Electric Vehicle Power Inverter Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Electric Vehicle Power Inverter Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The global electric vehicle power inverter market was valued at USD 2,990.76 million in 2020, and it is expected to reach USD 11,521.72 million by 2026, growing at a CAGR of 22.66% over the forecast period.

Despite the global decline in sales of vehicles amid the COVID-19 pandemic in 2020, the demand for electric vehicles witnessed a considerable increase, which in turn drove the market in focus.

Key Highlights

• Power inverter is one of the key components in an electric vehicle which ideally converts battery DC power into AC power for electric motors. Considering the growing concern among the automakers to optimize energy consumption in vehicles, the inverter manufacturers have improved inverter capabilities to handle energy, vice versa, from both the sources (i.e. battery and motor).
• With growing stringent emission standards across the globe, automakers are gradually shifting their production from conventional engine vehicles to hybrid and electric vehicles. In addition, governments have initiated incentives, such as cut-down in vehicle tax, bonus payments, and premium, for buyers of electric vehicles in the respective countries to support the electric vehicles sales growth. Also, the increasing charging station facilities in the regions, especially in Europe, North America, and Asia-Pacific, and particularly in Japan and China, have further supported the growing electric vehicle sales.
• Vehicle inverter manufacturers are consistently working to improve their products, in terms of efficiency and size. The trend of combining an inverter with a motor or converter has been significantly gaining attention among automakers. For instance, a motor with an integrated inverter or single power module, which includes an inverter and DC-DC converter functionalities, has resulted in improved efficiency with reduced space and weight occupancy in the vehicle.

Key Market TrendsGrowing Sales of Electric Vehicles

Electric vehicles have become an integral part of the automotive industry, and they represent a pathway toward achieving energy efficiency, along with reduced emission of pollutants and other greenhouse gases. The increasing environmental concerns, coupled with favorable government initiatives, are some of the major factors driving the market growth.

Moreover, the high cost associated with batteries has necessitated the improvement of inverters and other power electronics, along with improving the performance of vehicles. For instance,

• According to the International Energy Agency, approximately 1.8 million electric vehicles were registered in the United States by 2020, more than three times as many as in 2016. In 2020, the electric vehicle sales were approximately 2.4% of the total vehicle sales, an increase from about 2% in 2019. In 2020, 295,000 new electric cars were registered, of which about 78% were BEVs, down from 327,000 in 2019.
• In 2020, many European countries witnessed double-digit growth in EV sales, whereas the European region captured around 43% of the global EV sales in 2020 as compared to 26% in 2019. The overall plug-in vehicle sales reached about 3.24 million units compared to 2.26 million in 2019. This spike in the s is the result of an increase in regulatory norms by various organizations and governments, to control emission levels and to propagate zero-emissions vehicles.

Though change has not resulted in a slump of IC engine vehicle sales, but it rather created a promising market for electric vehicles in the present as well as for the future. The above trend has propelled some of the automakers to increase their expenditure on R&D in electric vehicles and associated components, like power inverter, while others have started focusing on launching new products to capture the market share, eventually pushing the demand in the market.

Asia-Pacific is leading the Electric Vehicle Power Inverter Market

The Asia-Pacific is leading the electric vehicle power inverter market followed by Europe and North America respectively. The sale of electric vehicles in China is growing at a rapid pace. The pandemic affected the global economy very badly, but despite the pandemic, the sales of electric cars in China accounted for 931 thousand units sold in 2020, with yearly growth of 11.64% over 2019. However, the government of China wants to double the speed of electric vehicle production and sales in the country. The government has announced that they will sell 10% electric vehicle of the total conventional passenger car in 2019, which will be increased to 12% by 2020. These commitments of government and growing interest of people in electric vehicles are attracting foreign vehicle manufacturers to open a production plant in China, which is boosting the power inverter market in the country.

Japan is one of the most renowned automobile industries, with strong automobile manufacturers serving Japanese products worldwide. In 2020, the Japanese government proposed a ‘carbon neutral’ goal of achieving zero carbon emissions by 2050. Several partnerships and ventures are expected to boost the sales of electric vehicles and their components in Japan. For instance,

• In January 2020, Honda Motor Co. and Isuzu Motors Ltd announced an agreement to conduct joint research to produce fuel cell-powered heavy-duty trucks and eco-friendly vehicles.
• In December 2020, BYD delivered pure electric buses to Huis Ten Bosch Theme Park in Nagasaki, Japan. This was the first batch of pure electric buses to arrive in Nagasaki. Additionally, following BYD's recent delivery of a J6 electric bus to Ueno Zoo in Tokyo, the brand has once again established a successful partnership with a large Japanese park in the field of green transport solutions.

The demand for power inverters is likely to grow simultaneously with the growing trend of hybrid and electric vehicle sales around the world during the forecast period.

Competitive Landscape

The global electric vehicle power inverter market is dominated by a few players such as Continental AG, Robert Bosch GmbH, DENSO Corporation, and Mitsubishi Electric Corporation among others. The companies are expanding their business by opening new production plants and by making joint ventures so that they can have an edge over their competitors. For instance,

• In May 2021, Robert Bosch, in association with Porsche and Fraunhofer Institute for Reliability and Micro integration (Fraunhofer IZM) in Berlin, announced a new project aimed at increasing the range of electric vehicles (EVs) by enhancing the performance of power inverters in vehicles.
• Mitsubishi Electric Corporation announced that it has completed the construction of its new eight plant building at Himeji Works, Hirohata plant, back in Aug 2019. The company invested around USD 63.6 million for the new plant that boasts of the production of motors, generators, as well as inverters for hybrid and electric vehicles.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Vitesco Technologies
Robert Bosch GmbH
DENSO Corporation
Toyota Industries Corporation
Hitachi Astemo Ltd
Meidensha Corporation
Aptiv PLC (Borgwarner Inc.)
Mitsubishi Electric Corporation
Marelli Corporation
Valeo Group
Lear Corporation

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