Battery electric vehicles (BEVs) will be the largest market for semiconductors, with a 39% CAAGR. In addition, it is estimated to account for 82% of the overall electric vehicle powertrain semiconductor market opportunity, as per Strategy Analytics’ report.
According to Zee Business, the market research company projects global electric vehicle production to increase at a compounded average annual growth rate (CAAGR) of 26%. By 2029, its volume is expected to reach 54.1 million units.
Furthermore, Strategy Analytics’ survey revealed that the EV Powertrain semiconductor market would expand at a CAAGR of 31% to $27.3 billion by 2029.
Asif Anwar, Executive Director at Strategy Analytics, stated, “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.”
It is important to note that many forces are driving the trend toward electric vehicles, and some of these are the following:
- Customer awareness
- Climate change-related government policies and requirements
- The intent to cut emissions and reverse the effects of global warming promotes the adoption of electric vehicles
On the other hand, the major systems required for the functioning of mild hybrid, full hybrid, plug-in hybrid, and battery electric powertrains are components of the semiconductor demand. As per the report, it includes battery management systems, DC/DC converters, the primary traction inverter, the electric motor, and the onboard charger.
Notably, battery electric vehicles will account for 82% of the overall EV powertrain semiconductor market potential in 2029, increasing at a CAAGR of 39%, according to the report.