The buzz around electric vehicles may have quieted, but the market for the power semiconductors that drive them is only getting started. Against this backdrop, Yole Group releases its latest report, Automotive Powertrain and Electrification 2026 – Focus on Power Electronics, offering a comprehensive analysis of the market, technologies, and supply chain shaping the xEV power-device landscape.
Following a ‘reality check’ in 2024-2025, when hybrid vehicles gained ground and battery-electric growth slowed temporarily, the xEV industry is regaining momentum. Yole Group forecasts xEV production to grow at a double-digit CAGR25-31 to around 70% of global light vehicle production, with battery-electric vehicles alone accounting for 33 million units. In turn, the xEV power-device market is set to reach $14.5 billion by 2031, growing at a 14% CAGR over the same period.
“China is building a power electronics supply chain that answers to no one – strong in finished systems, device packaging, and semiconductor wafers and closing the gap on front-end chip manufacturing faster than most expected,” said Milan Rosina, PhD, Principal Technology & Market Analyst, Power Electronics & Battery, at Yole Group.
Yole Group’s report provides strategic insight into the technical shift now underway inside the traction inverter, which accounts for the large majority of xEV power device revenue through 2031:
- Power modules grow at about a 14% CAGR25-31
- Silicon IGBT modules remain dominant, reaching almost $7 billion
- SiC MOSFETs are rapidly gaining share, growing at a 21.5% CAGR25-31, driven largely by China’s BEV fleet
- GaN HEMT is the fastest-growing technology of all, at almost a 90% CAGR25-31, though it will remain a tiny market in 2031 compared with silicon and SiC devices
Underpinning this shift is the industry’s move from 400 to 800/1,000V architectures, concentrating rising semiconductor value into higher-voltage devices – segments rated 1.2kV and above are growing at a 27.4% CAGR25-31.
Furthermore, one of the main messages delivered by Yole Group’s analysts is the accelerating consolidation and regionalisation of the xEV supply chain.
OEMs, particularly in China, are increasingly bringing traction inverter and e-axle production in-house, while Tier-1 suppliers continue consolidating through M&As.
At the same time, Bosch, Renesas, and Rohm are all reassessing their SiC manufacturing footprint amid overcapacity, and licensing and partnership deals continue multiplying as the industry shifts from technical validation to securing capacity and executing at scale.
With vehicle electrification remaining a durable long-term growth driver even as industry attention increasingly turns toward AI data centres, understanding the technology, supply chain, and competitive dynamics behind the xEV power-device market has never been more critical for chipmakers, module manufacturers, Tier-1 suppliers, and investors. The Automotive Powertrain and Electrification 2026 report provides the market intelligence and technology insights required to navigate this fast-evolving landscape and identify future growth opportunities.
