Global EV Semiconductor Market 2024

Global EV Semiconductor Market 2024

The automotive industry has been a key driver of semiconductor consumption due to its transition towards connected, autonomous, shared, and electric (CASE) mobility. Many vehicles today are equipped with ADAS, paving the way for fully autonomous vehicles in the future. Furthermore, there has been a shift in consumer attitudes towards EV, with a growing recognition of their environmental benefits as sustainable and carbon-neutral transportation solutions. Despite the challenges posed by the pandemic, major automotive OEMs have remained committed to making EV more accessible to the public. The global market for EV semiconductors has experienced remarkable growth in recent years. From 2020 to 2023, the market's revenue increased at a compound annual growth rate (CAGR) of 59.7%, reaching USD 11,191 million in 2023. This upward trend is expected to continue, with a projected CAGR of 31.1% from 2024 to 2029, resulting in a market size of USD 57,080 million in 2029.

The global market for EV semiconductors is divided into product types, namely discrete, analog, logic, memory, and others. Discrete semiconductors are critical components of EV powertrains and perform essential functions such as regulating voltage, reducing power consumption, and minimizing heat generation. This category of semiconductors includes single devices such as diodes, thyristors, rectifiers, valves, modules, and transistors. In terms of product type, the discrete segment dominated the market in 2023, holding a significant share of 29.7%. This segment is projected to exhibit the highest CAGR of 32.2% during the forecast period from 2024 to 2029.

The EV semiconductor market is mainly comprised of PHEV and BEV. In 2023, PHEV segment accounted for 36.3% of the global EV semiconductor market in terms of revenue. The market share is estimated to increase to 39.1% in 2029. In 2023, out of the 13.6 million EV sold worldwide, fully electric or BEV accounted for 9.5 million, while PHEV made up the remainder. PHEV differ from BEV in that they rely on both a battery and an internal combustion engine (ICE) for power. The battery in a PHEV can be charged by plugging into an external power source, in addition to recharging through regenerative braking. The primary power source in a PHEV is the ICE, which is supplemented by the electric drive system.

In terms of end-users, the EV semiconductor market can be classified into five segments: powertrain, chassis and safety, telematics and infotainment, ADAS, and body and others. Specifically, the powertrain segment generated USD 6,135 million in revenue in 2023, and it is anticipated to reach USD 32,441 million by 2029, reflecting a CAGR of 31.8% over the forecast period from 2024 to 2029. As the largest application segment for EV semiconductors, the powertrain segment is expected to maintain its dominant position throughout the forecast period, with its share projected to increase to 56.8% by 2029.

It is worth noting that powertrains in PHEVs are composed of both internal combustion engines (ICEs) and electric components, resulting in a higher semiconductor content when compared to BEVs. Meanwhile, the ADAS segment is also predicted to experience significant growth, with revenue expected to increase at a higher CAGR of 37.2% to reach USD 10,330 million in 2029.

In the context of geography, the EV semiconductor market witnessed Asia-Pacific as the leading player in 2023. The region was followed closely by EMEA (Europe, Middle East, and Africa) and the Americas. China's government has provided generous support to establish a comprehensive EV ecosystem, fostering the growth of its EV market. However, changes in incentives, government policies, and the impact of COVID-19 disrupted the market in 2020. To address this, the government plans to extend the tax exemption policy for new energy vehicle purchases until 2027. The intensity of the exemption will gradually decrease annually, with an estimated total of 520 billion yuan in exemptions from 2024 to 2027. By the end of 2022, cumulative tax exemptions exceeded 200 billion yuan, projected to surpass 115 billion yuan in 2023.

The EV semiconductor market is dominated by the top five companies, namely Infineon Technologies AG, NXP Semiconductors N.V., Renesas Electronics Corp., STMicroelectronics N.V., and Texas Instruments Inc. Together, they hold a market share of over 55% in 2023. Additionally, there are several other notable players operating in the global EV semiconductor market.

These include Allegro MicroSystems Inc., Ambarella, Inc., ams-OSRAM AG, Analog Devices, Inc., Broadcom Inc., BYD Semiconductor Co., Ltd., Cirrus Logic Inc., Diodes, Inc., Elmos Semiconductor SE, Fuji Electric Co., Ltd., Hon Hai Precision Industry Co., Ltd., indie Semiconductor Inc., Intel Corp., Littelfuse, Inc., LX Semicon Co., Ltd., Macronix International Co., Ltd., MaxLinear, Inc., MediaTek Inc., Melexis N.V., Microchip Technology Inc., Micron Technology, Inc., Mitsubishi Electric Corp., Monolithic Power Systems, Inc., Murata Manufacturing Co., Ltd., Nanya Technology Corp., Nuvoton Technology Corporation, NVIDIA Corp., ON Semiconductor Corp., Qorvo Inc., QUALCOMM, Inc., Robert Bosch GmbH, ROHM Co., Ltd., Samsung Electronics Co., Ltd., Semtech Corporation, Silicon Motion Technology Corporation, SK Hynix, Inc., Sony Semiconductor Solutions Corporation, Toshiba Electronic Devices & Storage Corporation, Vishay Intertechnology, Inc., VisIC Technologies Ltd., Western Digital Corp., Wolfspeed Inc., and Wolfspeed, Inc., among others.

This study aims to analyze the global market for various segments of EV semiconductor, including:

Product Type: Discrete, Analog, Logic, Memory, and Others.
EV Type: PHEV (Plug-in Hybrid Electric Vehicle) and BEV (Battery Electric Vehicle).
End-User: Powertrain, Chassis & Safety, Telematics & Infotainment, ADAS, and Body & Others.
Region: Americas, EMEA, and Asia-Pacific.