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The Global Electric Vehicle Power Inverter Market size is forecast to increase by USD 7.82 billion at a CAGR of 8.84% between 2022 and 2027. The power inverter is an assembly of power devices and passive components. Electric vehicles (EVs) utilize power devices, such as insulated-gate bipolar transistors (IGBTs), in their inverters. Government initiatives and increased consumer awareness about pollution drive the adoption of EV power inverters. EVs, powered by electric powertrains, eliminate the need for oil changes, making them cost-effective. With fewer moving parts, EVs experience fewer breakdowns, reducing repair and maintenance needs. Key markets for EVs, including China, Singapore, Japan, and South Korea, drive market growth, with China leading in EV sales due to low operational costs. Hence, China is expected to dominate the electric vehicle power inverter market. This market research and growth report also includes an in-depth analysis of drivers, trends, and challenges.
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Based on application, the market is segmented into full hybrids, pure EVs, plug-in hybrids, commercial HEV, and mild hybrids. The market share growth by the full hybrid segment will be significant during the forecast period. Full hybrids are one of the key segments of the hybrid vehicle industry. They are the first option for many new car buyers and aspiring purchasers worldwide, especially in Japan. Aggressive promotion by manufacturers by introducing a wide range of models has paid off. Buyers of passenger cars are more attracted to full hybrids rather than mild hybrids, mainly because the former vehicles have more benefits in terms of fiscal incentives. Unlike plug-in hybrids, they do not require charging infrastructure.
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Full hybrids use a power inverter system with an average power rating of 45kW-50kW with an IGBT power device stack. Most full hybrids these days are equipped with two inverter-motor modules to increase the torque and performance of the vehicles. The increased sales of full hybrid vehicles during the forecast period will result in a reduction in the average price of power inverters. Automotive companies are focusing on partnerships and collaborations to leverage EV technology. For instance, in April 2021, Suzuki Motor Corporation partnered with Toyota for the development of a new hybrid vehicle technology as well as a range of electric vehicles. Such instances are expected to foster the growth of the segment in the coming years.
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APAC is projected to account for 46% of the global electric vehicle power inverter market share growth by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The high-volume sales of BEVs and PHEVs in China, Singapore, Japan, and South Korea are contributing to the growth of the regional market. China is the single largest contributor to the regional EV market and dominates the global volume sales of EVs. In addition, the increasing focus on alternative fuel vehicles in emerging markets in APAC acts as an enabler for the growth of the regional market. This is because of the stringent emission norms in emerging markets, which are influencing automotive OEMs to increase their portfolio of BEVs and PHEVs. This is increasing the production and sales of related parts such as batteries, power inverters, and motors. China has improved its position strongly in the global EV market over the past three years. This short-time growth is attributed to the double-side benefits for well-established domestic automakers and auto parts manufacturers. As most of the other regional markets depend on China for battery and power electronics products, it has led to the establishment of a low-cost EV market in China, which will make the country account for a major share of the market industry during the forecast period.
The global market is witnessing significant growth as electric vehicles become a cornerstone of sustainable transportation solutions. With a focus on environmental initiatives and cleaner energy sources, power inverter manufacturers are leveraging advanced power electronics such as SiC (silicon carbide) and GaN (gallium nitride) to enhance energy efficiency. This market expansion is further fueled by the development of charging infrastructure networks and the increasing adoption of electric vehicles by major automobile manufacturers like General Motors. Additionally, advancements in technology by companies like NXP Semiconductors and VEPCO Technologies are driving innovation in high-voltage power control reference platforms, contributing to the overall growth of the market amidst rising consumer spending on green vehicles and the need to meet stringent emission standards. Our researchers analyzed the data with 2022 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.
The increasing sales of BEVs and PHEVs are notably driving the market growth. The market is experiencing notable growth driven by the increasing sales of Battery Electric Vehicles (BEVs) and Plug-in Hybrid Electric Vehicles (PHEVs). This growth is directly attributed to the rising popularity of BEVs and PHEVs in the automotive industry. In 2020, global sales of battery-electric vehicles reached approximately 1.5 million units, constituting half of all-electric vehicle sales worldwide. China emerged as the leading market for BEV sales in 2020, followed by Europe (led by Norway, Iceland, and Sweden) and the US.
The surge in all-electric vehicle sales was particularly pronounced in the first half of 2019, with BEV sales growing by over 90% compared to the same period in 2018, surpassing 760,000 units. This remarkable growth can be attributed to advancements in electric vehicle technologies, enhancements in charging infrastructure, and favorable socio-economic conditions. Notably, in June 2021, BEVs accounted for approximately 10% of total vehicle sales in the UK, equivalent to around 32,000 units, while plug-in hybrid vehicles (PHEVs) represented approximately 7% of total vehicle sales, totaling around 12,000 units. Consequently, the increasing demand for BEVs and PHEVs continues to drive market growth.
The adoption of new materials, SiC and GaN is a primary trend driving the market growth. The increasing demand for improved range and cost reduction of EVs will push the size reduction of power inverters and thereby increasing their overall efficiency. For instance, the US Department of Energy (DoE) sets a target for EV power inverter manufacturers to reduce the overall size of the inverters by replacing bus capacitors and increasing efficiency by using alternative cooling systems. SiC FETs (Field effect transistors) have started in production since then, mainly by Infineon and STMicroelectronics, GeneSic, etc. They have a power range from 10kW to many MW range with a voltage range above 1 kV.
Another new material is GaN, which is used to develop heterojunction field-effect transistors (HFETs). They are still at their nascent stage of production. Prototypes of inverters are made from these materials nowadays, showing a size reduction from 20% up to 50%. Infineon, Renesas, and Fuji Electric started their productions, achieving a power range of up to 100KW and a voltage range of up to 1kV. They will be preferred in EV/HEVs due to their good performance in the voltage range of 200-400V. However, the cost, packaging, and reliability issues challenge these new material inverters to undergo more research and expect them to be available high in volume commercially after 2021. Rising R and D for the usage of these materials in electric vehicle investors is expected to aid the growth of the market globally during the forecast period.
Environmental concerns are the major challenge impeding the market growth. EV charging stations have been installed at a rapid pace across the world. Most of these EV charging stations source electric energy from coal plants. The increasing installation and expansion of EV charging infrastructure are placing a burden on coal plants across the world, which is increasing the workload on such plants. Coal plants are a major source of environmental pollution, owing to harmful exhaust gases that are released through the exhausts of such plants.
Moreover, internal combustion engine (ICE) vehicles that are available currently are highly efficient in terms of vehicular emission, owing to stringent emission norms. Modern ICE vehicles make use of advanced catalytic converter and selective catalytic converter systems, which reduce vehicular emissions from such vehicles. Hence, the viability of BEVs and PHEVs as pollution-free alternatives to ICE vehicles, which are becoming as efficient as them, is still debatable. The presence of such factors acts as a challenge to the growth of the market. The rising demand for raw materials used in manufacturing electric vehicle batteries is expected to bring several trade opportunities for those that supply these materials. However, this will also result in further environmental damage caused by the extraction of these raw materials. Such factors can hinder the growth of the market during the forecast period.
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The market research 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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Electric-Vehicle Power Inverter Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the electric vehicle power inverter market.
Mitsubishi Electric Corp. - The company operates under multiple segments, including energy and electric systems, industrial automation systems, electronic appliances, and others, with a high focus on electric vehicle power inverters. The company's key offerings include electric vehicle power inverters such as electric vehicle Power Inverters.
The market report also includes detailed analyses of the competitive landscape of the market and information about 15 market Companies, including:
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 market 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.
The global EV power inverter market is witnessing rapid growth driven by the demand for sustainable transportation solutions and environmental initiatives promoting cleaner energy sources. Innovations in materials like SiC (silicon carbide) and GaN (gallium nitride) are enhancing the efficiency of charging infrastructure networks. Major automobile manufacturers such as General Motors are investing in EV technology to meet stringent emission standards and reduce reliance on internal combustion engines. Companies like NXP Semiconductors and VEPCO Technologies are pioneering energy-efficient solutions, with advancements like SIL-D- capable inverters and high-voltage power control reference platforms. As consumer spending shifts towards green vehicles, continued technological development promises to drive down operating costs and tailpipe emissions while promoting a greener future.
The rise of an environmentally conscious consumer base has propelled the demand for emission-free vehicles equipped with advanced inverter technology. Traction inverters, including soft switching inverters, are leveraging wide-bandgap semiconductors like silicon carbide (SiC) and gallium nitride (GaN) to minimize energy losses and enhance overall efficiency. These high-performance and reliable traction inverters are crucial for extending the driving range and improving the performance of electric vehicles. As the automotive industry continues to invest in battery technology and energy efficiency, the transition from IC engine vehicles to battery electric vehicles is accelerating, contributing to the reduction of greenhouse gases. However, challenges remain, particularly in ensuring a stable semiconductor supply to meet the growing demand for electric vehicle components.
The inverter type plays a crucial role in determining the performance and efficiency of electric vehicles, with different types offering varying advantages. Advanced inverters optimize switching frequencies to minimize energy losses and improve the efficiency of power conversion, crucial for enhancing the overall performance of automotive traction inverters. As a result, battery electric vehicle sales are seeing a significant uptick, driven by the demand for vehicles equipped with high-efficiency inverters that can maximize driving range and performance while reducing environmental impact.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Electric-Vehicle Power Inverter Market Scope |
|
Report Coverage |
Details |
Page number |
182 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.84% |
Market growth 2023-2027 |
USD 7.82 billion |
Market structure |
Fragmented |
YoY growth (%) |
7.91 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 46% |
Key countries |
US, Canada, China, Japan, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aegis Power Systems Inc., BorgWarner Inc., Bosch Mobility Solutions, Continental AG, Danfoss AS, Denso Corp., Fuji-Electric Co. Ltd., Hitachi Ltd., Infineon Technologies AG, LG Magna e Powertrain, Marelli Holdings Co. Ltd., MAHLE GmbH, Hyundai Mobis Co. Ltd, Meidensha Corp., Metric Mind Engineering, Mitsubishi Electric-Corp., Siemens AG, Toyota Industries Corp., Valeo SA, and Aptiv |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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