Analysis: 2025 Q1 Japan xEV Demand Outlook 2022 to 2031
Japan's xEV market forecasts growth with production hitting 5M units by 2031. Powertrain electronics and semiconductor demand to rise at strong rates.
A summary of forecasts for Japan's xEV systems, semiconductors, and sensors market. Despite uncertainties such as the Ukraine conflict, semiconductor shortages, and a slowing global economy, the momentum toward electrification and battery electric vehicles remains robust, with volume demand continuing to rise. xEV production in Japan is projected to grow at a CAAGR of 8%, reaching 5.0 million units by 2031. Demand for xEV powertrain electronics is expected to grow at a CAAGR of 13%, increasing from $4.3 billion in 2023 to $7.8 billion by 2028, and reaching $8.5 billion by 2031. This growth will help to sustain demand for xEV semiconductor and sensor components, with the market projected to grow at a CAAGR of 8% from $983.7 million in 2023 to $1.5 billion by 2028 and sustaining at a similar level by 2031.
