As per MRFR analysis, the Automotive Low Voltage Drives Market Size was estimated at 21.7 (USD Billion) in 2022. The Automotive Low Voltage Drives Market Industry is expected to grow from 23.36(USD Billion) in 2023 to 45.3 (USD Billion) by 2032. The Automotive Low Voltage Drives Market CAGR (growth rate) is expected to be around 7.64% during the forecast period (2024 - 2032).
The Automotive Low Voltage Drives market is poised for substantial growth, driven by the increasing adoption of electric and hybrid vehicles. Stringent government regulations aimed at reducing carbon emissions and promoting fuel efficiency are fuelling the demand for low-voltage drives in automotive applications.
Additionally, the growing popularity of advanced driver-assistance systems (ADAS) and autonomous driving technologies is creating new opportunities for the market. The electrification of auxiliary systems, such as HVAC and power steering, is further expanding the applications of low-voltage drives in vehicles. Trends such as the adoption of silicon carbide (SiC) and gallium nitride (GaN) power semiconductors are enhancing the efficiency and performance of low-voltage drives. The market is expected to witness significant growth in the coming years, driven by technological advancements and the increasing electrification of the automotive industry.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Increasing Demand for Electric and Hybrid Vehicles
The Global Automotive Low Voltage Drives Market is expected to be driven by the rising popularity of electric and hybrid vehicles. The demand for these vehicles is increasing, as they need low voltage drives for controlling the electric motors and power electronic systems they are equipped with. The popularity of electric and hybrid vehicles is due to the rise in environment-related concerns, along with the initiatives by the governments supporting sustainable transportation and the advancements in battery technologies. The increase in the demand for these vehicles will also lead to an increase in demand in the market for automotive low-voltage drives.
Technological Advancements and Innovation
Technological advancements and innovation are also driving the growth of the Global Automotive Low Voltage Drives Market Industry. Manufacturers are continuously developing new and improved low-voltage drives with enhanced efficiency, performance, and reliability. These advancements include the adoption of new materials, such as silicon carbide and gallium nitride, which enable higher power density and efficiency. Additionally, the integration of advanced control algorithms and software is improving the overall performance and functionality of low-voltage drives.
Government Regulations and Policies
Government regulations and policies aimed at reducing emissions and promoting fuel efficiency are also driving the growth of the Global Automotive Low Voltage Drives Market Industry. Governments worldwide are implementing stringent emission standards and fuel economy regulations to address environmental concerns. These regulations are endorsing the adoption of electric and hybrid vehicles, which in turn is increasing the demand for automotive low-voltage drives.
The Global Automotive Low Voltage Drives Market is segmented by drive type into AC Drives and DC Drives. AC Drives accounted for a larger market share in 2023 and is projected to continue its dominance over the forecast period. The growth of the AC Drives segment can be attributed to the increasing adoption of AC motors in electric vehicles and hybrid electric vehicles. AC motors offer several advantages over DC motors, such as higher efficiency, reduced maintenance, and longer lifespan.
The DC Drives segment is expected to witness a steady growth rate during the forecast period. DC Drives are used in a wide range of applications, including electric forklifts, industrial machinery, and medical equipment. The growth of the market is attributed to the increasing demand for electric vehicles and hybrid electric vehicles, as well as the growing adoption of low-voltage drives in industrial applications.
The key players in the Global Automotive Low Voltage Drives Market include ABB, Siemens, Rockwell Automation, Schneider Electric, and Eaton. These companies offer a wide range of low-voltage drives to meet the specific needs of different applications.The competitive landscape of the market is expected to remain fragmented over the forecast period, with new entrants emerging and existing players expanding their product portfolios.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The Global Automotive Low Voltage Drives Market is segmented by application into Power Steering, Fuel Pumps, Cooling Fans, HVAC Systems, and Lighting Systems. Among these, the Power Steering segment is expected to hold the largest market share in 2023 and is projected to continue its dominance throughout the forecast period. The growth of this segment can be attributed to the increasing demand for electric power steering systems in vehicles, as they offer improved fuel efficiency and reduced emissions.
The Fuel Pumps segment is also expected to witness significant growth, driven by the rising demand for fuel-efficient vehicles.The Cooling Fans segment is expected to grow steadily, owing to the increasing adoption of air conditioning systems in vehicles. The HVAC Systems segment is expected to experience moderate growth, driven by the increasing demand for comfort and convenience features in vehicles. The Lighting Systems segment is expected to witness modest growth, driven by the adoption of LED and Xenon lighting systems in vehicles.
The voltage range segment of the global automotive low-voltage drives market is classified into 12V, 24V, 36V, and 48V. Among these, the 12V voltage range held the largest market share in 2023, owing to its widespread adoption in conventional vehicles. The 48V voltage range is projected to witness the highest growth rate during the forecast period due to its increasing use in hybrid and electric vehicles, where it offers improved efficiency and power density. The 24V voltage range is primarily used in commercial vehicles, such as trucks and buses, where it provides higher power and torque capabilities.The 36V voltage range finds application in electric forklifts and other industrial vehicles, where it offers a balance between power and efficiency. The growing adoption of electric and hybrid vehicles is driving the demand for low-voltage drives, particularly in the 48V voltage range.
Additionally, advancements in power semiconductor technology, such as the development of wide bandgap devices, are enabling the development of more efficient and compact low-voltage drives, further contributing to market growth.
North America, Europe, Asia Pacific, South America, and MEA are the five main regions that make up the global automotive low-voltage drives market. The automotive low-voltage drives market in North America is predicted to develop at a CAGR of 6.4% between 2023 and 2032, reaching a value of USD 11.4 billion by 2032. Due to the region's expanding automotive industry and rising demand for electric and hybrid vehicles, this growth is anticipated. Europe is another important region in the global automotive low-voltage drives market. The market in this region is anticipated to reach USD 9.6 billion by 2032, expanding at a CAGR of 6.8% from 2024 to 2032.
The presence of significant automakers and government initiatives to promote electric vehicle adoption are driving this expansion. The automotive low voltage drives market in the Asia Pacific region is anticipated to rise at the quickest rate of 8.2% CAGR from 2024 to 2032, reaching USD 16.2 billion by 2032. The region's expanding automotive sector and rising consumer demand for comfort and convenience features in vehicles are driving this expansion. The automotive low voltage drives markets in South America and MEA are anticipated to develop at CAGRs of 5.9% and 6.1%, respectively, throughout the projection period. The expansion of the automotive industry and rising demand for low-cost, fuel-efficient vehicles in these regions are driving this growth.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
In the Automotive Low Voltage Drives Market industry, big players seeking a strong competitive advantage continue pursuing a strategy of innovation. Along with this, they form numerous agreements and partnerships as joint activity allows companies to use each other’s resources and expand their presence in the market. To become even more competitive, major Automotive Low Voltage Drives Market players strive to enlarge their product ranges to be able to meet all possible customers’ expectations and their application needs. Moreover, the production of environmentally friendly products is an industry trend as suppliers try to reduce the negative impact on the ecology and become a preferred choice for customers with changing priorities. Constant technological improvements, along with beneficial market regulations, may be expected to drive market development in the foreseeable future.
In the Automotive Low Voltage Drives Market, the market leader is Mitsubishi Electric, known for its high-quality products and innovative solutions. The company delivers an extensive line of low-voltage drivers, including AC drives, DC drives, and servo drives. Mitsubishi Electric’s drives are considered highly reliable, efficient and easy to use. Their broad implementation range may encompass a variety of industrial and automotive applications. Along with this, the company has significant advantages related to its global market presence and a wide distribution network, as well as constant interest in research and development that empowered it to introduce a range of modern and practical products.
Another major market player is Danfoss providing innovative and energy-efficient solutions characterized by the highest quality and reliability. The company offers an extensive range of low-voltage drives such as AC drives, DC drives, and servo drives. The products of Danfoss are known for their high performance and low energy consumption. One of its most valuable strengths is the commitment of the company to creating eco-friendly products and implementing an eco-friendly production process. Constant technological improvements and significant market coverage provide the company with the potential to represent strong competition.
The global automotive low-voltage drives market is projected to reach USD 45.3 billion by 2032, exhibiting a CAGR of 7.64% during the forecast period. Increasing demand for electric and hybrid vehicles, rising fuel prices, and stringent emission regulations are driving the growth of the market. Asia Pacific is expected to hold the largest market share due to the presence of major automotive manufacturing hubs such as China, Japan, and India.
Key developments in the market include the launch of new products with advanced features, strategic partnerships between market players, and increasing investments in research and development. The market is expected to witness significant growth in the coming years due to the growing adoption of low-voltage drives in various automotive applications, including power steering, braking, and climate control systems.
| Report Attribute/Metric | Details |
| Market Size 2022 | 21.7(USD Billion) |
| Market Size 2023 | 23.36(USD Billion) |
| Market Size 2032 | 45.3(USD Billion) |
| Compound Annual Growth Rate (CAGR) | 7.64% (2024 - 2032) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year | 2023 |
| Market Forecast Period | 2024 - 2032 |
| Historical Data | 2019 - 2023 |
| Market Forecast Units | USD Billion |
| Key Companies Profiled | GKN Automotive, JTEKT, Nidec, BorgWarnerHella, Bosch, Continental, Hyundai Mobis, Magna, Delphi Technologies, ZF, Eaton, Denso, Mitsubishi Electric, Valeo |
| Segments Covered | Drive Type, Application, Voltage Range, Regional |
| Key Market Opportunities | Electric Vehicle Growth Hybrid Vehicle Demand Autonomous Driving Advancements Government Regulations Aftermarket Potential |
| Key Market Dynamics | Increasing electric vehicle adoption, electrification of automotive components, stringent emission regulations, autonomous driving advancements, and growing demand for efficient and reliable power distribution systems |
| Countries Covered | North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Automotive Low Voltage Drives Market is expected to reach USD 23.36 billion in 2023.
The market is projected to grow at a CAGR of 7.64% from 2024 to 2032.
North America is expected to hold the largest market share in 2023.
The Electric Power Steering (EPS) segment is expected to account for the largest share in 2023.
Key competitors include Infineon Technologies AG, NXP Semiconductors N.V., and Renesas Electronics Corporation.
The market is expected to reach USD 45.3 billion by 2032.
Factors driving growth include rising demand for fuel-efficient vehicles, increasing adoption of electric vehicles, and government regulations promoting low-carbon emissions.
Challenges include high production costs, limited availability of raw materials, and technological complexities.
Asia Pacific is expected to experience the fastest growth over the forecast period.
Advancements include the development of more efficient and compact drives, increased integration of power electronics, and the adoption of new materials.
Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
Get in Touch
© 2024 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)
