Traction Inverter Market Analysis and Forecast by Size, Share, Growth, Trends 2031

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

Traction Inverter Market

• 
  CAGR (2023 - 2031)

  17.5%
• Market Size 2023
  US$ 18.13 Billion
• Market Size 2031
  US$ 65.80 Billion

Market Dynamics

GROWTH DRIVERS

• Rising Demand for Electric and Hybrid Vehicles to Promote the Market Growth

FUTURE TRENDS

• Rising Government Initiatives and Investments towards the Adoption of EVs is Expected to Create Ample Opportunity for Market Growth

OPPORTUNITIES

• The increased adoption of new interconnected technologies such as chip sintering and new materials such as new black plastic housing with higher temperature rating driving the market trend

Key Players

• 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

Regional Overview

• North America
• Europe
• Asia-Pacific
• South and Central America
• Middle East and Africa

Market Segmentation

Propulsion

• BEV
• HEV
• PHEV

Voltage

• Up to 200V
• 201 to 900V
• 901v and above

Technology

• IGBT
• MOSFET

Vehicle Type

• Passenger Cars
• Commercial Vehicles

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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

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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