The global automotive traction inverter market is set for explosive growth, projected to skyrocket from $10.5 billion in 2022 to $46.3 billion by 2032, expanding at a robust CAGR of 16.4%, according to a new report by Allied Market Research.
The report, titled “Automotive Traction Inverters Market (2023–2032)”, highlights strong momentum in electric vehicle (EV) adoption, increasing demand for high-performance power electronics, and rapid advancements in inverter technology as the primary growth drivers.
Asia-Pacific in the Lead; Europe Gears Up for Fastest Growth
Asia-Pacific, led by China, dominated the market in 2022, supported by aggressive EV policies and clean energy investments. India, while progressing, is focusing on strengthening its EV infrastructure to support rising demand.
Meanwhile, Europe is anticipated to witness the highest CAGR during the forecast period, thanks to stringent carbon emission targets and widespread EV adoption. By 2035, the EU aims for a 100% reduction in emissions from new vehicles, mandating complete electrification—a move expected to fuel demand for traction inverters significantly.
Key Technology Trends Shaping the Market
- IGBT Dominance: Insulated Gate Bipolar Transistors (IGBTs) remain a core technology in traction inverters for their reliability and ability to handle high voltage, especially in EVs and hybrid vehicles.
- SiC and GaN Breakthroughs: Companies like hofer powertrain and VisIC Technologies are pioneering gallium nitride (GaN) inverters to enhance 800V system performance. Robert Bosch GmbH also introduced its first SiC-based MOSFETs in 2021, boosting power module efficiency.
- Advanced Cooling Systems: With rising battery heat concerns, innovations in inverter thermal management are key. Hitachi Astemo’s compact, direct water-cooled module for Geely’s hybrid platform is a prime example of high-performance cooling solutions enabling smaller, more powerful units.
Collaborations Boosting Innovation
- In May 2023, Denso Corporation partnered with United Semiconductor Japan (USJC) to mass-produce IGBT chips on 300mm wafers—significantly scaling up inverter supply for EV applications.
- These efforts reflect growing industry convergence to support the high-voltage electrification trend sweeping across global automotive sectors.
COVID-19 Impact and Rebound
While the COVID-19 pandemic led to production slowdowns and disrupted supply chains, the sector has rebounded strongly. Resumed economic activity, surging EV sales, and intensified R&D have positioned the market for a strong upward trajectory in the post-pandemic era.
Key Findings from the Report:
- Battery Electric Vehicles (BEVs) will lead propulsion-type demand in the inverter space.
- Inverters with output power ≤130 kW will see significant traction due to their use in mainstream EVs.
- Silicon (Si) remains the dominant semiconductor material, though next-gen SiC and GaN are rising.
- Europe will post the fastest regional growth through 2032.
Top Players in the Market:
- BorgWarner Inc.
- Denso Corporation
- Eaton Corporation
- Hitachi, Ltd.
- Mitsubishi Electric Corporation
- Robert Bosch GmbH
- Curtiss-Wright Corporation
- TDK Electronics
- Valeo SA
- Vitesco Technologies Group Aktiengesellschaft
