Market Trends of Automotive Power Modules Industry
Increasing Adoption of Battery Electric Vehicles May Drive the Market
The growth of the electric vehicle market is driving the demand for automotive power modules. Power modules are essential for the efficient functioning of EVs, and as more automakers shift toward electric mobility, the demand for these modules is on the rise. Beyond full EVs, there is a growing trend of vehicle electrification, including hybrid and plug-in hybrid models. These vehicles also require power modules for their electric propulsion systems.
Automakers are increasingly adopting modular power electronic solutions that can be easily integrated into different vehicle models. This trend toward standardization helps reduce development costs and accelerates the production of EVs.
- In February 2022, Semikron, a manufacturer of power modules and systems, secured a contract worth USD 1.06 billion with a major German automotive manufacturer. This contract pertains to their innovative power module platform called eMPack, designed specifically for silicon carbide technology. The eMPack platform is expected for integrated into the car manufacturers' next-generation electric vehicle inverters. It employs Semikron's advanced Direct Pressed Die technology, enabling the creation of compact, scalable, and dependable inverters. The commencement of series production is expected for the year 2025.
- In December 2022, Hyundai Motor Company opted for ST's efficient ACEPACK DRIVE power modules to be used in various models within its E-GMP vehicle platform.
- In October 2022, BMW Group announced a USD 1.7 billion investment plan for the production of electric vehicles in the United States. Additionally, they entered into an agreement with Envision AESC for the provision of battery cells to their Spartanburg plant.
- In July 2023, Servotech Power is set to manufacture electric vehicle (EV) components with an initial investment of USD 319 million.
Growing Production and Imports of Power Modules Majorly in Asia-Pacific Dominating The Market Growth
The increasing emission standards across the world are likely to drive more electric vehicle sales during the forecast period. Thus, to meet the growing demand for EVs, the manufacturers of automotive power modules started investing in extending their production capacity majorly in Asia-Pacific. It is owing to its high sales and large exports of vehicles across the world as well as non-tariff on EV parts among ASEAN countries.
- In December 2022, Dongfeng Motor developed a next-generation silicon carbide power module and was gearing up for mass production to equip its electric vehicles, expected for delivery in 2023. These SiC modules are anticipated to enable rapid charging with the capability to reach an 80% charge within just 10 minutes at an 800 V charging station. The company aims to achieve an annual production capacity of 1.2 million units by the year 2025.
- In December 2022, StarPower Semiconductor plans to construct a production line dedicated to automotive semiconductor modules with an investment of USD 35.1 million. This initiative is in response to the increasing demand for semiconductor products in the new energy vehicle segment.
