Automotive Power Semiconductors Industry Overview

Automotive-grade power semiconductors are critical components in modern vehicles, particularly in the era of electrification and intelligence. These semiconductors are essential for managing and controlling electrical energy, including its conversion, transmission, and distribution. They play a decisive role in vehicle performance, energy efficiency, and operational safety. In internal combustion engine (ICE) vehicles, power semiconductors are primarily used in ignition, engine management, and auxiliary electric systems. In contrast, electric vehicles (EVs) significantly expand their application scope to include battery management systems (BMS), electric drive systems (EDS), onboard chargers (OBC), and more. As such, they are becoming a key enabler of the automotive industry’s transition toward electrification and intelligence.

In recent years, the global automotive industry has been undergoing a profound transformation. Surging EV sales have provided unprecedented opportunities for the power semiconductor market. From 2019 to 2024, global EV sales maintained a compound annual growth rate (CAGR) exceeding 30%, directly driving the rapid expansion of the automotive power semiconductor segment. Concurrently, rising adoption of advanced driver assistance systems (ADAS), digital cockpits, and other smart features has heightened the demand for high-performance and highly reliable power semiconductor solutions, pushing the industry into a new phase of accelerated development.

Automotive Power Semiconductors Market Size and Growth Trends

According to Omdia, the global power semiconductor market is expected to reach USD 52.2 billion in 2024. This trend is supported by the surge in demand for new energy industries, the iteration of wide bandgap technology, and industrial/consumer electronics demand. In the future, with the expansion of related industries and the popularization of technology, the market size is expected to continue to grow, consolidating its key position in the science and technology industry chain.

Automotive-grade power semiconductors represent a key sub-segment. In 2025, despite macroeconomic headwinds such as global economic slowdown and geopolitical uncertainties impacting ICE vehicle demand, the resilient growth of EVs continues to support the overall automotive power semiconductor market. Even though industrial and automotive chip segments face cyclical pressures, rising EV penetration and increased content per vehicle are fueling structural demand, ensuring that the overall market maintains a stable upward trajectory.

Automotive Power Semiconductors Competitive Landscape

The global Insulated-Gate Bipolar Transistor (IGBT) module market is marked by high technical complexity, long R&D cycles, and stringent reliability requirements—especially in automotive-grade applications. As a result, the competitive landscape remains highly consolidated, with industry titans such as Infineon Technologies (Germany), Fuji Electric (Japan), and Mitsubishi Electric (Japan) maintaining long-standing dominance. These three players collectively control over 50% of global market share, enabled by their deep technological know-how, economies of scale, and entrenched partnerships with top-tier OEMs and Tier 1 suppliers.

The metal-oxide-semiconductor field-effect transistor (MOSFET) market features a more fragmented structure due to its wide range of product types, fast iteration cycles, and diverse applications. Global leaders such as Infineon, onsemi, STMicroelectronics, Renesas, and ROHM dominate high-voltage and automotive-grade segments, while Chinese vendors like Silan Micro and BYD Semiconductor have established solid footing in consumer and industrial sectors by leveraging cost advantages and agile supply chains. Compared to the IGBT space, MOSFET market concentration is lower, and Chinese companies enjoy broader entry points. With ongoing improvements in product performance and certifications, local vendors are gradually penetrating high-end automotive segments.

The automotive power IC segment encompasses a wide array of devices, including battery protection ICs, power management ICs (PMICs), and motor driver chips. It is currently one of the most diversified spaces in the automotive semiconductor ecosystem. Global incumbents such as Texas Instruments (U.S.), Analog Devices (U.S.), and Infineon continue to dominate the high-end market with deep system-level integration, multi-decade product reliability, and comprehensive design ecosystems. Their solutions are widely adopted in critical automotive applications like engine control, safety systems, and in-vehicle infotainment. At the same time, Chinese and other emerging-market players are increasingly gaining ground in niche and mid-range segments. Companies like Chipown, CR Micro, and SG Micro are offering application-specific solutions for electric vehicles—particularly in areas such as battery management, DC-DC conversion, and low-voltage motor control. These vendors often deploy agile product strategies, rapid iteration cycles, and price-performance optimization to penetrate markets underserved by international giants.

Automotive Power Semiconductors Industry Value Chain

Upstream of the automotive power semiconductor industry lie key materials and equipment providers. Silicon remains the mainstream substrate, but wide bandgap (WBG) materials such as silicon carbide (SiC) and gallium nitride (GaN) are rapidly gaining prominence due to their superior thermal conductivity, breakdown voltage, and switching efficiency. Global leaders like Infineon and STMicroelectronics are heavily investing in SiC ecosystems, while Chinese players such as Sanan Optoelectronics and Tianyu Advanced are building localized supply chains to meet surging demand.

Semiconductor manufacturing equipment is another critical upstream component. Advanced tools such as photolithography machines, etchers, ion implanters, and deposition systems are vital for precise chip fabrication. These systems are typically dominated by companies from the U.S., Japan, and the Netherlands (e.g., ASML, Lam Research). However, domestic suppliers like NAURA and AMEC have achieved meaningful progress in etching and cleaning equipment, contributing to a more resilient and autonomous semiconductor ecosystem in China.

Downstream, automotive-grade power semiconductors are integrated across ICE and EV platforms. In ICE vehicles, they power engine control units (ECUs), ignition modules, power steering systems, and infotainment. In EVs, they are mission-critical in BMS, EDS, and OBC systems. For example, IGBT and SiC modules are indispensable in traction inverters, directly impacting acceleration, efficiency, and driving range. In addition, power semiconductors are increasingly used in emerging applications such as ADAS and digital cockpits, powering sensors, processors, and advanced communication modules.

Automotive Power Semiconductors Technology Trends

Wide bandgap semiconductors are the most significant technological trend in the automotive power semiconductor space. SiC-based devices offer higher efficiency, lower loss, and better thermal performance, making them ideal for high-voltage EV components. Tesla has pioneered the use of SiC in its Model 3 inverter, setting a precedent for automakers such as BYD, Toyota, and Volkswagen to follow. As manufacturing costs decline and yields improve, SiC penetration is expected to rise sharply.

GaN devices also hold strong potential in automotive power electronics. Their high-frequency, high-efficiency characteristics make them suitable for compact and high-density systems such as onboard fast chargers and DC-DC converters. Leading EV makers and charging equipment suppliers are actively deploying GaN technologies in next-generation power delivery solutions.

Integration and intelligence are parallel trends shaping the evolution of automotive power semiconductors. Integrated Power Modules (IPMs), System-in-Package (SiP), and embedded monitoring features are enabling higher functional density, reduced system size, and improved thermal reliability. Smart power devices can self-monitor operating conditions such as temperature and current, enabling predictive protection and improved safety. As automotive E/E architectures evolve toward zonal and centralized computing models, intelligent and highly integrated power solutions will become increasingly vital.