EV power converters to be a $29bn market in 2028

A new wave of consumer electronics players, such as Xiaomi and Sony are joining, which could create new opportunities for existing Tier 1 suppliers.

Vehicle electrification is speeding up globally within the major markets. The global Light Duty  vehicle market will reach 93 million units in 2028, with a 53.5% market share for xEVs.

Among various electrification technologies, BEV (: Light Duty BEV: Battery Electric Vehicle) leads the market with a 19.1% CAGR between 2022 and 2028, while the annual growth of xEV in general over the same period is 14.1%

The ICE market has started collapsing in some countries leading in electrification. In China, 

For example, NEV (New Energy Vehicle, including BEV, PHEV, and FCEV) market share jumped from 13.4% in 2021 to 25.6% in 2022 .

“In supporting the electrification trend, the power device market for xEV will reach US$9.8 billion, strongly pushed by SiC MOSFET modules, which alone will be worth US$5.5 billion in 2028,” says Yole’s Yu Yang.

Tesla is pushing extremely hard for cost parity with ICE. It claims to greatly reduce costly SiC usage, with possible scenarios analyzed in detail, ranging from technological innovations, sourcing practices, to fleet strategies.

 This cost reduction was closely followed by Chinese EV brands led by BYD, which recently launched C-class PHEV models at the same prices as ICEs from peer brands.

Electrification goes beyond passenger vehicles. The increasing adoption of electric light commercial vehicles for ‘last mile delivery’ requires specific models with synergies with either passenger vehicles or medium-duty commercial vehicles. 

A new wave of consumer electronics players, such as Xiaomi, Sony, and potentially Apple, are joining the game. 

Si IGBT module suppliers are focusing  on 650/750V and 1200V rated devices, while SiC MOSFET module suppliers are heavily engaged in 1200V, perfect for 800V platforms.

“The SiC supply chain has a unique focus on substrate materials “ says Yole’s Ana Villanor, “most device giants, such as STMicroelectronics, onsemi, and Rohm, are moving upstream to SiC wafering through M&As. In addition, OEMs and Tier 1 suppliers are working on various strategies, such as joint ventures, long-term supply agreements, and strategic partnerships, to secure their supply of SiC substrates.”

China’s leading position in vehicle electrification, strongly dominated by local OEMs, is incubating a local supply chain mixed with international players. 

Tier 1 suppliers are becoming local, while Tier 2 suppliers are still dominated by international businesses, with many local ones underwater. 

Both Si IGBT and SiC MOSFET are of interest for automotive power devices. 

Chinese OEMs demonstrate an obsession with in-house power module packaging, which is also a perfect example of the strong focus on automotive semiconductor in China starting even far before the COVID pandemic