Traction Inverter Market

Traction Inverter Market Outlook (2022-2032)

The global traction inverter market was valued at US$ 15386.60 Million in 2022 and is expected to grow at 17.2% CAGR from 2022 to 2032. The global market for traction inverters is expected to reach US$ 75234.81 Million by 2032.

• Due to the high demand for lithium-ion batteries, the global traction inverter market is mainly driven by the availability of lithium-ion batteries.
• The production of the automotive lithium-ion battery in 2020 reached 160 GWh, with a 33% increase from 2019.
• The significant increase in electric car registrations can be attributed in part to a 41% increase in electric car registrations. This is due to a constant battery capacity of 55 KWh and 14 kWh, respectively, for BEVs and PHEVs. For other modes of transport, an increase of 10% has been recorded.
• China is the world's battery production leader making up 70% of the total global battery cell production capacity.

Report Attributes	Details
Traction Inverter Market Size (2022)	US$ 15386.60 Million
Projected Traction Inverter Market Value (2032)	17.2%
Global Traction Inverter Market Share	US$ 75234.81 Million
Europe CAGR Traction Inverter Market Share	11%
Key Companies Profiled	BorgWarner Inc. Marelli Mitsubishi Electric Corporation Denso Corporation Continental AG Delphi Technologies Siemens AG TOSHIBA CORPORATION Hitachi, Ltd. Voith GMbh Infineon Technologies AG CURTISS-WRIGHT TM4 Inc. Prodrive Technologies Others

Prominent Traction Inverter Market Growth Factors

Due to the safe and reliable driving experience that electric and hybrid electric vehicles provide, the increase in demand for these vehicles worldwide is one of the major factors driving industry growth. Automotive manufacturers and suppliers are increasing their production to meet the increasing demands for enhanced levels of integration and increased power density across electric vehicles.

Due to the rising demand for lithium-ion batteries, the automobile traction inverter market is expected to grow, which can be attributed to the expanding market for traction inverters. The majority of lithium-ion batteries sold at retail are still made with nickel manganese cobalt, with nickel-cobalt aluminum making up the rest of the market. Despite the growth in the market's share of lithium-ion phosphate batteries, it still occupies less than 4% of the market.

According to BNEF's annual survey of battery prices, the weighted average cost of automotive batteries decreased by 13% in 2020 compared to 2019 and reached US$ 137/KWh at a pack level at the end of 2020. The demand for lithium-ion batteries is expected to drive the growth of the global traction inverter market, as most plug-in hybrids and all-electric vehicles use lithium-ion batteries.

Market Players Generating Lucrative Opportunities in the Market

With the ever-increasing number of electric cars being produced regularly, the government and market players are taking steps to implement stringent regulatory reforms, which can lead to lucrative opportunities for an increase in demand for traction inverters.

In the automotive traction inverter market, additional factors are expected to influence the growth of this market. These include increased awareness among consumers, OEMs, and numerous suppliers due to stringent government regulations. This will further increase the adoption of automotive traction inverters on the global market.

It is predicted that the CO2 emission requirement for next-generation European cars will be zero by 2050, according to the proposal of the EU Commission. At the same time, several automakers also announced their plans to make their vehicles more electrified in the near future. As an example, Volkswagen predicted that half of its sales will be electric vehicles by 2030.

Toyota, which is the largest automaker in the world, announced further investments last year to achieve annual electric car sales of 3.5 million units by 2030, which was another key milestone in 2021. Such initiatives from the government and market are opening up growth opportunities for the market.

Segmentation Insights

The traction inverter market is segmented by the type of propulsion, the type of voltage, the type of technology, the type of vehicle, and the region. Depending on the propulsion type, the market is subdivided into BEV, HEV, PHEV, and others. In terms of voltage type, the market can be categorized into up to 200 volts, 200 volts to 900 volts, and 900 volts and above. Based on technology type, the market is segmented into IGBT, MOSFET, and others. Depending on vehicle type, the market is segmented into passenger cars, commercial vehicles, and others.

Propulsion Types - Insights

Traction inverters are segmented according to propulsion type, including BEVs, HEVs, PHEVs, and others. In the global traction inverter market, the BEV (Battery Electric Vehicles) segment holds the largest share as these vehicles are zero-emission vehicles with rechargeable batteries that allow them to run continuously.

With the rapid rise in the number of eco-friendly vehicles in both developed and developing countries in the past few years, battery-electric vehicles have been rapidly adopted. The BEV segment is projected to grow as a result of environmental concerns.

Technology Type Insights

According to the technology type, the Traction Inverter Market may be classified into three categories: IGBT, MOSFET, and others, with MOSFET holding the largest share of the global Traction Inverter Market. Among the semiconductor technologies that have been proposed for traction inverter applications, silicon carbide MOSFETs are believed to be the most promising.

There are plenty of Si-IGBT semiconductors and modules available on the market for use in this voltage range, including those that run at a voltage of 450 volts. Although they are based on technology that is 750 volts, most electric powertrain applications run on voltages up to 450 volts.

Country Insights

North America Insights

Several energy conservation initiatives underway in North America has resulted in the region being one of the largest markets for traction inverters. This is due to a switch to renewable sources of energy accounting for much of the growth.

Furthermore, several regulatory measures, to reduce the carbon footprint of the region, have also contributed to boosting the sales of traction inverters in this region. In the years to come, there will continue to be a surge in the demand for infrastructure advancements across the region due to continued advancements in infrastructure.

What is the Growth Outlook for Traction Inverter Market in the U.S.?

The US traction inverter market is anticipated to undergo a significant evolution alongside the growth of the global market. The auto industry and government have adopted electric vehicles as their preferred road transportation technology. For instance, in November 2021, the US government set a target of 50% electrification of passenger cars by 2030, which was backed by the installation of 500,000 charging points.

Also, the U.S. government has provided approximately US$ 2.4 billion for the development of electric and hybrid vehicles equipped with high-density batteries. As part of its incentive program, the U.S. government plans to offer tax credits to owners of hybrid and electric vehicles, which are nearly US$ 7,500 depending on the type of battery used.

Asia Pacific Insights

Asia Pacific, on the other hand, is expected to grow at the fastest rate during the forecast years. This region's growth can be credited to the governments in the Asia Pacific that have introduced the Top Runner Program. Based on energy conservation laws that confirm minimal efficiency requirements for numerous industrial motors.

Consequently, the country's energy-efficient motor players are concentrating their efforts on the development of next-generation energy-efficient products as a result of this situation. Hence, these factors are projected to drive Asia Pacific traction inverter market growth, during the forecast period.

How Do Growth Prospects Look in the Chinese Traction Inverter Market?

As the electric vehicle industry expands, China is predicted to hold the lion's share of the market during the forecast period, therefore dominating the traction inverter market. Despite Tesla's high popularity, Beijing's national policy has encouraged the emergence of numerous rivals to the electric car giant in China, the world's largest auto market, despite Tesla's stranglehold on the auto industry.

Aside from that, in the upcoming years, Chinese enterprises are expected to enter the overseas market more assertively across the entire electric vehicle supply chain.

Europe Insights

The Europe traction inverter market is expected to witness market growth of 11.0% CAGR during the forecast period. By 2022, several European governments have established ambitious goals regarding the reduction of carbon emissions and the requirement for electric vehicle stock.

Some European nations, including France and Belgium, are concentrating on building the infrastructure required for electric vehicle charging. This will ensure interoperability among a wide range of different electric vehicles across the region. Despite a rise in the proportion of legal ULEV vehicles on UK roads, just a small portion of all licensed vehicles are ULEVs.

Is Germany to Emerge as an Opportunistic Traction Inverter Market?

The region's expansion is attributed to increased R&D activities and the presence of major market players in the region. The German market dominated the Europe traction inverter market region in 2022 and would continue to be a dominant market till 2032, and also it is estimated to achieve a market value of US$1,593.7 million by 2028.

Comparative View of Adjacent Traction Inverter Market

Traction Inverter Market :

Attributes	Traction Inverter Market
CAGR (2022-2032)	17.2%
Market Value (2032)	US$ 75234.81 Mn
Growth Factor	The automotive industry is increasing its production in response to the growing demand for greater levels of integration and enhanced power density across electric vehicles. The rising demand for lithium-ion batteries will thus drive the market for automotive traction inverters.
Opportunity	By introducing stringent government laws, the global market for automotive traction inverters may become more aware of automotive traction inverters among customers, OEMs, and suppliers.
Key Trends	The global traction inverter trends support the future of transportation and led to market growth. Along with the development of numerous technological innovations, traction inverters evolved with the development of electric vehicles.

IGBT and Super Junction MOSFET Market :

Attributes	IGBT and Super Junction MOSFET Market
CAGR (2022-2032)	12%
Market Value (2032)	US$ 46072.63 Mn
Growth Factor	Increasing demand for energy efficiency and an increased focus on environmentally friendly power is expected to drive the IGBT and super junction MOSFET markets.
Opportunity	Increasing installation of smart meters across the globe is leading to explosive growth in the global smart grid market. The global smart grid market is expected to grow rapidly, offering lucrative growth opportunities.
Key Trends	Several end-use applications, particularly consumer applications, require IGBTs with small sizes and high reliability. It is experiencing increased interest from players in IGBTs and super junction MOSFETs catering to a higher voltage range.

PV Inverter Market :

Attributes	PV Inverter Market
CAGR (2022-2032)	6.5%
Market Value (2032)	US$ 12310 Mn
Growth Factor	A rapidly growing demand for renewable energy, continued rural electrification, support from government policies, and investments in renewable energy are driving the demand for solar PV inverters.
Opportunity	With the increasing number of PV installations globally, the market for solar inverter systems is experiencing growth opportunities.
Key Trends	A major trend in the solar PV inverter market is the concern over greenhouse gas emissions, which is increasing demand for the product because it is eco-friendly. Stringent government regulations encouraging the use of solar energy are expected to be the key market trends.

Competitive Landscape

There are several prominent manufacturers in the traction inverter market, including BorgWarner Inc., Delphi Technologies, Siemens AG, Mitsubishi Electric Corporation, ABB, and Toshiba Corporation. These manufacturers are keen on forming joint ventures with small-scale players around the world to build an international customer base and gain a larger market share.

A key focus of market players in the Traction Inverter Market is the development of advanced and efficient products. Furthermore, these players are also setting up manufacturing facilities in developing countries for traction inverters.

As a result, major companies are introducing new products to sustain their business in the traction inverter market, which enables them to grow their business in the global traction inverter market. Businesses can gain modest traction in the traction inverter market by offering new categories of traction inverters that target previously untapped customer markets.

Recent Development :

Date	Company Name	Strategy	Details
July 2022	Curtiss-Wright	Expansion	The Curtiss-Wright company expanded its product portfolio for traction inverters as part of the expansion of its industrial division. Among the latest range of products are hybrid and pure-electric vehicles for on-highway and off-highway commercial vehicles that provide the most efficient and innovative designs.
June 2022	STMicroelectronics (ST) and Semikron	Merger	STMicroelectronics (ST) and Semikron collaborated to develop a SiC-powered semiconductor that can be used in electric vehicle traction drives. Such SIC collaborations aim to fuel advancements in automotive traction inverter technologies.

Key Segments

• By Propulsion :

  • BEV
  • HEV
  • PHEV
  • Others

• By Voltage :

  • Up to 200V
  • 200 to 900V
  • 900V and above

• By Technology :

  • IGBT
  • MOSFET
  • Others

• By Vehicle :

  • Passenger Cars
  • Commercial Vehicles
  • Others

• By Region :

  • North America
  • Latin America
  • Asia Pacific
  • MEA
  • Europe