The global automotive DC-DC converter market size is expected to increase from USD 21,996 million in 2023 to USD 289,542 million by the end of 2033. Over the next ten years (2023 to 2033), global automotive DC-DC converter sales are projected to rise at 30.1% CAGR.
Based on market projections, demand is likely to remain high for isolated automotive DC-DC converters. The target segment is expected to hold an impressive market share of over 86% in 2023.
High adoption of insulated DC-DC converters is due to their inherent advantages. This includes their ability to ensure safe electrical isolation between the input and output circuits. The prevalence of these converters is expected to be particularly prominent within the battery electric vehicle segment.
With manufacturers striving to meet the rising demand for eco-friendly transportation solutions and incorporate advanced power conversion systems into electric vehicles, sales of isolated DC-DC converters will rise rapidly.
Key Factors Shaping the Market Dynamics:
An automotive DC-DC converter is an electronic device that converts the high voltage direct current (DC) power from the vehicle's main battery into a lower voltage DC power. The converted DC is then used to power various electrical systems and components in the vehicle, such as the infotainment system, lights, sensors, modules, air conditioning system, etc.
DC-DC converters have become important components in modern vehicles. This is because they help to ensure the reliable and efficient operation of electrical systems and components, while also conserving energy and extending the battery life.
Rapid growth of the electric vehicle market globally is expected to boost the auto DC-DC converter industry. These converters are crucial components in regulating the electrical systems of almost all electric vehicles.
The surge in the popularity of electric vehicles (EVs) is due to various reasons such as the demand for cleaner fuel options and the unstable costs of liquid fossil fuels. As communities aim for eco-friendly and sustainable transportation choices, EVs have emerged as a practical solution.
Since they produce no emissions from their tailpipes, EVs aid in decreasing harmful gas discharges and enhancing air quality. Further, the unpredictable prices of liquid fossil fuels have prompted customers to shift towards EVs that provide reduced operating expenses and more dependable fuel pricing.
According to the International Energy Association (IEA), electric vehicle sales surpassed 10 million in 2022. Further, in the first quarter of 2023, around 2.3 million electric cars were sold and this number is likely to increase to about 14 million by the end of 2023.
The automotive DC-DC converter market will experience stupendous growth in tandem with the rising demand for EVs. These converters are crucial for efficient power conversion and management in the electric distribution systems of EVs.
Surging demand for electric vehicles, fueled by the desire for eco-friendly fuel options and the unstable prices of traditional liquid fuels, is expected to create lucrative revenue-generation opportunities for automotive DC-DC converter manufacturers.
Automotive OEMs are relentlessly endeavoring to enhance the energy efficiency and fuel economy of their vehicles. DC-DC converters are pivotal in optimizing power distribution and minimizing power losses by proficiently converting and regulating electrical energy for diverse vehicle systems.
A noteworthy trend in the automotive DC-DC converter industry is the growing use of ADAS in automobiles. DC-DC converters give the reliable and effective power that ADAS systems need. DC-DC converter demand is anticipated to rise along with the demand for ADAS systems.
Manufacturers are prioritizing improving the material quality and construction of automotive DC-DC converters and are also seeking strategic acquisitions and partnerships with local players to expand their reach.
Meeting the growing demand for highly efficient automotive DC-DC converters across different types of electric vehicles is also a top priority for manufacturers.
Prominent automotive DC-DC converter manufacturers are taking a proactive stance by forging strategic partnerships and acquiring local companies to strengthen their regional presence.
The primary focus of key market players is on creating customized solutions that cater to different power ranges and voltage requirements in the electric vehicle sector. By emphasizing versatility, they can meet the diverse needs of customers and maintain their dominance in the market.
| Attributes | Key Insights |
|---|---|
| Estimated Global Automotive DC-DC Converter Market Value (2023) | USD 21,996 million |
| Projected Automotive DC-DC Converter Market Size (2033) | USD 289,542 million |
| Value CAGR (2023 to 2033) | 30.1% |
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The automotive DC-DC converter market has witnessed remarkable growth over the past few years. For the ten next years (2023 to 2033), the global market for automotive DC-DC converters is expected to exhibit a CAGR of 30.1%.
The automotive DC-DC converter industry has a promising future, and companies operating in this space are expected to benefit from the growing demand for energy-efficient and eco-friendly vehicles.
Increasing demand for electric and hybrid vehicles across the world is a prominent factor expected to boost the global automotive DC-DC converter industry.
DC-DC converters are crucial in controlling voltage levels between the high-voltage battery system and various low-voltage subsystems, such as lighting, infotainment systems, and other electronic components. The increased demand for DC-DC converters is a clear indication of their vital role in ensuring effective power distribution within electric and hybrid vehicles.
Similarly, growing adoption of advanced technologies in the automotive sector and rising need for energy-efficient and eco-friendly vehicles will fuel market expansion.
Initially, electric vehicles commonly utilized traditional lead-acid batteries, which dominated the market. Nevertheless, due to advancements in battery technology, lithium-ion batteries have become the preferred option. Therefore, there has been a rise in demand for DC-DC converters capable of managing lithium-ion batteries.
The strict government regulations that aim to decrease greenhouse gas emissions and enhance fuel efficiency are significantly contributing to the expansion of the automotive DC-DC converter industry.
Automotive manufacturers are investing extensively in research and development to create advanced technologies that comply with these regulations, with DC-DC converters being an essential part of these technologies.
Expansion of Charging Infrastructure to Boost the Market:
Developing countries and regions are aware of the necessity to expand their charging infrastructure to meet the rising demand for electric vehicles. This improvement in charging infrastructure indirectly encourages customers to switch to electric vehicles, resulting in a surge in adoption and an increased demand for DC-DC converters.
Growing focus and initiatives aimed at enhancing charging infrastructure in developing regions are contributing to the growth of the DC-DC converter industry.
Rising Adoption of Electric Vehicles to Bolster Automotive DC-DC Converter Sales:
The automotive DC-DC converter industry is set to experience notable growth driven by the increasing demand for range extension in electric vehicles.
As consumers prioritize vehicles with extended driving ranges, DC-DC converters play a crucial role in optimizing power transfer and management within the vehicle system.
Automotive manufacturers are focusing on developing advanced DC-DC converters to meet the evolving customer demands for longer-range electric vehicles. This presents a significant opportunity for market players to innovate and provide efficient solutions that address range extension requirements.
Advancements in DC-DC Converter Materials to Unlock New Opportunities:
Advancements in semiconductor technologies have revolutionized the landscape of DC-DC converters, providing high-efficiency and compact solutions. These innovative converters offer a multitude of advantages. This includes lower energy consumption, reduced heat dissipation, and lower overall costs.
The utilization of cutting-edge semiconductor materials such as silicon carbide and gallium nitride has played a crucial role in the development of high-power DC-DC converters, enabling enhanced efficiency and reliability.
The integration of power electronic converters with microcontrollers has given rise to more intelligent and sophisticated DC-DC converters. These intelligent converters possess the ability to monitor and regulate the output voltage and current, while also performing advanced functions such as voltage regulation and current sharing.
This convergence of semiconductor advancements, compact design, and intelligent control has paved the way for the next generation of efficient and intelligent DC-DC converters. Development of these advanced automotive DC-DC converters will create lucrative opportunities for manufacturers.
Principal Consultant
Automotive DC-DC converters are subject to various regulations, including safety standards and emissions regulations. Meeting these regulations can be expensive, and the cost of compliance is a significant restraint on the growth of the market.
The automotive industry is subject to various safety standards, such as the American National Standard Institute (ANSI) and the Society of Automotive Engineers (SAE), which specify the requirements for DC-DC converters used in vehicles.
These standards require that converters must be designed and manufactured to meet specific safety requirements, including thermal protection, electrical safety, and mechanical protection.
Compliance with these standards can be costly, and manufacturers must invest in research and development, testing, and certification to ensure that their converters meet these standards.
The automotive DC-DC converter market is set to witness partnerships and collaborations among component suppliers and product manufacturers. To fulfill the rising demand for electric vehicles, automotive companies are collaborating with technology businesses to create novel and cutting-edge products or solutions.
For instance, the Hyundai Motor Group and SK Innovation collaborated in 2020 to create a new EV battery system that includes a DC-DC converter. In a similar vein, Panasonic and Toyota announced a collaboration in 2021 to create a new battery technology that incorporates a DC-DC converter.
These partnerships and collaborations are anticipated to spur innovation in the automotive DC-DC converter industry and generate sizable prospects for industry expansion.
Ford and Google formed a strategic agreement in 2021 to create new connected vehicle technologies and enhance Ford vehicle owners' customer experience. This partnership is anticipated to spur innovation in the automotive sector and open up new business prospects for the manufacturers of automotive DC-DC converters.
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East Asia and Europe to Remain a Market Hub for DC-DC Converter Manufacturers
Demand for automotive DC-DC converters in East Asia and Europe has been greatly influenced by the rising awareness and acceptance of electric vehicles (EVs).
To promote sustainability and environmental preservation, governments in Europe and East Asia have been actively encouraging the use of EVs through various supportive measures. This includes subsidies, incentives, and favorable policies aimed at promoting consumer adoption.
The administrations in these regions have also been putting resources into building up charging infrastructure and establishing a favorable climate for electric vehicle proprietors.
A solid charging system being accessible further upgrades the appeal and practicality of owning EVs, ultimately boosting the requirement for DC-DC converters.
The global market for automotive DC-DC converters is expected to be mainly driven by East Asia and Europe, which together will account for more than 75% of the demand. The reason for this high demand is the fast uptake of electric vehicles in these regions.
East Asia is a leading global supplier of electronic components, which makes it a prominent player in the supply and installation of DC-DC converters in the automotive sector. These factors underscore the dominant market position and impact of East Asia and Europe in propelling the expansion of the automotive DC-DC converter industry.
Increasing Electric Vehicle Production and Adoption Elevating DC-DC Converter Demand in China
As per Future Market Insights (FMI), China will continue to remain a leading market for automotive DC-DC converters during the forecast period. This is due to booming automotive sector and rising popularity of electric and hybrid vehicles.
In recent years, there has been a sharp rise in production and sales of electric vehicles across China. This is due to rising environmental concerns and favorable government support.
According to the World Economic Forum, electric vehicle sales in China increased by 82% in 2022. Further, with 64% of global volume, it is also the world’s leading EV producer.
Rising production and sales of electric vehicles will therefore continue to make China a lucrative market for automotive DC-DC converters.
Strong presence of leading DC-DC converter manufacturers along with availability of low cost products will further boost China market.
Similarly, increasing usage of advanced technologies such as ADAS in vehicles and expansion of the aftermarket segment are expected to positively impact automotive DC-DC converter sales.
Adoption of DC-DC Converters with >1000W Output Power in Electric Vehicles Fueling Demand
As per Future Market Insights (FMI), DC-DC converters with output power above 1000 W hold a significant market share of around 45.0%. This is due to their strong requirement for different types of electric vehicles.
Various electric vehicles require robust power management solutions to support their power-hungry components, and DC-DC converters with higher output power are capable of meeting those requirements effectively.
Thanks to their essential role in supporting the growing electric vehicle sector, demand for high-power DC-DC converters will continue to remain high during the assessment period.
Isolated DC-DC Converter to Remain Top Selling Product Type Through 2033
The isolated DC-DC converter segment holds a significant market share of around 86.1% in the automotive DC-DC converter industry. One of the primary reasons for this high market share is the product type's superior efficiency and safety capabilities in electric vehicles.
Isolated DC-DC converters are designed to provide electrical isolation between the input and output circuits. They ensure that the output voltage remains stable and independent of the input voltage. This feature improves the safety of the converter, reducing the risk of electrical shocks and protecting the vehicle's sensitive electronics.
Isolated DC-DC converters are known for their high efficiency, which translates to lower energy consumption and better thermal management. As a result, they are a popular choice for electric vehicle manufacturers, and their dominance in the market is expected to continue in the coming years.
BEV Category to Generate High Demand for Automotive DC-DC Converters
The battery electric vehicle (BEV) category is anticipated to demonstrate remarkable growth. As per FMI, BEV segment is expected to hold a predominant market share of about 64.0% during the forecast period.
Increasing sales of BEVs compared to other types of electric vehicles is resulting in a surge in the demand for DC-DC converters for this type.
The adoption of BEVs is being encouraged by governments worldwide to reduce carbon emissions and promote sustainable mobility. This will further elevate automotive DC-DC converter demand in this vehicle category, thereby boosting the target segment.
There is a growing trend within the automotive sector towards material innovations in the development of DC-DC converters. These advancements are aimed at improving the overall performance and efficiency of these converters.
The focus is on the utilization of wide bandgap (WBG) semiconductors such as silicon carbide (SiC) and gallium nitride (GaN), which offer higher efficiency, increased power density, and improved thermal management.
There is also a strong emphasis on the development of magnetic materials such as soft magnetic composites (SMCs) and nanocrystalline alloys to enhance energy conversion efficiency and enable smaller form factors.
The development of thermal interface materials (TIMs) and packaging materials is aiding in the efficient dissipation of heat and compact design. The overall progress in material innovation for automotive DC-DC converters is advantageous for the market. This is because it offers reliable and efficient power conversion solutions, meeting the increasing need for sustainable and high-performance automotive technologies.
To sum up, the use of new materials in DC-DC converters for automobiles offers potential for business expansion. Adopting innovative materials allows companies to produce converters that are both efficient and smaller, which is consistent with the industry's focus on sustainability and electric cars.
By skillfully integrating material advances, businesses can appeal to customers, maintain a leading position in technology, and establish themselves as major players in the changing automotive sector.
The global automotive DC-DC converter market is moderately consolidated among leading global manufacturers. The leading players account for more than 60% to 65% of the global automotive DC-DC converter market share.
Leading automotive DC-DC converter manufacturers are strategically focusing on introducing new highly durable and efficient products. They are also employing strategies such as acquisitions, mergers, collaborations, agreements, joint ventures, and partnerships to boost their revenues and expand their footprint.
According to FMI analysis, BEL FUSE INC., Texas Instruments, Infineon Technologies AG, STMicroelectronics, Murata Manufacturing Co. Ltd., etc. are few of the top manufacturers of automotive DC-DC converters.
Bel Fuse Inc.: Bel Fuse specializes in creating, producing, and promoting a wide range of products that empower, safeguard, and connect electronic circuits. Having been in the industry for more than 70 years, Bel has consistently demonstrated its proficiency in various product categories. Last year, Bel achieved an unprecedented sales figure of USD 654 million and a net income of USD 53 million.
Texas Instruments: Texas Instruments designs, manufactures, tests, and sells analog and embedded processing semiconductors across approximately 80,000 different products. The company produces several products including motor drivers, amplifiers, audio devices, data converters, isolation devices, sensors, microcontrollers (MCUs) & processors, etc.
With 15 manufacturing facilities across the globe, 12 wafer fabs, seven assembly and test factories, and various probe and bump facilities, the company has established a widespread manufacturing network. The company's focus is on creating packaging technologies that enable specialized components to function as intended throughout their designated lifespan.
Recent developments in the global automotive DC-DC converter industry:
| Attribute | Details |
|---|---|
| Estimated Market Value (2023) | USD 21,996 million |
| Projected Market Value (2033) | USD 289,542 million |
| Anticipated Growth Rate (2023 to 2033) | 30.1% CAGR |
| Historical Data | 2018 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | Revenue in USD Million, Volume in Units and CAGR from 2023 to 2033 |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends and Pricing Analysis |
| Segments Covered | Vehicle Type, Voltage, Output Power, Sales Channel, Product Type, Form Factor |
| Regions Covered | North America; Latin America; Europe; East Asia; South Asia and Pacific; Middle East and Africa |
| Key Countries Covered | United States, Canada, Brazil, Mexico, Rest of Latin America, Germany, Italy, France, United Kingdom, Spain, BENELUX, Russia, Rest of Europe, China, Japan, South Korea, India, ASEAN, Australia and New Zealand, Rest of South Asia & Pacific, GCC Countries, Türkiye, Northern Africa, South Africa, Rest of Middle East and Africa |
| Key Companies Profiled | BEL FUSE INC; Texas Instruments; Infineon Technologies AG; STMicroelectronics; Murata Manufacturing Co. Ltd.; BEL FUSE INC.; Vicor Corporation; FUJITSU; TOSHIBA; Semtech Corporation; Analog Devices Inc.; TDK Corp; Silver Atena GmbH |
The automotive DC-DC converter market is likely to register USD 21,996 million in 2023.
The global automotive DC-DC converter market revenue is projected to exceed USD 289,542 million by 2033.
Sales of automotive DC-DC converters are anticipated to upsurge at an outstanding 30.1% CAGR through 2033.
East Asia and Europe are poised to retain their status as prominent hubs for automotive DC-DC converters.
The isolated DC-DC converter category commands a substantial market share, accounting for about 86.1%
1. Executive Summary 2. Market Overview 3. Key Market Trends 4. Key Success Factors 5. Global Market Demand Analysis 2018 to 2022 and Forecast, 2023 to 2033 6. Global Market - Pricing Analysis 7. Global Market Demand (in Value or Size in USD Million) Analysis 2018 to 2022 and Forecast, 2023 to 2033 8. Market Background 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Product Type 9.1. Isolated 9.2. Non Isolated 10. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Voltage 10.1. 3V-14V 10.2. 15V-36V 10.3. 36V-75V 10.4. >75 V 11. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Form Factor 11.1. Full Brick 11.2. Half Brick 11.3. Quarter Brick 11.4. Eight Brick 11.5. Sixteen Brick 11.6. Others 12. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Output Power 12.1. 0.25-250 W 12.2. 250-500 W 12.3. 500 -1000 W 12.4. >1000W 13. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Vehicle Type 13.1. NEV 13.2. BEV 13.3. HEV 13.4. PHEV 13.5. FCEV 14. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Sales Channel 14.1. First Fit 14.2. Aftermarket 15. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, by Region 15.1. North America 15.2. Latin America 15.3. Europe 15.4. East Asia 15.5. South Asia & Pacific 15.6. Middle East & Africa 16. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033 17. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033 18. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033 19. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033 20. South Asia & Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033 21. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033 22. Country-wise Market Analysis 23. Market Structure Analysis 24. Competition Analysis 24.1. Texas Instruments 24.2. Infineon Technologies AG 24.3. STMicroelectronics 24.4. Murata Manufacturing Co. Ltd. 24.5. BEL FUSE INC. 24.6. Vicor Corporation 24.7. FUJITSU 24.8. TOSHIBA 24.9. Semtech Corporation 24.10. Analog Devices Inc. 24.11. TDK Corp 24.12. Silver Atena GmbH 25. Assumptions and Acronyms Used 26. Research Methodology
Automotive
November 2023
REP-GB-10914
315 pages
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Automotive DC-DC Converter Market
