The need for EVs to improve vehicle efficiency is changing the supply chain

[Introduction]The popularity of xEV has been high for several years. The global xEV market is expected to grow at a CAGR of 21% between 2021 and 2027, with all segments accelerating at a CAGR. As BEV adoption rates rapidly grow, so too will hybrid technology. In fact, the penetration rate of different technologies depends on the region.

Vehicle electrification is being driven by two major trends: global decarbonization and disruption of the automotive industry.

● The total market for power electronics systems consisting of main inverters, DC/DC and OBC will grow to $26 billion by 2027.

● Key components, such as power electronics and batteries, remain a key issue for OEMs.

● From an overall perspective, the focus is shifting to efficiency, to which power electronics can make a huge contribution.

The popularity of xEV has been high for several years. The global xEV market is expected to grow at a CAGR of 21% between 2021 and 2027, with all segments accelerating at a CAGR. As BEV adoption rates rapidly grow, so too will hybrid technology. In fact, the penetration rate of different technologies depends on the region.

Applications such as inverters, OBCs, and DC-DC converters have greatly propelled the power electronics market. The penetration of SiC MOSFET modules in main inverters has already begun, with advantages including fast charging capability, high efficiency, and compactness at the device and system level. From 2021-2027, its CAGR will reach 28%. The supply and demand balance of SiC will become more prominent, and its production capacity is expanding rapidly.

Rapid electrification trends are creating an entirely new supply chain. It includes a new electric powertrain consisting of batteries, electric motors, inverters, and other supporting subsystems, including OBCs, DC/DC converters, PDUs, and other auxiliary equipment. For most subsystems, power Electronic components are essential.

This has attracted a new crop of suppliers, some even from industries other than automotive. This “invasion” is more pronounced in emerging countries and regions, especially in China.

Notably, more and more automakers are vertically integrating. Some companies will acquire first-tier component suppliers and integrate them into the enterprise; some even take over equipment design companies and manufacture them themselves. The key drivers of this disruptive trend are high-speed innovation in key product supply chain security and BEVs, which are better supported by vertical integration.