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EV Inverter Market Overview
EV Inverter Market size is projected to reach US$
35.29 billion by 2026 and is estimated to grow at around CAGR 10.9% during the
forecast period 2021-2026. The robust growth of the Electric Vehicle (EV) Inverter
Market is majorly attributed to the huge investments towards the expansion of
electric vehicle charging infrastructure and increasing development of
electrification technology to reduce fuel consumption. Growth in sales of Battery
Electric Vehicles and the high cost of batteries (~$156/kWh in 2020) has
necessitated the improvement of inverters and other power electronic for
improving the performance of vehicles. The rising demand for renewable energy sources and increasing
government regulations to curb carbon emission are boosting the traction
inverter market. With the rapid growth of inverters in electric
mobility and intelligent transportation system for converting electricity derived from a DC (Direct Current) source to AC (Alternating
Current) for electric motors is set to drive an electric vehicle delivering
significant savings on fuel, the demand for Electric Vehicle integrated inverter
system has gained a huge traction.
Report Coverage
The report: “EV Inverter Market Forecast (2021-2026)”, by IndustryARC, covers
an in-depth analysis of the following segments of the EV Inverter Market.
By Propulsion
Type: Battery
electric vehicle, plug-in, hybrid electric vehicle
By Inverter
type: Traction
inverter, soft-switching inverter
By Inverter Power: <50 kW, 50-100 kW, 100-
200 kW, >200 kW
By Level of
Integration: Integrated
inverter system, separate inverter system, and mechatronic integration system
By Vehicle Type: Passenger car, Commercial
Vehicles
By Geography: North America(U.S.,
Canada and Mexico); Europe(U.K., Germany, Italy, France, Spain, Russia,Rest of
Europe); APAC (China, Japan, South Korea, India, Australia,Rest of APAC); South
America(Brazil, Argentina, Rest of Americas); RoW (Middle East & Africa)
Key Takeaways
- APAC estimated to dominate the market during 2021-2026 owing to high sales of electric vehicles in emerging countries such as China and India.
- Increasing penetration of electric vehicles
and high demand for traction inverters are augmenting the market.
- Technical inefficiency is one of the challenges impeding the growth of the market.
Global EV Inverter Market Value ($B), (2020-2026)
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EV Inverter Market Segment Analysis- by Inverter type
By Inverter type, EV Inverter Market has been segmented into traction
inverter and soft-switching inverter. Traction dominated the market in
2020 acquiring an EV Inverter market share of 63% and is estimated to hold the
major share during 2021-2026. The demand for traction inverter is driven by several key
technologies, including power device materials, power capacitors and cooling
technologies. The traction inverter is responsible for converting energy from the
vehicle's battery in order to drive the motors in the drivetrain and this key
component has a direct impact on road performance, driving range and
reliability of the vehicle ensuring dependability and safety for the driver and
passengers. Such advanced capabilities of traction inverter are the major key
factors driving the market. For instance, Nidec Corporation estimates that it is
capable of supplying traction motor systems that can power 98% of electric
passenger vehicles and has set a target of reaching 35% global market share in
the EV traction motor market by 2030. In February 2021, Nidec Corporation
announced to acquire Mitsubishi Heavy Industries Machine Tool to support push
into EV drives. Such acquisitions are set to drive the market between 2021 and
2016.
EV Inverter Market Segment Analysis- By Vehicle
By Vehicle
Type, EV Inverter Market has been segmented into passenger vehicles and
commercial vehicles. Passenger cars are
estimated to account for the largest market share of 64% by 2026 growing at a
CAGR of 14.9% due to growth in personal mobility, rising income per capita and
improved lifestyle in emerging countries such as India and China. According to
China Association Automobile Manufacturers (CAAM), electric vehicle sales in
China including battery powered, plug-in hybrid and hydrogen fuel cell cars
jumped 164% year on year in July, 2021 to 2,71,000 units. The rise in
intelligent transportation system and connected mobility has contributed to the
growth of the market. The growing trend among the automakers of combining
inverter with electric motor for
improving
efficiency of the EVs with a reduced space and weight occupancy in the vehicle is set to
drive the market during 2021-2026.
EV Inverter Market Segment Analysis- By Geography
By Geography,
EV Inverter Market has been segmented under North America, Europe, APAC, South
America and RoW. APAC dominated the EV Inverter market in 2020 with a share of
33% and is estimated to hold the major market share of 37% by 2026. APAC is
also estimated to grow at the fastest CAGR 12.5% from 2021 to 2026 owing to maximum
sales of EVs in emerging countries such as China, India, Japan and South Korea.
Government’s stringent policies towards reducing carbon footprint has catalyzed
the sales of EV in this region. APAC region is estimated to be the dominant
adopter of electric vehicles during the forecast period 2021-2026 and the
rising promotion of green transportation such as hybrid electric vehicles are
fostering the market. The ongoing developments and rising investments towards
incorporation of new technologies into electric vehicles are driving the electric
vehicle inverter market. According to The Times of India report, Tata Nexon has
sold 1022 units in August 2021 in India. Such growth in electric vehicle sales
in personal mobility segment has contributed to the growth of the market.
EV Inverter Market Drivers
Rapid penetration of electric vehicles globally are contributing towards EV Inverter market growth
The growing trend among automotive industries
of transition towards electrification of vehicles to curb the carbon footprint
is catalyzing the market. Inverter Market has witnessed a rising number of
innovations due to the growing demand for driver safety and comfort features
that increase the durability of the automobile and with the rising adoption of
electric parking brake (EPB) systems improving the driver convenience by
ensuring driver-assist functions including automatic brake release the demand
for EV inverters has also gained a huge traction. Increasing incorporation of
various handheld devices in EV such as mobile charger, gaming console and
household appliances, the adoption of electric vehicle inverters is anticipated
to witness an increasing trend during the forecast period 2021-202. In May
2019, Hitachi Automotive System announced that Audi has adopted its electric
vehicle (EV) inverter for its mass production EV, e-tron. Such developments are
anticipated to bring growth in EV inverter market during 2021-2026.
Increasing demand for traction inverter is catalyzing the market
Increasing stringent government regulations to
control and curb the air pollution has led many countries to opt for higher
adoption of electric vehicles. The growth in electric vehicle sales has led to the demand
for more efficient and higher-output electric motors, traction inverters, and
other electric powertrain systems that will contribute to high performance EVs.
The EV traction inverters equipped with
a compact, high-efficiency power module, developed for providing high power density
output to maximize EV performance has contributed to the growth of the market.
In September 2021, global semiconductor manufacturer ROHM announced a strategic
partnership with Geely Automobile group to introduce ROHM’s SiC power devices
in high efficiency traction inverters that are being integrated in electric
vehicle platform. Such partnerships are boosting the EV inverter market.
EV Inverter Market Challenges
Technical inefficiency is analyzed to hamper the EV Inverter market growth
Government authorities are implementing rules
and policies globally and also initiating incentives, such as cut-down in vehicle tax, bonus
payments, and premium, for buyers of electric vehicles in the respective
countries to support the electric vehicles sales growth. For instance,
California Air Resources Board (CARB) has implemented ‘Zero Emission Vehicle’
(ZEV) regulation to achieve the state’s long-term emission reduction goals by
promoting the sales of full battery-electric, hydrogen fuel cell, and plug-in
hybrid-electric vehicles to limit smog forming and greenhouse gas emissions. In
spite of this, EV inverter growth rate is hindered by technical inefficiency. In the electric vehicles more energy from the
battery is taken to inverter resulting in switching losses, thereby impacting
on the overall vehicle performance and it also reduces the thermal efficiency
of electronic components in the electric drive system. Such factors are
hampering the adoption of EVs.
EV Inverter Market Landscape
Production Innovation, Acquisitions, Collaboration,
and R&D activities are key strategies adopted by players in the EV Inverter
Market. In 2020, the market of EV
Inverter industry outlook has been fragmented by several companies.
EV Inverter top 10 companies include
- Continental AG
- Robert Bosch GmbH
- Hitachi Ltd.
- Toyota Motor Corporation
- Denso Corporation
- Hyundai Mobis Co. Ltd.
- Mitsubishi Electric Corporation
- Eaton Corporation
- Fuji Electric BYD
- Danfoss Group
Acquisitions/Production Innovation
- In September 2021, General Motors has unveiled its latest series of electric motors consisting of inverter, accessory power module, onboard charging module and other power electronics for reducing costs, weight and manufacturing complexity while increasing reliability to power future EVs.
- In July 2021, Hitachi announced to build new electric vehicle component factories in Japan, U.S. and China by the end of 2022 to expand capacity about six-fold and strengthen its position as an EV part supplier.
Relevant Report Title:
Electric Vehicles (EV) Market – Forecast (2021 - 2026)
Report Code: ATR
0007
Electric Motor Market - Forecast (2021-2026)
Report Code: ESR
0732
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