Electric vehicle production likely to reach 54 million units by 2029: Report

New Delhi: Global electric vehicle production will grow at a compound annual growth rate (CAAGR) of 26 percent, with volumes reaching 54.1 million units by 2029, a report said.

The EV Powertrain semiconductor market is expected to grow at a CAAGR of 31 percent to reach $27.3 billion by 2029, according to a report by market research firm Strategy Analytics.

“Semiconductors required for power electronics will represent the largest market, with growth accelerating in line with the push towards battery electric vehicles and the shift to higher-performance, more efficient broadband semiconductors,” said Asif Anwar, CEO of Strategy Analytics.

The push for electric vehicles is driven by consumer awareness and government regulations and mandates related to climate change and the need to reduce emissions and reverse the effects of global warming.

Battery electric vehicles will be the catalyst for semiconductor demand growth.

Semiconductor demand includes the key systems needed to operate mild hybrid, full hybrid, plug-in hybrid and battery electric drives.

This includes battery management systems, DC/DC converters, main traction inverter, electric motor and on-board charger, the report said.

According to the report, battery electric vehicles will constitute the largest semiconductor market, growing at a CAAGR of 39 percent and accounting for 82 percent of the total electric vehicle power semiconductor market opportunity in 2029.

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