Battery Electric Vehicles will be the catalyst for wide bandgap semiconductor demand
BOSTON–(BUSINESS WIRE)–The push to electric vehicles is being dictated 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. The latest Strategy Analytics Electric Vehicles Service (EVS) report, “xEV Semiconductor Demand Outlook 2021-2029” forecasts that electric vehicle production will grow at a CAAGR (compound annual average growth rate) of 26% over 2021 to 2026, with volumes approaching 54.1 million units by 2029. This in turn will drive demand for corresponding xEV powertrain semiconductors which is forecast to grow at a CAAGR of 31% and reach $27.3 billion by 2029.
Semiconductor demand from xEV powertrain systems covered in this analysis include the key systems necessary for 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 market for semiconductors growing at a CAAGR of 39% and account for 82% of the total electric vehicle powertrain semiconductor market opportunity in 2029.
“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,” noted 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 $8.3 billion at which point we will have reached a tipping point with SiC semiconductor demand exceeding that of Si (silicon) power semiconductors.”
Source: Strategy Analytics, Inc.
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