Automotive Power Electronics Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Device Type (Power IC, Module, and Discrete), By Application Type (Body Electronics, Safety and Security Electronics, and Powertrain), By Propulsion Type (IC Engine Vehicle and Electric Vehicle), By Vehicle Type (Passenger Cars and Commercial Vehicles), By Regional, By Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 11.69 Billion
CAGR (2026-2031)	7.51%
Fastest Growing Segment	Powertrain
Largest Market	Asia Pacific
Market Size (2031)	USD 18.05 Billion

Market Overview

The Global Automotive Power Electronics Market will grow from USD 11.69 Billion in 2025 to USD 18.05 Billion by 2031 at a 7.51% CAGR. Automotive power electronics encompass solid-state devices designed to control and convert electric power within vehicles, functioning as critical components in systems such as inverters, DC-DC converters, and onboard chargers. The primary driver of this market is the accelerating global transition toward vehicle electrification, necessitated by stringent government emission regulations and a striving for energy efficiency in powertrains. This shift is generating substantial volume demand for high-voltage components. According to the China Association of Automobile Manufacturers, in 2024, the sales of new energy vehicles reached 12.87 million units, representing a robust 35.5% year-on-year increase that directly stimulates the consumption of power management technologies.

Despite this expansion, the sector encounters a significant challenge regarding the high manufacturing costs associated with wide-bandgap materials like Silicon Carbide compared to traditional silicon. These elevated material expenses can limit mass adoption in cost-sensitive vehicle segments and hinder the broader market penetration required for sustained global growth.

Key Market Drivers

Accelerating Global Adoption of Electric and Hybrid Vehicles is the primary engine propelling the market, necessitating a massive scale-up in inverters, onboard chargers, and DC-DC converters. This trend extends beyond passenger cars into commercial transport, broadening the market for heavy-duty power modules. According to the International Energy Agency (IEA), April 2024, in the 'Global EV Outlook 2024', global electric car sales are projected to reach 17 million units in 2024, underscoring the critical volume demand for drivetrain components. This surge forces suppliers to expand manufacturing capacities for reliable power management systems. Additionally, according to the European Automobile Manufacturers’ Association (ACEA), in 2024, registrations of electrically chargeable lorries in the EU increased by 51.6% in the first half of the year, highlighting the widening scope of electrification.

Technological Advancements in Wide Bandgap Semiconductors, particularly Silicon Carbide (SiC), represent the second pivotal driver by enabling the transition to 800V architectures. These materials offer superior switching efficiency compared to silicon, allowing automakers to extend range and reduce charging times. The market impact is evident as chipmakers pivot toward these high-margin substrates. According to Onsemi, February 2024, in its 'Fourth Quarter and Full Year 2023 Earnings' report, the company achieved a 4x year-over-year increase in silicon carbide revenue in 2023, validating the rapid industrial uptake of these devices. As manufacturers overcome yield challenges, the integration of SiC modules into traction inverters is becoming standard for performance-oriented electric platforms.

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Key Market Challenges

The high manufacturing costs associated with wide-bandgap materials like Silicon Carbide present a substantial obstacle to the expansion of the automotive power electronics sector. Although these materials provide superior efficiency, their production remains significantly more expensive than traditional silicon counterparts. This price disparity forces component suppliers to maintain higher price points for inverters and converters, which directly inflates the final retail price of electric vehicles. As a result, automakers face difficulties in reducing vehicle costs enough to penetrate mass-market segments, limiting the technology primarily to premium categories.

This economic barrier restricts the broader adoption required for sustained market growth. When vehicle prices remain high due to component costs, consumer demand often stagnates or declines, causing a ripple effect that slows orders for power management systems. According to the European Automobile Manufacturers’ Association, in August 2024, registrations of new battery electric vehicles in the EU decreased by 43.9 percent. This contraction in vehicle uptake demonstrates how cost-related challenges directly dampen the potential volume and revenue growth for power electronics manufacturers globally.

Key Market Trends

The Consolidation of Components into Integrated Power Electronics Units is fundamentally restructuring the supply chain as automakers shift from discrete devices to unified "X-in-1" systems. This trend involves physically integrating the traction inverter, DC-DC converter, and onboard charger into a single compact housing, which significantly reduces high-voltage cabling weight and improves thermal management efficiency. By merging these critical functions, manufacturers can optimize chassis space for larger battery packs while lowering the overall bill of materials. The market acceleration of this architecture is evident in the financial performance of key suppliers who are pivoting to these solutions. According to BorgWarner, October 2024, in the 'Third Quarter 2024 Earnings Release', the company expects its full-year 2024 eProduct sales to reach approximately $2.4 billion, a growth trajectory largely propelled by the commercial uptake of these integrated drive modules.

Simultaneously, the Shift Toward Modular and Scalable Power Distribution Systems is emerging as a critical strategy to manage the complexity of expanding electric vehicle portfolios. Instead of developing bespoke power electronics for individual models, OEMs are increasingly adopting standardized, flexible platforms that can be scaled across various performance tiers, from economy sedans to commercial trucks. This approach allows for the rapid deployment of electrification technologies while minimizing research and development expenditures. The industry's massive commitment to this scalable methodology is reflected in long-term procurement data. According to Vitesco Technologies, March 2024, in the 'Annual Report 2023', the company reported a total order backlog of around €58 billion, with more than half attributed to electrification solutions, underscoring the sector's decisive pivot toward adaptable high-voltage architectures.

Segmental Insights

The powertrain segment is currently witnessing the most rapid expansion within the global automotive power electronics market. This accelerated growth is fundamentally driven by the global shift toward vehicle electrification, necessitating the substantial integration of components such as inverters and converters to manage energy flow effectively. Stringent carbon emission mandates established by regulatory authorities like the European Commission and the United States Environmental Protection Agency are compelling automakers to replace traditional mechanical systems with electric alternatives. As manufacturers prioritize efficiency in electric vehicle architectures, the demand for power electronic solutions within the powertrain assembly continues to surge.

Regional Insights

Asia Pacific holds the leading position in the global automotive power electronics market, driven by substantial electric vehicle production volumes in China, Japan, and South Korea. This dominance is reinforced by a well-established semiconductor manufacturing ecosystem that ensures a steady supply of critical components. Additionally, government initiatives such as China's New Energy Vehicle mandates and stricter emission standards actively encourage the integration of power electronic systems. The strong collaboration between local automotive manufacturers and electronics suppliers further solidifies the region's ability to meet the expanding requirements for vehicle electrification.

Recent Developments

• In September 2024, STMicroelectronics launched its fourth-generation silicon carbide power MOSFET technology, specifically tailored for next-generation electric vehicle traction inverters. This new product line established higher benchmarks in power efficiency and density, offering enhanced performance for both 400V and 800V electric vehicle bus systems. The technology was engineered to minimize switching losses and improve robustness, thereby enabling automakers to produce vehicles with extended driving ranges and faster charging capabilities. The launch highlighted the company's vertically integrated manufacturing strategy to support the mass-market adoption of highly efficient power electronics in mid-size and compact electric cars.
• In July 2024, Onsemi entered into a strategic multi-year collaboration with Volkswagen Group to serve as the primary supplier for a complete power box solution for the automaker’s next-generation traction inverters. Under this agreement, the semiconductor company agreed to provide integrated modules based on its advanced silicon carbide technology, which were designed to handle higher power loads in a smaller package while significantly reducing energy losses. This partnership aimed to support the automotive group's scalable vehicle platforms by delivering a modular and flexible power electronics solution compatible with a wide range of electric models, from compact cars to high-performance vehicles.
• In February 2024, Vitesco Technologies announced the upcoming series application of its High Voltage Box, a comprehensive modular power electronics unit developed for electric vehicles. This system successfully integrated multiple critical functions, including an on-board charger for AC grid charging, a DC-DC converter for the 12V vehicle network, and a power distribution unit, into a single compact housing. By utilizing state-of-the-art silicon carbide semiconductors, the device achieved a charging efficiency exceeding 95 percent. This development allowed automakers to minimize space requirements and reduce system complexity while enabling fast DC charging capabilities up to 800V.
• In January 2024, BorgWarner showcased its advanced electrification portfolio at the Symposium on International Automotive Technology (SIAT) in India, highlighting significant progress in the Global Automotive Power Electronics Market. The company unveiled a new 800V inverter equipped with proprietary Viper silicon carbide power modules, designed to meet the rigorous demands of high-voltage electric vehicle platforms. This innovative power electronics component was engineered to reduce switching losses by approximately 70 percent compared to traditional silicon-based alternatives, thereby optimizing thermal management. The product launch underscored the company's strategy to deliver high-power density solutions for both passenger and commercial electric vehicles.

Key Market Players

• Infineon Technologies AG
• Texas Instruments Incorporated
• Renesas Electronics Corporation
• NXP Semiconductors
• STMicroelectronics
• Microsemi Corporation
• Vishay Intertechnology Inc.
• Semiconductor Components Industries LLC
• Toyota Industries Corporation
• Valeo Group

By Device Type	By Application Type	By Propulsion Type	By Vehicle Type	By Region
Power IC Module Discrete	Body Electronics Safety and Security Electronics Powertrain	IC Engine Vehicle and Electric Vehicle	Passenger Cars and Commercial Vehicles	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Automotive Power Electronics Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Automotive Power Electronics Market, By Device Type:

• Power IC
• Module
• Discrete

• Automotive Power Electronics Market, By Application Type:

• Body Electronics
• Safety and Security Electronics
• Powertrain

• Automotive Power Electronics Market, By Propulsion Type:

• IC Engine Vehicle and Electric Vehicle

• Automotive Power Electronics Market, By Vehicle Type:

• Passenger Cars and Commercial Vehicles

• Automotive Power Electronics Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE