Yole Forecasts EVs to Make Up 70% of Light-Duty Vehicle Production by 2031, Power Semiconductor Market to Exceed $14.5 Billion

On August 4, Yole Group stated that global production of all types of electric vehicles (xEVs) will grow at a double-digit compound annual growth rate (CAGR) between 2025 and 2031, reaching approximately 70% of total light-duty vehicle production worldwide by 2031. Battery electric vehicle (BEV) output alone is projected to hit 33 million units by then. Driven by this trend, the xEV power semiconductor market is expected to reach $14.5 billion (approximately RMB 98.05 billion) in 2031—more than doubling from 2025—with a CAGR of 14% over the period. In the traction inverter segment—a key component of xEV power systems—the power module market is also forecast to grow at a CAGR of 14% during the same timeframe. Within this segment, the silicon-based IGBT market will reach $7 billion, while SiC MOSFETs are projected to achieve a CAGR of 21.5%, and GaN HEMTs an astonishing CAGR of nearly 90%. By voltage rating, as the industry shifts toward 800–1000V platforms, the high-voltage device market for 1200V and above is growing at a CAGR of 27.4%.