Power Electronics Electric Vehicles Market Outlook - 2026
The Power Electronics Electric Vehicles Market size was valued at $2.59 billion in 2018, and is projected to reach $30.01 billion by 2026, growing at a CAGR of 35.5% from 2019 to 2026.
In electric cars, power electronic is responsible for converting and controlling electric power in system. Some of the major power electronic components and functionalities are used in electric vehicle system. These include inverter, converter, and on-board charger. Operations at high voltage or high current can be efficiently executed by utilizing power electronic devices, as they deliver faster switching rate at higher efficiency. In addition, power electronics control both unidirectional as well as bidirectional flow of energy, depending on the usage, and the regenerated energy can be sent back to utility.
Power electronic is a key technology used in various applications to optimize energy management, providing the conversion to operate motors, battery storage, and generators. Complex power electronics are represented as the interconnection of conversion blocks in AC/DC, DC/AC, DC/DC, and AC/AC. This complex electrical architectures in marine applications increase the need for power converters with high reliability and simple maintenance requirements.
Power electronics is used in EV that require high power electric energy to rotate the electric motors. Power modules reduce power loss, owing to their high frequency. In addition, the components such as silicon-based power MOSFETs and IGBTs are used as power electronic switches in the power train automotive electric and electronic systems for reducing the overall size.
The major factors that drive the power electronics electric vehicles market growth include surge in demand for energy-efficient battery-powered devices, stringent emission regulations to reduce vehicle weight and emission, and government initiatives to balance environmental pollution and vehicle emission. However, high cost of vehicle and complexity in designing and integrating advance power electronic components in electric vehicles hinder the power electronics electric vehicles market growth.
Furthermore, technological advancements in vehicle battery and increase in R&D activities are expected to create lucrative growth opportunities for the power electronics electric vehicles market. In addition, power electronics support high input impedance and improved parallel current sharing, which increases the adoption of power electronic components in electric cars.
By Application
Inverter segment is expected to dominate the market in 2026.
Key Takeaways
The global power electronics electric vehicles market study covers 20 countries. The research includes a segment analysis of each country in terms of value for the projected period.
More than 1,500 product literatures, industry releases, annual reports, and other such documents of major market industry participants along with authentic industry journals, trade associations' releases, and government websites have been reviewed for generating high-value industry insights.
The study integrated high-quality data, professional opinions and analysis, and critical independent perspectives. The research approach is intended to provide a balanced view of global markets and to assist stakeholders in making educated decisions to achieve their most ambitious growth objectives.
Key Market Dynamics
The Power Electronics Electric Vehicles Market is driven by the increasing demand for electric vehicles (EVs), advancements in battery technology, and government incentives promoting clean energy transportation. A key restraint is the high cost of power electronics components, which can impact affordability. However, an opportunity lies in the growing adoption of EVs in emerging markets, providing significant potential for future growth.
Segment Overview
The power electronics electric vehicles market is segmented on the basis of application, end use, and region. The application segment is divided into inverter, converter, and on-board charger. By end use, the market is classified into automotive, railway, marine, and electrically powered airborne vehicles.
By End Use
Railways would exhibit the highest CAGR of 8.0% during 2019-2026.
Regional/Country Market Outlook
North America: The North American power electronics electric vehicles market is growing due to increased EV adoption, driven by government incentives and investments in charging infrastructure. The push for reducing carbon emissions is also a key driver in the region.
Europe: In Europe, stringent emission regulations and a strong focus on sustainability have accelerated the adoption of EVs, boosting the demand for power electronics. Countries like Germany and Norway are leading the transition towards electric mobility, supported by government policies.
Asia-Pacific: APAC is witnessing rapid growth in the power electronics electric vehicles market, particularly in China and Japan, driven by government initiatives, rising environmental awareness, and significant investments in EV infrastructure and manufacturing.
LAMEA: The LAMEA region is gradually adopting electric vehicles, with governments in countries like Brazil and South Africa promoting cleaner transportation solutions. While still emerging, the power electronics electric vehicles market holds potential due to increasing urbanization and the focus on reducing fuel dependency.
Top Impacting Factors
The significant impacting factors in the power electronics electric vehicles market include surge in demand for energy-efficient battery-powered devices, stringent emission regulations to reduce vehicle weight and emission, and government initiatives to balance environmental pollution and vehicle emission. However, high cost of vehicle and complexity in designing and integrating advance power electronic components in electric vehicles hinder the power electronics electric vehicles market trends.
Furthermore, technological advancements in vehicle battery and increase in R&D activities are expected to create lucrative growth opportunities for the power electronics electric vehicles market. In addition, power electronics supports high input impedance and improved parallel current sharing, which increases the adoption of power electronic components in EV.
Some Major Factors Impacting the Power Electronics Electric Vehicles Market Growth are Given Below:
Surge in Demand for Energy-Efficient Battery-Powered Devices
Rise in interest of energy efficiency power devices and environmental protection has led to the development of electric vehicle technology. The primary energy sources in these vehicles are batteries or capacitors instead of gasoline or diesel fuel in the conventional ICE vehicles. The power electronics are key components in propulsion system that effectively drive the adoption of electric motor and control the power converters.
The implementation of innovative battery technology in electric vehicle is in progress, which is expected to reduce the cost of these vehicles. Currently, the performance of lithium-ion battery cathodes is being improved, which also reduces battery cost; thereby, reducing the cost of electric vehicle as compared to gas power vehicle in the coming years.
Stringent Emission Regulations to Reduce Vehicle Weight and Emission
Over the past few years, the electric vehicles have witnessed an increase in demand due to their lightweight nature and higher efficiency. This has led to surge in installation of e-axles and in-wheel hub motor in all type of electric vehicles. Moreover, such installation helps reduce CO2 emissions and space required for engines. The conventional gas-powered vehicle makes use of an internal combustion engine to generate power.
In an ideal scenario, the combustion system fully incinerates the fuel and only creates carbon dioxide and water as waste; however, the combustion system generates various greenhouse gases, leading to environmental pollution. On the other hand, an electric vehicle uses an electric motor powered via a continuous supply of current, hence, it does not lead to emission of pollutants. These factors are expected to boost the growth of the power electronics for electric vehicles market during the forecast period.
Government Initiative to Balance Environmental Pollution
Governments have increased their efforts to improve safety standards and environmental conditions. The increase in number of government agencies are focusing to prevent distracted driving. The automotive safety studies continue to drive the government to push for continuous emphasis on enhanced automotive technological systems. This regulation forced on the automotive industry and its output has become constricted.
Now, many governments are promoting the use of electric vehicle by providing new facilities including tax reduction and financial subsidies, as well as enforcing regulations such as zero-emission zones and ultralow-emission vehicles. Thus, this helps balance environmental pollution and vehicle emission.
Competitive Analysis
The key players profiled in the power electronics electric vehicles market report include Denso Corporation, Robert Bosch GmbH, Infineon Technologies AG, Delphi Technologies, and other companies secured major share in power electronics electric vehicles market. The other key player profiled in this report include Continental AG, Hitachi Automotive Systems, Ltd., Delphi Technologies, Valeo, Mitsubishi Electric Corporation, Denso Corporation, Infineon Technologies, Robert Bosch GmbH, Hella, Panasonic Corporation, Tesla Inc., Toyota Industries Corporation, and Hangzhou Tiecheng Information Technology.
Report Coverage & Deliverables
This report delivers in-depth insights into the power electronics electric vehicles market, by fiber mode, service type, offering, application, and key strategies employed by major players. It offers detailed power electronics electric vehicles market forecasts and emerging trends.
Material Insights
The power electronics electric vehicles market uses materials like silicon carbide (SiC), gallium nitride (GaN), and sapphire. SiC and GaN are gaining popularity for their superior efficiency in high-temperature and high-voltage applications, especially in EVs and renewable energy systems. Sapphire is mainly used in optoelectronic applications, while other materials play niche roles in specific technologies.
Device Type Insights
The power electronics electric vehicles market includes power discrete, power modules, and power ICs. Power modules are in high demand for energy efficiency in EVs and renewable energy systems, while power ICs dominate consumer electronics for precise power management. Power discrete devices are crucial for high-performance industrial applications.
End Use Insights
Key end-use industries include automotive, telecommunications, industrial, and consumer electronics. Automotive leads due to EV growth, while telecommunications and industrial sectors increasingly rely on power electronics for improved performance and energy management. Consumer electronics continue to demand power efficiency, and military & defense utilize these technologies for advanced systems.
Application Insights
Applications span power management, UPS, and renewable energy. Power management solutions are widely used across sectors for energy efficiency, while UPS systems ensure reliability in industries like telecommunications and data centers. The renewable energy sector is growing rapidly, driving demand for efficient power electronics solutions in solar and wind systems.
Key Strategies and Developments
In March 2023, Mitsubishi Electric doubled its investment to approximately 260 billion yen in a five-year plan ending March 2026 to boost production of silicon carbide (SiC) power semiconductors. This expansion aimed to meet surging demand for SiC power semiconductors driven by electric vehicles and other emerging applications. The investment included the construction of an 8-inch SiC wafer plant and enhancements to production facilities. Mitsubishi Electric also invested in a new factory for the assembly and inspection of power semiconductors.
In August 2023, Toshiba Electronic Devices & Storage Corporation released its 3rd Generation SiC MOSFETs for industrial equipment, featuring a four-pin package that reduces switching loss. These MOSFETs improve high-speed switching performance, resulting in lower equipment power loss.
In September 2023, STMicroelectronics launched high-voltage IGBTs with increased efficiency and ruggedness, targeting industrial and induction heating applications.
Key Benefits for Stakeholders
- This study comprises analytical depiction of the power electronics electric vehicles market size along with the current trends and future estimations to depict the imminent investment pockets.
- The overall power electronics for electric vehicles market analysis is determined to understand the profitable trends to gain a stronger foothold.
- The report presents information related to key drivers, restraints, and opportunities with a detailed impact analysis.
- The current power electronics electric vehicles market forecast is quantitatively analyzed from 2019 to 2026 to benchmark the financial competency.
- Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the power electronics for electric vehicles industry.
- The report includes the power electronics electric vehicles market share of key vendors and market trends.
Power Electronics Electric Vehicles Market Report Highlights
| Aspects | Details |
 By APPLICATION |
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 By END USE |
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 By Region |
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 Key Market Players | Tesla Inc., Toyota Industries Corporation, Denso Corporation, Panasonic Corporation, Hitachi Automotive Systems, Ltd., Continental AG, Hella, Valeo, Robert Bosch GmbH, Hangzhou Tiecheng Information Technology, Infineon Technologies AG, Delphi Technologies, Infineon Technologies, Mitsubishi Electric Corporation |
Analyst Review
The power electronics for electric vehicle market is projected to depict a prominent growth during the forecast period, owing to surge in demand for energy-efficient battery-powered devices, stringent emission regulations to reduce vehicle weight and emission, and government initiatives to balance environmental pollution and vehicle emission. Power electronics is a circuitry device that transfers power from a source to a load in an efficient, compact, and robust manner to ensure convenient utilization. This device is used to control the conversion of electric power from one form to another using diodes, transistors, and thyristors. In electric vehicle, power electronic is responsible for converting and controlling electrical power in system. Some of major power electronic components and functionalities are used in electric vehicle system.
Power electronics is an engineering study of converting electric power from one form to another. The world-wide average rate of 12 billion kilowatts every hour of every day of every year, more than 80% of the power generated, is being reprocessed or recycled through some form of power electronic systems. A lot of energy is wasted during this power conversion process due to low power conversion efficiency. It is, therefore, very important to improve the efficiency of these power conversion systems. With the extensive use of efficient and cost-effective power electronics technology across the globe, the energy consumption is expected to reduce up to 35% during the forecast period.
The key players profiled in the report include Denso Corporation, Robert Bosch GmbH, Infineon Technologies AG, Delphi Technologies, and other companies that secured major share in the automotive electronics market. The other key player profiled in this report include Continental AG, Hitachi Automotive Systems, Ltd., Delphi Technologies, Valeo, Mitsubishi Electric Corporation, Denso Corporation, Infineon Technologies, Robert Bosch GmbH, Hella, Panasonic Corporation, Tesla Inc., Toyota Industries Corporation, and Hangzhou Tiecheng Information Technology.
The Global Power Electronics for Electric Vehicle Market is expected to grow at CAGR of 35.5% from 2019 to 2026.
The Global Power Electronics for Electric Vehicle Market size is excepted to reach $30,008.1 million by 2026
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Surge in demand for energy-efficient battery-powered devices, stringent emission regulations to reduce vehicle weight and emission, and governments initiatives to balance environmental pollution and vehicle emission are some of the major factors driving the growth of power electronics for electric vehicle market.
The key players operating in the market include Denso Corporation, Robert Bosch GmbH, Infineon Technologies AG, Delphi Technologies, Continental AG, Hitachi Automotive Systems, Ltd., Delphi Technologies, Valeo, Mitsubishi Electric Corporation, Denso Corporation, Infineon Technologies, Robert Bosch GmbH, Hella, Panasonic Corporation, Tesla Inc., Toyota Industries Corporation, and Hangzhou Tiecheng Information Technology.
On the basis of top growing big corporations, we select top 10 players.
The global power electronics for electric vehicle market is segmented by application and end use
The key growth strategies of power electronics for electric vehicle market players include business expansion, product launch, partnership, and agreement
By application, the Inverter segment is expected to dominate the market by the end of 2026
By end use, the railways segment would exhibit the highest CAGR during the forecast period
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