The global Automotive Power Module Market is projected to surge to USD 28.02 billion by 2032, expanding at a compound annual growth rate (CAGR) of 18.88% from 2024 to 2032, according to a new report by SNS Insider.
This growth is primarily driven by the increasing global shift towards electric vehicles (EVs) and a heightened focus on environmental sustainability. The demand for energy-efficient power management systems is soaring as electric and hybrid vehicles become more prevalent.
Key Market Drivers:
- Government Incentives: Policies encouraging the adoption of EVs by making them more affordable are significantly boosting market demand.
- Expansion of EV Charging Infrastructure: The worldwide growth of charging networks is also propelling the market forward.
Market Segmentation and Regional Insights:
The market's growth is predominantly fueled by advancements in power modules, particularly in Intelligent Power Modules (IPMs), which currently hold a 65% market share. However, Power Integrated Modules (PIMs) are anticipated to experience rapid growth, with a projected CAGR of 22%, due to their cost-effectiveness and increasing use in entry-level vehicles.
By vehicle type, passenger cars dominate the market with a 70% share, but the commercial vehicles segment is expected to grow faster, at a CAGR of 21.05%, driven by the sector’s transition towards electrification.
The Asia-Pacific (APAC) region remains the market leader, holding 45% of the market share in 2023. This dominance is attributed to the region's robust automotive industry, particularly in China and Japan, which are key manufacturing hubs. The growing adoption of EVs, coupled with stringent emission regulations, has spurred the demand for efficient power modules in APAC.
Technological Trends:
Emerging trends in the automotive power module market include the increasing use of Wide Bandgap (WBG) semiconductors such as silicon carbide (SiC), which offer superior power density, efficiency, and thermal performance compared to traditional silicon-based modules. Additionally, advancements in packaging technologies are expected to shrink the size of power modules while enhancing reliability.
Moreover, the market is witnessing a growing need for high-voltage power modules, driven by the trend towards higher battery voltages in EVs. This segment is anticipated to see a 45% increase over the next five years.
The ongoing transition towards electric mobility is set to drive significant growth in the automotive power module market. With advancements in power density, thermal management, and silicon carbide technology, the market is poised for substantial innovation and expansion in the coming years.
