Automotive DC-DC Converter Market Size, Share & Industry Analysis, By Type (Isolated and Non-Isolated), By Application (Passenger Cars and Commercial Vehicles), By Vehicle Type (BEV and PHEV), and Regional Forecast, 2024-2032

The global automotive DC-DC converter market size was valued at USD 2.87 billion in 2023. The market is projected to grow from USD 3.68 billion in 2024 to USD 9.45 billion by 2032, exhibiting a CAGR of 12.5% during the forecast period.

Automotive DC-DC converters temporarily store electrical energy to convert Direct Current (DC) from one voltage to another. These power conversion circuits transform energy at various levels and store energy in electrical and magnetic fields. In vehicles, these converters act as intermediaries between systems of different voltages. These converters can step up the voltage level, step down the voltage level, or perform both functions. These converters enable efficient power management and voltage regulation in electronic systems, allowing devices to operate smoothly.

The COVID-19 pandemic considerably impacted the global automotive DC-DC converter market, disrupting supply chains, manufacturing operations, and consumer demand. Lockdown measures and economic uncertainties led to a temporary slowdown in vehicle production and sales, affecting the demand for DC-DC converters used in automotive electrical systems. However, as the automotive industry gradually recovers, the market is expected to rebound, driven by the increasing adoption of electric and hybrid vehicles.

Automotive DC-DC Converter Market Trends

Significant Enhancements in DC-DC Converter Technology to Augment the Market Share

The adoption of bidirectional converters is increasing rapidly in the automotive industry. These converters enable power flow in both directions, transferring energy between different voltage levels in hybrid and electric vehicles. These converters are essential for Vehicle-to-Grid (V2G) applications. The use of gallium nitride-based power semiconductors in automotive DC-DC converters is rising. It provides improved power density, higher efficiency, and reduced size compared to traditional silicon-based DC-DC converters.

These converters can be integrated with onboard chargers, which combine the functionality of a DC-DC converter and an AC/DC charger into a single unit. This integration will aid in minimizing overall system complexity, size, and cost while improving charging efficiency. As high-voltage electrical systems are becoming more prevalent in electric vehicles, these converters capable of handling higher voltage levels are being developed. These converters effectively step down high-voltage battery power to lower voltage levels required by systems in electric vehicles.

Advanced power management algorithms and control strategies are implemented in these types of converters to optimize energy conversion, improve efficiency, and enhance overall system performance. These intelligent converters dynamically adjust voltage levels, switch between different operating modes, and optimize power flow based on real-time load conditions.

Automotive DC-DC Converter Market Growth Factors

A positive outlook on electric vehicle sales will propel market growth.

Rising awareness of climate change and the need to reduce greenhouse gas emissions have increased interest in electric vehicles. Electric vehicles produce zero tailpipe emissions, helping to mitigate air pollution and reduce carbon footprint. Governments and regulatory bodies worldwide are implementing stricter emission standards, encouraging the adoption of electric vehicles. Many governments have introduced supportive policies, which include tax credits, rebates, grants, and exemptions from certain taxes or fees. These incentives reduce the upfront cost of electric vehicles and make them more attractive to consumers. Moreover, various governments are investing in charging infrastructure development to support the growth of electric vehicle usage.

Lithium-ion battery costs have decreased steadily over the past few years. This cost reduction has made electric vehicles more competitive with Internal Combustion Engines (ICE). In addition, improvements in battery technology have increased energy storage capacity and extended driving range, addressing concerns about limited range anxiety. Consumers are becoming more interested in electric vehicles due to their lower operating costs, quieter operation, and improved driving experience. Many companies and fleet operators are setting sustainability targets and adopting electric vehicles to reduce carbon emissions and promote environmental responsibility. The trends mentioned above will drive the adoption of electric vehicles, propelling the automotive DC-DC converter market growth during the forecast period.

Emphasis on High Voltage Electrical Architecture and Energy Management to Drive the Sales of DC-DC Converters

Electric vehicles are adopting high-voltage electrical architectures, typically in the range of a few hundred volts. These converters are used to step down or step up the voltage levels within a vehicle as required by different systems. The shift toward high-voltage architectures in electric vehicles creates opportunities for advanced DC-DC converter designs and technologies.

The converters are crucial in optimizing energy efficiency and managing power distribution. Advanced converter designs aim to maximize efficiency, minimize power losses, and improve overall energy management in electric vehicles. Efficiency improvements in these converters contribute to extended range and improved performance of electric vehicles. Modern vehicles feature various auxiliary systems, such as infotainment systems, Advanced Driver-Assistance Systems (ADAS), and electrified powertrain components. These systems require stable and regulated power supplies, achieved through these converters. Integrating multiple auxiliary systems in vehicles surges the demand for efficient and reliable converters.

RESTRAINING FACTORS

High Cost and Associated Regulatory Challenges May Restrain the Market Growth

The cost of these converters may restrain the mass adoption of electric vehicles. The cost of components, such as high-power semiconductors and advanced control systems, can be relatively high. Manufacturers must balance the cost-effectiveness of DC-DC converters while ensuring optimal performance and efficiency.

Regulatory frameworks and standards can challenge the implementation of certain automotive DC-DC converter technologies. Compliance with safety regulations and interoperability standards may require additional design considerations and testing, increasing complexity and costs for manufacturers. Electric vehicle manufacturers must often accommodate different vehicle platforms, powertrain configurations, and voltage requirements.

These converters must be scalable and flexible enough to adapt to various vehicle architectures, power levels, and voltage ranges. Designing converters that can handle various requirements while maintaining efficiency and cost-effectiveness can be challenging.

Automotive DC-DC Converter Market Segmentation Analysis

By Type Analysis

Isolated Segment to Dominate the Market Owing to Excellent Operational Characteristics

Based on type, the market is segmented into isolated and non-isolated. An isolated DC-DC converter allows the transfer of electrical energy from one direct current voltage level to another while providing electrical isolation between the input and output sides. The key feature of an isolated DC-DC converter is the presence of a transformer or an equivalent isolation component. This transformer provides galvanic isolation, which means there is no electrical connection between the input and output sides of the converter. This isolation helps to protect sensitive circuitry, improve safety, and minimize noise and interference.

Isolated DC-DC converters can step up (boost), down (buck), or invert the input voltage to achieve the desired output voltage level. These are available in various topologies, including flyback, forward, push-pull, and full-bridge, each with advantages and limitations. These converters typically include a control circuit that regulates the output voltage by adjusting the duty cycle of the switching transistors in the converter. The control circuit senses the output voltage by adjusting the duty cycle of the switching frequency to maintain the desired output voltage level, compensating for load or input voltage changes.

The input and output sides are electrically connected in a non-isolated DC-DC converter. Non-isolated DC-DC converters typically use indicators or capacitors to regulate the voltage and provide the necessary voltage conversion. These converters are generally smaller and simpler in design.

By Application Analysis

Rising Spending Tendency of People on Passenger Cars to Augment the Segment Growth

By application, the market is fragmented into passenger cars and commercial vehicles.

The passenger cars segment accounted for a significant global automotive DC-DC converter market share in 2022 and is set to exhibit notable growth over the forecast period. Rising middle-class income and rising awareness toward eco-friendly products will drive the segment’s growth in future.

Several countries are trying to reduce greenhouse gas emissions and transitioning to a more sustainable transportation system. Owning an electric car can be seen as a symbol of an environmentally conscious and progressive mindset, contributing to their desirability.

Electric commercial vehicles offer lower operating costs than traditional diesel or gasoline-powered vehicles. These vehicles operate silently, reducing noise pollution in urban areas. This characteristic is particularly advantageous for delivery services and urban transportation, where noise reduction is essential. These factors are set to propel electric commercial vehicle segment growth over the study period.

By Vehicle Type Analysis

Battery Electric Vehicles (BEV) to Gain Traction Due to Rising Popularity

On the basis of vehicle type, the market is categorized into Plug-in Hybrid Electric Vehicles (PHEVs) and Battery Electric Vehicles (BEVs). BEVs are becoming more popular as consumers recognize their environmental benefits, technological advancements, and expanding charging infrastructure. These vehicles are typically more energy-efficient than PHEVs. Since BEVs solely rely on electric power, they convert a higher percentage of energy from the battery to power at the wheels. BEVs have fewer moving parts compared to PHEVs, thereby requiring less maintenance.

PHEVs have electric motors and an ICE, allowing them to use gasoline when the electric battery is depleted. This extended range eliminates concerns about running out of battery power. It provides more flexibility for longer trips, making PHEVs more suitable for drivers who frequently travel long distances or lack access to charging infrastructure.

REGIONAL INSIGHTS

The market size in Asia Pacific was USD 1.80 billion in 2023 and is expected to reach USD 21.68 billion by 2032. The regional market value is likely to grow due to supportive government policies, growing charging infrastructure, and technological advancements. Asia Pacific has a large and rapidly rising middle class with increasing purchasing power. As electric vehicle costs continue to decrease and become more competitive with internal combustion engine vehicles, more consumers consider electric vehicles a viable option. Major cities in developing countries, such as China and India, face significant air pollution challenges, leading to a growing interest in cleaner and more sustainable transportation options.

Supportive government policies will drive the market growth in Europe in the coming years. Many European countries offer financial incentives and subsidies to reduce the upfront cost of electric vehicle purchasing. These incentives may include grants, tax credits, and rebates. For instance, Germany offers a purchase subsidy known as “Umweltbonus,” which provides a financial incentive for buyers of electric vehicles.

Massive investments in research & development will drive the growth of the North American market. The U.S. has been investing in the research & development of advanced battery technology for electric vehicles and has made significant progress in expanding the charging infrastructure network. Fast-changing technologies, such as DC fast charging, have been deployed to enable quicker charging times.

List of Key Companies in Automotive DC-DC Converter Market

Market Players Implement Various Strategies to Ace the High Degree of Competition

Key players in the market are implementing various strategies, such as product differentiation & development, expansion of sales & distribution network, and entering partnerships and agreements. Such strategies will help the major companies operating in the global industry gain a strong market foothold. Moreover, these companies invest considerable amounts in research & development activities to gain a competitive advantage.

Infineon Technologies AG is a prominent semiconductor manufacturer specializing in automotive power management solutions, including DC-DC converters. The company offers various DC-DC converter products tailored for automotive applications, such as electric vehicles, hybrid vehicles, and advanced driver assistance systems (ADAS). Infineon's DC-DC converters are known for their high efficiency, reliability, and compact form factors, making them ideal for modern automotive electronics. The company's strong focus on research and development enables it to innovate and introduce advanced DC-DC converter technologies that meet the evolving needs of the automotive industry.

Texas Instruments Incorporated (TI) is another major player in the automotive DC-DC converter market. It is known for its comprehensive portfolio of semiconductor solutions for automotive applications. TI's DC-DC converter offerings encompass a wide range of products optimized for automotive power management, including buck-boost converters, synchronous buck converters, and multi-output voltage regulators. TI's DC-DC converters are designed to meet the stringent requirements of automotive systems, offering high efficiency, thermal performance, and reliability. The company's extensive experience in automotive electronics and its commitment to innovation has solidified its position as a trusted supplier of DC-DC converters to automotive manufacturers worldwide.

Both Infineon and Texas Instruments play crucial roles in driving the growth of the automotive DC-DC converter market through their technological expertise, product innovation, and strong customer relationships. As the demand for EVs continues to rise, along with the increasing electrification of automotive systems, these key players are well-positioned to capitalize on the growing opportunities in the automotive electronics market and contribute to advancing automotive power management solutions.

LIST OF KEY COMPANIES PROFILED:

• SHINDENGEN ELECTRIC MANUFACTURING CO., LTD. (Japan)


• Robert Bosch GmbH (Germany)


• RECOM Power GmbH (Germany)


• Continental AG (Germany)


• Infineon Technology AG (Germany)


• Skyworks Solutions, Inc. (U.S.)


• Eaton Corporation plc (U.S.)


• Texas Instruments (U.S.)


• Vitesco Technologies GmbH (Germany)


• STMicroelectronics (Switzerland)


• BorgWarner Inc. (U.S.)


• Vicor Corporation (U.S.)


• TDK-Lambda Corporation (Japan)


• Hella (Germany)


• Toyota Industries Corporation (Japan)

KEY INDUSTRY DEVELOPMENTS

• February 2024 - Texas Instruments (TI) introduced two new power conversion device portfolios to help engineers boost power density. The UCC33420-Q1 and UCC33420 1.5W DC-DC converter modules with 3kV isolation enable a power density eight times higher than discrete solutions and three times higher power density than competing modules


• December 2023 - Infineon Technologies launched four integrated DC-DC converters for point-of-load applications. The TDA388xx series of synchronous buck regulator DC-DC converters from Infineon is aimed at server, AI, Datacom, telecom, and storage applications with 12 A and 20 A current. The DC-DC converters optimize performance by using a fast, constant, on-time (COT) control scheme.


• May 2023 – RECOM successfully added Midoriya Electric, specializing in AC/DC, DC/DC converters, switching regulators, and LED drivers, to the distribution network.


• August 2022 – RECOM introduced a new range of DC-DC converters for e-mobility applications.


• May 2022 – Eaton Corporation launched DC-DC converters of 48-volt for diesel-powered commercial vehicle architectures.

REPORT COVERAGE

The report provides a detailed market analysis. It focuses on key factors such as major companies, product types, and leading product applications. Besides this, 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.

Report Scope & Segmentation