Market Trends of Automotive Discrete Semiconductors Industry
Power Transistors are Expected to Hold a Significant Market Share
- MOSFET power transistors are crucial in efficiently functioning electric vehicles (EVs). They are employed in motor drive systems, battery management systems, DC-DC converters for auxiliary systems, etc. The robust growth of EVs is likely to drive the growth of the market studied.
- Silicon MOSFETs are widely adopted in various applications, including automobile electrification. They offer advantages such as low on-resistance, high switching speed, and high reliability. One of the primary applications of Si MOSFETs is in power electronics. These devices are used in power amplifiers, voltage regulators, motor control circuits, and inverters.
- MOSFETs' high switching speed and low on-resistance make them ideal for efficiently controlling and converting electrical power. MOSFETs are capable of handling high voltage and current levels, allowing compact and efficient power electronic systems to develop.
- Si MOSFETs are the building blocks of digital logic gates, which form the basis of modern computer processors, memory devices, and other digital systems. The ability of MOSFETs to switch between two states (on and off) with low power consumption is crucial for digital applications. They enable the processing, storage, and transmission of information in digital form, revolutionizing the computing world.
- Out of all the presently available contenders, silicon technologies have this competitive advantage because they are mature enough to be reliably mass-produced at a meager cost. Thus, Si-based power devices (FETs) compatible with standard CMOS manufacturing drive the power electronics industry single-handedly, with cost, yield, and reliability advantages.
- The increasing trend for electric vehicles creates a significant demand for power MOSFETs. As per IEA, around 14 million new electric cars were registered globally in 2023, bringing their total number on the roads to 40 million. Electric car sales in 2023 were 3.5 million higher than in 2022, a 35% year-on-year increase.
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United States to Hold a Significant Market Share
- The automotive discrete semiconductor market in the United States is experiencing robust growth due to several interrelated factors. The transition toward electric vehicles is a significant factor driving the demand for discrete semiconductors. EVs require a higher number of discrete components, such as MOSFETs and IGBTs, for power management and battery control systems. As automakers ramp up production of EVs to meet consumer demand and regulatory requirements, the need for discrete semiconductors is expected to rise sharply.
- Furthermore, with the transition to EVs, the number of car companies building SiC-based inverter prototypes has rapidly increased in the past few years. In the sector, the primary applications for SiC power MOSFETs, diodes, and modules are onboard electric vehicle (EV) chargers, DC/DC converters, and drivetrain inverters. Plug-in hybrid EVs and BEVs use onboard chargers to refuel the vehicle battery either at home or at a public charging station.
- Over the last decade, the automotive landscape has undergone significant transformations in production and sales. As per BEA, in 2023, approximately 1.7 million automobiles were produced in the United States. This represents an increase of about 2% compared with the previous year.
- Furthermore, the Biden-Harris Administration unveiled a USD 15.5 billion funding and loan package, with a primary emphasis on revamping current factories for the shift to electric vehicles (EVs). The Department revealed plans to allocate USD 3.5 billion to bolster domestic battery manufacturing. This funding extends to batteries for EVs, the national grid, and the materials and components, currently sourced from abroad. The mentioned factors are anticipated to drive segment growth.
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