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Base Year: 2024
Companies covered: 20
Tables & Figures: 200
Countries covered: 21
Pages: 240
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EV Traction Inverter Market
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EV Traction Inverter Market Size
The global EV traction inverter market size was valued at USD 6.8 billion in 2024 and is projected to grow at a CAGR of 14.7% between 2025 and 2034. The market for EV traction inverters is experiencing tremendous growth due to increased adoption of EVs around the world because of their extensive applications. Governments are encouraging EVs instead of ICE cars which shrinks the carbon footprint and helps in combating climate change.
The EU, the US, and China are for example providing grants and tax relief together with legislation such as giving ZEVs subsidies to automakers which has caused an increase in EVs manufactured. This increase in EVs manufactured has caused an increase in demand for the traction inverters, one of the essential parts of the EV powertrain system.
The application of advanced technologies in power electronics has transformed the performance and efficiency of traction inverters. New inventions, such as wide-bandgap semiconductors (silicon carbide and gallium nitride), offer great thermal management and enable more compact and efficient systems. This technology is a response to the need for longer driving ranges and shorter charging times in high-end electric vehicles.
The global EV charging network development has enhanced the adoption of electric vehicles and subsequently, the growth of traction inverters. There is a huge investment activity in charging facilities, including infrastructure for fast charging with powerful inverters. The more people get EVs, the more the availability of charging stations increase, which creates a constant demand for their inverters.
EV Traction Inverter Market Trends
The use of wide-bandgap semiconductors such as silicon carbide (SiC) and gallium nitride (GaN) are gaining traction. These materials are vastly more efficient, have higher power density, and better thermal management than silicon-based semiconductors. As EVs need to be driven more efficiently, SiC and GaN have started receiving significant attention in traction inverter manufacturing.
This change is already being embraced by many automakers who want to improve their powertrain with advanced materials from Infineon Technologies and Cree (Wolfspeed). The use of traction inverters integrated with electric motors into one modular unit is a burgeoning practice to improve productivity and minimize the weight of vehicles. Such techniques, called powertrain integration, are quite beneficial as they enable better thermal management, reduce wiring, and save space. Automotive firms are implementing these designs to improve the efficiency of the powertrain and reduce the assembly steps.
There is a rise in the need for compact and lightweight traction inverters which in turn improves the EV range and performance. As a result, manufacturers are trying to innovate designs that makes these traction inverters smaller and lighter but at the same time powerful and efficient. The use of compact inverters optimizes the weight of the vehicle and enhances energy efficiency that leads to better driving distance. This has led to advancements in materials and cooling technologies which makes it possible to design more compact and efficient revolutionary inverters.
EV Traction Inverter Market Analysis
Based on vehicle, the market is segmented into passenger car and commercial vehicle. In 2024, the passenger car segment accounted for over 73% of the EV traction inverter market share and is expected to exceed USD 19.1 billion by 2034, due to enormous volume of global sales for passenger vehicles as compared to commercial ones, the changeover to electric propulsion systems is deepest in the passenger car market because these cars are used by individual buyers who are shifting to electric vehicles for a variety of reasons such as worrying about the environment, government support, and high cost of fuel.
Car manufacturers are trying to design low-priced and high-performance electric-powered passenger cars so that they can comply with the emission regulations and meet the increasing demand for personal environmentally friendly vehicles.
In addition, there is a tendency to use lower powered traction inverters for passenger cars, which are easier and cheaper to mass produce, thus reinforcing their dominance in the market. The expansion of small and medium-sized electric vehicles, fueled by massive spending on charging facilities and new technology, has ensured passenger cars as the largest users of traction inverters within the electric automotive industry.
Based on the output power, the EV traction inverter market is divided into =130 kW and >130 kW. The >130 kW segment held around 57% of the market share in 2024. The growing popularity for electric vehicles (EVs) in the passenger market combined with the electrification of heavy commercial trucks and buses means high-power traction inverters are critical for supplying the required torque, acceleration, and range for power passenger EVs like Tesla, Porsche, and Lucid Motors along with electric buses and trucks.
These automobiles typically work in extreme environments, where the power consumption and performance are too high for anything less than 130 kW inverters. Silicon carbide (SiC) and other wide-bandgap semiconductors have now made high power inverters smaller and more efficient, which makes them easier to use. With the development of >130 kW systems, there is an explosive demand for infrastructure that can handle high voltage charging systems 800V. Systems above 130 kW are on the rise, and for good reason. These systems offer faster charging and boost performance, allowing them to dominate the market.
In 2024, the U.S. EV traction inverter market held 83% revenue share and is expected to exceed USD 4.9 billion by 2034, with the substantial demand for electric vehicles and an established EV manufacturing ecosystem, leading automakers of the world, including Tesla, General Motors, and Ford, are making strides toward the EV revolution and pouring loads of money into the manufacturing of EVs, including advanced traction inverters.
Government policies such as tax breaks and incentives provided under the Inflation Reduction Act (IRA) have also made it easier to purchase EVs. And because the US has charging stations built all over the country, especially on highways, the electrification of vehicles and their components like traction inverters becomes more plausible.
The Fit for 55 package as well as CO2 emission policies have led to an increased production of EV’s by automakers which determines a higher demand for traction inverters. Investment works by the European automobile manufacturers like Volkswagen, BMW, and Mercedes-Benz have dramatically evolved because of the direction of investment towards EV technologies: high power inverters for premium EVs. In addition, Europe’s emphasis on public charger installation to promote EV use as well as EV-friendly policies have accelerated the growth of EVs within the continent. Advanced R&D efforts in this region have also elevated their position in the traction inverter market.
China has the largest intake of EVs in the world, which is stimulated by state aid, policy support and a desire for cheap EVs from consumers. Some of the major Chinese companies in this field, such as BYD, NIO, and Geely, as well as battery and semiconductor manufacturers, have heavily contributed to the growth of EV sales and feasibility of inverter technologies. Similarly, Japan and South Korea, not forgetting Hyundai, DENSO, Toyota, and other corporations, have contributed to powered electronics and sophisticated traction inverter systems. The region is advantaged by a sustainable supply chain of EV components.
EV Traction Inverter Market Share
DENSO Corporation and Hitachi Astemo Ltd collectively held a substantial market share of over 27% in the EV traction inverter industry in 2024, DENSO, one of the major automotive parts manufacturers, has advanced the development of high-efficiency compact traction inverters for passenger and commercial electric vehicles because they have been able to leverage their R&D capabilities and affiliations with automotive manufacturers. Such activities have been facilitated by Denso's leadership in advanced power electronics and their well-established position in the global EV ecosystem.
Similarly, HITACHI ASTEMO has advanced business wise due to their prominence in electrification and motor power electronics integration. They are now producing performance solutions for the growing market for electrified powertrains. As a result, they are now producing high-performance solutions designed to meet the ever-increasing demand for electrified powertrains. Their market penetration capabilities have also been enabled through joint projects with large automotive manufacturers and their adoption of numerous wide bandgap semiconductors technologies, like silicon carbide, which increase the inverter efficiency and performance.
EV Traction Inverter Market Companies
Major players operating in the EV traction inverter industry are:
The global and local competition in EV traction inverters is quite significant, permitting certain companies to have a more nuanced approach towards designing for different segments within electric, hybrid and commercial EVs. Regional players are more active in the market by engaging into acquisitions and selling a myriad of traction inverters that include more compact ones that are suitable for use with different motor types.
In that respect, they are on the right track because they are increasing their focus on incorporating new technologies into their products, like wide-bandgap semiconductors such as SiC and GaN, which allows for more compact designs. This innovation, paired with the integration into modern serve to bolster EV architecture, facilitates a stronger global market position amongst regions where the adoption of EVs is high and government support for electrification is favorable.
Regional suppliers continue to operate by exploiting their nuanced knowledge of local market conditions and providing appropriate cost-effective solutions to meet specific requirements such as the accommodation of locally built EVs and compliance with local regulations. At the same time, the dynamics of the sector are changing due to increased focus on improving inverter efficiency, increasing power density, and addressing thermal management challenges, which is forcing regional companies to either adapt or seek partnerships with global competitors.
The expected increase in the number of mergers and acquisitions and the resulting market activity will significantly increase the level of consolidation, as local firms look to address weak areas and improve their market positions. Such consolidation is meant to improve the dynamics of competition in the EV traction inverter industry and encourage the uptake of new and improved inverter designs worldwide.
EV Traction Inverter Industry News
The EV traction inverter market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) & shipment (Units) from 2021 to 2034, for the following segments:
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Market, By Propulsion
Market, By Output Power
Market, By Technology
Market, By Semiconductor Material
Market, By Vehicle
The above information is provided for the following regions and countries: