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    Automotive Traction Inverter Market

    ID: MRFR/AM/28071-HCR
    128 Pages
    Aarti Dhapte
    September 2025

    Automotive Traction Inverter Market Research Report By Traction Type (AC Traction Inverters, DC Traction Inverters), By Vehicle Type (Electric Vehicles, Hybrid Electric Vehicles, Plug-in Hybrid Electric Vehicles, Fuel Cell Vehicles), By Application (Passenger Cars, Commercial Vehicles, Two-Wheelers), By Power Rating (Low Power (below 50kW), Medium Power (50kW-150kW), High Power (above 150kW)), By Cooling Type (Air-Cooled, Liquid-Cooled) and By Region (North America, Europe, South America, Asia Pacific, Middle East and Africa)- Forecast to 2034

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    Automotive Traction Inverter Market Research Report — Global Forecast till 2034 Infographic
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    Summary Table of Contents Segmentation Infographic

    Automotive Traction Inverter Market Summary

    The Global Automotive Traction Inverter Market is projected to grow significantly from 42.4 USD Billion in 2024 to 203.4 USD Billion by 2035.

    Key Market Trends & Highlights

    Automotive Traction Inverter Key Trends and Highlights

    • The market is expected to experience a compound annual growth rate (CAGR) of 15.33% from 2025 to 2035.
    • By 2035, the market valuation is anticipated to reach 203.4 USD Billion, indicating robust growth potential.
    • In 2024, the market is valued at 42.4 USD Billion, reflecting the increasing demand for electric vehicles.
    • Growing adoption of electric vehicles due to environmental regulations is a major market driver.

    Market Size & Forecast

    2024 Market Size 42.4 (USD Billion)
    2035 Market Size 203.4 (USD Billion)
    CAGR (2025-2035) 15.33%

    Major Players

    ABB, Siemens, Mitsubishi Electric, Danfoss, Valeo, BorgWarner, Hitachi Automotive Systems, Hyundai Mobis, Delphi Technologies, Toyota Industries, Infineon Technologies, Continental, ZFB, Visteon, Nidec, LG Electronics

    Automotive Traction Inverter Market Trends

    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.

    The ongoing transition towards electrification in the automotive sector is likely to drive advancements in traction inverter technology, enhancing vehicle efficiency and performance.

    U.S. Department of Energy

    Automotive Traction Inverter Market Drivers

    Rising Demand for Electric Vehicles

    The increasing global demand for electric vehicles (EVs) is a primary driver for the Global Automotive Traction Inverter Market Industry. As consumers become more environmentally conscious, the shift towards EVs is accelerating. In 2024, the market is projected to reach 42.4 USD Billion, reflecting a robust interest in sustainable transportation solutions. Governments worldwide are implementing stricter emissions regulations, further propelling the adoption of EVs. This trend indicates a significant opportunity for traction inverters, which are essential components in electric drivetrains, enhancing efficiency and performance.

    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.

    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.

    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.

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    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.

    Automotive Traction Inverter Market 3 

    Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review 

    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 market include

    Industry Developments

    • Q2 2024: Infineon launches new generation of automotive traction inverters for EVs Infineon Technologies announced the launch of its latest generation of automotive traction inverters, designed to improve efficiency and range in electric vehicles. The new inverters utilize advanced silicon carbide technology to enable higher power density and thermal management.
    • Q2 2024: Tesla opens new inverter manufacturing facility in Texas Tesla inaugurated a new manufacturing facility in Texas dedicated to the production of traction inverters for its next-generation electric vehicles. The plant aims to support increased EV output and localize supply chain operations.
    • Q3 2024: ZF Friedrichshafen AG partners with Wolfspeed to develop SiC-based traction inverters ZF Friedrichshafen AG announced a strategic partnership with Wolfspeed to co-develop silicon carbide (SiC) traction inverters for electric vehicles, targeting improved efficiency and performance for OEM customers.
    • Q3 2024: BorgWarner secures multi-year contract to supply traction inverters to Hyundai Motor Group BorgWarner revealed it has won a multi-year contract to supply advanced traction inverters to Hyundai Motor Group for use in upcoming electric vehicle models, marking a significant expansion of its OEM relationships.
    • Q4 2024: Siemens launches new high-voltage traction inverter platform for commercial EVs Siemens AG introduced a new high-voltage traction inverter platform designed for commercial electric vehicles, featuring modular architecture and enhanced thermal management for heavy-duty applications.
    • Q4 2024: Renesas Electronics acquires startup specializing in GaN-based traction inverters Renesas Electronics announced the acquisition of a Silicon Valley startup focused on gallium nitride (GaN) traction inverter technology, aiming to accelerate its product roadmap for next-generation EV power electronics.
    • Q1 2025: Hitachi Astemo opens new R&D center for traction inverter development in Japan Hitachi Astemo inaugurated a new research and development center in Japan dedicated to advancing traction inverter technologies for electric and hybrid vehicles, with a focus on next-generation semiconductor integration.
    • Q1 2025: Valeo unveils compact traction inverter for urban electric vehicles Valeo launched a new compact traction inverter specifically designed for urban electric vehicles, offering improved energy efficiency and reduced weight for city-focused EV platforms.
    • Q2 2025: BYD announces partnership with STMicroelectronics for advanced traction inverter chips BYD entered into a partnership with STMicroelectronics to co-develop advanced traction inverter chips, leveraging ST’s expertise in power semiconductors to enhance BYD’s EV product lineup.
    • Q2 2025: Dana Incorporated wins contract to supply traction inverters for electric buses in Europe Dana Incorporated secured a contract to supply its latest traction inverter systems for a fleet of electric buses in several European cities, supporting the region’s transition to zero-emission public transport.
    • Q3 2025: Rivian raises $1 billion in Series D funding to expand traction inverter production Rivian announced the completion of a $1 billion Series D funding round, with proceeds earmarked for scaling up traction inverter manufacturing and accelerating development of its next-generation EV platforms.
    • Q3 2025: Bosch appoints new head of traction inverter division Bosch named a new executive to lead its traction inverter division, signaling a renewed focus on innovation and global expansion in the automotive power electronics sector.

    Future Outlook

    Automotive Traction Inverter Market Future Outlook

    The Automotive Traction Inverter Market is poised for robust growth, driven by electrification trends and technological advancements, with a projected 15.33% CAGR from 2024 to 2035.

    New opportunities lie in:

    • Invest in advanced semiconductor technologies to enhance inverter efficiency and reduce costs.
    • Develop integrated inverter solutions for electric vehicles to streamline manufacturing processes.
    • Explore partnerships with automotive OEMs to co-develop next-generation traction inverters.

    By 2035, the market is expected to achieve substantial growth, reflecting a dynamic shift towards electric mobility.

    Market Segmentation

    Automotive Traction Inverter Regional Outlook

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

    Automotive Traction Inverter Application Outlook

    • Passenger Cars
    • Commercial Vehicles
    • Two-Wheelers

    Automotive Traction Inverter Cooling Type Outlook

    • Air-Cooled
    • Liquid-Cooled

    Automotive Traction Inverter Power Rating Outlook

    • Low Power (below 50kW)
    • Medium Power (50kW-150kW)
    • High Power (above 150kW)

    Automotive Traction Inverter Vehicle Type Outlook

    • Electric Vehicles
    • Hybrid Electric Vehicles
    • Plug-in Hybrid Electric Vehicles
    • Fuel Cell Vehicles

    Automotive Traction Inverter Traction Type Outlook

    • AC Traction Inverters
    • DC Traction Inverters

    Report Scope

    Report Attribute/Metric Details
    Market Size 2024   42.36 (USD Billion)
    Market Size 2025   48.85 (USD Billion)
    Market Size 2034   176.37 (USD Billion)
    Compound Annual Growth Rate (CAGR)   15.33% (2025 - 2034)
    Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    Base Year 2024
    Market Forecast Period 2025 - 2034
    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

    FAQs

    What is the projected market size of the Automotive Traction Inverter Market in 2025?

    The Automotive Traction Inverter Market is valued at USD 48.85 billion in 2025.

    What is the projected CAGR of the Automotive Traction Inverter Market from 2025 to 2034?

    The Automotive Traction Inverter Market is projected to grow at a CAGR of 15.33% from 2025 to 2034.

    Which region is expected to hold the largest market share in the Automotive Traction Inverter Market in 2032?

    Asia-Pacific is expected to hold the largest market share in the Automotive Traction Inverter Market in 2032.

    What are the key applications of Automotive Traction Inverters?

    Automotive Traction Inverters are primarily used in electric and hybrid vehicles.

    Who are the major competitors in the Automotive Traction Inverter Market?

    Major competitors in the Automotive Traction Inverter Market include ABB, Denso, Hitachi, and Mitsubishi Electric.

    What are the major trends driving the growth of the Automotive Traction Inverter Market?

    The growing adoption of electric and hybrid vehicles is a major trend driving the growth of the Automotive Traction Inverter Market.

    What are the key challenges faced by 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.

    What are the expected key growth opportunities in the Automotive Traction Inverter Market?

    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.

    What is the impact of government regulations on the Automotive Traction Inverter Market?

    Government regulations promoting the adoption of electric and hybrid vehicles are driving the growth of the Automotive Traction Inverter Market.

    What are the key factors that will shape the future 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.

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