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The global electric vehicle production will grow at a compounded average annual growth rate (CAAGR) of 26 per cent, with volumes approaching 54.1 million units by 2029, a report has said.

The EV Powertrain semiconductor market is forecast to grow at a CAAGR of 31 per cent to reach $27.3 billion by 2029, according to the report by market research firm Strategy Analytics.

"Semiconductors required for power electronics will comprise the largest market, with growth accelerating in line with the push towards battery electric vehicles and the move towards higher performing, more efficient wide bandgap semiconductors," said Asif Anwar, Executive Director at Strategy Analytics.

The push to electric vehicles is being dictated by consumer awareness and government regulations and mandates related to climate change and the need to reduce emissions and reverse the impacts of global warming.

Battery electric vehicles will be the catalyst for the growth in semiconductor demand.

Semiconductor demand include the key systems necessary for operation of mild hybrid, full hybrid, plug-in hybrid, and battery electric powertrains.

This includes battery management systems, DC/DC converters, main traction inverter, electric motor, and onboard charger, said the report.

According to the report, battery electric vehicles will comprise the largest market for semiconductors growing at a CAAGR of 39 per cent and account for 82 per cent of the total electric vehicle powertrain semiconductor market opportunity in 2029.