Traction Inverter Market is expected to reach US$ 39,140.79 Million by 2028

Increasing Demand for Electric and Hybrid Electric Vehicles to Create Growth Opportunities for Traction Inverter Market Players during 2022–2028

According to our latest market study on “Traction Inverter Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by propulsion type, voltage type, technology type, and vehicle type,” the market is expected to grow from US$ 13,128.48 million in 2021 to US$ 39,140.79 million by 2028; it is estimated to grow at a CAGR of 17.2% from 2022 to 2028.  

The rising adoption of traction inverters in electric and hybrid electric vehicles is growing daily due to the unparalleled benefits these inverters offer for effective performance due to safety and reliability. Traction inverters act as modern components in modern powertrain design. Auto-makers and EV manufacturers are developing new electrified models and increasing the production and supply of Traction Inverters to enable their deployment and enable a higher level of integration across the electric vehicles in the Traction Inverter Market. The global shift toward electrification is yet another factor contributing the market growth. The rising fuel prices, shift towards sustainable fuels, and increase in electric car registrations are boosting the adoption of traction inverters in EVs in coming years. Using electric technology in vehicles is a key factor supporting the economy's growth and growth diversifying the fleet of transportation. With a surge in demand for electric vehicles, traction Inverters are also gaining pace, likely to propel the demand for automotive traction inverters in the global market.

The demand for traction inverters in the region of Asia Pacific (APAC) is fueled by favorable government policies. The usage in electric vehicles largely backs the demand. The federal policies are encouraging the sales of electric vehicles and indirectly leading to higher adoption of inverters. For example, the Chinese government extended subsidies for electric cars for further two years post the COVID-19 pandemic, with a plan to reduce the subsidies by 10% in 2021 and 20% in 2022. In spite of the reduction in subsidies, growth in sales in 2021 led to the implication that the EV market in the country of China has begun to mature. Overall, the Chinese electric car market appears to be poised for further expansion in 2022, propelled by the inclination of consumer preferences for innovative product offerings and the current state of subsidies. Furthermore, in Asia Pacific region, India is also an emerging market. The government of India approved more than 5000 electric buses for commuting inter-cities, 400 e-buses for interstate operations, and 100 e-buses for last-mile connectivity in some metropolitan cities as of August 2019. In India, Olectra-BYD plans to build its second electric bus production plant. Its goal is to produce electric buses at the most affordable prices. In Asia Pacific region, China and India are attractive markets. The region's Traction Inverter Market is projected to escalate due to a supportive regulatory framework for electric vehicles, lower-cost electric and electronic components, and a rapidly growing EV charging infrastructure.

The Traction Inverter Market is segmented into propulsion type, voltage type, technology, vehicle type, and geography. Based on propulsion type, the market is segmented into BEV, HEV, PHEV, and others. Based on voltage type, the market is segmented as Up to 200V, 200 to 900V, and 900V and above. Based on technology type, the market is segmented into IGBT, MOSFET, and others. Based on vehicle type, the market is segmented into passenger cars, commercial vehicles, and others. In terms of geography, the Traction Inverter Market is divided into five regions—North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). Asia Pacific dominated the overall market in 2021, and Europe contributed to the second-largest market share in 2021.

Impact of COVID-19 Pandemic on Asia Pacific Traction Inverter Market

The governments in Asia Pacific (APAC) countries are taking possible steps to reduce pandemic effects by announcing a lockdown, adversely affecting the automotive manufacturing sector and indirectly impacting the overall sales of automotive traction inverters. China is one of the region's leading electric car manufacturing countries and has been one of APAC's most affected countries during Q1 and Q2. In China, the total new vehicle sales dropped by 7.4% during 2020. COVID-19 pandemic disruptions mostly impacted the automakers with overall supply chains, two-tier and three-tier dealers. The auto manufacturers discontinued their productions in Asia Pacific countries such as India, resulting in decreased demand and disruption in the growth of the Traction Inverter Market. China experienced a huge decline in sales, accounting for over 80% in February 2020. However, the countries eased the lockdown measures, reflecting the restart of manufacturing facilities.

In APAC, Despite the COVID-19 pandemic affecting automobile manufacturing and sales, demand for electric vehicles increased in 2020, which had a favorable effect on the Traction Inverter Market business. With sales nearly tripling to 3 million in 2021, China took the lead in the global growth of electric vehicles. The annual growth outpaces the country’s total auto sector’s more slow recovery and represents the quickest expansion of the electric car market in China since 2015. The monthly increase in the market share of electric vehicles from 7.2 % in January to 20% in December was dramatic.

A few key players operating in the Traction Inverter Market are BorgWarner Inc., Marelli, Mitsubishi Electric Corporation, Denso Corporation, and Continental AG.

Traction Inverter Market – by Region, 2021 (%)

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