Electric Vehicle Power Inverter Market - Forecasts from 2023 to 2028

The electric vehicle power inverter market was valued at US$702.000 million in 2021 and is projected to expand at a CAGR of 19.91% over the forecast period to reach US$2,501.983 million by 2028

Electric car motors use DC electricity, which is converted to alternating current using a vehicle power inverter. Power inverters are used more frequently in electric vehicles. The relevant machinery and sensors, which operate on AC, are subsequently driven by motors using the converted current. Electric vehicles also allow for the use of plug-in outlets and other traditional 120-volt appliances. The global electric vehicle power inverter market share is anticipated to expand due to the rising demand for electric automobiles, proactive government efforts for the development of electric vehicles, and a surge in the popularity of low emission & fuel-efficient vehicles.

Market Drivers:

Rising demand for electric vehicles to propel the market growth of power inverters

Electric vehicles have several benefits, including lower running costs than traditional petrol engines, the implementation of strict government rules to reduce environmental pollution, and a reduction in exhaust emissions, all of which have a large positive impact on demand for electric vehicle power inverter market. For instance, sales of electric vehicles have surged because of expansion in China, the United States, and Europe. In the first quarter of 2021, sales of electric vehicles surged by 140% compared to the same period the previous year, with major sales in China and Europe amounting to be 500,000 and 450,000 vehicles respectively. Further, as electric vehicles have huge circuits inside, the market for power inverters is strongly correlated with the expansion of the automotive industry and the sales of electric vehicles.

Increased Demand for battery electric vehicles

The increase in battery electric car sales and the expensive price of batteries (USD 156/kWh in 2020) have made it necessary to improve inverters and other power electronics in addition to vehicle performance. Companies that transport goods are additionally substituting their present fleets of vehicles with those propelled by electricity because of the fast-growing use of electric mobility throughout the world. Globally, governments have started to create regulations that will encourage the usage of electric vehicles. Over the projection period, there will be a rise in demand for power inverters due to the rising popularity of battery electric vehicles worldwide which is increasing the electric vehicle power inverter market share during the forecast period.

Market Restraints:

Insufficient electric vehicle infrastructure hinders the market

A reliable infrastructure for charging EVS is necessary for the adoption of electric vehicles. Electric vehicles haven't yet entered the mainstream despite their economic and environmental benefits. The electric car industry is constrained by a dearth of charging stations. For instance, according to a poll conducted by Grant Thornton-Bharat and the Federation of Indian Chambers of Commerce & Industry, India will require 4 lakh public charging stations by the end of 2021 to accommodate the 2 million electric vehicles that are expected to be on Indian roads by that time.

Asia Pacific is projected to be the significant electric vehicle power inverter marketplace

The electric vehicle power inverter market is being led by Asia-Pacific. In China, the market for electric vehicles is expanding quickly to reduce emissions by international agreements and foster e-mobility in the face of rising urbanization, the Indian government has launched several measures to encourage the production and acceptance of electric vehicles in India. Automobile manufacturers are investing in the creation of new technologies and expanding their production capabilities to meet the demand brought on by the rising sales of electric vehicles in India. For example, Toyota Group announced goals to invest INR 48 billion (USD 624 million) in India in May 2022 to produce parts for electric vehicles. Maruti Suzuki's parent business, Suzuki Motor, declared in March 2022 that it would invest INR 10,440 crore in India to build a new electric car and battery facility.

Market Key Developments

• In November 2022, The Timisoara electronic components factory's third expansion was finished by Continental AG. The corporation invested Euro 40 million in a manufacturing plant that will increase the nation's capacity for producing electric vehicle parts. With the additional funding, the manufacturing area will grow by more than 7,000 square meters or more than 60% of the available space (about 18,000 square meters will be used for production). Additionally, there were added parking spots, a technical area, offices, and a green space.
• In August 2022, Vitesco Technology joined the Motorcycle Swappable Batteries Consortium. It is an innovative international producer of cutting-edge electrification and drive technology (SBMC). Four of the largest two-wheeled vehicle producers in the world - Honda, KTM, Piaggio, and Yamaha - founded the Consortium in 2021; it now has 21 members.
• In July 2022, Vitesco Technologies, a major global producer of cutting-edge drive technologies and electrification solutions, and Renault Group, a significant player in the automotive industry, stated the signing of a strategic partnership for the joint creation and manufacture of electrical components in a so-called "One Box" for electric and hybrid powertrains.
• In January 2023, Toyota Kirloskar Motor announced the supplying of a hydrogen fuel cell module for feasibility study purposes which will lead to the contribution towards India’s energy self-reliance as well as carbon neutral goals.

Segmentation:

By Propulsion Type

• Hybrid Vehicle
• Plug-in Hybrid Vehicle
• Battery Electric Vehicle

By Vehicle Type

• Passenger Vehicles
• Commercial Vehicles

By Inverter Type

• Traction Inverter
• Soft Switching Inverter

By Distribution Channel

• OEM
• Aftermarket

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• United Kingdom
• Germany
• France
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Indonesia
• Thailand
• Others