Narrative: 2025 Q2 Global xEV Demand Outlook 2023 to 2032

Explore how tariff uncertainty and EV trends shape automotive semiconductor demand. xEV powertrain chip market set to hit $25.7B by 2032 with 13% CAAGR.

Continued uncertainty around US tariff policies and their impact on the global economy are the dominant factors impacting semiconductor demand from vehicle output in this update. Despite these challenges and slower growth in demand for battery electric vehicles in markets outside of China, automotive semiconductor and sensor demand from xEV powertrains grew 14.2% in 2024. TechInsights forecasts xEV light vehicle powertrain production will grow from 33.1 million units in 2024 to reach 53.8 million units in 2029, a CAAGR of 10%, with the market forecast to continue growing and volumes reaching 60.6 million units by 2032. The associated semiconductor and sensor demand from xEV powertrain systems is forecast to grow at a CAAGR of 13% from 2024 to 2029, reaching $25.7 billion by 2032, with the fastest growth driven by demand for wideband gap semiconductor technologies.