AES Semigas


7 October 2022

EV powertrain semi market to grow at 31% CAAGR to $27bn in 2029

Driven by consumer awareness and government regulations and mandates related to climate change and the need to reduce emissions and reverse the impacts of global warming, electric vehicle production is growing at a compound annual average growth rate (CAAGR) of 26% from 2021 to 2026, and volumes will approach 54.1 million units by 2029, forecasts the Strategy Analytics Electric Vehicles Service (EVS) report ‘xEV Semiconductor Demand Outlook 2021-2029’. This in turn will drive demand for corresponding xEV powertrain semiconductors, which is forecast to grow at a CAAGR of 31% to $27.3bn by 2029.

Semiconductor demand covered in the analysis include key systems necessary for the operation of mild hybrid, full hybrid, plug-in hybrid, and battery electric powertrains. This includes battery management systems, DC/DC converters, main traction inverter, electric motor, and onboard charger.

Battery electric vehicles will comprise the largest demand sector, growing at a CAAGR of 39% and accounting for 82% of the total electric vehicle powertrain semiconductor market opportunity in 2029, it is forecasted.

“Semiconductors required for power electronics will comprise the largest market, with growth accelerating in line with the push towards battery electric vehicles and the move towards higher-performing, more efficient wide-bandgap semiconductors,” notes Asif Anwar, executive director at Strategy Analytics. “This will translate to the market for SiC (silicon carbide) growing at a CAAGR of 39% over 2021 to 2026 and grow through 2029 to reach $8.3bn, at which point we will have reached a tipping point with SiC semiconductor demand exceeding that of silicon power semiconductors.”

Tags: Power electronics SiC devices