The growth of the electric powertrain market is driven by increasing demand for electric vehicles, stringent carbon emission norms, increasing government focus on public transport electrification, and increasing demand for high-performance motors. However, the high purchase cost of electric vehicles is a factor restraining the growth of this market.
Power Electronics Market Growth Drivers
Increasing Investment in Renewable Energy Technology
Renewable energy is at the forefront of global efforts to reduce carbon emissions and transition to a sustainable energy future. According to the International Energy Agency (IEA), renewable capacity is projected to meet 35% of global power generation by 2025. Countries worldwide are accelerating their investments in renewable energy technologies, a trend that significantly boosts the power electronics market.
For example, in May 2023, the Ministry of Economy of Malaysia announced a target to achieve 70% renewable energy in the power mix by 2050, requiring an estimated MYR 637 billion (USD 143 billion) investment. Similarly, the Indian government committed $4.3 billion in February 2023 to advance green technologies and support the country's energy transition.
Power electronics are indispensable in renewable energy systems, playing a critical role in converting, controlling, and managing electrical power. Inverters and converters transform the electricity generated by renewable sources into a usable form, ensuring compatibility with existing infrastructure. By enabling seamless integration and optimization of multiple renewable energy sources, power electronics enhance the efficiency, reliability, and stability of the energy system. This trend is expected to drive the power electronics market significantly during the forecast period.
Growing Demand for Power Electronics in the Consumer Electronics Industry
Power electronics are integral to the functioning of various consumer electronics, including computers, mobile devices, and home appliances. These devices rely on power electronics to regulate voltage and current levels, ensuring safe and efficient operation.
The increasing demand for reliable, safe, and high-performance power for electronic components and systems is driving growth in the consumer electronics sector. As more devices rely on sophisticated power management, the need for advanced power electronics continues to rise, bolstering market growth.
Rising Use of Power Electronics in LED Lighting
LED lighting, a major application area for power electronics, offers numerous advantages over conventional lighting sources. LEDs consume less energy, have longer lifespans, provide higher brightness, and offer better color quality. However, they also present challenges such as sensitivity to temperature, color and intensity variation, flickering, dimming issues, and compatibility with existing power infrastructure.
Power electronics enhance LED lighting efficiency by matching power supply characteristics to LEDs, protecting them from thermal and electrical stress, and enabling smooth and precise dimming and flicker-free operation. They also support advanced functionalities like color tuning, wireless communication, remote control, and smart integration with other systems. These advantages make power electronics critical in the adoption and growth of LED lighting, contributing to the expansion of the power electronics market.
Power Electronics Market Growth Opportunity
Rising Use of Power Electronics in Electric Vehicles
The shift towards sustainable energy and transportation has positioned electric vehicles (EVs) as a cornerstone of modern transportation. Power electronics are crucial in this transformation, providing the necessary technology to control and convert electricity efficiently, thereby facilitating the widespread adoption of EVs.
Components such as inverters, converters, sensors, and control systems in EVs manage power flow between the battery and the electric motor, convert DC to AC, and regulate motor speed. Power electronics are particularly vital in hybrid electric vehicles, managing transitions between the electric motor and combustion engine. They also play a key role in kinetic energy retention systems and other technologies that enhance EV efficiency.
The focus on launching advanced power electronics for EVs further drives market growth. For instance, Infineon Technologies AG introduced the HybridPACK™ Drive G2 in April 2023, a new automotive power module for traction inverters. Similarly, STMicroelectronics NV released high-power modules in December 2022 that boost EV performance and driving range. Such innovations are expected to increase the adoption of power electronics in electric vehicle applications.
Power Electronics Market Analysis: Key Findings
By Product Type: In 2024, the Power ICs Segment to Dominate the Power Electronics Market
Based on product type, the power electronics market includes power diodes, power transistors, thyristors, power electronic circuits, power ICs, power switches, power regulators, power modules, power drivers, and other power electronic product types. In 2024, power ICs are projected to hold the largest market share at 25.0%. This dominance is attributed to the rising demand for IoTs, wearables, consumer electronics, automotive, and industrial applications. The need for simplified power management in complex systems, optimized power consumption, extended battery life, and innovative product offerings further drives this segment's growth.
The power modules segment is expected to register the highest CAGR during the forecast period, driven by the increasing need for efficient power conversion and control. The use of power modules in electric cars, motor controllers, appliances, power supplies, medical equipment, and various industrial applications contributes significantly to this growth.
By Application: In 2024, the Power Control Segment to Dominate the Power Electronics Market
The power electronics market is segmented into power generation, power transmission, power distribution, and power control based on application. In 2024, the power control segment is expected to account for the largest share at 40.0%. This segment's growth is driven by the rising use of power electronics devices to regulate current flow through various components, ensuring stability and optimal performance.
The power control segment is also projected to register the highest CAGR during the forecast period. The continuous innovation and launch of advanced power control devices by market players, such as Magnachip Semiconductor Corporation's first Power Management Integrated Circuit (PMIC) for IT devices with OLED screens, are expected to fuel this segment's growth.
By End-use Industry: In 2024, the Consumer Electronics and Home Appliances Segment to Dominate the Power Electronics Market
Based on the end-use industry, the power electronics market is segmented into consumer electronics and home appliances, automotive, IT & telecommunication, heavy machinery, aerospace & defense, energy & utility, healthcare, and other industries. In 2024, the consumer electronics and home appliances segment is projected to hold the largest share at 28.0%. The increasing need for power electronics in computers, mobile devices, and home appliances to regulate voltage and current levels drives this segment's dominance.
The automotive segment is expected to register the highest CAGR during the forecast period. The growth is fueled by the expanding automotive market, increasing adoption of power electronics in electric vehicles, and the focus on reducing carbon emissions. Collaborations between automotive manufacturers and power electronics companies, like the partnership between Renault Group and STMicroelectronics NV, further propel this segment's growth.
Based on geography, the electric powertrain market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, Asia-Pacific is expected to account for the largest share of above 55.0% of the global electric powertrain market. The large market share of this segment is attributed to the dominance of China in the electric vehicles market, growing subsidies for EV manufacturers for production, and the growing focus of companies on expanding EV production in the region. For instance, in November 2023, Mahindra & Mahindra Limited (India) selected Valeo (France) to provide electric powertrains for their “Born Electric” passenger vehicle platform. This strategic collaboration also includes on-board charger combos for Mahindra’s electric utility vehicles.
However, Europe is projected to register the highest CAGR of 16.0% during the forecast period. This region's growth is attributed to increasing investments by leading automotive OEMs in the research and development of electric vehicle technology, the development of stringent greenhouse gas emissions regulations and policy frameworks, the presence of several EV manufacturers, and rising EV production in the region due to the growing demand for electric vehicles.
Key Players:
Some of the key players operating in the electric powertrain market are Robert Bosch GmbH (Germany), Magna International Inc. (Canada), Mitsubishi Electric Mobility Corporation (Japan), Valeo (France), DENSO CORPORATION (Japan), Hitachi Astemo, Ltd. (Japan), ZF Friedrichshafen AG (Germany), Volkswagen AG (Germany), BorgWarner Inc. (U.S.), Schaeffler AG (Germany), NIDEC CORPORATION (Japan), Marelli Holdings Co., Ltd. (Japan), Continental AG (Germany), Cummins Inc. (U.S.), and Dana Incorporated (U.S.).
Download Sample Report Here @ https://www.meticulousresearch.com/download-sample-report/cp_id=5850
Key questions answered in the report-
· Which are the high-growth market segments based on propulsion type, component, and vehicle type?
· What was the historical market for electric powertrains?
· What are the market forecasts and estimates for the period 2024–2031?
· What are the major drivers, restraints, and opportunities in the electric powertrain market?
· Who are the major players, and what shares do they hold in the electric powertrain market?
· What is the competitive landscape like in the electric powertrain market?
· What are the recent developments in the electric powertrain market?
· What are the different strategies adopted by the major players in the electric powertrain market?
· What are the key geographic trends, and which are the high-growth countries?
· Who are the local emerging players in the global electric powertrain market, and how do they compete with the other players?
Contact Us:
Meticulous Research®
Email- sales@meticulousresearch.com
Contact Sales- +1-646-781-8004
Connect with us on LinkedIn- https://www.linkedin.com/company/meticulous-research
