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As more countries adopt electric vehicles (EVs), the EV powertrain systems Market is set to reach $107 billion by 2029, according to a new industry report.

The EV production will grow at a CAAGR (compound annual average growth rate) of 26 per cent over 2021 to 2026, with volumes approaching 54.1 million units by 2029, reports global research firm Strategy Analytics.

This, in turn, will drive demand for xEV powertrain electronics systems to reach $107 billion by 2029 -- a CAAGR growth of 37 per cent.

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.

The xEV powertrain systems include the key systems necessary for operation of mild hybrid, full hybrid, plug-in hybrid, and battery electric powertrain.

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

"Several trends are shaping powertrain technologies, but the underlying goal is to reduce size and weight while maximising performance and efficiency,a said Asif Anwar, executive director at Strategy Analytics.A

The main traction inverter and electric motor will drive overall demand, from over 50 per cent in 2021 to 57 per cent by 2029, reflecting the push towards battery electric vehicle powertrains as well premium and super-premium vehicle segments incorporating multiple systems per vehicle.

"Integration, cloud-based analytics, wide bandgap semiconductors such as silicon carbide and gallium nitride, as well as novel materials for electric motors and 800V architectures are all being utilised to achieve these aims," said Anwar.

This will drive the market and maintain momentum towards the electrification of the automotive industry, the report mentioned.