Electric Vehicle Power Inverter Market - Forecasts from 2024 to 2029

The electric vehicle power inverter market was valued at US$9.406 billion in 2024 and is projected to grow to US$22.786 billion by 2029, with a CAGR of 19.36%.

The global electric vehicle power inverter market is estimated to experience considerable growth coinciding with the increase in the global supply of electric cars. Among various propulsion types available within the global EV power inverter market, hybrid electric vehicles are expected to hold the highest share, while in the vehicle type segment, passenger vehicles will experience rapid growth. The traction inverter category of the inverter type segment is expected to grow comparatively more than the soft-switching inverter category. The OEM category, under the distribution channel segment of this market, is expected to see considerable growth along with a rise in the production of EVs worldwide.

Electric vehicles utilize motors powered by DC electricity, which is transformed into AC by a vehicle power inverter. It is also noted that power inverters are increasing significantly in electric vehicles. The corresponding AC-driven machinery and device sensors are then powered by the translation of electric current back to its original AC form using motors. The concept of electric cars also embraces the use of sockets and other regular 120V devices.

The global electric vehicle power inverter market share is expected to grow given the increasing use of electric-powered automobiles, the aggressive policies of various governments aimed at encouraging EV adoption, and the rise in the use of low-emission and fuel-efficient vehicles.

The global market for power inverters is also expected to benefit from the increase in the production of EVs owing to the increased worldwide demand for EVs. Furthermore, the global market for electric vehicle power inverters is expected to grow due to increasing government investments, initiatives, subsidies, and policies aimed at promoting the electric vehicle industry. This includes support for manufacturing, technology, and infrastructure development.

Moreover, forecasts indicate that the growth rate of the EV power inverter market worldwide could be constrained by the slow evolution of public charging infrastructure within the broader development of the EV ecosystem. Due to the limited charging infrastructure worldwide, it is estimated that the demand for EVs in the market could decrease, thereby affecting the demand for inverters during EV production.

Electric vehicle power inverter market drivers

• The global market is witnessing an increase in the uptake of EVs.

Several factors have led to people adopting EVs instead of petrol engines in recent years. These include the cheaper operating costs of EVs compared to internal combustion engines, the introduction of tough government policies that would help in reducing pollution, and less exhaust emissions, among other factors, which in turn creates a huge demand for EV power inverters.

For instance, EV sales have increased due to market growth in China, the USA, and Europe. According to the global EV outlook report by the International Energy Agency, China managed to sell over 6 million EVs in 2022, while over 2.7 million and 1 million EVs were sold in Europe and the USA, respectively, in the same year. The total sales of EVs in China were approximately 8.1 million, while sales in Europe amounted to roughly 3.2 million and in the USA to 1.4 million, as of 2023. An increase in the demand for EVs stretching globally will lead to a great increase in the demand for EV power inverters.

Electric vehicle power inverter market geographical outlook

• Asia Pacific is anticipated to have a considerable share of the electric vehicle power inverter market.

Asia-Pacific is at the forefront of the EV power inverter market. In China, the demand for EVs is growing rapidly to meet the emission reduction targets set by global standards, coupled with the rise of urbanization.

Meanwhile, in India, which is suppressed by traditional internal combustion technologies, the government has taken several steps to promote the production and adoption of EVs. Automakers are developing new technologies and ramping up production to satisfy the need created by the increase in the sale of EVs in India. For instance, in May 2022, the Toyota Group invested INR 48 billion (USD 624 million) in India to manufacture EV components. In addition, Maruti Suzuki's parent firm, Suzuki Motor, in March 2022, confirmed investments of INR 10,440 crore in India for the construction of a manufacturing plant for EVs and its batteries.

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Report Coverage:

• Historical data & forecasts from 2022 to 2029
• Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, Customer Behaviour, and Trend Analysis
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The Electric Vehicle Power Inverter Market is analyzed into the following segments:

By Propulsion Type

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

By Vehicle Type

• Passenger Vehicles
• Commercial Vehicles

By Inverter Type

• Traction Inverter
• Soft Switching Inverter

By Distribution Channel

• OEM
• Aftermarket

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• United Kingdom
• Germany
• France
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Indonesia
• Thailand
• Others