EV Semiconductors Market worth $57.48 billion in 2032 | MarketsandMarkets™
DELRAY BEACH, Fla., Nov. 3, 2025 /PRNewswire/ -- The EV semiconductors market is projected to grow from USD 24.09 billion in 2025 to reach USD 57.48 billion in 2032, growing at a CAGR of 9.1%, according to a new report by MarketsandMarkets™. The EV semiconductors market is experiencing significant growth because of the growing semiconductor content in electric vehicles, which is around two to three times more than in ICE vehicles. This demand is driven by the need for advanced power electronics to manage high voltage and current for the electric powertrain, battery management systems, and sophisticated in-vehicle electronics supporting connectivity and ADAS. Government mandates for lower emissions and financial incentives for EV adoption accelerate this market expansion. Automakers are strengthening control over the semiconductor supply chain through long-term partnerships with chip manufacturers and by expanding internal design capabilities, while shifting vehicle electronics toward centralized high-performance computing platforms that raise semiconductor requirements. In March 2025, Hyundai Motor Company expanded its partnership with Infineon Technologies for the co-development of power semiconductors for EV programs, demonstrating the push to secure supply and tighten technology control.
Semiconductor designers and manufacturers are focusing on next-generation materials and advanced packaging. The industry is rapidly transitioning from traditional silicon IGBTs to wide-bandgap (WBG) materials, specifically Silicon Carbide (SiC) and Gallium Nitride (GaN). SiC is essential for high-power applications, such as traction inverters and fast charging systems, as it enables better energy efficiency, a more extended range, and the shift to 800V vehicle architectures. GaN is being adopted for its high-frequency switching capabilities in applications like DC-DC converters. Innovation in advanced packaging is crucial for managing the intense thermal and power density requirements of SiC and GaN modules. Geopolitical tensions and trade disputes, particularly between the US and China, are compelling a fundamental shift toward regional localization of the semiconductor supply chain. The US promotes domestic fabrication through the CHIPS and Science Act. At the same time, the European Union's EU Chips Act aims to strengthen local manufacturing capacity, driven by economic security concerns and the desire to reduce reliance on concentrated geographies.
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The battery electric vehicle segment is projected to be a larger market than the plug-in electric vehicle segment during the forecast period.
By propulsion, the battery electric vehicle segment is projected to lead the EV semiconductors market during the forecast period, driven by high semiconductor content per vehicle and increasing global adoption of fully electric passenger cars. BEVs require advanced power electronics, battery management systems, inverters, onboard chargers, and thermal management solutions, significantly increasing demand for automotive-grade semiconductors. For example, Tesla's BEVs like Model Y and Cybertruck use 400V and 800V architectures with SiC-based inverters, increasing the need for wide-bandgap power devices. Similarly, NXP's S32R47 imaging radar processors and STMicroelectronics' Stellar MCUs with xMemory are being integrated into BEV platforms to support ADAS and software-defined vehicle functions, highlighting the segment's reliance on high-performance microcontrollers and processors. The BEVs segment also benefits from government mandates for zero-emission vehicles and growing consumer preference for fully electric cars, particularly in North America, Europe, and China. Expansion of battery gigafactories, such as Tesla's Giga Texas and BYD's LFP battery production, further boosts semiconductor requirements for battery management and thermal control. These factors, combined with ongoing investments in wide-bandgap semiconductors, high-efficiency packaging, and high-performance MCUs, position BEVs as the dominant driver of growth in the EV semiconductors market.
By technology, the wide-bandgap semiconductor segment is projected to achieve a higher CAGR than the silicon-based semiconductor segment during the forecast period
Wide-bandgap semiconductors, including silicon carbide and gallium nitride devices, are expected to grow rapidly during the forecast period. These devices offer high efficiency, low heat generation, quick switching speeds, and compact size. These traits make them critical for electric vehicles' inverters, onboard chargers, and DC converters. The Porsche Taycan and Ford Mustang Mach-E use silicon carbide-based inverters that improve driving range and support faster charging.
Key players are undertaking strategies to expand their position in this segment. For example, in March 2025, Infineon and ROHM signed a memorandum of understanding to work together on silicon carbide power semiconductor packages, supporting the scale-up of wide-bandgap deployment. Similarly, in September 2025, STMicroelectronics invested in panel-level packaging to raise the performance of next-generation power devices. Alongside the decisive move to 800-volt platforms in high-performance EVs, leading global models such as the Tesla Model Y and Volkswagen ID4 are adopting advanced 48-volt power subsystems, which increasingly rely on gallium nitride or silicon carbide-based DC converters to improve energy efficiency and reduce system weight. As automakers focus on greater power density and longer range, the demand for wide-bandgap semiconductors will grow faster than silicon across the EV segment.
North America is projected to witness a strong demand for EV semiconductors during the forecast period
North America is set to witness notable growth in the EV semiconductors market during the forecast period. This growth is driven by rising EV production, increasing semiconductor content per vehicle, and investments in localized chip manufacturing. The US and Canada represent a significant base for EV production, with regional OEMs like Tesla and General Motors leading large-scale passenger car electrification, increasing the demand for automotive-grade semiconductors.
A concerted effort has been made to localize semiconductor manufacturing in response to trade tensions and tariffs. For instance, in August 2025, President Trump announced a 100% tariff on imported semiconductors unless manufactured in the US. This was aimed to encourage domestic production and reduce reliance on foreign sources. This policy has prompted companies to invest in US-based semiconductor fabrication plants. Notably, Taiwan Semiconductor Manufacturing Co. (TSMC) plans to invest USD 100 billion to build five new advanced fabrication plants in the US, bringing its total US investment to USD 165 billion. In addition, in December 2024, Texas Instruments secured USD 1.6 billion in CHIPS Act funding to support three 300mm fabs under construction in Utah and Texas, strengthening local production of analog and embedded automotive chips. North America is also home to leading semiconductor companies, including Texas Instruments, Micron Technology, NVIDIA, Qualcomm, and Broadcom, which supply power devices, microcontrollers, processors, and memory solutions for EVs. The growing regional EV production, government-backed incentives for semiconductor manufacturing, and increasing adoption of advanced driver assistance systems and software-defined vehicle architectures are driving strong growth in the EV semiconductors market across the region.
Key Market Players of EV Semiconductor Industry :
Prominent players in the EV Semiconductor Companies include Infineon Technologies AG (Germany), STMicroelectronics (Switzerland), NXP Semiconductors (Netherlands), Texas Instruments Incorporated (US), and Renesas Electronics Corporation (Japan)
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This report provides insights on:
- Analysis of key drivers (Rising EV adoption, high semiconductor content per EV, technological advancements in chip design and integration), restraints (Long qualification cycles and strict automotive reliability standards; high cost of advanced materials; and geopolitical, trade, and export control risks; fragmented standards and interoperability challenges), opportunities (Growth in wide-bandgap materials, expansion in emerging markets, tier-1 and OEM partnerships/co-development), and challenges (Intense competition and margin pressure; cybersecurity, safety, and liability concerns).
- Product Development/Innovation: Detailed insights into upcoming technologies, research & development activities, and product launches in the EV semiconductors market
- Market Development: Comprehensive information about lucrative markets across varied regions
- Market Diversification: Exhaustive information about new products and services, untapped geographies, recent developments, and investments in the EV semiconductors market
- Competitive Assessment: In-depth assessment of market share, growth strategies, and service offerings of leading players like Infineon Technologies AG (Germany), STMicroelectronics (Switzerland), NXP Semiconductors (Netherlands), Texas Instruments Incorporated (US), and Renesas Electronics Corporation (Japan), among others, in the EV semiconductors market
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