Automotive Power Modules Market

Automotive Power Modules Market Analysis

The Automotive Power Modules Market size is estimated at USD 11.02 billion in 2025, and is expected to reach USD 20.76 billion by 2030, at a CAGR of 13.5% during the forecast period (2025-2030).

The automotive power modules market is anticipated to witness steady growth as the sales of vehicles are low from the previous year. The power module plays a vital role in the minimization of power losses, improvement of battery efficiency, increase in power density, and extension of mileage. It is regarded as an integral part of the automotive industry.

Manufacturers of power module components and automotive original equipment manufacturers (OEM) joined hands to improve vehicle performance, safety, and efficiency. They are working together to come up with power electronics for electric auxiliary components. The usage of semiconductors in power modules is vital for achieving cost competitiveness in electric vehicle applications.

Asia-Pacific is expected to maintain its dominance in the automotive power module market. The region's leadership in the power module market is attributed to several factors, such as increasing production and sales of vehicles, rapid electrification of automotive fleets, stricter emission regulations, and the rising disposable income of consumers. These factors collectively drive the demand for vehicles with a growing concern for safety, which correspondingly drives the power module market in the region.

Automotive Power Modules Market Trends

Increasing Adoption of Battery Electric Vehicles May Drive the Market

The growth of the electric vehicle market is driving the demand for automotive power modules. Power modules are essential for the efficient functioning of EVs, and as more automakers shift toward electric mobility, the demand for these modules is on the rise. Beyond full EVs, there is a growing trend of vehicle electrification, including hybrid and plug-in hybrid models. These vehicles also require power modules for their electric propulsion systems.

Automakers are increasingly adopting modular power electronic solutions that can be easily integrated into different vehicle models. This trend toward standardization helps reduce development costs and accelerates the production of EVs.

• In February 2022, Semikron, a manufacturer of power modules and systems, secured a contract worth USD 1.06 billion with a major German automotive manufacturer. This contract pertains to their innovative power module platform called eMPack, designed specifically for silicon carbide technology. The eMPack platform is expected for integrated into the car manufacturers' next-generation electric vehicle inverters. It employs Semikron's advanced Direct Pressed Die technology, enabling the creation of compact, scalable, and dependable inverters. The commencement of series production is expected for the year 2025.
• In December 2022, Hyundai Motor Company opted for ST's efficient ACEPACK DRIVE power modules to be used in various models within its E-GMP vehicle platform.
• In October 2022, BMW Group announced a USD 1.7 billion investment plan for the production of electric vehicles in the United States. Additionally, they entered into an agreement with Envision AESC for the provision of battery cells to their Spartanburg plant.
• In July 2023, Servotech Power is set to manufacture electric vehicle (EV) components with an initial investment of USD 319 million.

Growing Production and Imports of Power Modules Majorly in Asia-Pacific Dominating The Market Growth

The increasing emission standards across the world are likely to drive more electric vehicle sales during the forecast period. Thus, to meet the growing demand for EVs, the manufacturers of automotive power modules started investing in extending their production capacity majorly in Asia-Pacific. It is owing to its high sales and large exports of vehicles across the world as well as non-tariff on EV parts among ASEAN countries.

• In December 2022, Dongfeng Motor developed a next-generation silicon carbide power module and was gearing up for mass production to equip its electric vehicles, expected for delivery in 2023. These SiC modules are anticipated to enable rapid charging with the capability to reach an 80% charge within just 10 minutes at an 800 V charging station. The company aims to achieve an annual production capacity of 1.2 million units by the year 2025.
• In December 2022, StarPower Semiconductor plans to construct a production line dedicated to automotive semiconductor modules with an investment of USD 35.1 million. This initiative is in response to the increasing demand for semiconductor products in the new energy vehicle segment.

Automotive Power Modules Industry Overview

The automotive power modules market is majorly led by Continental AG, Robert Bosch GmbH, Denso Corporation, Hitachi Automotive Systems Ltd, and Mitsubishi Electric Corporation, Valeo, among others.

The companies are expanding their presence in the market by engaging in mergers and acquisitions and opening new plants to suffice the power module demand. For instance-

• In July 2023, the German automotive supplier Bosch announced to allocate an investment of approximately USD 2.8 billion into hydrogen fuel cell technology between 2021 and 2026. It anticipates generating around USD 5 billion in sales from this technology by the year 2030.
• In May 2023, Renault Group and Valeo announced a collaborative venture aimed at enhancing the electrical and electronic architecture for the Group's upcoming vehicle models. This joint effort will focus on implementing the Software Defined Vehicle (SDV) architecture, which will empower vehicles to consistently stay current throughout their lifespan and seamlessly integrate new features without requiring hardware modifications.
• In February 2023, Onsemi signed an agreement with Volkswagen to provide high-voltage silicon carbide chips and modules. These components will serve as the driving force behind the traction inverters utilized in Volkswagen's versatile platform for electric vehicles.

Automotive Power Modules Market Leaders

Automotive Power Modules Market News

• March 2023: Infineon and Delta Electronics signed a memorandum of understanding with the purpose of enhancing their collaborative efforts in the development of advanced solutions for the electric vehicle sector. This partnership encompasses various components, including discrete high and low-voltage semiconductors, power modules, and microcontrollers. These are essential in EV drive systems, including the inverter, DC-DC converter, and on-board chargers. The primary goal is to provide more efficient and higher-performing products to meet the evolving demands of the EV market.
• November 2022: ROHM Semiconductor entered into a joint development agreement with Mazda Motor Corporation and Imasen Electric Industrial Co., Ltd. It is with the objective of collaboratively working on the development of inverters and silicon carbide power modules. These components are intended for use in the electric drive systems of electric vehicles, including the e-Axle.
• May 2022: Arieca signed a research agreement with ROHM Co., Ltd. to make efforts in the advancement of next-generation Thermal Interface Materials (TIM). This partnership exploits the Arieca Liquid Metal Embedded Elastomer Technology platform to deliver heat transfer capabilities while overcoming the reliability challenges typically associated with traditional TIM technologies.
• May 2022: Li Auto, a Chinese electric vehicle manufacturer, announced the construction of its power semiconductor research and development and production center in Suzhou City, Jiangsu province. This new facility in Suzhou will hold a primary emphasis on research and development as well as the production of third-generation automotive-grade silicon carbide (SiC) power modules. The goal is to enhance Li Auto's capacity to design and manufacture power modules specifically tailored for automobiles.