Automotive On-Board Power Inverter Market Analysis North America, APAC, Europe, South America, Middle East and Africa - US, China, Japan, Canada, Germany - Size and Forecast 2024-2028

Automotive On-Board Power Inverter Market Size 2024-2028

The automotive on-board power inverter market size is forecast to increase by USD 162.2 million at a CAGR of 4.28% between 2023 and 2028.

• The market is experiencing significant growth due to the increasing demand for high power output in contemporary automobiles. With space constraints becoming a major challenge, there is a rising trend towards increasing power output density. Regulations mandating improved fuel efficiency and reduced greenhouse gas emissions are also driving market growth. Solar capacity and terawatt capacity are becoming essential features in automobiles, leading to a higher demand for automotive inverters.
• However, the market faces challenges such as stringent regulations and the need for compact designs to meet space constraints. These factors are expected to shape the future of the Automotive Inverter Market. Key trends include the integration of advanced technologies, such as programmable logic controllers (PLCs), digitalization, and industry 4.0, as well as the growing importance of cybersecurity in industrial relays. The market is poised for continued growth as these trends and challenges shape the future of the automotive industry.

What will be the Size of the Automotive On-Board Power Inverter Market During the Forecast Period?

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• The market is witnessing significant growth due to the increasing demand for portable electronic devices in vehicles. With the proliferation of mobile phones, laptops, and other electronic devices, there is a growing need for reliable and efficient power solutions in automobiles. An on-board power inverter is a device that converts DC power from a battery into AC power, which can be used to power various electrical appliances in a vehicle. Common configurations include those that can deliver 120V AC power, similar to that found in household outlets, and those designed to provide power for specific devices such as cigarette lighter outlets or fuse panels. The automotive inverter market is driven by several factors. One key factor is the growing demand for convenience and connectivity in contemporary automobiles. With more people working on the go, there is a need for reliable power sources to keep their devices charged while on the road.
• Additionally, advances in motor technology have led to the development of high output density inverters, which can provide significant power output while minimizing space constraints. However, the automotive inverter market also faces several challenges. Regulations regarding fuel efficiency and greenhouse gas emissions are becoming increasingly stringent, and inverters must be designed to meet these requirements while still providing adequate power. Space constraints in vehicles can also make it challenging to install larger inverters, requiring manufacturers to focus on developing compact and efficient designs. Another factor influencing the automotive inverter market is the growing popularity of solar capacity in vehicles. Solar panels can be used to charge batteries and provide additional power to the inverter, making it possible to power devices without drawing on the vehicle's battery or engine. This can help improve fuel efficiency and reduce greenhouse gas emissions.

How is this Automotive On-Board Power Inverter Industry segmented and which is the largest segment?

The automotive on-board power inverter industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Application
  • Passenger cars
  • LCVs
• Type
  • Up to 150W
  • More than 150W
• Geography
  • North America
    • Canada
    • US
  • APAC
    • China
    • Japan
  • Europe
    • Germany
  • South America
  • Middle East and Africa

By Application Insights

• The passenger cars segment is estimated to witness significant growth during the forecast period.

In the automotive industry, the on-board power inverter market is witnessing significant growth, particularly in the passenger car segment. The integration of advanced technologies such as renewable energy systems, Tesla Powerwall, and lithium solar batteries, is driving the demand for power inverters in this sector. These technologies are essential for a zero carbon approach in mass transportation and sustainable mobility. Power inverters convert DC power from the battery to AC power required by various electronic components, including ADAS, infotainment systems, and EV technologies. With the increasing popularity of hybrid electric vehicles (HEVs) and plug-in hybrid electric vehicles (PHEVs), the demand for efficient power conversion solutions is escalating. Solar technologies, such as solar electric automobiles, are also gaining traction, further increasing the need for power inverters in the automotive industry. Power inverters play a vital role in enabling the seamless operation of these advanced systems, making them an indispensable component in modern vehicles.

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The passenger cars segment was valued at USD 487.30 million in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

• North America is estimated to contribute 58% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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In the United States, the preference for personal vehicle ownership over public transport for commuting is significant, leading to an increase in the adoption of automotive on-board power inverters. This trend is particularly noticeable in the luxury car market, where demand is on the rise. American consumers, particularly those aged 50 and above, hold a substantial portion of the country's wealth. These individuals prioritize comfort and convenience, making luxury cars an attractive option. As a result, the demand for in-car devices that provide AC power from DC power supplies, such as mobile phone chargers and laptops, is growing. The use of electrical wires to convert DC power to AC power in vehicles is becoming increasingly common. This market trend is expected to continue, as the demand for in-car comfort and productivity solutions persists.

Market Dynamics

Our automotive on-board power inverter market researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers leading to the rise in adoption of Automotive On-Board Power Inverter Industry?

Increasing adoption of programmable logic controllers (PLCs) in industries is the key driver of the market.

• In the automotive industry, the on-board power inverter market is witnessing increased adoption, particularly in the passenger car segment, with SUVs leading the way. SUVs are increasingly popular for various types of travel, including off-road adventures, long road trips, and city commutes. As a result, many mid-size and luxury SUV models now come equipped with on-board power inverters, often as standard or optional features. Currently, 12V power inverters with a capacity of up to 150W are commonly used in SUVs.
• However, original equipment manufacturers (OEMs) are anticipated to transition to higher power range inverters in the coming years to meet the growing demand for powering various on-board accessories and connected-vehicle services. The popularity of SUVs is not limited to developed markets; emerging economies such as China and India are also experiencing significant growth in SUV sales, contributing to the expanding the market. With the increasing use of handheld devices and the demand for electric vehicles, the need for reliable in-vehicle power sources is becoming increasingly important, making the on-board power inverter market an essential component of the automotive industry.

What are the market trends shaping the Automotive On-Board Power Inverter Industry?

The emergence of digitalization and Industry 4.0 is the upcoming trend in the market.

• In the Automotive Inverter Market, power output plays a significant role in meeting the energy requirements of contemporary automobiles. With increasing space constraints and stringent regulations regarding fuel efficiency and greenhouse gas emissions, high output density inverters have gained prominence. Most automotive OEMs provide modified sinewave inverters with a power output capacity of up to 15W to cater to the needs of users. These inverters are primarily used to power personal electronic devices such as smartphones, tablets, laptops, and handheld infotainment systems.
• However, the preference for modified sinewave inverters is due to their cost-effectiveness and widespread usage. Despite their affordability, modified sinewave inverters are not suitable for all electronic devices and generate more noise than their pure sinewave counterparts. As the demand for renewable energy sources in automobiles grows, solar capacity and terawatt capacity are becoming essential considerations in the market.

What challenges does Automotive On-Board Power Inverter Industry face during the growth?

Cybersecurity concerns related to industrial relays are a key challenge affecting the industry's growth.

• The market plays a significant role in the US automobile sector, particularly in the passenger vehicles segment. OEMs (Original Equipment Manufacturers) are increasingly integrating these inverters into their vehicles to provide power for various electrical appliances and systems. However, proper installation and usage of these inverters are crucial to ensure optimal performance and prevent potential issues. The growth capacity of power inverters is a critical factor to consider, as exceeding the recommended rating can lead to system malfunctions and user dissatisfaction. Proper selection and installation of the right power inverters for a vehicle's electrical system are essential to avoid such complications.
• Additionally, the market's growth is influenced by various factors, including increasing spending power among consumers and the growing demand for motorized vehicles with advanced features. Inverters enable the conversion of DC power from the vehicle's battery to AC power for these appliances, ensuring smooth operation at desired motor torque and speed. To ensure a successful market penetration, it is essential for companies to provide reliable and efficient on-board power inverters that meet the specific requirements of various vehicle models and user preferences. Additionally, providing clear installation instructions and user manuals can help mitigate potential issues and enhance user experience.

Exclusive Customer Landscape

The automotive on-board power inverter market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry. The automotive on-board power inverter industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Ampeak
• BESTEK
• Cobra Electronics Corporation and Escort Inc.
• COTEK Electronic Ind. Co. Ltd.
• DAS Companies Inc.
• ERAYAK
• Hitachi Ltd.
• Koninklijke Philips N.V.
• Lear Corp.
• Marelli Holdings Co. Ltd.
• ON Semiconductor Corp.
• Robert Bosch GmbH
• Samlex America Inc.
• Schumacher Electric Corp.
• Sensata Technologies Inc.
• Stanley Black and Decker Inc.
• STMicroelectronics International N.V.
• Sungrow Power Supply Co. Ltd.
• Toyota Industries Corp.
• VisIC Technologies Inc.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Research Analyst Overview

The market is witnessing significant growth due to the increasing adoption of electrical devices in vehicles. With the proliferation of mobile phones, laptops, and other handheld devices, there is a rising demand for AC power in cars. Inverters convert DC power from the vehicle's battery into AC power, enabling the use of electrical appliances. Common configurations include cigarette lighter sockets, fuse panels, and 12V accessory sockets. The demand for on-board power inverters is driven by the growing popularity of connected-vehicle services and the increasing demand for vehicles, including electric and hybrid vehicles. The environmental concerns, such as CO2 emissions and greenhouse gas emissions, are also fueling the market's growth.

Additionally, contemporary automobiles are increasingly focusing on fuel efficiency and zero carbon approaches, leading to the adoption of solar capacity and renewable energy solutions. The automotive inverter market is witnessing material innovation, with the use of wide-bandgap semiconductors like silicon carbide and gallium nitride for efficiency improvements. The market is also witnessing regulations related to fuel efficiency requirements and greenhouse gas emissions, leading to the development of high output density inverters with high power output and AC frequency. The market is expected to grow significantly in the coming years, driven by the increasing spending power of consumers and the growing popularity of sustainable mobility solutions.

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What are the Key Data Covered in this Market Research and Growth Report?

• CAGR of the Automotive On-Board Power Inverter industry during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market and its contribution of the industry in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across North America, APAC, Europe, South America, and Middle East and Africa
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of industry companies

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