Automotive Powertrain Electronics Market Trends

Growth Drivers

• Increasing Need for Vehicle Propulsion Systems – These systems are increasingly being used in electric and hybrid vehicles, which often require sophisticated energy management, which necessitates the use of automotive powertrain electronics.
• The Rising Trend of Autonomous Vehicles- These vehicles rely on complex electronic systems such as electronic control units (ECUs) and domain control units (DCUs) to control the powertrain effectively. This has significantly driven market growth.

It was found that there were over 30 million autonomous cars globally in 2019, and this number is expected to reach nearly 54 million in 2024.

Challenges

• Shortage of Raw Materials, Especially Semiconductor Chips – The expanding use of new semiconductors in various applications, such as automotive and industrial applications was altered by the coronavirus outbreak, which also affected the world’s supply of chips. The pandemic’s initial impact was felt in China and Taiwan, the most prominent chip-producing nations, where companies were forced to close down. Even though the production bounced back, semiconductor sales increased in 2020, and unexpected demand spikes spurred on by shifting consumer behavior as well as issues with capacity allocation led to a worldwide chip shortage in the year 2021.
• Lack of Efficiency
• Low-Cost Power Module Packaging