Market Trends of Global Rectifier Industry
This section covers the major market trends shaping the Rectifier Market according to our research experts:
Automotive Segment to Hold Significant Market Share
One of the major end-user for the rectifier industry is automotive. The rectifier market is being influenced by the automobile industry's rising technical improvements as cars using traditional IC engines require only a few electrical components.
The majority of the market's vendors are boosting their investments in the automobile industry, owing to the rising adoption of electric vehicles (EVs) and autonomous vehicle technology. As rectifiers are increasingly being used in the On-Board Charging and Battery Management Systems (BMS) of electric vehicles (EVs), the demand is expected to grow. Additionally, government regulations for mandatory (Advanced Driver Assistant System) ADAS systems and the rising adoption of smart technologies for automotive manufacturing are also supporting the growth of the studied market.
For instance, according to the IEA, worldwide sales of electric automobiles had reached 6.6 million in 2021. Electric vehicles accounted for 9% of all vehicle sales worldwide.
While the number of Battery Electric Vehicles (BEV) sold worldwide is still small, technological advancements, charging infrastructure development, and the variety of BEV models available may continue to rise faster than the entire vehicle industry. Even if total car sales stay unchanged, this rise may drive rectifier usage.
To respond to the growing demand for eco-friendly solutions, most countries are promoting the use of electric automobiles. For instance, the EU has set up an ambitious goal to become a climate-neutral continent by 2050. This is evident from the fact that the EU recently announced a EUR 750 billion stimulus package, including EUR 20 billion, to boost the sales of clean vehicles.
Additionally, the EU is also planning to install about 1 million electric and hydrogen vehicle charging stations by 2025 as rectifiers play an important role in EV chargers. Such trends are expected to support the growth of the studied market.
Asia-Pacific Region to Witness Significant Growth
The Asia-Pacific is among the fastest-growing rectifier market, owing to the significant rise in demand for rectifier-based electronic components and renewable energy products in the automotive industry across the region.
With a significant presence of local enterprises, China is one of the leading manufacturers of rectifiers. Furthermore, Chinese rectifier producers have been quickly expanding during the past several years while focusing on the supply of consumer electronic products.
According to the International Energy Agency, electric cars would account for 70% of global vehicle sales in 2030 and 42% in China, excluding two- and three-wheelers. Additionally, Japan will retain 21% of the EV market, followed by Europe with 26% and United Kindom with 57%, by 2030.
Various governments are framing several regulations across the Asia Pacific region to promote the use of electric vehicles, which is creating a favorable market scenario for the growth of the studied market. For instance, the Chinese government has already begun to phase out diesel fuel used in the latest commercial vehicles, such as trucks. By 2040, the country intends to eliminate all diesel and gasoline automobiles.
Furthermore, according to Business Korea, the continuing trade war between China and the United States is affecting Korean rectifier manufacturers such as Samsung Electro-Mechanics, which relies on China for 40% of its revenues.
Many businesses are establishing manufacturing facilities in Asia-Pacific in response to rising demand for rectifiers and other essential consumer electronics items from China, the Republic of Korea, India, and Singapore. The vast supply of raw materials and inexpensive startup and labor costs are supporting factors for enterprises in establishing manufacturing facilities in this region.
