Battery-electric cars are finally regaining momentum after two years of hybrid-led growth, and Yole Group now expects the power semiconductors inside them to roughly double in revenue by 2031.
The French market research firm forecasts electrified vehicles will account for close to 70% of global light vehicle production by that point, with pure EVs reaching about 33 million units a year. Revenue from xEV power devices is projected to land near $14.5B, expanding at a 14% compound annual rate.
The traction inverter remains the revenue centerpiece. Silicon IGBT modules continue to dominate at roughly $7B, while SiC MOSFETs keep taking share at a 21.5% growth clip, fueled by China’s electric fleet. GaN HEMTs are expanding fastest of all, nearly 90% annually, but will stay a niche segment through the forecast period.
Higher-voltage architectures are reshaping where the money lands. The industry’s move from 400V to 800V and 1,000V systems concentrates value in devices rated 1.2kV and above, a segment growing at 27.4% per year. Vertical integration is accelerating too, especially in China, where automakers are insourcing inverters and e-axles while global Tier-1 suppliers consolidate.
Yole analyst Milan Rosina points to China’s emergence as a nearly self-sufficient power-electronics powerhouse, already strong in finished systems, packaging, and wafers, and closing the front-end manufacturing gap quickly. That trajectory contrasts with Bosch, Renesas, and Rohm, all reconsidering their SiC footprints on overcapacity concerns.
