Electric Vehicle Power Inverter

Electric Vehicle Power Inverter

The global EV power inverter market is experiencing rapid growth, driven by the increasing adoption of electric vehicles worldwide. One significant opportunity lies in the push for sustainable transportation solutions, as governments and environmental initiatives encourage the transition towards cleaner energy sources. Additionally, advancements in power electronics and semiconductor technologies, particularly SiC & GaN offer improved efficiency and performance, presenting lucrative prospects for power inverter manufacturers.

The electric vehicle power inverter market is expected to grow at a steady rate of around 13.7% owing to the government's commitment to sustainable transportation and the promotion of electric vehicles through financial incentives and supportive policies that have bolstered the demand for EVs. As a result, the demand for efficient and high-performance power inverters to support the growing global EV fleet has surged. Furthermore, several major automotive manufacturers and suppliers, driving innovation and research in power inverter technology which will drive the growth of this market. Also, growing EV sales in some major countries is one of the major factors for the growth of this industry. For instance, in March 2022 - Carmaker Stellantis announced an investment of 140 million USD in its Eisenach assembly plant in Germany to produce a new battery electric vehicle (BEV).

• Based on propulsion, the market is segmented into BEV, PHEV, and HEV. Among these, BEV has a high market share in 2021 and will dominate during the forecast period. Because of BEV category is holding more than 60% of sales in electric vehicles and further growing investments or high demand from consumers boosts its growth in the global market. For instance, in March 2022 - Carmaker Stellantis announced an investment of 140 million USD in its Eisenach assembly plant in Germany to produce a new battery electric vehicle (BEV).
• Based on the inverter type, the market is segmented into traction inverter and soft switching inverter. Among them, the traction inverter category dominated the market in 2022. This is mainly due to its critical role in the electric vehicle's drivetrain. As electric vehicles gain popularity worldwide, the demand for efficient and high-performance traction inverters has surged. Furthermore, automotive manufacturers prioritize investing in cutting-edge traction inverters to optimize electric vehicle performance, increase driving range, and enhance energy efficiency which will drive the growth of the market.
• Based on the vehicle type, the market is segmented into passenger vehicle and commercial vehicle. Among them, the passenger vehicle category dominated the market in 2022. This is due to several key factors such as electric cars and SUVs, which represent the largest and fastest-growing segment of the electric vehicle market. As governments worldwide incentivize and promote the adoption of electric passenger vehicles to reduce greenhouse gas emissions and combat climate change, the demand for power inverters to support these vehicles surges.
• Based on the distribution channel, the market is segmented into OEM and aftermarket. Among them, the OEM category dominated the market in 2022 owing to their direct integration of power inverters into electric vehicles during the manufacturing process. As original equipment manufacturers, they have established relationships with power inverter suppliers and hold significant purchasing power, enabling them to negotiate favorable deals and secure a steady supply of inverters. Since power inverters are essential components in electric vehicles, OEMs act as the primary purchasers of these inverters from manufacturers, driving most of the sales volume.
• For a better understanding of the market adoption of the electric vehicle power inverter industry, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, Rest of North America), Europe (Germany, U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. APAC is dominating the EV power inverter market during the forecast period. Countries like China, Japan, and South Korea are at the forefront of electric vehicle adoption, with supportive government policies, generous incentives, and massive investments in research and development. This region's vast automotive manufacturing base and the presence of major EV manufacturers create a substantial demand for power inverters. For instance, in China, the government has set a goal for new energy vehicles to account for 20% of all new car sales by 2025. Also, China’s EV production amounted to 3.5 million units in 2021, an increase of 1.6 times year-over-year. Furthermore, the growing adoption of EV batteries in the Asia Pacific is the increasing availability of affordable EV models. In recent years, many Asian automakers, such as Hyundai and Kia, have released affordable EV models with longer ranges and faster charging times, making them more attractive to consumers.
• Some of the major players operating in the market include DENSO CORPORATION; BYD Company Ltd.; Hitachi Astemo Americas, Inc.; Infineon Technologies AG; Marelli Holdings Co., Ltd.; MEIDENSHA CORPORATION; TOYOTA MOTOR CORPORATION; Mitsubishi Electric Corporation; Siemens; Valeo.