KEY FINDINGS

1. At present 150+ BEVs are under development, globally ,which will be launched by 2021-2022, and the long term supplier contracts for DC-DC converter are still being worked upon
2. The DC-DC converter market in US will be driven by BEVs, which will account for 53% share in 2019 and 48% share in 2025,  2-2.5kW converters will make up for a significant chunk of demand
3. In passenger vehicle segment, Tesla vehicles have the most powerful DC-DC converter  and on-board chargers at 2.5kW  and  7.7kW-11.5kW respectively. The  compact Chinese BEVs have a 1kW converter, but their share has been gradually shrinking as of H1-2019. 
4. In Europe,as of May 2019, where market share of Premium brands like Volvo, BMW, Audi etc was 21%(~3 Million units) in new car sales, their electric vehicle (BEV+ PHEV) share was only 5%

INTRODUCTION

As fossil fuel powered engines get closer to prohibition, many OEMs are looking up to vehicle electrification as a saviour. Battery powered electric vehicles will not become mainstream unless battery costs come down to <$100/kWh and fast charging infrastructure becomes a common place. Now, that leaves manufacturers with a bridge gap or a “hybrid” solution.

A 48V Mild-hybrid/Plug-in hybrid architecture can result in 10%-16% increase in fuel economy at an added cost of 6%-12% of vehicle. In any case, hybridization warrants a DC-DC converter in a vehicle.

MARKET DYNAMICS

The ousting of Diesel as a fuel of choice has been driving the market in Europe. The onset of WLTP cycle in Europe has delivered almost a deadly blow to the diesel. Share of Diesels in new car registration has gone below 40% in top 5 EU markets in 2018 and we expect it to reach <25% by 2021.Mild hybrids and Plug in hybrids will be the biggest benefactors of this market shift, ultimately driving the automotive DC-DC converter market.

The on-board DC-DC converter has undergone many improvements in recent past like optimization of control output, weight and size reduction, and improved NVH (noise vibration and harshness). When Hitachi launched its 3^rd gen DC-DC converter, back in 2014 it was 40% compact and 5% more efficient than the one it replaced. Similarly, Delphi launched industry first combined inverter and DC/DC converter in China in July 2018.

So, far the efficiency of power electronics for automotive applications has been limited due to use of Silicon. Going forward, we expect new materials like SiC (Silicon Carbide) to gain more traction, as it has nearly 10 times higher electric field strength and 3 times higher thermal conductivity.

UPCOMING 48V MHEV VEHICLES

MARKET SEGMENTATION

MARKET SIZE AND FORECAST

By 2025, xEVs will account for 10% of total vehicular production, as compared to 1.8% in 2018.48V Mild hybrids will account for a major chunk of those vehicles. China accounted for 37% of DC-DC converter market in 2018.The Chinese EV sales quota of 8% in 2019, 10% in 2020 and 20% by 2025 has spurred investment in China by many foreign tier-1 electronics manufacturers.

Diesel Mild- hybrids are the latest application for automotive DC-DC converters. Kia, Audi, FCA group have announced plans to launch multiple Diesel mild-hybrid models in 2019.48V also allows for electrification of other ancillaries like electric HVAC compressor, electric coolant pumps, electric turbochargers, electronic air suspension etc.

China is the biggest DC-DC converter market at present by volume and it is majorly comprised of BEVs, which is a very sharp contrast as compared to US, Europe or even Asia Excluding China.We expect many long range BEV models with connected and semi-autonomous features to be introduced in the Chinese market post 2021 from all mainstream domestic brands like Geely , JAC, Great Wall Motors, SAIC etc ,many of them are under development right now.

In Europe,Ford is aggressively looking at electrification for its best-selling cars as well as vans. It may partially exit the passenger car scene 4-5 years later and exclusively focus on high margin van business

In terms of volume, the automotive DC-DC converter market size was estimated at XX Million units in 2019, growing at YY% CAGR to 2025.

COMPETITIVE LANDSCAPE

The DC-DC converter market has more than 10 vendors and the top 9 listed below accounted for a major chunk of the market in 2018. As this power electronics component requires high expertise and robust validation, the barriers to entry are significantly high. Thus, we have only the established tier-1s supplying this component to the OEMs. Toyota Industries, Continental AG, Delta Electronics and Valeo are the leading players in the automotive DC-DC converter market globally.

Most of the suppliers have launched new and improved products to improve their positioning in the market. Some of the suppliers offer DC converters as a standalone sub-component, whereas some offer it as a part of complete 48V mild hybrid system. In terms of inorganic growth, there have been very few partnerships and almost none acquisitions in the automotive DC-DC converter market.

To capitalize on growing DC-DC converter market volume, suppliers have devised diversified strategies. Eaton created a new E-mobility business in June 2018, to supply power electronics to passenger and commercial vehicle market. Continental partnered with China based battery manufacturer CITC in March 2018 to supply complete 48V mild hybrid system.

COMPANY PROFILES

1. Delphi Plc
2. Delta Electronics
3. Valeo
4. Toyota Industries
5. LG Innotek
6. Continental AG
7. Denso Corporation
8. HELLA GmbH & Co. KGaA
9. Hyundai Mobis

THIS REPORT WILL ANSWER THE FOLLOWING QUESTIONS

1. The most important global EV trends, by vehicle segment
2. Important partnerships and developments in battery manufacturing that will affect the outlook of global EV market
3. Size of automotive DC-DC converter market per annum in top 10 EV markets globally,2019-2025
4. DC-DC converter market segmented by power output
5. 48v Mild Hybrid Penetration in New Car Sales 2019-2025 and upcoming high-volume mild hybrid vehicles
6. Upcoming EV platforms and their probable DC-DC converter configuration
7. Scope for integrated DC-DC converter (DC- DC converter coupled with On-board charger/inverter) in EV market
8. What do the various EV industry stakeholders have to say about automotive DC-DC converter market
9. Latest technological development and new product launches in the automotive DC-DC converter market
10. Role of China in the growth of automotive DC-DC Converter market
11. Will countries like India, Brazil and South Africa become a major EV market by 2025?
12. Market share of leading tier-1 suppliers and their growth strategy
13. All about automotive DC-DC converter manufacturing, top 5 regions
14. Average B-2-B DC-DC Converter price in US, Europe and China
15. The growth of non-plug in hybrid vehicles, which do require a DC-DC converter but don`t fall in the category of BEVs/PHEVs