Automotive Power Distribution Block Market Size, Share | 2031

Report Description

Automotive Power Distribution Block Market Outlook 2031

The global automotive power distribution block market size was valued at USD 7.69 Billion in 2022 and is likely to reach USD 11.04 Billion by 2031, expanding at a CAGR of 4.10 % during 2023 – 2031. The market growth is attributed to the increasing adoption of electronic functions in vehicles.

Increasing adoption of electronic functions in vehicles is projected to boost the demand for automotive power distribution blocks in the coming years. Power distribution blocks handle the supply of power circuits in a vehicle's electrical system. It also protects the primary circuits and other electronic systems of the vehicle, which enhances its adoption in automobiles. Therefore, the rising adoption of electronic functions in vehicles is propelling the market.

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The demand for power distribution blocks is rapidly increasing in passenger and commercial vehicles as they reduce the number of wires in an electrical panel of the vehicle and operate all the electronic systems of the vehicle. These power distribution blocks save energy for the vehicles as they connect a single power supply to several devices at once, which increases their adoption in automobiles.

The COVID-19 pandemic hampered the demand for automotive power distribution blocks. The manufacturing facilities of automotive power distribution blocks faced disruption in assembling the parts during the pandemic, due to the shortage of semiconductor chips, and raw materials.

Moreover, a sharp fall was registered in the sales of new electric cars, which impeded the demand for automotive power distribution blocks, as these are widely used in EVs to control all the electrical systems and power of the vehicle. For instance,

• As per the International Energy Agency, electric car sales fell by 16,000 vehicles in February 2020 in China, a decline of 60% from the sales of 2019. Moreover, the US electric vehicle sales fell by around 50% in April 2020.

Impact of Artificial Intelligence (AI) on Automotive Power Distribution Block

The rapid advancements in the automotive sector and the introduction of artificial intelligence create an immense opportunity in the market. Companies in the market are integrating AI with electronic components of vehicles such as power distribution blocks, electric HVAC, and others to increase the efficiency of vehicles.

Artificial Intelligence in power distribution blocks automates load by shifting power between different sources based on demand fluctuations. This enhances the life of electronic systems in vehicles. AI-enabled power distribution blocks monitor real-time data and optimize power generation & distribution. AI in automotive power distribution blocks reduces waste and costs as well as maximizes the efficiency of power generation, transmission, and consumption.

Automotive Engine Management System Market Dynamics

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Major Drivers

Increasing demand for electric cars is expected to boost the demand for automotive power distribution blocks during the forecast period. Power distribution blocks are installed in electric vehicles to handle the routing of power circuits in the electrical sub-system of a vehicle. It also helps EV manufacturers to create efficient wiring, which enhances its adoption in EVs. Therefore, the rising demand for EVs is propelling the market. For instance,

• According to the International Energy Agency, 26 million electric cars were present on the road in 2022, 60% up from 2021.

Existing Restraints

The problem of low voltage and under voltage associated with power distribution blocks is expected to restrict the market in the coming years. Overloading of electronic systems in vehicles causes under voltage and low voltage in power distribution blocks.

Moreover, the wire in power distribution blocks gets loose from vibration or jostling of the vehicle, which causes sparks and ignites flammable materials. This hampers the demand for automotive power distribution blocks.  

Emerging Opportunities

Growing demand for autonomous vehicles across the globe creates an immense opportunity in the market. Autonomous cars include several electronic cameras, radar, and sensors to enhance vehicle safety.

Power distribution blocks provide power to these cameras and sensors to function accurately, which enhances the demand for power distribution blocks in autonomous vehicles. Moreover, increasing investment in R&D activities by major players in the market to develop and launch small relays create a lucrative opportunity in the market. For instance,

• On April 18, 2023, FUJITSU COMPONENT LIMITED, a global manufacturer of relays, announced the launch of the FTR-G3 relay, the smallest 30A relay in its class. FTR-G3 relay is a plastic-sealed relay that is suitable for use in tiny spaces, especially in automotive applications where space is at a premium.

Scope of The Automotive Power Distribution Block Market Report

The report on the market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Automotive Power Distribution Block Market Segment Insights

Vehicle Type Segment Analysis

Based on vehicle type, the automotive power distribution block market is categorized into on-highway vehicles, off-highway vehicles, and electric vehicles. The on-highway segment dominated the market in 2022, due to rising urbanization and increasing purchasing power of buyers. Power distribution blocks in on-highway vehicles protect the primary circuits from overcurrent and overload.

It distributes an electrical circuit from a single input source to several electronic systems of the vehicle, which increases its adoption in on-highway vehicles. The electric vehicles segment is anticipated to expand at a quick pace during the forecast period, owing to the rising carbon emission norms and surging fuel prices.

Electric vehicles widely use power distribution blocks to distribute electrical power from the battery to different electric components. It also ensures the proper functioning of various electrical systems such as lights, infotainment systems, and climate control. This enhances the demand for automotive power distribution blocks in EVs.

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Component Segment Analysis

In terms of components, the global market is divided into relay, can, fuse, and others. The relay segment held a large share of the market in 2022, due to the rising demand for electric vehicles. Relays are used in power distribution blocks to enable a low-amperage circuit to switch on or off a higher-amperage circuit, reducing the risk of melting wires and an electrical fire.

Relays provide power to headlights, fog lights, cooling fans, and fuel pumps, which increase their adoption in automobiles. The fuse segment is projected to expand at a robust pace during the assessment period, owing to the rising advancements in vehicle technology. A fuse in power distribution blocks distributes power to multiple circuits and prevents an overcurrent condition.

Fuse protects electrical wiring in cars and vehicles by disconnecting the potentially dangerous circuit, which enhances its demand in automobiles. Moreover, key companies in the market are continuously investing in R&D activities to develop and introduce fuse for automobiles. For instance,

• On March 22, 2022, Littelfuse, a designer and manufacturer of circuit protection products for the electronics and automotive industry, announced the launch of a new 828 Series High-Voltage Cartridge Fuses. These are designed and tested to meet the circuit protection needs of compact automotive electronics, specifically electric vehicles (EVs).

Regional Outlook

Based on region, the automotive power distribution block market is segregated into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific accounted for a major share of the market in 2022, due to the rising disposable income and growing infrastructure.

Moreover, the increasing adoption of passenger cars in the region is propelling the need for power distribution blocks, as these blocks are used in cars to distribute the power from the main central unit to different electrical systems of the vehicle. For instance,

• 23 million passenger cars were sold in China in 2022, making it the largest market in the Asia Pacific, while 3.8 million cars were sold in India.

The market in North America is expected to expand at a high CAGR in the coming years, owing to strong infrastructure and the presence of established market players such as Lear and Littelfuse, Inc.

Additionally, the rising adoption of electric vehicles in the region is estimated to boost the demand for an automotive power distribution block, as it is installed in EVs to handle the routing of power circuits to the electrical sub-system of a vehicle.  For instance,

• As per the report published by the International Energy Agency, one million electric vehicles were sold in the US in 2022 and is expected to reach 2.46 million in 2028.

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