May 2018 – Electric Vehicles to Boost Semiconductor Demand
Published on: 22/05/2018
The demand for electric vehicles is set to boost the semiconductor market by an annual growth rate of 7.7% to 2023
With plans to reduce greenhouse gas emissions, it is estimated that the majority of new cars and vans manufactured will be electric by 2030.
It is predicted that revenue growth for semiconductors used in automotive systems will outnumber the growth rate of the overall semiconductor industry due to the demand and popularity of electric vehicles and the development of self-driving cars.
Electric Vehicles to Boost Semiconductor Demand
It is also predicted that advanced driver assistance systems (ADAS) will further boost the demand for semiconductors in the auto industry. The automotive semiconductor market is expected to increase from $37.4 billion (£27.7 billion) in 2017 to $58.5 billion (£43.4 billion) in 2023, according to researcher IHS Markit.
Most semiconductor manufacturers are experiencing lead times of up to 30+ weeks on discrete components such as MOSFETs, thyristors, varistors and diodes. Industry analysts predict that the demand for semiconductor components will continue to face tight demand and long lead times because electronics content in conventional vehicles will continue to rise. With the launch and shipments of EVs and hybrids containing more semiconductors than gasoline-powered cars happening around the same time, the demand for components used in the automotive industry is set to increase.
As a result of electric vehicles, there is likely to be a short-term shortage of semiconductor components until demand for certain parts remains consistent. Manufacturers will add capacity for all customers, not just automotive because the the auto industry will still only make up a small percentage (approx. 10-11%) of overall semiconductor revenue, despite having a higher growth than the overall industry.
The Internet of Things (IoT) is also set to boost semiconductor sales over the next five years, and the communications market is expected to grow as 5G networks are built. With the launch of the fifth generation network, consumers will need to upgrade their handsets to further drive semiconductor sales.
Electric vehicles and hybrids are also driving greater semiconductor use because electrification of the drivetrain requires inverters, on-board chargers and battery management systems. Currently based on silicon power transistors, on-board inverters will transition in a few years to silicon carbide (SiC) devices with even greater power handling capacity. Silicon carbide semiconductors not only have a great potential to make electric driving more affordable in the future, but they are also more compact, lightweight and more efficient, offering a broader range of vehicles.
With a heritage spanning back over 50 years, we’re also an official distributor for over 20 of the world’s leading power electronic component brands including: IXYS, IXYS UK Westcode, IXYS RF, IXYS Integrated Circuits, Semikron, Eaton Bussmann, Mersen, Ferraz Shawmut, Cooper Bussmann, API Capacitors, United Automation, Enerdoor, KONČAR, Telcon, Sirio, Ocram, Eichhoff Elektro and Electronic Devices Inc. At GD Rectifiers, we distribute an extensive range of semiconductors, including: Diodes, Thyristors, MOSFETs, IGBTs, Discrete IGBTs and Thyristor Diode Modules. And silicon carbide semiconductors from IXYS such as: Schottky Diodes and SiC MOSFETs.