Automotive Diode Market Size, Share & COVID-19 Impact Analysis, By Type (Zener Diode, Rectifier Diode, Schottky Diode, Light Emitting Diode (LEDs), and Others), By Vehicle Type (Passenger Cars and Commercial Vehicles), By Application (Powertrain System, Lighting System, Infotainment System, Safety and Security System, and HVAC System), By Propulsion (ICE and Electric), and Regional Forecast, 2023-2030

The global automotive diode market size was valued at USD 10.48 billion in 2022. The market is projected to grow from USD 10.90 billion in 2023 to USD 16.97 billion by 2030, exhibiting a CAGR of 6.53% during the forecast period.

The automotive diode refers to a cylindrical striped component that mandates the current to flow in a single direction. It is an important component in vehicles, as it protects the vehicle equipment from current spikes that damage components and the electrical system of a vehicle.

The market growth can be credited to the increasing complexity of automotive electronics and the rising demand for advanced safety features and energy-efficient technologies in vehicles.

The current trend in the market is the development of advanced silicon carbide-based diodes. In April 2023, Ferrari signed a partnership with Samsung Display to integrate its organic light-emitting diode (OLED) display panel in its cars.

Despite such growth opportunities, factors such as the limited availability of raw materials, such as semiconductor, challenge the market expansion.

COVID-19 IMPACT

Supply Chain Disruptions and Semiconductor Shortage Impacted the Supply of Automotive Diodes Negatively during the Pandemic 

The COVID-19 pandemic abruptly hit the market of automotive diodes. The decline in the production of automobiles due to the restrictions, factory closures, or partial shutdowns led to lower demand for automotive diodes in the market. The pandemic forced many automotive companies to prioritize cost-saving measures and delay or scale back their investments in research and development. In addition, the supply chain constraints caused due to limited availability of raw materials affected the market during the pandemic.

Furthermore, the slowdown in technological advancement impacted the introduction of advanced, innovative automotive systems and components, which especially included specific diodes. However, as the automotive industry recovers and adapts to the new normal, the demand for automotive diodes rebounded, driven by the resurgence of vehicle production, which fuelled the demand for the product in the post-COVID-19 era.

LATEST TRENDS

Increasing Adoption of Electric Vehicles to Boost the Market Growth

The automotive industry is witnessing a significant shift toward electric mobility. This transition has led to an increased demand for in-vehicle diodes capable of handling high-voltage applications and supporting the power electronics systems in electric vehicles. Diodes used in electric vehicles need to meet the specific requirements for managing operations, such as providing efficiency, catering to low power losses, and achieving temperature stability in the vehicle. This has compelled major players to focus on the development of diodes suitable for electric vehicles. In November 2022, Nexperia developed 650-volt recovery diodes in compact CFP packaging for electric vehicle onboard chargers, power supplies, and solar inverters.

Thus, along with the growing number of electric vehicles, the rising demand for advanced and specialized diodes for these types of vehicles is expected to drive the market growth over the forecast period.

DRIVING FACTORS

Increasing Application of Diodes in Advanced Vehicle Technologies to Fuel the Market Growth

The automotive industry is subjected to stringent safety regulations and emission standards. Ensuring compliance with these safety standards requires the integration of high-quality diodes, which creates lucrative opportunities for market growth.

Moreover, the automotive industry is continuously evolving and innovating advanced technologies. This includes the adoption of electric vehicles, ADAS, connectivity features, and energy-efficient solutions. Automotive diodes play a crucial role in systems such as anti-lock braking systems (ABS), airbags, lighting systems, and electronic stability control (ESC).

Technological advancements require specialized diodes, which are expected to drive the market growth of the automotive diode over the forecast period. In August 2021, Infineon Technologies launched an ultra-low loss diode to be used for light vehicle generators. The integration of this diode can reduce the CO2 emission of cars by 1.8 g/km.

RESTRAINING FACTORS

Shortage of Raw Materials Leading to Supply Chain Challenges May Hamper the Market Growth

This market operates within a complex supply chain, with multiple tiers of suppliers involved in sourcing raw materials, manufacturing components, and distributing finished products. Coordinating the supply chain effectively while maintaining quality, ensuring timely delivery, and managing inventory can be challenging. Thus, any disruption or inefficiencies in the supply chain can impact the availability of diodes, affecting production schedules and impacting the market growth.

SEGMENTATION

By Type Analysis

Rising Adoption of High-Speed Applications in Vehicles to Boost the Demand for Schottky Diodes

Based on type, the market is classified into zener diode, rectifier diode, schottky diode, light emitting diode (LEDs), and others.

The schottky diode segment held the largest market share in 2022. The demand for the schottky diode is due to its requirement in power electronics, battery management, and charging systems, providing high-efficiency rectification and switching. Thus, the utilization of the schottky diode in high-speed applications is anticipated to drive the segmental automotive diode market growth during the forecast period. The segment is also expected to grow with the fastest CAGR during the forecast period.

The rectifier diode segment attained a substantial share in the market in 2022. The rectifier diode plays a vital role in converting alternating current (AC) to direct current (DC) in automotive electrical systems. The demand for efficient power conversion and energy management in vehicles is projected to drive the market of rectifier diodes over the forecast period.

By Vehicle Type Analysis 

Surging Integration of Power Electronics in Vehicles to Fuel Passenger Cars Segment Growth

Based on vehicle type, the market is segmented into two segments, passenger cars and commercial vehicles.

The passenger cars segment held the largest share in the market in 2022. The automotive industry is increasing the integration of power electronics in vehicles. The increasing adoption of power electronics, along with the rising number of vehicles on the road, is expected to further propel the market of passenger cars over the forecast period.

In February 2022, NTN Corporation developed a compact, lightweight Torque Diode, the TDL8. Dimensions of this diode consisting of the outer ring outer diameter have been reduced by 1/3 (10mm) and weight has been reduced by 1/14 (5g). The TDL is used in the seat lifter mechanism that adjusts the height of the seat.

The commercial vehicle segment is expected to grow at the fastest CAGR during the forecast period. The rising integration of technology into the fleet of commercial vehicles, such as connectivity and many others, which require high-quality diodes, is poised to boost segment growth.

By Application Analysis

Powertrain System Application Dominated the Market Share in 2022 Due to Development of Advanced Electric Vehicles

Based on application, the market is divided into sub-segments such as powertrain system, lighting system, infotainment system, safety and security system, and HVAC system.

The powertrain system segment dominated the market in 2022. Manufacturers are developing advanced diode technologies to meet the requirements of advance powertrain systems. The increasing demand for electric vehicles is also supporting the market growth. Electric powertrains require advanced electrical systems to manage power distribution, conversion, and control. Diodes are essential components in these systems, playing a crucial role in directing current flow, protecting components, and ensuring efficient energy management.

The safety and security system segment is anticipated to grow at the fastest CAGR during the forecast period. The increasing adoption of ADAS (advanced driver assistance system), vehicle safety regulations and standards, and many other safety-related features and mandates is expected to boost the segment growth over the forecast period.

By Propulsion Analysis

Diverse Applications of Diodes in Vehicles to Impel the ICE Segment Growth

Based on propulsion, the market is bifurcated into sub-segments such as ICE and electric.

The ICE segment held the dominating share in the market in 2022. ICE vehicles incorporate a wide range of electrical and electronic systems, such as ignition systems, alternator rectification, lighting systems, various sensors, and control circuits. The diverse uses of diodes in ICE contribute to the dominance of the segment in the market.

In March 2023, Diodes Incorporated developed the AP7387Q low dropout (LDO) linear voltage regulator, which delivers a maximum output current of 150mA, having a wide input voltage of 5V to 60V, dropout voltage of 700mV at 100mA output current. This device is highly efficient for the operation of automotive audio, navigation, tail lights, battery management systems, and transmission control units.

The electric segment in the market is projected to grow with the highest CAGR during the forecast period. Electric vehicles rely on high-capacity batteries for energy storage. Diodes play a crucial role in battery management systems. The increasing demand for efficient and reliable battery management systems is expected to increase the need for diodes in electric vehicles.

REGIONAL ANALYSIS

Asia Pacific Dominates the Global Market Due to Increasing Vehicle Ownership

The regional outlook of the market has been analyzed across North America, Europe, the Asia Pacific, and the rest of the world.

The Asia Pacific dominates the market and the region is anticipated to grow at the highest CAGR during the forecast period. With rising incomes and urbanization, there has been a steady increase in vehicle ownership and production in the Asia Pacific region. As more vehicles are being manufactured, the demand for diodes also increases, which leads to the growth of the market over the forecast period. For instance, in 2022, according to OICA (International Organization of Motor Vehicle Manufacturers), the number of vehicles sold in China was around 26.8 million, which is approx. 2% growth in vehicle sales as compared to 2021.

North America holds a significant automotive diode market share. Collaboration between automotive manufacturers, electronic component suppliers, and technology firms fosters innovation and the development of new diode technologies, leading to market growth in the region.

Europe holds a substantial share in the market. The region has a well-established automotive industry with several prominent automakers and suppliers. Europe’s strong automotive base drives the demand for various automotive components, including diodes, which propels regional growth.

The rest of the world held a considerable market share in 2022. The rest of the world, comprising the Middle East & Africa and Latin America, is experiencing steady growth in the automotive sector. Increasing urbanization, rising population, and improving economic conditions have driven demand for vehicles in these regions, resulting in the growing market for automotive diodes.

KEY INDUSTRY PLAYERS

Companies Focus on Innovation and Development of Advanced Technology to Gain Market Position

The competitive landscape in this market is expected to be continually evolving, with companies innovating and expanding their product offerings to meet the changing demands of the automotive industry. Vishay Intertechnology is a prominent semiconductor device manufacturing company that offers a wide range of products, including in-vehicle diodes. The company is known for its high-quality and reliable electronic components used in various industries, including the automotive sector.

List of Key Companies Profiled:

• Vishay Intertechnology, Inc. (U.S.)


• ON Semiconductor (U.S.)


• NXP Semiconductors N.V. (Netherlands)


• Diodes Incorporated (U.S.)


• Infineon Technologies AG (Germany)


• STMicroelectronics N.V. (Switzerland)


• ROHM Semiconductor (Japan)


• Toshiba Electronic Devices & Storage Corporation (Japan)


• Renesas Electronics Corporation (Japan)


• Nexperia (Netherlands)


• Skyworks Solutions, Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• April 2023- Vishay Intertechnology showcased its product portfolio on power management solutions at the PCIM EUROPE 2023. The company demonstrated a collaborative robot workstation that featured Vishay power resistors, ESTA power electronic capacitors (PEC), and Automotive Grade diodes, along with other electronic components.


• October 2022− Kyocera Corporation developed an Automotive Night Vision System which encompassed White and Near-Infrared Light Diodes integrated into a single GaN Laser Device. This system could accurately detect collision-risk objects in low-visibility driving situations, including night, rain, snow, fog, or smoke, that would promote safer driving.


• August 2022− Nexperia launched a portfolio of ultra-low capacitance and low clamping ESD protection diodes. These diodes are designed to protect high-speed data lines such as USB 3.2, LVDS, HDMI 2.0, automotive A/V Monitors, displays, and cameras. The product addition includes PESD5V0C1BLS-Q and PESD5V0C1ULS-Q, available as 2-pin and 3-pin devices.


• May 2022− Diode Dynamics shifted its 70,000-square-foot manufacturing facility and headquarters to St. Charles, U.S. The initiative was conducted to cater to the increasing demand in the aftermarket automotive LED lighting industry.


• November 2021− ROHM Semiconductors added 24 new compact high-efficiency models (12 RBR series and 12 RBQ series) to its Schottky Barrier Diodes portfolio. These devices are compatible with protecting and rectifying circuits in automotive, consumer applications, and industrial equipment.


• July 2021− ROHM Semiconductor launched Hybrid IGBTs integrated with 650V SiC Schottky barrier diode named RGWxx65C series (RGW60TS65CHR, RGW80TS65CHR, RGW00TS65CHR). These devices comply with the AEC-Q101 automotive standards.  

REPORT COVERAGE

The report provides a detailed analysis of the industry and focuses on key aspects such as leading companies, product/service types, and leading applications of the product. Besides, the market 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 growth of the market in recent years.

Report Scope and Segmentation

ATTRIBUTE	DETAILS
Study Period	2019-2030
Base Year	2022
Estimated Year	2023
Forecast Period	2023-2030
Historical Period	2019-2021
Growth Rate	CAGR of 6.53% from 2023 to 2030
Unit	Value (USD Billion)
Segmentation	By Type Zener Diode Rectifier Diode Schottky Diode Light Emitting Diode (LEDs) Others
By Vehicle Type Passenger Cars Commercial Vehicles
By Application Powertrain System Lighting System Infotainment System Safety and Security System HVAC System
By Propulsion ICE Powertrain System Lighting System Infotainment System Safety and Security System HVAC System Electric Powertrain System Lighting System Infotainment System Safety and Security System HVAC System
By Geography North America (By Type, By Vehicle Type, By Propulsion, By Application) U.S. (By Vehicle Type) Canada (By Vehicle Type) Mexico (By Vehicle Type) Europe (By Type, By Vehicle Type, By Propulsion, By Application) Germany (By Vehicle Type) France (By Vehicle Type) U.K. (By Vehicle Type) Rest of Europe (By Vehicle Type) Asia Pacific (By Type, By Vehicle Type, By Propulsion, By Application) China (By Vehicle Type) Japan (By Vehicle Type) India (By Vehicle Type) South Korea (By Vehicle Type) Rest of Asia Pacific (By Vehicle Type) Rest of the World (By Type, By Vehicle Type, By Propulsion, By Application)