is a vital field of electronics that focuses on regulating power fluctuations in various components, including monitoring diodes and transistors.

By utilizing solid-state circuit devices, power electronics effectively transmit current from the source to the load, optimizing energy conservation. These devices also have the unique ability to allow current to flow in both directions, resulting in higher system efficiency and the ability to withstand high power temperatures.

In modern automobiles, power electronics play a crucial role in both the interior and exterior systems, including telematics, infotainment, powertrain, safety, security, and body control. With their widespread use, power electronics have become an essential aspect of the automotive industry.

Additionally, factors such as the trade dispute between the US and China, as well as a temporary halt in raw material exports from China, had a profound impact on the global automotive power electronics market. However, as economic activities gradually resumed during the latter part of 2020, the industry is poised to regain momentum during the projected period.

In the pursuit of exceptional performance and affordability, the automotive sector is pouring substantial resources into research and development for cutting-edge electronics and energy storage technology. As a result, original equipment manufacturers are placing greater dependence on electronics to achieve unparalleled levels of safety.

The transformation of the automobile industry from traditional mechanical systems to the integration of electronic systems is a dynamic force propelling market growth. This evolution is particularly evident in the indispensable role of power electronics in powering critical aspects such as body electronics, chassis systems, telematics, safety and security, and infotainment systems, all contributing to the continuous expansion of this market.

An increasingly stringent focus on reducing carbon emissions worldwide has led to government regulations aimed at promoting vehicle electrification, thus playing a crucial role in driving market growth. At the same time, consumer demand for cutting-edge technology and enhanced safety features in their vehicles is also contributing to the expansion of the market.

With ongoing advancements in automotive technology and research efforts dedicated to improving power electronics for greater fuel efficiency, the global market is expected to experience continuous growth in the coming years.