The traction inverter market size is projected to reach US$ 65.80 billion by 2031 from US$ 18.13 billion in 2023. The market is expected to register a CAGR of 17.5% during 2023–2031. The increased adoption of new interconnected technologies, such as chip sintering, and new materials, such as new black plastic housing with higher temperature ratings, are driving the market trend. The increasing adoption and sale of electric vehicles are major trends that are expected to likely drive market growth.
The major stakeholders in the traction inverter market ecosystem include raw material suppliers/component suppliers, traction inverter manufacturers, and end-users. The raw material supplier is a crucial stakeholder in the ecosystem of the Traction inverter market. The major raw materials are semiconductors, IGBTs, MOSFETs, gate drivers, power supply ICs, and others. The major raw material suppliers include Arrow Electronics, Power Integrations, STMicroelectronics, Infineon Technologies AG, and Danfoss, among other players. For instance, in July 2022, Danfoss supplied completely electric drivetrains to Shin Bus Group, the national bus operator of Taiwan, helping them to achieve their net-zero targets by building their electric buses. In March 2022, Infineon Technologies launched EDT2 IGBTs in a TO247PLUS package, devices that are optimized for automotive discrete traction inverters. The devices have the potential to improve the performance of inverter systems. Thus, such growing initiatives from the raw material suppliers are strengthening the production of broaching machines, which is propelling the market growth.
The traction inverter is located between the high-voltage system battery and the electric motor in the high-voltage electrical system of a car, truck, or bus. The motor is driven by converting the DC power from the HV system into three AC output phases. A vital part of an EV, the inverter and motor work together to determine the dynamics, performance, and driving experience. The effectiveness of the motor and traction under all driving conditions, including acceleration, steady state, and energy recovery into the battery through regenerative braking, directly affects a vehicle’s range. Power integrations provide gate drivers and power supply ICs for the traction inverter that are automotive-qualified, which increases efficiency while reducing cost and space requirements and ensuring functional safety. Packages meet the most recent criteria for vehicles upgrading to 800 V designs with reinforced isolation and longer creepage distance.
One of the main causes fostering an optimistic view of the industry is the notable increase in the demand for electric and hybrid electric vehicles worldwide. Due to the rise in demand for higher levels of integration and increased power density across electric vehicles, automotive manufacturers and suppliers are increasing their production. Accordingly, the market is expected to increase due to the rising demand for lithium-ion batteries. The majority of plug-in hybrids and electric vehicles make use of lithium-ion batteries. The production of automotive lithium-ion batteries has increased by 33% in the year 2020. Additionally, several technical developments, like the WBG devices, primarily SiC and GaN, are boosting market expansion.
The Si-IGBT is preferably used across the automotive industry owing to its affordability, efficiency, and short circuit capacity. In addition, the sincere measures taken by the government and market players show lucrative opportunities for the growth in demand for tractive inverters with regard to the rising production of electric cars. The market is expected to develop due to additional factors, such as rising awareness among consumers, OEMs, and numerous suppliers brought with government stringent laws will further encourage the growth of the market.
In North America, initiatives by the government, federal policies, and programs for various industries are expected to drive electric vehicles, resulting in higher growth of the traction inverters market. The US, Canada, and Mexico signed the trade deal NAFTA. The trade deal helped automakers with the increased number of manufacturing facilities and enhanced supply chain of auto parts. The Saudi Vision 2030 is an initiative that aims to diversify the Saudi economy away from oil and is encouraging the adoption of electric vehicles (EVs) to increase energy efficiency in its transportation sector. Dubai is promoting its long-term goal of electrification. Smart city projects and the rise in foreign direct investments are boosting the adoption of advanced technologies in the MEA region.
Key segments that contributed to the derivation of the traction inverter market analysis are propulsion, voltage, technology, vehicle type, and geography.
The geographic scope of the traction inverter market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America.
Asia Pacific is considered to be the fastest growing economic region, with China as the largest market for high-performance electric vehicles, followed by Japan, giving an opportunity for the development of the electric bus market. The establishment of new production facilities for electric buses in Vietnam and The Philippines is also supporting the market growth in the region. Additionally, The macroeconomic outlook for India is encouraging, and initiatives like the OROP law and the seventh pay commission will increase spending.
The regional trends and factors influencing the Traction Inverter Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Traction Inverter Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 18.13 Billion |
| Market Size by 2031 | US$ 65.80 Billion |
| Global CAGR (2023 - 2031) | 17.5% |
| Historical Data | 2021-2022 |
| Forecast period | 2023-2031 |
| Segments Covered |
By Propulsion
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Traction Inverter Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Traction Inverter Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The traction inverter market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the traction inverter market are listed below:
The “Traction Inverter Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
Asia Pacific is expected to dominate the traction inverter market in 2023.
Rising Demand for electric and hybrid vehicles to promote market growth
The increased adoption of new interconnected technologies, such as chip sintering, and new materials, such as new black plastic housing with higher temperature ratings, drive the market trend.
Infineon Technologies AG, Continental AG, Delphi Technologies Plc, Hitachi, Ltd., Mitsubishi Electric Corporation, Siemens AG, Toshiba Corporation, Voith GmbH & Co. KGaA, Curtiss-Wright Industrial Group, Dana Incorporated and among others.
The traction inverter market size is projected to reach US$ 65.80 billion by 2031 from US$ 18.13 billion in 2023.
The market is expected to register a CAGR of 17.5% during 2023–2031.