Global Automotive Powertrain Electronics Market To Reach $83.47 Billion By 2026: Fortune Business Insights
- The standardisation of core product segments is one of the major factors driving the automotive powertrain electronics market growth
- The inverter segment will grow steadily backed by ongoing technological advancements
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The global automotive powertrain electronics market size is projected to reach $83.47 billion by 2026, growing at a CAGR of seven per cent during the forecast period as per a report by Fortune Business Insights. The report titled, “Automotive Powertrain Electronics Market Size, Share & Industry Analysis, By Component Type, By Vehicle Type and Regional Forecast, 2019-2026 also said that its valuation stood at $49.55 billion in 2018.
The emergence of COVID-19 has brought the world to a standstill. The report added that rising support from governments and several companies can help in the fight against this.
The report added that the standardisation of core product segments is one of the major factors driving the automotive powertrain electronics market growth. It consists of 40 to 150 kW inverters or 48V systems. This helps in reducing the obstacles required for the tier-2 suppliers of semiconductors to enter the market. It creates pressure on the average selling price of the system and increases competition.
Inverter segment will grow steadily
Automotive powertrain electronics are also becoming popular due to the adoption of EVs. The report adds, “This is mainly occurring as the auto industry is trying to lower the cost of batteries and satisfy the consumer demand. However, there is a threat to the advancement of EVs as there are shortages of the supply of dysprosium. It may obstruct market growth.”
The report said that the inverter segment will grow steadily backed by ongoing technological advancements. Based on component type, the inverter segment held 34.83 per cent automotive powertrain electronics market share in 2018. This is due to rising technological innovations in battery and inverter technologies. It helps in the improvement of the range of electric vehicles (EVs). The price of EVs may reduce because of the development of such technologies. It will lead to a rise in the demand for inverters globally.
Asia- Pacific to lead
As per the report, Asia-Pacific generated $ 23.28 billion revenue in 2018 and will lead the market throughout the forecast period. This growth is due to the expansion of the automotive industry in developing countries like India and China. Other factors include high volume markets and rising demand for innovative safety and electronic features in passenger cars . The report said that Europe will remain in the second position backed by the increasing usage of electric vehicles in this region. Various European countries are implementing stringent norms on commercial vehicles and passenger cars to lower the carbon emissions said the report.