Electric Vehicle Power Inverter Market Size, Share, By Inverter Type, Propulsion Type, Vehicle Type, Power Output, Level of Integration, Distribution Channel - Trends, Analysis, and Forecast till 2035

• In 2024, the electric vehicle power inverter market size was worth USD 38.4 Billion.
• By 2035, the target market is expected to reach a size of USD 90.6 Billion.
• The targeted market is expanding at a CAGR of 9.9%.

Electric vehicle power inverter is a crucial component in the electric drive train of an EV responsible for converting the direct current from the vehicle’s battery into alternating current that powers the electric motor. The focused market growth is rapidly growing due to the increasing demand for EVs globally.

For instance, In July 2024, as the main provider of a full power box solution for its next-generation traction inverter for its Scalable Systems Platform (SSP), Onsemi has signed a multi-year agreement with Volkswagen Group. All vehicle types can use the solution since it combines silicon carbide-based technologies into a single integrated module that can scale across all power levels, from high power to low power traction inverters.

Key Takeaways:

• North America is set to hold the largest market share of about 40.6% in 2024, driven by aggressive government policies promoting EV adoption.
• Asia Pacific is projected to be the fastest-growing market in the coming years, as it is a global manufacturing hub for EVs with significant production of power inverters, semiconductors and related components.
• Government incentives, subsidies and regulations pushing for cleaner transportation are accelerating the adoption of electric vehicles.
• Traction inverters are expected to capture a significant portion of the target market.
• EV power inverters directly influence the driving range, acceleration, and overall efficiency of electric vehicles.

Key Drivers of Target Market:

Growing Electric Vehicle (EV) Demand to Accelerate the Growth of the Target Market

The global shift in sustainable transportation and government incentives to reduce carbon emissions is driving the widespread adoption of electric vehicles. This surge in EV demand directly increases the need for efficient and high performance power inverters to improve vehicle performance and energy efficiency.     

• For instance, in September 2024, The European Union recently implemented new rules aimed at lowering CO2 emissions from automobiles, which increases demand for electric cars and, in turn, and power inverters.

Government Policies and Environmental Regulations will encourage a Targeted Market

Government incentives, tax rebates and environmental regulations promoting clean energy solutions are driving the EV sector, which in turn fuel the demand for power inverters.

• For instance, in October 2024, the U.S. government unveiled a new package aimed at reducing the carbon footprint of the automotive industry, which is expected to further stimulate electric vehicle sales and the power inverter market growth. 

Restraints:

Limited Production Capacity to Hamper the Target Market Growth

The rapid growth of EV sector has led to a strain on production capabilities for key components, which includes power inverters. The demand for high performance inverters outpace manufactures ability to scale up production quickly. 

For instance, in September 2024, Fronius a leading power inverter manufacturer in Europe reported delays in production due to increased demand from automakers, which slows the availability of advanced inverters in the industry.

• Counterbalance Statements: Major players in the target market growth are significantly investing in expanding their manufacturing capabilities. For instance, companies, such as Denso and Bosh are establishing new mitigating the impact of limited production capacity.

Opportunities & Market Trends:

Integration with Renewable Energy to Provide Opportunities in the Future

• The growing adoption of renewable energy sources, including solar and wind presents an opportunity for power inverters to serve dual purposes both as EV chargers and as interfaces for renewable energy systems. Manufacturers can develop inverters that seamlessly integrate with solar and wind power systems enabling EV owners to charge their vehicles directly from renewable sources which contributes to energy efficiency and sustainability.

The electric vehicle power inverter market is classified into inverter type, propulsion type, application, end-user, and region.

Inverter Type:

The electric vehicle power inverter market is segmented into traction inverters, soft switching inverters, and others. The traction inverters segment is anticipated to boost the focused electric vehicle power inverter market share as they are essential for converting direct current from vehicles’ battery into alternating current to power the electric motor making them crucial for the propulsion system of electric vehicles.

• For instance, in June 2024, NXP Semiconductors collaborated with ZF, a specialist in e-mobility, on next-generation SiC-based traction inverter solutions for electric vehicles (EVs).  

Propulsion Type:

The electric vehicle power inverter market is divided into Battery Electric Vehicles (BEVs), Hybrid Electric Vehicles (HEVs), Plug-in Hybrid Electric Vehicles (PHEVs), and others based on Propulsion Type. The battery electric vehicles (BEVs) dominates target market share as the growing consumer preference for eco-friendly transportation options and advancements in battery technology.

Vehicle Type:

Electric vehicle power inverter market segmented into Passenger Cars, Commercial Vehicles, and others by vehicle type segment. The passenger cars is anticipated to boost the focused market share driven by the increasing demand for battery electric vehicles and hybrid electric vehicles which are primarily passengers vehicles.

Power Output:

By power output, the electric vehicle power inverter market is classified into Up to 100 kW, 101-300 kW, 301-600 kW, and 601 kW. The 101-300 kW is anticipated to boost the focused market share as the demand for inverters in this power range is driven by the increasing production of mid-range electric vehicles that require optimal performance and efficiency for urban and suburban driving conditions.

• For instance, in March 2024, USI, a leader in electronic design and manufacturing, its Power Module Team proudly announces its groundbreaking Joint Design Manufacturer (JDM) project aimed at developing a cutting-edge 150KW power module named "Magnet" for electric vehicles (xEVs) traction inverters.

Level of Integration:

There are various segments in the level of integration, including integrated inverter system, separate inverter system, and others. The integrated inverter system segment is anticipated to boost the focused electric vehicle power inverter market share due to its ability to combine multiple functions into a single unit, leading to enhance efficiency, reduce weight, and lower manufacturing costs.

Distribution Channel:

Electric Vehicle Power Inverter market is segmented into OEM (Original Equipment Manufacturer), and aftermarket by distribution channel. OEM (Original Equipment Manufacturer) is anticipated to boost the focused market share as it plays critical role in integration of power inverters during the manufacturing process of electric vehicles.

Region:

Asia Pacific: This region holds the largest share for target market growth as South Korea and China are global leaders in EV production and adoption. These countries are also major innovators in EV technology and power inverter advancements.

Europe: This region also leads in implementing strict emissions regulations and green mobility initiatives. The EU’s push for decarbonizing transport has accelerated EV adoption. Increasing product launch by key market players is expected to drive market growth. For instance, European automakers such as Volkswagen, BMW and Tesla’s gigafactory in Germany are leveraging advanced power inverter technologies to enhance EV efficiency.

• For instance, in June 2022, GKN Automotive, announced the launch of its next-generation inverter, offering OEMs the most advanced 800V electric vehicle technology available. The upgraded product features a range of efficiency and light weighting improvements to deliver market-leading performance and enhanced sustainability.

Electric Vehicle Power Inverter Market Report Scope:

Segmentation:

By Inverter Type:

• Traction Inverters
• Soft Switching Inverters
• Others

By Propulsion Type:

• Battery Electric Vehicles (BEVs)
• Hybrid Electric Vehicles (HEVs)
• Plug-in Hybrid Electric Vehicles (PHEVs)
• Others 

By Vehicle Type:

• Passenger Cars
• Commercial Vehicles
• Others 

By Power Output:

• Up to 100 kW
• 101-300 kW
• 301-600 kW
• 601 kW

By Level of Integration:

• Integrated Inverter System
• Separate Inverter System
• Others

By Distribution Channel:

• OEM
• Aftermarket

By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Russia
  • Italy
  • Spain
  • Netherland
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • Indonesia
  • Malaysia
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

The key players operating in the electric vehicle power inverter market include Robert Bosch GmbH, DENSO Corporation, Vitesco Technologies and others. The companies in target market are marked by significant advancements and collaborations among major players to address the growing demand for electric vehicles globally. Also, the companies are focusing on enhancing inverter technologies to improve efficiency, reduce costs and support next generation electric vehicles.   

For instance, in August 2023, Robert Bosch GmbH started production of new powertrain solutions based on 800-volt technology for electric vehicles. The 800-volt version of the inverter is based on silicon carbide semiconductors, further increasing the efficiency and range. In the 800-volt variant of the electric motor, Bosch has also increased the power density.

List of Key Players in the Market:

• Robert Bosch GmbH
• DENSO Corporation
• Vitesco Technologies
• Toyota Industries Corporation
• Mitsubishi Electric Corporation
• Hitachi Astemo Ltd
• Valeo Group
• Continental AG
• Aptiv PLC
• Meidensha Corporation
• Infineon Technologies AG
• BYD Company Ltd.
• LG Magna e-Powertrain
• ZF Friedrichshafen AG

• In October 2024, STMicroelectronics launched its fourth generation of STPOWER silicon carbide (SiC) MOSFET technology. In terms of durability, density, and power efficiency, this new generation is expected to set new standards, especially for traction inverters for electric vehicles (EVs). With developments in both the 750V and 1200V classes, the deployment will continue through 2025 with the goal of extending the benefits of SiC to a larger variety of EVs, including compact and mid-size vehicles.
• In July 2024, The Indian Institute of Technology Delhi (IIT-D) has launched a new Certificate Program in Hybrid Electric Vehicles (HEVs) Design. The six-month certificate program is designed for engineers in mechanical, electrical, automotive, and related fields. Engineering graduates in the mechanical, electrical, automotive, and allied areas or diploma holders (10+2+3) from a recognized university will be eligible to register for the new certificate program.
• In June 2024, Swedish-Swiss electrical equipment maker ABB has launched a motor and inverter package tailored to electric buses. According to the company, the AMXE250 motor and HES580 three-level inverter were designed in tandem to optimise efficiency, providing up to 12% lower motor losses on average drive cycles than earlier two-level inverters.
• In May 2024, ABB announced the launch of an innovative new package, consisting of AMXE250 motor and HES580 inverter, tailored for electric buses. The new propulsion package, designed to work in harmony for a more efficient, reliable, and readily available solution for the industry, marks a significant leap forward in cleaner, more sustainable transportation options.

Analyst View:

The market for electric vehicle power inverters is expanding significantly due to the strong support of governments globally, which is primarily driving the target market growth in the upcoming years through tax breaks and incentives for the adoption of electric vehicles. More Related Reports
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