AUTOMOTIVE DC-DC CONVERTER MARKET ANALYSIS

Automotive DC-DC Converter Market Size and Trends

Global automotive DC-DC converter market is estimated to be valued at US$ 13.32 Bn in 2024 and is expected to reach US$ 19.43 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 5.5% from 2024 to 2031.

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Automotive DC-DC converter market is expected to witness significant growth over the forecast period owing to rising demand for electric vehicles across the globe and need for efficient power management systems in automotive converter.  The demand for electric and hybrid vehicles is rising rapidly across both developed and developing nations due to stringent emission norms and growing environmental concerns. Moreover, the increasing vehicular production is also fueling the need for effective automotive power management components like DC-DC converters during the projected period.

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Insights by DC-DC Converter Type: Increasing Demand of Variable Voltage Requirement Propels Non-Isolated Segment

In terms of DC-DC converter type, the non-isolated (buck, boost, etc.) segment is estimated to hold the highest share of the market of 72.2% in 2024 owing to their ability to efficiently regulate variable voltage requirements within vehicles. Non-isolated converters are simpler in design which helps reduce manufacturing costs compared to isolated converters. Their configurable nature allows them to step-up or step-down voltages as needed to power different electrical components and systems inside modern automobiles.

Insights by End User: Growing Hybridization Drives Higher Demand in Hybrid EV Segment

In terms of end user, hybrid EV (PHEV & HEV) segment is estimated to hold the highest share of the market of 38.4% in 2024 owing to increases in hybrid electric vehicle production volumes. Hybrid powertrains, which combine traditional internal combustion engines with electric motors and batteries, are seeing widespread adoption as an efficient stepping stone toward fully electric drivetrains.

Insights by System: Proliferation of Electrical Loads Drives 12V Segment Dominance

In terms of system, 12 V system is estimated to hold the highest share of the market of 35.4% in 2024 owing to the immense proliferation of lower voltage ancillary electronics and driver-assistance features that rely on robust 12V power sourcing. Despite rising 48V architectures, traditional 12V under-the-hood loads like lighting and basic comfort/convenience circuits remain the backbone of most vehicle electrical systems. Advanced driver-assistance systems including infotainment, telematics and active safety gear constantly add more 12V loads. Digital instrument clusters, connectivity suites and an array of standard/optional comfort and convenience features all operate at lower voltages.

Regional Insights

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Regional Analysis: Global Automotive DC-DC Converter Market

Dominating Region: North America

North America is expected to account for the greatest revenue share, with 33.2% in 2024 can be attributed to the strong presence of leading automotive and technology companies in the region. Government policies favoring new energy vehicles adoption have also promoted converter technology innovation.

Fastest-Growing Region: Asia Pacific

Meanwhile, the Asia Pacific exhibits the fastest growth riding on the back of increasing vehicle production and sales in major economies such as China and India. Large automotive manufacturing hub and trade relationships have accelerated proliferation of advanced automotive electronics.

Automotive DC-DC Converter Market Outlook for Key Regions

U.S.: The global automotive DC-DC converter market in the U.S. continues to spearhead owing to focus on fuel efficiency and connectivity. Key players like Texas Instruments are introducing cutting-edge solutions.

China: Global automotive DC-DC converter market in China shows promising outlook on the back of EV push and domestic champions like BYD developing innovative systems.

Germany: German OEMs take technology lead with requirements for higher-voltage architectures. Renault-Nissan-Mitsubishi alliance closely works with local experts.

India: Global automotive DC-DC converter market in India continues to lead alongside GDP growth and urbanization. Homegrown firms partner global giants to address rising in-vehicle load management needs.

Japan: Japanese automakers strive for reliability and sustainability. Renesas, Toyota Tsusho identified DC-DC converters as integral to achieving thermal efficiency and autonomous functionality.

Market Concentration and Competitive Landscape

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Top Strategies Followed by Global Automotive DC-DC Converter Market Players

Established Players: R&D Investment

Leading companies in the automotive DC-DC converter market focus extensively on research and development to innovate high-performance products. They invest heavily in developing next-generation converter solutions featuring advanced technologies like gallium nitride that enable higher efficiency and power density. This helps them launch cutting-edge products to strengthen their market position.

Mid-Level Players: Cost-Effective Solutions

Mid-tier companies follow strategies centered on delivering quality, affordable converter solutions targeting price-sensitive customers. They focus on optimizing design and production processes to reduce costs. This allows them to provide budget-friendly options without compromising on reliability. Some collaborate with local partners to enhance manufacturing capabilities and lower expenses.

Small-Scale Players: Niche Specialization

New entrants aim to carve out niche segments within the industry with specialized, feature-rich products. They target specific application areas like mild hybrid and battery-powered vehicles left untapped by larger players. Some leverage novel materials like wide bandgap semiconductors to manufacture highly efficient converters for specialized automotive equipment.

Emerging Startups in the Global Automotive DC-DC Converter Market

Innovative Technologies:

Startups are introducing innovative converter technologies like AI-enabled smart sensors that optimize performance based on vehicle dynamics. Companies develop sensing solutions that allow converters to self-monitor operation and predict failures. Such advanced products will influence the market as automakers increasingly prioritize connected vehicle technologies.

Sustainable Solutions:

Emerging companies focus on eco-friendly materials and renewable energy integration. Startups create fully recyclable converter modules using composite plastics. Others incorporate smart designs allowing use of solar panels to recharge electric vehicles. Such sustainable innovations can help reduce the industry's carbon footprint over time.

Market Contribution: Niche Markets

Startups occupy niches left untouched by larger players. Some focus entirely on converter solutions for commercial electric trucks. Others create customized units for recreational vehicles, agricultural equipment and solar-powered homes.

Automotive DC-DC Converter Industry News

• In February 2024, Texas Instruments, a global technology company specializing in designing and manufacturing semiconductors and integrated circuits launched two new portfolios of power conversion devices designed to increase power density. The UCC33420-Q1 is a family of 1.5 W DC-DC converter modules in 3 kV isolation, with an eight times greater power density than discrete solutions and three times that of competing modules.
• In December 2023, Infineon Technologies, a global semiconductor leader specializing in energy-efficient, secure announced its four integrated DC-DC converters for point-of-load applications. Infineon has provided the TDA388xx series of synchronous buck regulator DC-DC converters based on 12 A and 20 A current, targeting server, AI, Datacom, telecom, and storage applications. This DC-DC converter provides an optimal performance based on an efficient fast constant on-time (COT) control scheme.
• In May 2023, RECOM, a global power supply company specializing in the design and manufacture of AC/DC successfully added Midoriya Electric, specializing in AC/DC, DC/DC converters, switching regulators, and LED drivers, to the distribution network
• In August 2022, RECOM a global power supply company specializing in the design and manufacture of AC/DC introduced a new range of DC-DC converters for e-mobility applications

Key Takeaways from Analyst

Global automotive DC-DC converter market is poised to grow significantly over the next decade driven by increasing electrification of vehicles. The growing demand for electric and hybrid electric vehicles worldwide is a major growth driver as these vehicles require robust DC-DC converters to efficiently manage electrical power flows. At the same time, increasing stringency of fuel efficiency and emission norms is prompting automakers to focus more on developing autonomous and connected vehicles which will further push the need for compact yet powerful DC-DC converters.

Europe and North America are also likely to offer lucrative opportunities for DC-DC converter manufacturers as the adoption of EVs and plug-in hybrid vehicles accelerates in these regions. Competition in the market is expected to intensify with the entry of new players focusing on developing innovative solutions to capitalize on emerging opportunities.

Market Report Scope

Market Dynamics

Market Driver - Increasing Number of Control Modules in Vehicles

With the rising complexity in vehicle systems and components the new generation vehicles are incorporating large number of electronic control units and modules to precisely control various vehicle operations and functions. Right from engine and transmission control to advanced driver-assistance, safety, infotainment and connectivity systems - modern vehicles are heavily reliant on automation delivered by electronic hardware and software. This growing electrification and digitization within automobiles have significantly increased the demand for efficient power distribution and management.

Market Challenge - Fluctuations in Global Automotive Production

Global automotive DC-DC converter market is expected to face significant challenges due to the fluctuations in the global automotive production. The automotive industry witnessed a decline in vehicle sales and productions in 2018 due to rising component costs and tightening emission regulations across countries. Furthermore, the ongoing trade wars between the US and China have created an uncertain business environment in the global market. For instance, as per data from OICA, the global vehicle production fell by 16% in 2020 compared to 2019 levels, with major declines seen in North America (-19.3%), Europe (-24.3%) and India (-26.4%) primarily due to the lockdowns and supply chain disruptions caused during the peak of the COVID-19 pandemic.

Market Opportunity - Automotive DC-DC Converter Manufacturers to Offer Innovative and Efficient Solutions

The global automotive DC-DC converter market presents numerous opportunities for manufacturers owing to rapid electrification of vehicles and rising complexity in automobile electronics architecture. Automotive DC-DC converter manufacturers can capitalize on this trend by developing innovative and highly efficient solutions. They can focus on developing multi-output DC-DC converters with high power density and load response to meet the evolving power requirements of different automotive systems and components. In May 2022 According to the International Energy Agency, electric car stock exceeded 10 million in 2020 and is expected to grow exponentially to over 145 million by 2030.

Market Segmentation

• By DC-DC Converter Type Insights (Revenue, USD, 2019 - 2031)
• • Non-Isolated (Buck, Boost, etc.)
  • Isolated
• By End User Insights (Revenue, USD, 2019 - 2031)
• • Hybrid EV (PHEV & HEV)
  • EV/BEV
  • Fuel Cell Vehicle (FCV)
• By System Insights (Revenue, USD, 2019 - 2031)
• • 12 V system
  • 24 V System
  • 48 V System & Above
• By Vehicle Type Insights (Revenue, USD, 2019 - 2031)
• • Passenger Cars
  • Commercial Vehicles
• Regional Insights (Revenue, USD, 2019 - 2031)
• • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
• • Bellnix Co.,Ltd.
  • BORGWARNER INC. (DELPHI TECHNOLOGIES, PLC)
  • Calex Manufacturing Co., Inc., (Murata Power Solutions, Inc.)
  • Chang Sung Corporation
  • Continental AG
  • Delta Electronics, Inc.
  • Deutronic Electronic Technology (Shenzhen) Co., Ltd.
  • EGTRONICS Co., Ltd.
  • FLEX LTD.
  • Hangzhou TIECHENG Information Technology Co., Ltd
  • HELLA GmbH & Co. KGaA
  • HIVRON Inc.
  • Inmotion Technologies AB
  • LG INNOTEK
  • MORNSUN Guangzhou Science & Technology Co., Ltd
  • Rhyl Co., Ltd
  • Ricoh Company, Ltd.