Electric Vehicle production set to increase by 26 per cent by 2029: Report

The push for electric vehicles is being dictated by consumer awareness and government regulations and mandates related to climate change and the need to reduce emissions, reports IANS.

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The production of electric vehicles will increase at a compounded average annual growth rate (CAAGR) of 26%, reaching volumes of over 54.1 million units by 2029. According to a report by market research firm Strategy Analytics, the EV Powertrain semiconductor market is anticipated to develop at a CAAGR of 31% to reach $27.3 billion by 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," said Asif Anwar, Executive Director at Strategy Analytics.

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

Semiconductor demand include the 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, said the report.

According to the report, battery electric vehicles will comprise the largest market for semiconductors growing at a CAAGR of 39 per cent and accounting for 82 per cent of the total electric vehicle powertrain semiconductor market opportunity in 2029.

With inputs from IANS