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.
Traction Inverter Market Analysis
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.
Traction Inverter Market Overview
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.
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Traction Inverter Market: Strategic Insights
Market Size Value in US$ 13,128.48 Million in 2021 Market Size Value by US$ 39,140.79 Million till 2028 Growth rate CAGR of 17.2% from 2022 to 2028 Forecast Period 2022-2028 Base Year 2022
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Traction Inverter Market: Strategic Insights
| Market Size Value in | US$ 13,128.48 Million in 2021 |
| Market Size Value by | US$ 39,140.79 Million till 2028 |
| Growth rate | CAGR of 17.2% from 2022 to 2028 |
| Forecast Period | 2022-2028 |
| Base Year | 2022 |
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Traction Inverter Market Drivers and Opportunities
Rising Demand for Electric and Hybrid Vehicles to Promote the Market Growth
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.
Rising Government Initiatives and Investments toward the Adoption of EVs are Expected to Create Ample Opportunities for Market Growth
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.
Traction Inverter Market Report Segmentation Analysis
Key segments that contributed to the derivation of the traction inverter market analysis are propulsion, voltage, technology, vehicle type, and geography.
- Based on propulsion, the market is divided into BEV, HEV, PHEV, and Others. Among these, BEV has the largest share in 2023, owing to increased sales of electric vehicles. According to the International Energy Agency, electric vehicle sales reached 14 million in 2023 and are projected to reach 17 million in 2024. Such growth in electric vehicle sales has created a massive demand for the traction inverter market during the forecast period.
- Depending upon the voltage, the market is divided into Up to 200V, 201 to 900V, and Above 901 V. Among these, 201 to 900 V has the largest share in 2023. This is owing to the increasing demand for commercial vehicles.
- Based on technology, the market is divided into IGBT, MOSFET, and others. Among these, MOSFET had the largest share in 2023. This is owing to high reliability and adoption among commercial vehicles.
- Based on vehicle type, the market is divided into passenger cars, commercial vehicles, and others. Among these, commercial vehicles have the largest share in 2023, owing to increased demand for the increased commercial vehicle sales across the globe.
Traction Inverter Market Share Analysis by 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.
Traction Inverter Market Report Scope
Traction Inverter Market News and Recent Developments
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:
- LEM, a leading global company in electrical measurement for industrial and automotive applications, has launched the HAH3DR S07/SP42, a new compact current sensor designed for 800V three-phase power modules. Developers of automotive traction inverters are increasingly using three-phase power modules such as the popular and widely proven Hybridpack Drive from Infineon. These modules are now adopting the more efficient SiC MOSFET technology, allowing vehicles to use 800V battery systems that offer faster charging and longer driving range. (Source: News Letter, November 2023)
- Infineon Technologies AG launched a new automotive power module, HybridPACK Drive G2, for traction inverters in electric vehicles. It builds on the well-established HybridPACK Drive G1 concept of an integrated B6 package, offering scalability within the same footprint and extending it to higher power and ease of use. The HybridPACK Drive G2 will be available with different current ratings, voltage levels (750V and 1200V), and Infineon’s next-generation chip technologies EDT3 (Si IGBT) and CoolSiC G2 MOSFET. (Source: Company Website News, April 2023)
Traction Inverter Market Report Coverage and Deliverables
The “Traction Inverter Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
- Traction inverter market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Traction inverter market trends as well as market dynamics such as drivers, restraints, and key opportunities.
- Detailed PEST and SWOT analysis
- Traction inverter market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the traction inverter market
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Propulsion, Voltage, Technology, Vehicle, and Geography
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States
Frequently Asked Questions
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.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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