Market Trends of Gate Driver Integrated Circuit Industry
Automotive Sector is Expected to Drive the Market Growth
- The automotive sector's market for electric and hybrid vehicles is increasing quickly. The requirement for gate driver ICs to regulate high-voltage power switches like IGBTs and MOSFETs to switch on/off more rapidly and ensure the smooth procedure of these devices has improved.
- Furthermore, European countries have been experiencing increased demand for electric vehicles, clean energy, expanding data centers, 5G, and automated manufacturing, which requires electronic components. Thus, this is expected to drive the demand for semiconductors. According to forecast data by the clean transport campaign group, Transport, and Environment, electric vehicle production in the European Union is expected to multiply six-fold between 2019 and 2025. T&E predicts 4 million electric cars and vans to be produced in the EU region in 2025, amounting to around a fifth of all vehicles made in the region.
- In addition, automakers such as General Motors have planned to launch 20 new all-electric vehicles by 2023. Tesla Company also changed the face of the EV market segment in the country with the introduction of reliable and efficient electric cars. The growth of electric vehicles is expected to create more opportunities in the coming times.
- Moreover, in March 2022, ROHM Semiconductor announced that Lucid, a luxury electric vehicle company, uses its SiC MOSFET in the Lucid Air car. The Wunderbox, the central on-board charging unit in the Lucid Air, combines a DC-DC converter and the Bi-directional On-Board Charger, where an advanced power factor correction circuit is qualified to operate at increased switching frequencies due to the superior performance of the SiC MOSFET. The enhanced performance at high frequency and high temperature of ROHM's SCT3040K and SCT3080K SiC MOSFETs have helped Lucid reduce the structure size and power losses, which results in high charging efficiency.
- Various players in the market are continuously innovating new products to say competitive in the studied market. For instance, in April 2022, Magnachip Semiconductor released a new 40V Metal-Oxide-Semiconductor Field-Effect transistor (MOSFET) for brushless direct current motors for automotive applications. The new 40V MOSFET is fully AEC Q101 certified and is critical to vehicle safety.
- In addition, in May 2022, Power Integrations announced the SCALE EV series of gate-driver panels for Infineon EconoDUAL modules at PCIM Europe. The SCALE EV family consists of automotive-qualified, dual-channel plug-and-play drivers for silicon-carbide MOSFETs and silicon IGBTs. Such developments in electric vehicles may further fuel the market's demand for gate drive ICs.
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Asia Pacific to Experience Significant Market Growth
- The rising use of semiconductors in consumer electronics and automotive enterprises contributes to the region's growth. IoT and 5G telecommunication services have become more prevalent in semiconductor production as companies broaden their product lines to strengthen their position in local markets. With a 56% market share, China is the most competitive market due to the region's growing need for various product cases and configurations.
- According to CAAM, Sales of passenger battery electric vehicles (BEVs) and passenger plug-in hybrid electric vehicles (PHEVs) in China were recorded at 3,73,000 and 87,000 units in March 2022. In addition, according to IBEF, the Indian appliances and consumer electronics enterprise stood at USD 9.84 billion recently and is anticipated to more than double to reach INR 1.48 lakh crore (USD 21.18 billion) by 2025.
- Furthermore, the Government recently approved 14 companies under the PLI scheme for IT hardware. Over the next four years, these organizations are expected to fuel total production of USD 21.64 billion. Such expansion in the electronic market may further drive the growth of Gate Driver ICs in the region.
- Moreover, in August 2022, Renesas Electronics Corporation announced the development of unique Si-IGBTs, delivered in a small footprint while providing low power losses. Aimed at next-generation EV inverters, AE5-generation IGBTs will be mass-produced forming in the first half of 2023 on Renesas' 200-mm and 300-mm wafer lines at the company's factory in Japan. Additionally, Renesas intends to ramp up production in the first half of 2024 at its latest power semiconductor 300-mm wafer fab in Kofu, Japan, to meet the growing need for power semiconductor products.
- Furthermore, according to IBEF, India is also a prominent auto exporter with solid export growth expectations in a few years. In addition, several initiatives by the Indian Government, such as the Automotive Mission Plan 2026, scrappage approach, and PLI scheme in the Indian market, are expected to drive India to one of the global players in the two-wheeler and four-wheeler market at the end of 2022. India's annual production of automobiles in FY2022 was 22.93 million vehicles. In addition, India's electric vehicle market is estimated to reach INR 50,000 crore (USD 7.09 billion) by 2025. Government initiatives in the automotive sector may further drive the studied market growth in the region.
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