Automotive On-board Power Inverters Market Size

The global automotive on-board power inverters market size was valued at USD 578.8 million in 2023 and is projected to grow at a CAGR of 5.4% between 2024 and 2032. The rapid adoption of electric vehicles (EVs) is driving demand for on-board power inverters. As more people switch to EVs, the need for efficient power conversion systems grows. Power inverters are essential in EVs, converting DC power from batteries to AC power for the electric motor.

For instance, according to the International Energy Agency, In 2023, electric car sales jumped by 3.5 million units compared to 2022, reflecting a 35% increase. Additionally, each week in 2023, over 250,000 new electric cars hit the roads. Electric vehicles made up about 18% of all cars sold in 2023, up from 14% in the previous year. Government incentives, environmental regulations, and increased consumer awareness are speeding up global EV adoption. Major car manufacturers are expanding their EV lineups, positively impacting the power inverter market. The push for high-efficiency inverters to maximize battery life and vehicle range is also driving technological advancements.

Modern vehicles are increasingly packed with advanced electronic systems that need a stable power supply. From infotainment systems and climate control to USB charging ports and power outlets, the need for reliable power conversion is rising. This trend is especially strong in luxury and premium vehicles, where people expect multiple charging options. The integration of advanced driver assistance systems (ADAS) and connectivity features also demands stable power conversion, increasing the need for efficient on-board inverters.

Automotive On-board Power Inverters Market Trends

Industries are rapidly adopting SiC-based power inverters due to their superior performance. These inverters, compared to traditional silicon ones, offer higher switching frequencies, better thermal conductivity, and greater power density. SiC technology enhances power conversion efficiency, reduces cooling requirements, and allows for more compact designs. Manufacturers are heavily investing in SiC development and production to meet the growing demand. This shift is particularly significant for electric vehicles, where efficiency and space optimization are critical.

For instance, In September 2024, STMicroelectronics launched its fourth-generation STPOWER silicon carbide (SiC) MOSFET technology. Designed to meet the demands of both automotive and industrial sectors, the technology is particularly optimized for traction and on-board inverters, which are crucial components of electric vehicle (EV) powertrains. Demonstrating its ongoing commitment to innovation, the company plans to introduce further advancements in SiC technology through 2027.

As inverter designs grow more powerful and compact, managing heat dissipation becomes a critical challenge. Traditional cooling methods fall short with increasing power densities and smaller form factors. Engineers must balance efficient cooling with limited space and weight. This task is further complicated by the varying conditions vehicles face, requiring consistent performance in diverse environments. Advanced thermal modeling and innovative cooling solutions are essential, though they often lead to higher development costs and complexity.

Automotive On-board Power Inverters Market Analysis

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Based on vehicles, the market is segmented into passenger vehicles and commercial vehicles. In 2023, the passenger vehicle segment accounted for over 70% of the automotive on-board power inverters share and is expected to exceed USD 600 million by 2032. Modern vehicles come equipped with various auxiliary systems, such as climate control and mobile charging ports, all requiring a reliable power source.

On-board power inverters convert the vehicle's battery-stored DC power to AC power, supporting these systems. As more consumers use in-car electronics like laptops and portable devices, the demand for versatile inverters is increasing. This trend is particularly strong in passenger vehicles, where enhancing comfort and convenience is a priority, driving consistent demand for reliable inverter solutions.

Additionally, modern vehicles now feature advanced electronic systems that require a reliable power supply. These include state-of-the-art infotainment systems, navigation tools, USB charging ports, and various comfort features. As the industry moves towards connected and autonomous cars, the need for efficient power conversion solutions becomes critical.

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Based on the inverter, the automotive on-board power inverters market is divided into single-phase inverters and three-phase inverters. By 2032, the three-phase inverters segment is expected to exceed USD 650 million due to several key factors. Recent advances in manufacturing and automation have considerably reduced production costs and increased the scalability of three-phase inverters. Companies use robotics and automated testing to improve product quality and reduce faults.

Furthermore, modular designs and standardized components promote economies of scale. For example, in June 2023, Wolfspeed debuted its 200 kW XM3 three-phase inverters for automotive applications. The XM3 power module platform, which is optimized for SiC MOSFETs, has a small, low-inductance architecture that lowers system losses and simplifies system design. These advancements are making three-phase inverters more efficient, user-friendly, and accessible to the car industry.

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The U.S. automotive on-board power inverters market accounted for 36% of the revenue share in 2023. American consumers are increasingly choosing high-power inverters (more than 2000W) to power multiple electronics and auxiliary equipment in larger cars such as pickup trucks and SUVs. This tendency is driven by the developing "vehicle-as-a-workspace" notion, which sees automobiles used as mobile workplaces, particularly in the aftermath of a pandemic. Furthermore, the increase in outdoor recreation and camping activities raises the demand for power to run various appliances and devices.

Manufacturers in Europe are concentrating on developing smaller, lighter, and more efficient inverters to meet tight EU car weight and pollution rules. This is especially important in the electric vehicle category, where power density and efficiency are critical for increasing range and improving overall vehicle performance.

Japan and South Korea's advanced automobile industry are progressively embracing high-frequency inverter technology. This move is motivated by the desire for greater efficiency, smaller size, and better thermal control. This technology not only improves power conversion but also mitigates electromagnetic interference.

Automotive On-board Power Inverters Market Share

Sensata Technologies, Continental Engineering Services, and Infineon collectively held a substantial market share of over 18% in the automotive on-board power inverters industry in 2023. Sensata has reinforced its position in the electrification sector by purchasing companies specializing in EV components, battery management, and energy storage. Sensata's strategic acquisitions allow them to offer a broader range of power electronics, including inverters.

Continental Engineering Services offers bespoke engineering solutions to satisfy the specific requirements of car OEMs. They provide specialized inverter solutions for both EVs and hybrids, allowing them to efficiently service traditional automakers as well as EV startups. Their emphasis on modular design for power electronics, including inverters, provides rapid adaption and scalability across multiple vehicle models. This approach is consistent with the growing trend toward electrification, making Continental a desirable partner for OEM.

Infineon has heavily invested in silicon carbide (SiC) and gallium nitride (GaN) technologies, which are known for their high efficiency and performance in inverters. These wide bandgap semiconductors are essential for EV applications, where efficiency and heat management are critical.

Automotive On-board Power Inverters Market Companies

Major players operating in the automotive on-board power inverters industry are:

• Analog Devices
• Baccus Global
• Bestek
• Cobra
• Continental Engineering Services
• Infineon Technologies
• Marelli Holdings
• Samlex
• Sensata Technologies
• STMicroelectronics
  

Automotive On-board Power Inverters Industry News

• In April 2024, Vicor unveiled its latest advancements in 800V and 48V power conversion at the World Congress Experience 2024 (WCX™) in Detroit. The company presented five papers showcasing their high-density, scalable power modules featuring proprietary topologies for automotive on-board power inverters and microcontrollers.
  
• In April 2024, DigiKey expanded its product portfolio through a strategic global distribution partnership with 3PEAK. This collaboration adds 3PEAK's innovative products to DigiKey's extensive line card, including amplifiers, isolation interfaces, data converters, LDOs, voltage references, supervisors, drivers, DC-DC converters, embedded MCUs, and battery management solutions. These products address diverse needs in communication, industrial sectors, security monitoring, medical and health fields, instrumentation, new energy solutions, and the automotive industry.
  

The automotive on-board power inverters market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn), and volume (units) from 2021 to 2032, for the following segments:

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Market, By Vehicle

• Passenger vehicles
  • Hatchback
  • Sedan
  • SUV
• Commercial vehicles
  • Light Commercial Vehicles (LCV)
  • Heavy Commercial Vehicles (HCV)

Market, By Propulsion

• ICE
• Electric vehicles
  • Battery Electric Vehicles (BEV)
  • Plug-in Hybrid Electric Vehicles (PHEV)
  • Hybrid Electric Vehicles (HEV)

Market, By Inverter

• Single-phase inverters
• Three-phase inverters

Market, By Material

• Silicon carbide
• Gallium nitride
• Others

Market, By Output Power

• Below 1 kW
• 1 kW - 5 kW
• Above 5 kW

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa