Power Electronics Market Set to Triple by 2036 Despite EV Sales Slowdown

The power electronics industry is experiencing a significant transformation as it navigates evolving market dynamics in the electric vehicle sector. According to IDTechEx's new report, "Power Electronics for Electric Vehicles 2026-2036: Technologies, Markets, and Forecasts," the market is projected to triple in size over the next decade, reaching $42 billion by 2036, despite recent moderation in EV sales growth.

IDTechEx's report indicates that silicon carbide (SiC) MOSFET technology continues its trajectory toward mainstream adoption, with deployment expanding beyond battery-electric vehicles into plug-in hybrid electric vehicles. Major automotive manufacturers including Toyota and Schaeffler have announced PHEV drivetrains incorporating SiC MOSFETs, signaling growing confidence in the technology even for vehicles with smaller battery capacities and partial electric operation.

According to the research firm, cost reduction in SiC technology is being driven by increased competition among wafer suppliers. The transition to 200mm wafer production has gained momentum, with Infineon delivering its first products based on 200mm SiC platforms in 2025. Wolfspeed has opened its 200mm SiC wafer production to broader market access, while Chinese manufacturers have scaled up domestic production to support OEMs such as Xiaomi and Li Auto.

IDTechEx notes that wafer costs, which can represent up to half the total cost of a SiC MOSFET die, are expected to decline as production scales and competition intensifies.

Gallium Nitride Enters High-Voltage Automotive Applications

Gallium nitride (GaN) technology is making its debut in high-voltage automotive applications. The Changan Qiyuan E07, scheduled for market entry in 2026, will feature GaN devices from Navitas in its onboard charger, achieving a power density of 6kW/L—significantly higher than the industry standard of 2kW/L identified in IDTechEx's research.

Development activity for GaN extends to traction inverters, with companies including VisIC Technologies, NXP, and Cambridge GaN Devices working on power semiconductors and control systems. IDTechEx believes that while commercial deployment in traction applications is expected to follow implementations in onboard chargers and DC-DC converters, the technology's performance characteristics and potential cost advantages are driving continued development.

Emerging Technologies and Design Approaches

The industry is exploring hybrid inverter architectures that combine different transistor types—silicon IGBTs, SiC MOSFETs, and GaN HEMTs—to optimize performance across varying load conditions while managing costs. IDTechEx identifies these designs as presenting technical challenges in gate driver design and load balancing, noting that their adoption trajectory will depend on the rate of SiC MOSFET cost reduction.

The research firm points out that SiC MOSFETs are unlikely to reach cost parity with silicon IGBTs due to the higher temperatures required for crystal growth and smaller boule sizes compared to silicon.

Embedded power modules represent another area of development, integrating power semiconductor dies directly into printed circuit boards. This approach eliminates wire bonds, reduces parasitic effects, and increases power density. While not yet deployed in mass-production on-road vehicles as of October 2025, the technology is being evaluated for future applications, according to the report.

IDTechEx's analysis indicates that value growth in the power electronics market will outpace overall electric vehicle market expansion. The forecast encompasses silicon, silicon carbide, and gallium nitride technologies across various power conversion applications and EV segments, providing unit sales projections, market size estimates, and cost-per-kilowatt trends through 2036.

The convergence of maturing wide bandgap semiconductor technologies, improved supply chain dynamics, and continued engineering innovation positions the power electronics sector for sustained growth in the automotive industry's electrification transition, the report concludes.