Electric Vehicle Power Inverter Market By Vehicle Type (Passenger Cars, Commercial Vehicles, Two-Wheelers), Inverter Type (Single-Phase, Three-Phase), Power Rating (Low-Power, Medium-Power, High-Power) & Region for 2024-2031

Published Date: August - 2024 | Publisher: MIR | No of Pages: 320 | Industry: latest updates trending Report | Format: Report available in PDF / Excel Format

View Details Buy Now 2890 Download Sample Ask for Discount Request Customization

Electric Vehicle Power Inverter Market Valuation – 2024-2031

As governments throughout the world implement stricter emissions rules and promote electric vehicle use, demand for efficient and high-performance power electronics, such as inverters, continues to rise. EV power inverters convert DC electricity from the vehicle’s battery to AC power for the electric motor, increasing energy conversion efficiency and driving range fueling market growth surpassing USD 12.27 Billion in 2024 and reaching USD 28.46 Billion by 2031.

Furthermore, advances in semiconductor technology, notably in silicon carbide (SiC) and gallium nitride (GaN) materials, are allowing inverters to attain higher efficiency levels and more compact designs, satisfying the changing performance expectations of electric vehicles. The addition of advanced features such as bidirectional power flow for vehicle-to-grid (V2G) applications and improved thermal management systems boosts the appeal of EV power inverters, preparing the market for significant development in the future years is expected to grow at a CAGR of about 12.23% from 2024 to 2031.

Electric Vehicle Power Inverter MarketDefinition/ Overview

Think of an Electric Vehicle (EV) Power Inverter as the unsung hero of your electric ride! It's what takes the DC (direct current) power stored in your EV's battery and transforms it into AC (alternating current) power – the type of energy your electric motor needs to spin. This conversion makes the motor run smoother and gives you better control, which means a nicer driving experience and more miles on a single charge. You'll find these inverters working hard in all kinds of EVs, from your everyday passenger car to buses, lorries, and even electric airplanes, all pushing us towards cleaner transportation. What's next for these inverters? Expect them to get even better – more efficient, smaller, lighter, and smarter with cool features like bidirectional power flow, letting you send power back to the grid (that's V2G!). New semiconductors, better cooling, and improved manufacturing will be key to meeting the growing need for reliable, high-performing power electronics in the booming EV world.

What's inside a
industry report?

Our reports include actionable data and forward-looking analysis that help you craft pitches, create business plans, build presentations and write proposals.

Will Growing Stringent Emission Regulations Drive the Electric Vehicle Power Inverter Market?

Growing strict pollution laws are projected to propel the electric vehicle (EV) power inverter market. To tackle climate change and minimize air pollution, governments throughout the world are putting in place tougher emissions rules. These laws are forcing automakers to transition from traditional internal combustion engine vehicles to electric vehicles, which emit no exhaust emissions. As a result, the need for EV power inverters, which are critical components for converting DC power from batteries to AC power for electric motors, is expected to increase significantly.

Emission restrictions, such as the European Union’s CO2 rules for passenger cars and California’s Zero Emission Vehicle (ZEV) program, are encouraging automakers to expedite their EV production plans. For instance, the EU aims to reduce CO2 emissions from new cars by 37.5% by 2030, compared to 2021 levels. This has prompted firms such as Volkswagen and BMW to make significant investments in electric vehicle technologies, including the development and integration of modern power inverters that are efficient and reliable. The growing number of EV models on the market immediately correlates with rising need for power inverters.

To reduce urban air pollution and oil reliance, governments in markets such as China have imposed strict fuel economy rules and provided significant subsidies for electric vehicles. In response, both domestic and international automakers are increasing their manufacturing of electric vehicles. For instance, in January 2024, BYD announced intentions to increase electric vehicle production to meet China’s new energy vehicle (NEV) regulation. This increase in output needs the use of more efficient power inverters to assure peak performance and regulatory compliance.

Will Rising High Development and Manufacturing Cost Hinder the Growth of the Electric Vehicle Power Inverter Market?

Okay, so the electric vehicle (EV) power inverter market might hit a snag because things are getting pretty pricey to develop and build. It's impacting a lot of areas. Think about itthose new materials and fancy semiconductors that make inverters work better are costing a fortune! And that cost just gets passed on, making the whole EV more expensive and maybe scaring away buyers who are watching their wallets. Plus, the really efficient stuff, like silicon carbide (SiC) and gallium nitride (GaN) semiconductors, are way more expensive than your standard silicon. So, manufacturers are stuck trying to balance better performance with keeping costs down, which could slow down how quickly everyone adopts EVs.

The development of breakthrough power inverter technology necessitates significant investment in R&D. Companies must invest significant resources to be competitive, which raises operational costs. For example, developing next-generation inverters capable of managing higher voltages and better thermal management systems requires significant R&D effort. According to an Automotive News post on July 2024, prominent players such as Bosch and Infineon are continuing to invest in silicon carbide technology, highlighting the huge financial commitment necessary. This investment demand may put a strain on smaller enterprises, potentially resulting in market consolidation and diminished competition.

Furthermore, the intricacy of the supply chain for power inverter components increases the cost burden. The current worldwide semiconductor scarcity, worsened by geopolitical tensions and the COVID-19 epidemic, has resulted in higher costs and longer lead times for crucial components. According to Reuters on July 2024, Intel’s CEO warned that the chip scarcity is projected to continue into 2024, driving increasing costs and disrupting production plans. This supply chain volatility causes firms to keep larger inventory levels and seek alternate sources, both of which lead to increased costs and probable production delays.

Keeping up with regulations can really make things expensive and complicated in the market. Think about itgovernments everywhere are putting the squeeze on manufacturers with super strict rules about emissions and efficiency. It's forcing them to constantly come up with new ideas! While all this pushes technology forward, it also means they have to keep tweaking product designs and how things are made, which really drives up development costs. Take the European Union's Euro 7 emissions standards, for example, set to launch in 2025. According to Electrek, these rules will demand some serious upgrades to electric vehicle powertrains, like the inverters, all to meet those tighter pollution limits. Getting compliant with these ever-changing rules takes a ton of cash, and that could actually slow down the market by making it harder for new players to join and boosting the overall price of EVs.

Category-Wise Acumens

Will Rising Demand for Passenger Cars Drive the Electric Vehicle Power Inverter Market?

Rising demand for passenger cars is expected to boost growth in the electric vehicle (EV) power inverter market. As global awareness of environmental issues rises and nations enact stronger emissions laws, customer preference for electric cars (EVs) has increased significantly. Passenger cars make up a sizable percentage of the EV market, benefiting from advances in battery technology, longer driving ranges, and expanded charging infrastructure.

The increasing demand for passenger vehicles and its impact on the EV power inverter market. For instance, in September 2023, Volkswagen revealed an ambitious aim to become a 100% electric car company by 2040. This commitment includes considerable investments in electric vehicle platforms and battery technology, which are critical components that rely on efficient power inverters to convert DC power from batteries to AC power for electric motor operation. Such strategic initiatives illustrate manufacturers’ answers to rising consumer demand for electric passenger cars, as well as the critical role that power inverters play in enabling these advances.

Furthermore, developments in EV power inverter technology are critical to achieving consumer expectations for performance and efficiency. Companies such as Tesla and Nissan are constantly developing their power electronics to increase energy conversion efficiency and driving dynamics in their electric passenger car models. Tesla, which is well-known for the performance of its electric vehicles, is constantly refining its powertrain technology, including power inverters, in order to preserve its competitive advantage and fulfill growing market needs.

Passenger cars might be what most people drive, but commercial vehicles – think electric buses and trucks – are really taking off! Governments and big companies are trying hard to cut down on pollution from things like deliveries and public transport. That means they're spending a lot to make their work vehicles electric. For example, you've probably heard about cities deciding to go all-electric with their buses, which creates a need for really strong and reliable power inverters that can handle the heavy work. Plus, batteries are getting better and it's easier to charge up, so electric commercial vehicles are becoming more and more popular. This, in turn, is making people want even more specialized power inverters to keep them running smoothly.

Will Rising Usage of Three-Phase Drive the Growth of Electric Vehicle Power Inverter Market?

Hey, so it looks like three-phase inverters are really taking off and are expected to supercharge the electric vehicle (EV) power inverter market! Why? Well, these inverters are quickly becoming the go-to option for EVs because they're just way more efficient, pump out more power, and perform better than the older single-phase versions. They make power conversion smoother and more efficient, which means a better driving experience overall. Plus, they can handle the big stuff – higher voltages and currents – making them perfect for beefy applications like electric trucks and those super-fast, high-performance EVs. And as we see more and more people wanting these kinds of vehicles, the demand for three-phase inverters is predicted to skyrocket right along with it!

Recent advances in semiconductor materials, including as silicon carbide (SiC) and gallium nitride (GaN), have hastened the use of three-phase inverters. These materials significantly increase efficiency and thermal management, both of which are critical to the performance of high-power inverters. Major corporations are spending considerably in these technologies to remain competitive. For example, Bosch has announced a large investment in silicon carbide technology for EV inverters, with the goal of increasing efficiency and lowering energy losses. This strategic step highlights the industry’s transition to more modern three-phase inverter solutions to satisfy the growing performance expectations of EVs.

Furthermore, regulatory demands and environmental concerns are driving automakers to implement technology that enhance vehicle efficiency and reduce emissions. Governments throughout the world are enacting higher pollution limits and efficiency restrictions, driving the sector toward more efficient power electronics. To achieve the new Euro 7 emissions criteria, which will go into effect in 2025, EV powertrains, including inverters, would need considerable improvements. This legislative drive is expected to accelerate the use of three-phase inverters, which are better suited to meeting these strict standards than single-phase inverters.

Even though single-phase inverters are still important, they're not exactly setting the world on fire like their three-phase cousins. You'll usually find these single-phase guys in lower-power or more affordable EVs, where peak performance and efficiency aren't the top priority. Think of them as the simpler, cheaper option – but remember, they can't quite match the efficiency or power of a three-phase setup. That's why they're growing a little slower. Still, they're a big deal because they're in lots of those budget-friendly EVs and in regions where the whole EV thing is just taking off. So, while three-phase inverters might be the head honchos, single-phase inverters are still essential, filling specific needs and adding to the overall variety we see in electric vehicles.

Gain Access into Electric Vehicle Power Inverter Market Report Methodology

Country/Region-wise

Will Rising Consumer Awareness in North America Drive the Electric Vehicle Power Inverter Market?

Rising consumer awareness in North America is expected to fuel significant growth in the electric vehicle (EV) power inverter market. As consumers become more aware of the environmental benefits of electric vehicles and the need to cut carbon emissions, they are increasingly choosing electric automobiles. This trend is aided by favorable government policies, EV purchasing incentives, and increased investment in charging infrastructure throughout the region.

Recent trends show a growing interest in electric automobiles among North American consumers. In June 2023, Ford Motor Company announced intentions to invest $7 billion in electric vehicle production, indicating a strong commitment to growing its EV lineup. This investment includes the development of next-generation electric platforms based on improved power electronics, such as high-efficiency power inverters. These programs highlight automakers’ attempts to address rising consumer demand for electric vehicles while also fostering innovation in EV powertrain technologies.

Furthermore, developments in EV power inverter technology boost consumer confidence in electric vehicles. Companies such as Tesla and General Motors are pioneering the development of efficient power electronics solutions that improve vehicle performance and range. Tesla, for example, has been actively increasing its production capacity for electric vehicles and batteries, capitalizing on advances in power electronics to improve energy conversion and efficiency in its vehicles.

Consumer education and awareness efforts regarding the benefits of electric vehicles are also crucial in driving market expansion. Organizations and advocacy groups are promoting the environmental benefits of electric vehicles, as well as their cost-effectiveness and long-term fuel and maintenance savings. These efforts boost consumer trust in the dependability and practicality of electric vehicles, driving adoption rates and stimulating demand for essential parts such as power inverters.

Will Rising Robust Growth in Electric Vehicle Production in Asia-Pacific Propel the Electric Vehicle Power Inverter Market?

Rising rapid growth in electric vehicle (EV) manufacturing in Asia-Pacific is predicted to drive the electric vehicle power inverter market. As nations in the area, particularly China, Japan, and South Korea, continue to promote electric mobility as part of their sustainable transportation goals, the need for EV power inverters is expected to increase significantly. This spike is being driven by a number of causes, including government subsidies, severe emissions rules, and investments in charging infrastructure, all of which aim to accelerate the adoption of electric vehicles.

In July 2023, Tesla announced plans to expand its Gigafactory in Shanghai, China, to enhance production capacity for electric vehicles and battery components. This expansion demonstrates the company’s commitment to satisfying expanding demand in the Asia-Pacific region, where Tesla’s electric vehicle sales have grown significantly. Such increases not only boost EV manufacturing, but also increase demand for vital components such as power inverters, which are required for electric propulsion systems.

Furthermore, car manufacturers and suppliers in Asia-Pacific are expanding their investments in R&D to create and optimize EV power inverters. Companies such as Infineon Technologies and Toshiba are developing semiconductor technologies like silicon carbide (SiC) and gallium nitride (GaN) to improve the efficiency and performance of power electronics in electric vehicles. These inventions address the growing demand for high-efficiency inverters capable of meeting the needs of next-generation electric vehicles.

Additionally, cooperation and partnerships between automakers and technology companies are driving progress in EV power electronics. For instance, in September 2023, Hyundai announced a strategic collaboration with LG Energy Solution to develop next-generation electric vehicle platforms, with an emphasis on battery and powertrain technology. Such agreements aim to integrate innovative power inverters that improve energy economy and electric car performance, ultimately supporting regional market growth.

Competitive Landscape

The EV power inverter market is a real battleground! You've got tons of players, from big manufacturers to smaller suppliers all vying for a piece of the pie. Think of itcompanies that make power electronics and car parts are all in the mix. And don't forget the semiconductor folks, especially the ones working with silicon carbide (SiC) and gallium nitride (GaN) – they're key to making inverters super efficient. Then you've got new startups and established automotive suppliers using their know-how to cook up some seriously cool, EV-specific inverters. Plus, EV makers are teaming up with inverter suppliers to make sure their electric cars are top-notch. And let's not forget those regulations pushing for greener cars - that's really fueling the fire, making everyone innovate like crazy to grab a bigger slice of the EV power inverter market!

Some of the prominent players operating in the electric vehicle power inverter market include

  • Continental AG
  • Robert Bosch GmbH
  • DENSO Corporation
  • Mitsubishi Electric Corporation
  • Tesla, Inc.
  • Valeo SA
  • Vitesco Technologies
  • Hitachi Astemo Ltd
  • Meidensha Corporation
  • Marelli Corporation.

 Latest Developments

  • In March 2024, Bosch and Daimler have announced a joint venture to develop and manufacture an innovative 800V inverter system for premium electric vehicles. The new inverter, which will go into production in 2026, promises shorter charging times and more efficiency. This collaboration shows the EV industry’s shift to higher voltage systems.
  • In January 2024, GM has formed a strategic relationship with Wolfspeed to secure the supply of silicon carbide power components for its next-generation inverters. This long-term arrangement is intended to support General Motors’ intention to deliver 30 EV cars worldwide by 2025. The usage of SiC technology is intended to increase vehicle range while decreasing charging times.
  • In November 2023, Nidec Corporation began commercial manufacturing of their new E-Axle system, which has an enhanced inverter with higher power density. The system is 20% smaller and lighter than its predecessor, while still providing excellent performance. This development addresses the growing demand for compact and efficient EV powertrains.

Report Scope

REPORT ATTRIBUTESDETAILS
Study Period

2021-2031

Growth Rate

CAGR of ~12.23% from 2024 to 2031

Base Year for Valuation

2024

Historical Period

2021-2023

Forecast Period

2024-2031

Quantitative Units

Value in USD Billion

Report Coverage

Historical and Forecast Revenue Forecast, Historical and Forecast Volume, Growth Factors, Trends, Competitive Landscape, Key Players, Segmentation Analysis

Segments Covered
  • Vehicle Type
  • Inverter Type
  • Power Rating
Regions Covered
  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa
Key Players

Continental AG, Robert Bosch GmbH, DENSO Corporation, Mitsubishi Electric Corporation, Tesla, Inc., Valeo SA, Vitesco Technologies, Hitachi Astemo Ltd, Meidensha Corporation, Marelli Corporation.

Customization

Report customization along with purchase available upon request

Electric Vehicle Power Inverter Market, By Category

 Vehicle Type

  • Passenger Cars
  • Commercial Vehicles
  • Two-Wheelers

Inverter Type

  • Single-Phase
  • Three-Phase

 Power Rating

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

Region

  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • Middle East & Africa

Research Methodology of Market Research

Related Reports

Table of Content

To get a detailed Table of content/ Table of Figures/ Methodology Please contact our sales person at ( chris@marketinsightsresearch.com )

List Tables Figures

To get a detailed Table of content/ Table of Figures/ Methodology Please contact our sales person at ( chris@marketinsightsresearch.com )

FAQ'S

For a single, multi and corporate client license, the report will be available in PDF format. Sample report would be given you in excel format. For more questions please contact:

sales@marketinsightsresearch.com

Within 24 to 48 hrs.

You can contact Sales team (sales@marketinsightsresearch.com) and they will direct you on email

You can order a report by selecting payment methods, which is bank wire or online payment through any Debit/Credit card, Razor pay or PayPal.

Discounts are available.

Hard Copy

Email