Global Electric Vehicle Power Inverter Market Extends at a Healthy CAGR of 22.8% by 2030

Introduction

In the engine of an electric vehicle, an inverter is utilized to convert direct current (DC) sources to alternating current (AC). Inverters greatly facilitate control of the electronic powertrain. In electric vehicles, many types of inverters, including traction and soft-switching, are utilized for various purposes. The electric vehicle power business is primarily driven by domestic automakers and the consolidation of established battery manufacturers.

Market Dynamics

Increased Sales of Electric Vehicles Propel the Global Electric Vehicle Power Inverter Market 

Electric vehicles have become a vital component of the automotive industry and are a means of attaining energy efficiency and reducing pollution and greenhouse gas emissions. Increasing environmental concerns and favorable government initiatives are the primary factors driving market expansion. Additionally, the researched market is pushed by the increasing sales of BEVs and PHEVs and the decreased cost of inverter components due to breakthroughs in materials and packaging design. Moreover, the high price of batteries has prompted upgrading inverters and other power electronics and enhancing vehicle performance. 

Governments worldwide have also enacted programs and laws encouraging consumers to select electric vehicles over conventional ones. One plan promoting electric vehicle purchase is the California ZEV program, which intends to have 1.5 million electric vehicles on the road by 2025. Countries such as India, China, the United Kingdom, South Korea, France, Germany, Norway, and the Netherlands offer various incentives for individuals interested in purchasing an electric vehicle. Rapid global sales expansion and ongoing technological advancements in electric car power inverters are anticipated to propel the market's growth throughout the forecast period.

Improved Government and Consumer Spending Creates Excellent Opportunities 

Governments around the world provide tax incentives for the purchase of electric vehicles. In 2020, governments worldwide will spend USD 14 billion on direct investments, incentives, and tax deductions for electric vehicles, a 25% increase from current levels. Significant government spending occurred in Europe. Reduced expenditure in China resulted from the elimination of earlier-implemented sales incentive programs. Due to the introduction of price restrictions for subsidies, the cost of electric vehicles fell slightly. In Europe and China, this resulted in a 3% decrease in the price of BEVs and an 8% decrease in the price of PHEV vehicles. India offered a tax exemption of INR 1.5 million in December 2021 to encourage sales of electric vehicles. 

Consumer expenditure on electric vehicles has increased due to an improvement in business optimism, a post-COVID economic rebound, and an increase in environmental awareness. The rise in EV sales presents tremendous prospects for EV component makers, especially manufacturers of power inverters. In 2020, total spending on electric vehicles reached USD 120 billion, a 50% increase over 2019. Despite the 6% increase in the average price of electric vehicles, sales climbed. Such expenditures give profitable chances for market expansion.

Regional Insights 

Asia-Pacific accounts for the largest market share and is estimated to grow at a CAGR of 22.2% over the forecast period. China is an essential participant in the global electric vehicle sector. Moreover, the Chinese government encourages the adoption of electric vehicles. The country plans to outlaw diesel and gasoline automobiles by 2040. The Chinese market for electric passenger cars is one of the largest in the world, and it has grown significantly over the past several years. It is anticipated to increase throughout the projected period, influencing the demand for electric vehicle power inverters as the demand for electric cars increases. The need for electric vehicle power inverters in China is anticipated to be driven by export contracts and agreements between Chinese automobile manufacturers and other nations for electric buses. 

Europe is estimated to account for USD 6,500 million by 2030, growing at a CAGR of 23.6%. Germany is one of Europe's most important vehicle markets. Moreover, Germany is one of the world's major markets for electric trucks. In Germany, the demand for electric automobiles has steadily increased over the past few years, paving the way for electric vehicle power inverters. For example, sales of passenger automobiles have significantly increased during the past few years. In 2020, 194.4 thousand electric vehicles were sold, a 207% increase from the 63.2 vehicles sold in 2019. In the near future, various collaborations, partnerships, and joint ventures amongst component makers are anticipated to benefit the electric vehicle power inverter industry. The factors mentioned earlier create a potential for producers of electric vehicle components and parts, as the demand for components such as electric vehicle power inverters is anticipated to increase over the forecast period. 

North America is the third-largest region. Due to the increase in electric vehicle adoption and demand in the United States, the need for electric vehicle power inverters has increased dramatically over the past several years. For instance, the demand for electric automobiles has increased favorably despite the pandemic. With an annual growth rate of 22.56%, passenger automobile registrations grew from 1.45 million units in 2019 to 1.78 million in 2020. The market for electric vehicle power inverters is anticipated to be driven by the rising demand for passenger vehicles, such as electric cars. 

Key Highlights

• The global electric vehicle power inverter market was valued at USD 3,670 million in 2021. It is estimated to reach USD 18,980 million by 2030, growing at a CAGR of 22.8% over the forecast period (2022–2030). 
• By propulsion type, the global electric vehicle power inverter market is segmented into Hybrid Electric Vehicles, Plug-In Hybrid Electric Vehicles, Battery Electric Vehicles, and Fuel Cell Electric Vehicles. Battery Electric Vehicle accounts for the largest market share and is estimated to grow at a CAGR of 24.3% over the forecast period.
• By vehicle type, the global electric vehicle power inverter market is segmented into Passenger Cars and Commercial Vehicles. Passenger Cars account for the largest market share and are estimated to grow at a CAGR of 22.3% over the forecast period.

Competitive Players

Competitive Landscape

Key players in the global electric vehicle power inverter market are Vitesco Technologies, Robert Bosch GMBH, DENSO Corporation, Toyota Industries Corporation, Hitachi Astemo Ltd, Meidensha Corporation, Aptiv PLC (Borgwarner Inc.), Mitsubishi Electric Corporation, Marelli Corporation, Valeo Group, Lear Corporation, Continental AG, ZF Friedrichshafen AG, LG Magna e-Powertrain, John Deere Electronic Solutions, Drive System Design LTD, Hyundai Mobis Co. Ltd.

Recent Developments

Market News

• In August 2022, Vitesco Technology joined the Swappable Batteries Motorcycle Consortium. It is a creative multinational manufacturer of contemporary drive technologies and electrification solutions (SBMC). The Consortium, which now has 21 members, was founded in 2021 by four major manufacturers of two-wheeled vehicles worldwide: Honda, KTM, Piaggio, and Yamaha.
• In July 2022, Renault Group, a significant player in the automotive industry, and Vitesco Technologies, a leading international manufacturer of modern drive technologies and electrification solutions, announced the signing of a strategic partnership for the joint development and the production of power electronics in a so-called "One Box" for electric and hybrid powertrains

Segmentation

Global Electric Vehicle Power Inverter Market: Segmentation 

By Propulsion Type

• Hybrid Electric Vehicle
• Plug-in Hybrid Electric Vehicle
• Battery Electric Vehicle
• Fuel Cell Electric Vehicle

By Vehicle Type

• Passenger Cars
• Commercial Vehicles 

By Regions

• North America
• Europe
• Asia-Pacific
• Rest of the World