Traction Inverter Market Size, Share, Trends, Growth 2032

Traction Inverter Industry Prospective:

The global traction inverter market size was evaluated at $18.26 billion in 2023 and is slated to hit $74.14 billion by the end of 2032 with a CAGR of nearly 16.85% between 2024 and 2032.  

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Traction Inverter Market: Overview

A traction inverter is a key power electronic equipment converting a direct supply input from the electric vehicle battery into an alternating current output.  Reportedly, automotive traction inverter has recorded an efficiency of nearly 98.5% at about 5% load along with peaks at about 99.57%. Reportedly, a traction inverter transforms battery energy into power controlling torque and speed.

Key Insights

• As per the analysis shared by our research analyst, the global traction inverter market is projected to expand annually at the annual growth rate of around 16.85% over the forecast timespan (2024-2032)
• In terms of revenue, the global traction inverter market size was evaluated at nearly $18.26 billion in 2023 and is expected to reach $74.14 billion by 2032.
• The global traction inverter market is anticipated to grow rapidly over the forecast timeline owing to escalating customer preference towards electric vehicles and hybrid electric vehicles.
• In terms of vehicle type, the commercial vehicles segment is slated to register the highest CAGR over the forecast period.
• Based on power rating, the medium-power inverter segment is predicted to contribute majorly towards the global industry share in the upcoming years.
• Region-wise, the Asia-Pacific traction inverter industry is projected to register the fastest CAGR during the projected timespan.

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Traction Inverter Market: Growth Factors

Growing consumer tilt towards electric automotive & hybrid automotive to boost the global market surge over 2024-2032

Escalating customer preference towards electric vehicles and hybrid electric vehicles is anticipated to embellish the growth of the global traction inverter market. Breakthroughs in the power electronics sector and innovations in electric drive systems will prop up the scope of the global market in the years ahead. Stringent emission protocols and strict fuel-conserving laws will spearhead the progress of the market across the globe. Favorable government schemes promoting the use of the product along with favorable incentives by these governments for promulgating electric mobility will provide impetus to the expansion of the global market.

Traction Inverter Market: Restraints

High initial capital investment requirements for product installation can restraint the global industry expansion by 2032

The growing need for initial capital investment for product deployment and complex technology used in the production of the product can cut down the growth of the traction inverter industry globally. Disruptions in the supply chain and strict laws governing the application of products can impede global industry expansion.

Traction Inverter Market: Opportunities

An increase in the purchase of passenger vehicles will open new growth avenues for the global market

A surge in the allocation of funds for developing strong electric car infrastructure facilities and innovations in electric powertrains will create new horizons of growth for the global traction inverter market. In addition to this, a rise in the sale of passenger vehicles will spur the elevation of the global market. An increase in strategic partnerships and new product launches will bolster the expansion of the market space in the years ahead.

Traction Inverter Market: Challenges

Lesser access to raw components will put a huge challenge to the global industry growth over the assessment period

Less access to raw materials along with its surging product costs is anticipated to challenge the expansion of the global traction inverter industry.  High competition from internal combusting engine vehicles can further put brakes on the expansion of the global industry. Non-availability of charging infrastructure in emerging economies can decimate the global industry progress in the years to come.

Traction Inverter Market: Segmentation

The global traction inverter market is divided into vehicle type, power rating, and region.                                         

In vehicle type terms, the traction inverter market across the globe is bifurcated into passenger vehicles, two-wheelers, and commercial vehicle segments. Additionally, the commercial vehicles segment, which acquired nearly 53% of the global market earnings in 2023, is expected to register the fastest annual rate of growth in the forecast timeline. The expansion of the segment in the next eight years can be owing to an increment in the utility of equipment such as coffee makers and televisions. Apart from this, rising demand for driver safety features and comfort features enhancing vehicle durability will steer the segmental growth over the forecast period.

Based on the power rating, the global traction inverter industry is divided into low-power inverter, high-power inverter, and medium-power inverter segments. Moreover, the medium-power inverter segment, which accumulated about 57% of the global industry earnings in 2023, is anticipated to make massive contributions towards the global industry size over the analysis timeline. The growth of the segment in the ensuing years can be credited to the humungous demand for medium-range power inverters in both developing countries and developed economies.

Traction Inverter Market: Report Scope

Traction Inverter Market: Regional Insights

North America is expected to maintain its leadership status in the global market in the next couple of years

North America, which accounted for nearly 75% of the global traction inverter market revenue in 2023, is expected to set up its dominant status in the global market and enhance its regional market profitability in the years ahead. In addition to this, the regional market elevation in the next couple of years can be subject to a prominent increase in the sale of electric vehicles in countries such as Canada and the U.S. Apart from this, a rise in the fund allocation for developing strong electric vehicle charging infrastructure along with the presence of key vehicle manufacturers in these countries will proliferate the size of the regional market in the years ahead.

Asia-Pacific traction inverter industry is anticipated to register the fastest annual growth rate in the forecast timeline. The rapid progression of the industry in the Asia-Pacific zone can be attributed to a rise in the demand for autonomous vehicles in countries such as South Korea, China, and Japan. In addition to this, supportive government policies and strong collaborations between vehicle manufacturers will contribute majorly towards the regional industry surge. The presence of key product manufacturers is likely to drive the industry growth of the region.

Key Developments

• In the second half of 2022, STMicroelectronics introduced high-power modules for electric cars that will help boost the performance of cars along with their driving range.
• In January 2023, Renesas Electronics Corporation, a key supplier of innovative semiconductor solutions, launched a new gate driver IC designed for driving high-voltage power equipment including insulated gate bipolar transistors as well as silicon carbide MOSFETs for inverters of electric cars.

Traction Inverter Market: Competitive Space

The global traction inverter market profiles key players such as:

• Hitachi Ltd.
• Mitsubishi Electric Corporation
• ABB SE
• Bombardier Transportation
• Fuji Electric Company
• Siemens AG
• Woodward Inc.
• CALB (Contemporary Amperex Technology Co. Limited)
• BorgWarner Inc.
• Denso Corporation

The global traction inverter market is segmented as follows:

By Vehicle Type

• Passenger Vehicles
• Two-Wheelers
• Commercial Vehicles

By Power Rating

• Low-Power Inverter
• High-Power Inverter
• Medium-Power Inverter

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa