Automotive Traction Inverter Market Overview:
As per MRFR analysis, the automotive traction inverter market size was estimated at 27.61 (USD Billion) in 2022. The automotive traction inverter market industry is expected to grow from 31.85(USD Billion) in 2023 to 115.0 (USD Billion) by 2032. The automotive traction inverter market CAGR (growth rate) is expected to be around 15.33% during the forecast period (2024-2032).
Key Automotive Traction Inverter Market Trends Highlighted
The Automotive Traction Inverter Market is driven by the increasing adoption of electric vehicles (EVs) and the need for efficient power conversion in electric propulsion systems. Governments worldwide are implementing stringent emission regulations, incentivizing EV adoption, and investing in charging infrastructure, fuelling market growth.
Opportunities lie in developing compact, lightweight, and cost-effective inverters with advanced power electronics technologies. Trends in recent times include the integration of artificial intelligence (AI) and machine learning (ML) for optimized performance, fault diagnostics, and predictive maintenance. Additionally, the rise of silicon carbide (SiC) and gallium nitride (GaN) semiconductors offers higher efficiency, power density, and reliability, driving market innovation.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Automotive Traction Inverter Market Drivers
Rising Demand for Electric Vehicles
The increasing popularity of electric vehicles is a major driver of the Automotive Traction Inverter Market. As governments around the world implement stricter emission regulations and consumers become more environmentally conscious, the demand for electric vehicles is expected to continue to grow. This, in turn, will drive the demand for automotive traction inverters, as they are a key component of electric vehicles. The traction inverter is responsible for converting the DC power from the battery into AC power for the electric motor.As the number of electric vehicles on the road increases, the demand for automotive traction inverters is also expected to increase.In addition to electric vehicles, automotive traction inverters are also used in hybrid electric vehicles (HEVs) and plug-in hybrid electric vehicles (PHEVs). HEVs and PHEVs combine a gasoline engine with an electric motor to improve fuel efficiency and reduce emissions. The traction inverter in a HEV or PHEV is responsible for controlling the flow of power between the gasoline engine and the electric motor.As the demand for HEVs and PHEVs increases, the demand for automotive traction inverters is also expected to increase.Overall, the rising demand for electric vehicles, HEVs, and PHEVs is a major driver of the Automotive Traction Inverter Market. As the number of these vehicles on the road increases, the demand for automotive traction inverters is also expected to increase.
Increasing Adoption of Advanced Driver Assistance Systems (ADAS)
The increasing adoption of ADAS is another major driver of the Automotive Traction Inverter Market. ADAS are a suite of technologies that use sensors, cameras, and radar to help drivers avoid accidents and improve safety. These systems include features such as lane keeping assist, adaptive cruise control, and automatic emergency braking.ADAS rely on a variety of sensors and actuators to function, including electric motors. Automotive traction inverters are used to control the flow of power to these electric motors.As the number of ADAS features on vehicles increases, the demand for automotive traction inverters is also expected to increase.In addition to ADAS, automotive traction inverters are also used in a variety of other applications, such as power steering, active suspension, and electric braking. As the number of these applications increases, the demand for automotive traction inverters is also expected to increase.
Growing Trend of Vehicle Electrification
The growing trend of vehicle electrification is a major driver of the Automotive Traction Inverter Market. Vehicle electrification refers to the use of electric motors and batteries to power vehicles. This trend is being driven by a number of factors, including rising fuel costs, increasing environmental concerns, and government regulations.Vehicle electrification is expected to have a significant impact on the automotive industry. As more and more vehicles become electrified, the demand for automotive traction inverters is also expected to increase.Automotive traction inverters are a key component of electric vehicles, as they are responsible for converting the DC power from the battery into AC power for the electric motor.The growing trend of vehicle electrification is expected to continue in the coming years. As more and more countries adopt stricter emission regulations and consumers become more environmentally conscious, the demand for electric vehicles is expected to continue to grow.This, in turn, will drive the demand for automotive traction inverters.
Automotive Traction Inverter Market Segment Insights:
Automotive Traction Inverter Market Traction Type Insights
The Automotive Traction Inverter Market is segmented by Traction Type into AC Traction Inverters and DC Traction Inverters. AC Traction Inverters dominate the market and are projected to maintain their dominance throughout the forecast period. The growth of the AC Traction Inverters segment can be attributed to the increasing adoption of electric vehicles (EVs) and hybrid electric vehicles (HEVs). AC Traction Inverters are more efficient than DC Traction Inverters and provide better torque and acceleration. The DC Traction Inverters segment is expected to witness significant growth in the coming years due to the increasing demand for electric buses and trucks.DC Traction Inverters are more suitable for heavy-duty applications as they can handle higher power and torque requirements. In 2023, the Automotive Traction Inverter Market was valued at 31.85 USD Billion. The growth of the market is being driven by the increasing adoption of EVs and HEVs, as well as the government regulations promoting the adoption of electric vehicles. The increasing demand for electric vehicles is a major factor driving the growth of the Automotive Traction Inverter Market. Electric vehicles are more efficient than gasoline-powered vehicles and produce zero emissions, making them more environmentally friendly.Governments around the world are promoting the adoption of electric vehicles through tax incentives and other measures. The Automotive Traction Inverter Market is a highly competitive market with a number of major players. Some of the key players in the market include ABB, Siemens, Mitsubishi Electric, and Danfoss. These companies are investing heavily in research and development to develop new and innovative traction inverters.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Automotive Traction Inverter Market Vehicle Type Insights
The Automotive Traction Inverter Market is segmented by Vehicle Type into Electric Vehicles, Hybrid Electric Vehicles, Plug-in Hybrid Electric Vehicles, and Fuel Cell Vehicles. Electric Vehicles (EVs) are powered exclusively by electric motors and do not have an internal combustion engine. The global EV market is expected to grow significantly in the coming years, driven by factors such as rising fuel prices, increasing environmental concerns, and government incentives. The growth of the EV market is expected to drive demand for automotive traction inverters, as they are essential for controlling the flow of power between the battery and the electric motor.Hybrid Electric Vehicles (HEVs) combine an internal combustion engine with an electric motor and battery. HEVs are more fuel-efficient than conventional gasoline-powered vehicles, and they can also operate in electric-only mode for short distances. The global HEV market is expected to grow steadily in the coming years, as consumers become more interested in fuel-efficient vehicles. The growth of the HEV market is expected to drive demand for automotive traction inverters, as they are used to control the flow of power between the battery and the electric motor.Plug-in Hybrid Electric Vehicles (PHEVs) are similar to HEVs, but they have a larger battery that can be plugged in to an external power source to recharge. PHEVs can operate in electric-only mode for longer distances than HEVs, and they can also be used as conventional gasoline-powered vehicles. The global PHEV market is expected to grow rapidly in the coming years, as consumers become more interested in vehicles that offer both fuel efficiency and electric-only driving. The growth of the PHEV market is expected to drive demand for automotive traction inverters, as they are used to control the flow of power between the battery and the electric motor.Fuel Cell Vehicles (FCVs) are powered by hydrogen fuel cells, which generate electricity through a chemical reaction between hydrogen and oxygen. FCVs are zero-emission vehicles, and they have the potential to replace conventional gasoline-powered vehicles in the future. The global FCV market is still in its early stages of development, but it is expected to grow rapidly in the coming years, as governments and automakers invest in hydrogen fuel cell technology. The growth of the FCV market is expected to drive demand for automotive traction inverters, as they are used to control the flow of power between the fuel cell and the electric motor.
Automotive Traction Inverter Market Application Insights
Automotive Traction Inverter Market segmentation analysis reveals that in 2023, the passenger cars segment held the largest revenue share of around 65%. The growth of this segment can be attributed to the increasing adoption of electric vehicles, government regulations promoting electric mobility, and rising consumer awareness about environmental sustainability. The commercial vehicles segment is anticipated to register a CAGR of 16.5% over the forecast period, owing to the growing demand for electric buses and trucks for public transportation and freight movement.The two-wheelers segment is projected to witness significant growth, driven by the increasing popularity of electric scooters and motorcycles, especially in Asia-Pacific countries.
Automotive Traction Inverter Market Power Rating Insights
The Automotive Traction Inverter Market is segmented by power rating into low power (below 50kW), medium power (50kW-150kW), and high power (above 150kW). The growth of the market is attributed to the increasing demand for electric vehicles. Low power inverters are expected to account for the largest share of the market in 2023, due to their wide use in small electric vehicles such as golf carts and neighborhood electric vehicles. Medium power inverters are expected to witness the highest growth rate during the forecast period, due to their increasing adoption in electric buses and trucks.High power inverters are expected to account for a significant share of the market in 2023, due to their use in high-performance electric vehicles.
Automotive Traction Inverter Market Cooling Type Insights
According to the Automotive Traction Inverter Market report, the Cooling Type segment is segmented into Air-Cooled and Liquid-Cooled. Air-Cooled traction inverters use air to dissipate heat, while liquid-cooled traction inverters use a coolant to dissipate heat. The liquid-cooled segment is expected to grow at a higher CAGR during the forecast period due to its higher efficiency and ability to handle higher power densities. The Air-Cooled segment is expected to account for a larger revenue share in 2024, but its share is expected to decline over the forecast period due to the increasing adoption of liquid-cooled traction inverters.The Automotive Traction Inverter Market revenue for the Cooling Type segment is expected to reach USD 5.2 billion in 2024 and is projected to grow to USD 11.5 billion by 2032, exhibiting a CAGR of 10.1% during the forecast period.
Automotive Traction Inverter Market Regional Insights
The Automotive Traction Inverter Market is segmented regionally into North America, Europe, APAC, South America, and MEA. Among these regions, APAC is expected to hold the largest market share in 2023, followed by Europe and North America. The growth in the APAC region is attributed to the increasing production of electric vehicles in countries such as China, Japan, and South Korea. Europe is another major market for automotive traction inverters due to the presence of a large automotive industry and government initiatives to promote the adoption of electric vehicles.North America is also a significant market for automotive traction inverters, with the US being the largest market in the region. The Automotive Traction Inverter Market is expected to witness significant growth in the coming years, driven by the increasing demand for electric vehicles.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Automotive Traction Inverter Market Key Players and Competitive Insights:
Major players in the Automotive Traction Inverter Market are continuously evolving and developing innovative strategies to gain a competitive edge. Leading Automotive Traction Inverter Market players are focusing on expanding their product portfolio, improving efficiency, and reducing costs to meet the growing demands of the market.
The Automotive Traction Inverter Market development is being driven by factors such as increasing adoption of electric vehicles, rising demand for fuel-efficient vehicles, and government regulations promoting the adoption of alternative fuel vehicles. The Automotive Traction Inverter Market Competitive Landscape is expected to remain highly competitive in the coming years, with key players competing on factors such as product innovation, pricing strategies, and customer service.
A leading Automotive Traction Inverter Market player, Valeo, is a global supplier of automotive components and systems. The company is a leader in the development and manufacturing of automotive traction inverters and offers a range of products for various applications.
Valeo's traction inverters are known for their high efficiency, reliability, and durability. The company has a strong global presence, with manufacturing facilities and sales offices in over 30 countries. Valeo is committed to innovation, and its R&D team is constantly working to develop new products and technologies to meet the evolving needs of the automotive industry.
A competitor in the Automotive Traction Inverter Market, BorgWarner, is a global leader in the design, manufacture, and supply of automotive powertrain systems and components. The company's product portfolio includes traction inverters, electric motors, and other powertrain components.
BorgWarner's traction inverters are used in a variety of applications, including passenger cars, commercial vehicles, and hybrid electric vehicles. The company has a strong global presence, with manufacturing facilities and sales offices in over 20 countries. BorgWarner is committed to innovation, and its R&D team is constantly working to develop new products and technologies to meet the evolving needs of the automotive industry.
Key Companies in the Automotive Traction Inverter Market Include:
- Toyota Industries
- Mitsubishi Electric
- Hitachi Automotive Systems
- Hyundai Mobis
- Delphi Technologies
- Toyota Boshoku
- Calsonic Kansei
- Denso
- Infineon Technologies
- Continental
- ZF
- BorgWarner
- Visteon
- Nidec
- LG Electronics
Automotive Traction Inverter Market Developments
The automotive traction inverter market is projected to reach USD 115.0 billion by 2032, exhibiting a CAGR of 15.33% during the forecast period (2024-2032). Rising demand for electric vehicles, increasing government regulations to reduce carbon emissions, and advancements in power electronics technology are driving market growth. Asia-Pacific is expected to dominate the market, owing to the presence of major automotive manufacturers and increasing adoption of electric vehicles in the region. Key industry participants include ABB, Denso, Mitsubishi Electric, and Siemens. Recent developments include the introduction of silicon carbide (SiC) inverters, which offer higher efficiency and power density, and the integration of artificial intelligence (AI) to optimize inverter performance.
Automotive Traction Inverter Market Segmentation Insights
- Automotive Traction Inverter Market Traction Type Outlook
- AC Traction Inverters
- DC Traction Inverters
- Automotive Traction Inverter Market Vehicle Type Outlook
- Electric Vehicles
- Hybrid Electric Vehicles
- Plug-in Hybrid Electric Vehicles
- Fuel Cell Vehicles
- Automotive Traction Inverter Market Application Outlook
- Passenger Cars
- Commercial Vehicles
- Two-Wheelers
- Automotive Traction Inverter Market Power Rating Outlook
- Low Power (below 50kW)
- Medium Power (50kW-150kW)
- High Power (above 150kW)
- Automotive Traction Inverter Market Cooling Type Outlook
- Air-Cooled
- Liquid-Cooled
- Automotive Traction Inverter Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
27.61(USD Billion) |
| Market Size 2023 |
31.85(USD Billion) |
| Market Size 2032 |
115.0(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
15.33% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Toyota Industries, Mitsubishi Electric, Hitachi Automotive Systems, Hyundai Mobis, Delphi Technologies, Toyota Boshoku, Calsonic Kansei, Denso, Infineon Technologies, Continental, ZF, BorgWarner, Visteon, Nidec, LG Electronics |
| Segments Covered |
Traction Type, Vehicle Type, Application, Power Rating, Cooling Type, Regional |
| Key Market Opportunities |
Increasing demand for electric vehicles Government incentives and regulations promoting EV adoption Rising consumer awareness about environmental impact Technological advancements and product innovation Expansion of charging infrastructure |
| Key Market Dynamics |
Increasing EV adoption Government regulations Technological advancements Growing demand for highperformance vehicles Infrastructure development |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Automotive Traction Inverter Market is valued at USD 31.85 billion in 2023.
The Automotive Traction Inverter Market is projected to grow at a CAGR of 15.33% from 2023 to 2032.
Asia-Pacific is expected to hold the largest market share in the Automotive Traction Inverter Market in 2032.
Automotive Traction Inverters are primarily used in electric and hybrid vehicles.
Major competitors in the Automotive Traction Inverter Market include ABB, Denso, Hitachi, and Mitsubishi Electric.
The growing adoption of electric and hybrid vehicles is a major trend driving the growth of the Automotive Traction Inverter Market.
Key challenges faced by the Automotive Traction Inverter Market include the high cost of inverters and the need for improved efficiency.
Key growth opportunities in the Automotive Traction Inverter Market include the development of new inverter technologies and the expansion of the electric and hybrid vehicle market.
Government regulations promoting the adoption of electric and hybrid vehicles are driving the growth of the Automotive Traction Inverter Market.
Key factors that will shape the future of the Automotive Traction Inverter Market include the development of new inverter technologies, the expansion of the electric and hybrid vehicle market, and government regulations.
