Electric Vehicle Power Inverter Market - Forecasts from 2024 to 2029

Electric Vehicle Power Inverter Market - Forecasts from 2024 to 2029

The electric vehicle power inverter market is estimated at US$9.406 billion in 2024 and is anticipated to reach US$22.786 billion by 2029 at a CAGR of 19.36%.

The global electric vehicle (EV) power inverter market is estimated to grow significantly, as with the increase in the global demand for electric automobiles. Electric car motors use DC electricity, which is converted to an alternating current using a vehicle power inverter. Power inverters are used more frequently in electric vehicles. The relevant machinery and sensors operating on AC are subsequently driven by motors using the converted current. Electric vehicles also allow for the use of plug-in outlets and other traditional 120-volt appliances. The global electric vehicle power inverter market share is anticipated to expand due to the rising demand for electric automobiles, proactive government efforts to develop electric vehicles, and a surge in the popularity of emission & fuel-efficient vehicles.

Under the propulsion type segment of the global electric vehicle power inverter market, the hybrid vehicle category is estimated to attain the maximum market share. In contrast, the passenger vehicles category under the vehicle type segment will grow significantly. The traction inverter category of the inverter type segment is forecasted to grow faster than the soft-switching inverter category. The OEM category, under the distribution channel segment of the electric vehicle power inverter market, is estimated to witness a major increase with the increase in global production of EVs.

The increase in the global EV demand is estimated to boost the global electric vehicle power inverter market. With the increase in the global demand for electric vehicles, the production of EVs will grow, pushing the demand for power inverters in the market. Similarly, the increasing investments and government initiatives, subsidies, and policies for developing the EV landscape, like production, technological, and infrastructural development, are also estimated to drive the global electric vehicle power inverter market forward.

The slow growth of EV infrastructure development, like public charging infrastructure, is forecasted to slow the growth of the EV power inverter market globally. With limited charging infrastructure worldwide, the demand for EVs is estimated to reduce, reducing the demand for inverters in EV production.

Electric Vehicle Power Inverter Market Drivers:

Rising demand for electric vehicles across the globe.

Electric vehicles have several benefits, including lower running costs than traditional petrol engines, the implementation of strict government rules to reduce environmental pollution, and a reduction in exhaust emissions. These have a large positive impact on demand for the electric vehicle power inverter market. For instance, sales of electric vehicles have surged because of expansion in China, the United States, and Europe.

International Energy Agency, in its global EV outlook report, stated that in the third quarter of 2023, about 2.2 million EVs were sold in China, whereas about 0.8 million in Europe and 0.4 million in the USA were sold simultaneously. The total EV sales in the fourth quarter of 2023 were about 2.7 million units in China, about 0.9 million in Europe, and 0.4 million in the USA. The annual sales of EVs in China were recorded at about 6 million units in 2022, whereas about 2.7 million units of EVs were sold in Europe and 1 million in the USA in the same year. The total EV registrations in 2023 in China were recorded at about 8.1 million, about 3.2 million, and 1.4 million in Europe and the USA, respectively. With the increase in the global demand for EVs, the total demand for electric vehicle power inverters will grow significantly.
Increasing governmental investments in the EV sector.

The increasing governmental investments across the EV and green automobile landscape are estimated to boost the global electric vehicle power inverter market. The electric vehicle is among the fastest-growing automotive sectors worldwide. For instance, the Office of Manufacturing and Supply Chains introduced its Domestic Manufacturing Conversion Grants in January 2024, which are estimated to boost the global demand for EVs in the nation. Similarly, the US Department of Energy also introduced its Investing in America Agenda, aiming to boost EV manufacturing and assembly expansion.

Electric Vehicle Power Inverter Market Restraint:

Insufficient electric vehicle infrastructure hinders the market.

A reliable infrastructure for charging EVs is necessary to adopt them. Despite their economic and environmental benefits, electric vehicles haven't yet entered the mainstream. A shortage of charging stations constrains the electric car industry. For instance, the adoption rate of EVs in the United States witnessed a massive increase, whereas the nation's charging infrastructure is growing slowly. The US Department of Energy stated that in 2022, the nation had about 151,273 EV charging ports, which increased to about 184,098 in 2023. The department further stated that the nation's EV charging port landscape witnessed an increase of about 3.2% in the first quarter of 2023 and about 4% in the second quarter of 2023.

Similarly, the Ministry of Heavy Industries of the Indian Government, in its press release of February 2024, stated that the nation has over 12,146 operational public EV charging stations, which is significantly lower than the total number of electric vehicles in the nation.

Electric Vehicle Power Inverter Market Geographical Outlook
Asia Pacific is anticipated to hold a significant share of the Electric Vehicle Power Inverter Market.

Asia-Pacific is leading the electric vehicle power inverter market. In China, the market for EVs is expanding quickly to reduce emissions through international agreements and foster e-mobility in the face of rising urbanization. The Indian government has launched several measures to encourage the production and acceptance of electric vehicles in India. Automobile manufacturers are investing in creating new technologies and expanding their production capabilities to meet the demand brought on by the rising sales of electric vehicles in India. For example, Toyota Group announced goals to invest INR 48 billion (USD 624 million) in India in May 2022 to produce parts for electric vehicles. Maruti Suzuki's parent business, Suzuki Motor, declared in March 2022 that it would invest INR 10,440 crore in India to build a new electric car and battery facility.

The Electric Vehicle Power Inverter Market Products Offered by Key Companies:

Toyota Industries Corporation is a Japanese corporation that offers products and services to multiple sectors, including materials handling equipment, automobiles, and textile machinery. In the EV power inverter market, the company offers a 2400W DC-AC inverter and a 1500W DC-AC inverter.
Vitesco Technologies is a global sustainable mobility provider that offers solutions for sectors like electrification, combustion, beyond powertrain and others. The company's product portfolio includes High-Voltage Axle Drives, High-Voltage Battery Management Systems, High-Voltage Battery Junction Boxes, and High-Voltage DC/DC Converters, among others. The company also offers high-voltage inverters for the EV Power Inverter market.

The Electric Vehicle Power Inverter Market Key Developments:

In May 2024, ABB Motion, a global leader in motors and drives, launched its new energy-efficient motor and inverter package, specially designed for electric buses. The inverter features a 3-level design, which enables a longer lifespan and increases efficiency gains.
In January 2024, Stellantis, one of the biggest automakers worldwide, launched its new BEV-native STLA Large platform, which offers an 800km range. The STLA Large is designed and engineered for native BEVs and incorporates a motor, power inverter, and gear reduction system.

The Electric Vehicle Power Inverter market is segmented and analyzed as follows:

By Propulsion Type

Hybrid Vehicle
Plug-in Hybrid Vehicle
Battery Electric Vehicle

By Vehicle Type

Passenger Vehicles
Commercial Vehicles

By Inverter Type

Traction Inverter
Soft Switching Inverter

By Distribution Channel

OEM
Aftermarket

By Geography

North America
United States
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
United Kingdom
Germany
France
Spain
Others
Middle East and Africa
Saudi Arabia
UAE
Israel
Others
Asia Pacific
China
Japan
India
South Korea
Indonesia
Thailand
Others