Automotive Power Modules Market Size, Share & Industry Analysis, By Type (SiC MOSFETs and Si IGBTs), By Vehicle Type (Passenger Cars and Commercial Vehicles), By Propulsion Type (Battery Electric Vehicle (BEV) and Hybrid Electric Vehicle (HEV)), By Application (Traction Inverter, DC-DC Converter, and On-Board Charger), and Regional Forecasts, 2023-2030

The global automotive power modules market size was valued at USD 4.53 billion in 2022 and is projected to grow from USD 6.49 billion in 2023 to USD 21.81 billion by 2030, exhibiting a CAGR of 18.89% during the forecast period.

Automotive power modules play an essential role in the power electronics elements. These modules are high-power electric components with one or several components combined into a single, isolated power unit or module. These efficient technologies are responsible for high-voltage power conversion in hybrid and pure battery electric vehicles, primarily used in traction inverters, on-board chargers, and DC-DC converters.

Power modules have gradually gained widespread adoption in automotive applications due to their versatility in power conversion applications. Traditionally, individual units and discrete electronic components such as MOSFETs, diodes, and transistors were used for similar purposes. However, the increased development of electrification technology in recent years has evolved power conversion electronics. The trend of electrification has played a major role in the innovation and global adoption of these modules.

COVID-19 IMPACT

Imbalance in Supply Chain Caused by Inadequacy in Semiconductor Production Rate Created its Shortages Globally

The COVID-19 outbreak temporarily shut down factories and manufacturing units, suspending work operations across various automotive industries. This created uneven supply and demand relations, resulting in improper inventory management and a supply shortage. It affected various economies and end users, from chip manufacturers to OEMs to auto manufacturers and consumers, resulting in a shortage of high-demand semiconductor products in automotive and other industries.

The post-pandemic scenario witnessed significant growth, particularly in power module operations in the automotive markets. In 2021 and 2022, this sector witnessed an economic upswing fused with a high demand for various power module products, driven by the increased demand for electric vehicles during these years. For instance, according to the International Energy Agency (IEA), the first quarter of 2023 recorded EV sales surpassing 2.3 million cars, marking a 25% increase from the previous year. The increased adoption of electrification technology has provided a substantial boost to the power module and EV electronics market. Additionally, the supply of specific chips resulted in the innovation and integration of advanced materials, such as silicon carbide (SiC), for EV applications.

LATEST TRENDS

Growing Shift toward Adoption of Silicon Carbide MOSFETs for Higher Efficiency

The increased focus within the automotive Electric Vehicle (EV) manufacturers on integrating Silicon Carbide MOSFETs (SiC MOSFETs) has been increasing over the last couple of years. Initially, Tesla incorporated SiC MOSFETs into its electric vehicles to enhance vehicle efficiency and provide higher power conversion rates with lower losses for their electric motors.

Many leading players in the electric vehicle landscape have gradually introduced SiC MOSFET modules by replacing Silicon Insulated-Gate Bipolar Transistors (IGBTs) in their EV inverters. The adoption of SiC MOSFETs is still in its preliminary stages, with a cost that is 3-4 times that of regular Si IGBT modules, attributed to the integration of silicon carbide as a material for MOSFETs. However, with the increasing integration of SiC MOSFETs for various applications in EVs, the market is expected to grow significantly during the forecast period.

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DRIVING FACTORS

Increasing Demand for Lower Switching Losses in Voltage Conversion is Expected to Drive the Market

Leading automakers are focused on improving the efficiency of electric vehicles and motors by minimizing power loss and increasing their overall efficiency. Most electric vehicles currently utilize Si IGBT power modules for power or voltage conversion. To boost the efficiency of electric motors, electric vehicle manufacturers aim to incorporate advanced power components into their mechanisms to reduce power loss and improve the speed and conversion rates of these modules.

The integration of advanced automotive power modules, such as SiC MOSFETs, enables inverters to switch to higher frequency voltages at a faster rate compared to Si IGBTs, ultimately enhancing the overall efficiency of the process. Consequently, the increased adoption of SiC power modules is expected to reduce the switching losses in voltage conversion and increase demand for these modules during the forecast period.

Growing Development of EV Infrastructure Worldwide is Expected to Drive Market

The increasing consumer preference for electric vehicles over conventional ICE vehicles is a noteworthy trend. As more consumers embrace electrification technology, the demand for electric vehicles is anticipated to skyrocket over the forecast period.

The proliferation of EV charging stations and battery replacement centers in developing and developed economies further encourages consumers to purchase EVs without concerns about range anxiety and performance. Additionally, government initiatives to incorporate electric vehicles into public transportation fleets and commercial vehicle fleets, such as electric garbage trucks and others, are expected to surge the demand for electric vehicles in the coming years. This, in turn, is anticipated to create a high demand for these modules during the forecast period.

RESTRAINING FACTORS

High Cost Associated with Power Modules and Switching Devices to Hamper Market Growth

Automotive power modules have proven to be highly beneficial for high-power voltage conversions for various applications within electric vehicles. The increasing integration of electric vehicles on the roads has generated higher demand for these modules worldwide. However, the shortage of Si IGBT semiconductors, paired with the high demand for power modules in EVs, has exacerbated the situation, resulting in price hikes and delayed production. Additionally, automakers are shifting toward SiC MOSFETs over Si IGBTs owing to higher switching rate and lower power losses. However, SiC MOSFETs are highly expensive and cost approximately three to four times that of Si IGBTs. Consequently, these factors are predicted to hamper the adoption of these modules during the forecast period.

SEGMENTATION

By Type Analysis

High Demand for Si IGBTs Power Modules over SiC MOSFETs Owing to Low-Cost Drives Market

Based on type, the market is segmented into Si IGBTs and SiC MOSFETs.

The Si IGBTs segment held the dominant market share in 2022 and is estimated to endure its position in the market throughout the forecast period. Si IGBT power modules are widely used for high-power frequency conversions in electric vehicles. These modules serve as switching devices, transforming the voltage frequency from the battery into an inverter, and supplying high voltage power to the electric motor. The growing demand for EVs and cost-effectiveness of Si IGBTs are major factors surging the demand for Si IGBT modules.

The SiC MOSFETs segment is expected to exhibit the highest CAGR throughout the forecast period due to their higher efficiency compared to Si IGBTs. Lower switching losses and faster high-power conversion rates are significant factors propelling the adoption of SiC MOSFETs, further contributing to the segment’s growth.

By Vehicle Type Analysis

Higher Consumer Preference Toward Electric Vehicles to Drive the Growth of Passenger Cars Segment

Based on vehicle type, the market is segmented into passenger cars and commercial vehicles.

The passenger cars segment dominated the automotive power modules market share in 2022 due to high demand witnessed in the passenger cars segment during that year. The passenger cars segment is known for its innovation, driven by the enduring consumer demand for vehicle ownership. Additionally, a large consumer base seeking private vehicle ownership contributes to higher sales in the passenger cars segment, consequently driving substantial demand in this segment.

The commercial vehicles segment is expected to experience the highest CAGR due to growing sales of electric commercial vehicles in North America and Europe. Electrification integration proves highly beneficial for commercial buses and trucks following fixed routes. Consequently, transit bus networks and regular truck operators are increasingly introducing electric vehicles into their existing fleets. Moreover, the increasing integration of electric buses, garbage trucks, electric utility vehicles, and other commercial vehicles in various regions is expected to fuel the market growth.

By Propulsion Type Analysis

Well-supported Infrastructure for Battery Charging in Metropolitan Cities Surges the Demand for Battery Electric Vehicles

Based on propulsion type, the market is segmented into Battery Electric Vehicle (BEV) and Hybrid Electric Vehicle (HEV).

The battery electric vehicle segment held the largest market share in 2022 and is expected to maintain its dominance throughout the forecast period. Well-established EV charging infrastructure in metropolitan areas encourages consumers to opt for battery electric vehicles over hybrid EVs, attributing to its market share. The rising awareness of climate change and air pollution has drawn more attention to vehicles with lower or no exhaust emissions. BEVs produce zero tailpipe pollutants, making them appealing to environment conscious consumers.

The hybrid electric vehicle segment is expected to register a decent growth, owing to the increasing demand for hybrid electric vehicles in less-developed regions where EV infrastructure is limited. The availability of charging stations encourages people to opt for hybrid vehicles on a global scale. Moreover, hybrid electric vehicles serve as a bridge between ICE and pure electric vehicles, which is expected to increase sales of hybrid electric vehicles and drive the adoption of electrification technologies in various regions.  

By Application Analysis

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Increased Integration of SiC Power MOSFETs to Reduce Switching Loss in Traction Inverters Fuels Market Growth

Based on application, the market is classified into traction inverter, DC-DC converter, and on-board charger.

The traction inverter segment led the market share in 2022 and is expected to maintain its dominance during the forecast period. The demand for higher-frequency power modules in traction inverters, which convert electric energy from the battery into a higher voltage output for the electric motor, is driving the growth of this segment. Additionally, the demand for switching devices with lower switching loss further contributes to its rapid market expansion.

The DC-DC converter and on-board charger segments are also expected to witness significant growth during the forecast period. This growth is attributed to technological advancements in on-board chargers aimed at reducing charging time and power loss in EV charging, which is expected to drive innovation and integration of leading technologies such as SiC and GaN power modules in this segment. The growing demand for effective power switching devices in DC-DC converters with minimal switching losses is also expected to fuel the DC-DC converter segment.

REGIONAL INSIGHTS

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Higher Penetration of Electric Vehicle Sales in China Drives the Market Growth for Power Modules in Asia

Asia Pacific dominated the global market with a size of USD 2.04 billion in 2022. The primary factor contributing to the region’s market share is the higher penetration of electric vehicle sales in China. Moreover, the growing EV sales in large automotive markets, such as India, China, and South Asian countries, are expected to significantly increase the demand for automotive power modules in Asia. Supportive government initiatives in prominent countries within the Asia Pacific region are expected to drive the automotive power modules market growth.

Europe held the second-largest market share in 2022 and is expected to experience at a significant CAGR during the forecast period. The high demand for vehicles in Europe, driven by greater consumer awareness of the benefits of choosing EVs and the rapid expansion of EV infrastructure, contributes to the strong demand for electric vehicles in European countries. Additionally, major automotive EV players in the European region are expected to shape the market during the forecast period.

North America held a decent market share in 2022, with the region's increased demand for electric vehicles and well-developed EV infrastructure contributing to the size of the North America market. The rest of the world is also expected to grow steadily. However, lack of supportive EV infrastructure in this region may result in slower widespread adoption of electric vehicles, resulting in less accelerated demand for such modules in these countries.

KEY INDUSTRY PLAYERS

Major Players are Introducing Newer SiC-based Power MOSFETs owing to Higher Benefits of SiC-based Power Modules

The competitive landscape of the market is characterized by a few established key players. The market is consolidated, with major companies having established a strong distribution network with leading auto manufacturers, resulting in a significant share of the market. Semiconductor manufacturers, such as Infineon Technologies AG, Mitsubishi Electric, Fuji Electronics, and STMicroelectronics, are the major players, accounting for major market share in the market.

All the major players within the automotive power modules have a strong presence and high demand for their offered products in North America and Europe. Asia Pacific is emerging as a significant presence in the auto power modules sector. Key automotive players, such as Hyundai Motors, Audi, Tesla, and others, are some major clients that integrate power modules into their EVs. Additionally, a notable trend among power module providers is the introduction of SiC-based power modules by major semiconductor providers. For instance, in May 2023, Mitsubishi Electric announced the development of SBD-embedded SiC MOSFETs with a new structure for these modules suitable for DC power systems.

LIST OF KEY COMPANIES PROFILED:

• Infineon Technologies AG (Germany)


• Mitsubishi Electric Corporation (Japan)


• Fuji Electric Co., Ltd. (Japan)


• STMicroelectronics N.V. (Switzerland)


• Onsemi (U.S.)


• Monolithic Power Systems (U.S.)


• Danfoss (Denmark)


• Robert Bosch GmbH (Germany)


• Hitachi Automotive Systems Ltd. (Japan)


• Rohm Semiconductors (Japan)


• Shindengen Electric Manufacturing Co., Ltd. (Japan)


• Wolfspeed Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• January 2023:  Resonac Corporation announced the launch of a full-scale operation of power modules, focusing on enhancing material-related developments for power semiconductors, its packages, and power modules.


• December 2022: STMicroelectronics released its new high-power modules for e-mobility applications, focusing on enhancing vehicles' performance and driving range. Hyundai selected its new SiC-based power modules for its electric vehicle platform. 


• September 2022: Onsemi launched its automotive SiC-based power modules for on-board charger application. Integrating these latest power modules will allow electric vehicles to charge at a higher rate than before. The company launched three modules exhibiting low conduction and low switching loss. 


• September 2022:  Renesas introduced its next generation of silicon-based IGBTs for electric vehicle inverters that have reduced switching loss and tiny footprints. The company is set to mass-produce these chips at its facility in Naka, Japan.  


• July 2022: Toshiba developed its silicon carbide MOSFET with properties such as low resistance and a significant reduction in switching loss. Its ability to reduce switching loss and low resistance makes it suitable for inverters in various industries, including vehicle electrification and industrial equipment.

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading product applications. Moreover, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the market growth in recent years.

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