Automotive Powertrain Electronics Market Size, Share & Industry Analysis, By Component Type (Electric Motor, Inverter, DC/DC Converter, Battery Management System, Cell Module Controller, On-Board Charger), By Vehicle Type (Passenger Cars, Commercial Vehicles), and Regional Forecast, 2019-2032

The global automotive powertrain electronics market size was USD 49.55 billion in 2018 and is projected to reach USD 134.8 billion by 2032, exhibiting a CAGR of 8.0% during the forecast period.

Transportation as a whole is estimated to account for over 20% of the world’s CO2 discharges, with road transport contributing to the highest discharge amount. Electrification of road transport is considered to be the most significant opportunity for emissions reduction. The need for innovative functions and new requirements for better serving conventional functions lead to the increased use of electrical power in vehicles. Hence, the application of powertrain electronics in automotive applications plays a major role in controlling automotive electronics including modern electric power steering, main inverter, braking system, and others. Powertrain electronics in the automotive power generation system provides automotive alternators with high temperature withstanding capacity and high power, along with improved efficiency and high power density. Its key components include converters, electric motor, inverter, battery management systems, and others. There has been a surge of powertrain electronics adoption owing to the benefits of replacing mechanical systems with mechatronics systems or expanding the existing systems.

LATEST TRENDS

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Increased Research and Development on Fast Charging Capabilities

Powertrain electronics R&D on DC fast charging is enabling the electric vehicle (EV) industry to take the charger out of some vehicles and store it off-board for other driving applications. DC fast charging bypasses all of the limitations of the onboard charger and requires conversion, and instead, provides DC power directly to the battery. Hence, charging speed has the potential to be greatly increased. Furthermore, the space constraint of an onboard charger, coupled with the time to charge which can range from 4-5 hours is the primary motivation for the increased research and product development in DC fast chargers. Hence, increased investment by key players in the technological advancement of this technology is likely to be a positive factor for the growth of this market.

DRIVING FACTORS

Increasing Adoption of Electric Vehicles and Standardization of Critical Components

The biggest driver for powertrain electronics market growth is the adoption rate of electric vehicles (EV). This growth is primarily aided by the auto industry’s efforts to decrease the production cost of batteries, to satisfy consumer demand for the extended driving range and reduce the expected sales cost for vehicles. This growth is likely to be reinforced by technological advancements, competitive pressure, and an increase in the production capacity that is further expected to decrease the cost per kWh of batteries, again leading to higher EV adoption. Higher adoption of SAE level 4 to 5 vehicles is likely to boost the powertrain electronics market. Another factor driving the market growth is the standardization of core product segments such as 48V systems or 40 to 150 kW inverters. This is likely to lower the entry barriers for tier-2 semiconductor suppliers to offer more integrated systems, hence increasing the competition and put pressure on the average selling price (ASP) of systems. Hence, these factors are propelling the growth of the powertrain electronics market.

Technological Advancements and Greater Consumer Demand for Efficient Vehicles

The introduction of high power and high-frequency switching devices has led to a greater application of power electronic converters for motion control, energy conversion, and more. Furthermore, continuous advancements such as the reduction in cost and size of components and systems are propelling the growth of this market. The implementation of electronics in powertrains systems is also likely to expand as a result of environmental agencies and government efforts to reduce emission levels via the sale of eco-friendly transport solutions.

RESTRAINING FACTORS

Operation of Powertrain Electronics in Harsh Driving Conditions and Supply of Key Raw Materials

There is a growing demand for powertrain electronics that can operate under high temperature and high power conditions. However, when the quantity of coolant used to dissipate heat from electronic components increases, the operation of power semiconductor devices becomes severely limited so that the safe operating temperature limit of the semiconductors is not exceeded. Hence, a lack of high efficiency, yet low-cost power module packaging is hampering the growth of this market.

Furthermore, high-performance motors used in EVs utilize high-performance Nd-Fe-B magnets that contain up to 12% of dysprosium (Dy). However, the global rare earth elements (Nd, Dy, etc.) supply chain risk coupled with predicted supply shortages for dysprosium which the U.S. DOE has deemed critical, threatens the advancement of electric motors. Efforts to use induction motors or lower energy product magnets result in lower performances. Hence, these factors are likely to restrain the growth of this market.

SEGMENTATION

By Component Type Analysis

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Electric Motor Segment to Dominate the Global Market

Based on component type, this market is segmented into inverter, DC/DC converter, electric motor, battery management systems, cell module controller, and onboard charger. The e-motor segment is expected to hold the largest automotive powertrain electronics market share owing to the increasing emission standards which has propelled the electric vehicle production. Electric motors facilitate a longer operating life, automated control, low fuel consumption, and reduced maintenance costs. These factors are boosting the growth of the e-motors segment. The inverter segment is expected to show steady growth in this market owing to technological advancements in inverter and battery technologies aimed at improving the range of electric vehicles. The development of these technologies up to an optimum level is expected to reduce the price of EVs, hence increasing the demand for inverters.

The battery management system segment is also expected to show steady growth in this market as it is vital in temperature management and for improving the battery life of a vehicle. The DC/DC converter segment is anticipated to show good growth in this market as a result of increased R&D by OEMs to integrate these converters into commercial vehicles. The cell module controller segment is anticipated to show good growth in this market as it is essential in controlling cell voltage, providing means of controlled dissipative balancing for various components such as the battery and effectively communicating with the main controller. The onboard charger segment is also expected to show good growth in this market boosted by the growing installation of AC charging stations in the emerging countries.

By Vehicle Type Analysis

Commercial Vehicles Segment to Lead Growth in this Market

Based on vehicle type, this market is segmented into passenger cars and commercial vehicles. The passenger car segment is expected to show slow growth in this market over the forecast period. Increasing consumer awareness concerning the electric mobility solutions and cost benefits associated with power electronic applications over the long run are boosting the growth of the passenger car segment. The commercial vehicles segment is expected to show good growth in this market. There have been increased efforts by OEMs to integrate components such as converters and controllers in heavy duty vehicles. Upcoming regulations concerning commercial vehicle safety and efficiency, primarily in developed countries is likely to fuel the growth of this segment.

REGIONAL INSIGHTS

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The market in Asia Pacific is characterized by rapid growth of the automotive industry, particularly in the developing countries such as China and India. Growing demand for high-end electronic and safety features in passenger cars, coupled with the high volume markets are factors that dominate the automotive powertrain electronics market.

Furthermore, upcoming regulations for emission control and standardization of safety technologies in developing countries are projected to fuel the market growth in Asia Pacific. Europe is expected to hold the second-largest market share. Greater adoption of electric vehicles is likely to facilitate the demand for powertrain electronics. Also, the majority of the vehicles are equipped with advanced safety features and high-end electronics which can be attributed to stringent government regulations for passenger cars and upcoming legislation on commercial vehicles to achieve the target of zero carbon footprint. Hence, these factors are aiding the growth of the market in Europe. North America is expected to show steady growth in this market as existing vehicles, particularly in the U.S. are already equipped with advanced electronics and significant support by the government institutions in the form of grants to further the development of this market.

KEY INDUSTRY PLAYERS

NXP Semiconductors and Robert Bosch GmbH Expected to Retain their Leading Positions

Key players in this market include NXP Semiconductors, Texas Instruments Inc, Infineon Technologies AG, and others. They are consistently expanding their business strategies to further the development of powertrain electronics, particularly in volume-driven developing countries to tap the underlying potential in these markets. For example, Infineon Technologies AG is setting up a new development center in Dresden, Germany with a core focus to develop new products and solutions for automotive powertrain electronics, as well as artificial intelligence.

LIST OF KEY PLAYERS PROFILED:

• Continental AG (Germany)


• Texas Instruments Inc. (U.S.)


• NXP Semiconductors (Netherlands)


• Robert Bosch GmbH (Germany)


• Renesas Electronics Corporation (Japan)


• Infineon Technologies AG (Germany)


• Mitsubishi Electric Corporation (Japan)


• Toshiba Corporation (Japan)

KEY INDUSTRY DEVELOPMENTS:

• July 2019 – Continental developed a new third-generation power module which is equipped with new microchip technology and can enable current of up to 650 amps and can be used on a broad range of electric vehicles.


• November 2018 – NXP Semiconductors in partnership with VEPCO Technologies, developed a new ASIL-D motor inverter with a new power control reference platform for electric vehicles. The new platform combined with the traction motor inverter allows for greater control over the complex systems of vehicle operation.

REPORT COVERAGE

The automotive powertrain electronics market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product.

An Infographic Representation of Automotive Powertrain Electronics Market

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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 have contributed to the growth of the market over recent years.

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Report Scope & Segmentation