Traction Inverter Market, By Component, By Voltage Range, By Propulsion Type, By End-User, By Country, and By Region - Industry Analysis, Market Size, Market Share & Forecast from 2024-2032
Traction Inverter Market size was valued at USD 19,998 Million in 2023, expanding at a CAGR of 16.0% from 2024 to 2032.
The Traction Inverter Market is focused on providing efficient power conversion solutions for electric vehicles (EVs), trains, and other transportation systems. Traction inverters play a critical role in converting DC from batteries to AC, enabling smooth and reliable motor operation. The increasing demand for electric mobility, alongside the global push towards reducing carbon emissions, has accelerated the adoption of traction inverters in EVs and electric rail systems. In 2022, the electric vehicle fleet reached over 10 million globally, highlighting the growing importance of these inverters in the transportation industry. However, the market faces challenges such as high manufacturing costs and the complexity of developing efficient power conversion systems. Still, opportunities exist with the continuous advancements in semiconductor materials, like silicon carbide (SiC), which are improving inverter performance. Additionally, government incentives for electric transportation and sustainable technologies further fuel market growth. The expansion of electric rail networks worldwide also opens new avenues for traction inverter applications.
Traction Inverter Market- Market Dynamics
Increasing Demand for Electric Mobility Accelerates Growth in the Traction Inverter Market
The rising demand for electric mobility is significantly boosting the traction inverter market. According to the International Energy Agency (IEA), global electric car sales surpassed 10 million in 2022, contributing to a growing need for efficient power conversion systems in electric vehicles (EVs). Traction inverters are essential components in EVs, as they manage power from the battery to the motor, ensuring optimal performance and energy efficiency. Furthermore, countries like the U.S. and China are pushing for electric vehicle adoption, with governments offering incentives and subsidies to promote clean energy solutions. In Europe, the European Commission's "Fit for 55" plan, which aims to cut emissions by 55% by 2030, is also accelerating the shift towards electric transportation, thus creating more opportunities for traction inverter manufacturers. As automakers increasingly turn to electric platforms, the demand for advanced traction inverters is expected to rise, driving further technological advancements and market growth.
Traction Inverter Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 16.0% over the forecast period (2024-2032)
Based on Component segmentation, IGBT modules was predicted to show maximum market share in the year 2023
Based on Voltage Range segmentation, High Voltage (>600V) was the leading type in 2023
Based on Propulsion Type segmentation, Electric propulsion was the leading type in 2023
On the basis of region, North America was the leading revenue generator in 2023
Traction Inverter Market- Segmentation Analysis:
The Global Traction Inverter Market is segmented on the basis of Component, Voltage Range, Propulsion Type, End-User, and Region.
The market is divided into three categories based on Component: IGBT Modules, MOSFET Modules, and Capacitors. IGBT modules are expected to lead the Traction Inverter Market due to their high efficiency and ability to handle high voltage and current levels. Following them, MOSFET modules are preferred for lower voltage applications, while capacitors play a supporting role in energy storage and smoothing.
The market is divided into three categories based on Voltage Range: Low Voltage (<300V), Medium Voltage (300-600V), and High Voltage (>600V). The high voltage (>600V) segment is anticipated to dominate the Traction Inverter Market due to its use in electric vehicles and heavy-duty transportation. Medium voltage (300-600V) follows, while low voltage (<300V) is primarily used in smaller, less demanding applications.
Traction Inverter Market- Geographical Insights
The Asia-Pacific region, particularly China, holds the largest share in the Traction Inverter Market, driven by the rapid adoption of electric vehicles (EVs) and robust government initiatives aimed at reducing carbon emissions. China's EV market is the largest in the world, with over 6.5 million electric vehicles sold in 2022 alone, accounting for nearly half of global EV sales. This has accelerated the demand for efficient traction inverters in electric buses, trains, and passenger vehicles. The Indian government's push to promote electric mobility through incentives like the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme also contributes to the market's growth in the region. In Japan, companies like Mitsubishi Electric and Toshiba are actively launching new traction inverters with higher efficiency and lower costs. Furthermore, the European market is witnessing a surge in traction inverter adoption, fueled by the European Union's regulatory measures for emission reductions and the increased focus on electric rail transport. These trends are driving regional competition and innovation in the market.
Traction Inverter Market- Competitive Landscape:
The competitive landscape of the Traction Inverter Market is characterized by major players like Siemens, ABB, and Mitsubishi Electric, with a strong focus on expanding their product portfolios and enhancing efficiency. These companies are particularly focused on the Asia-Pacific and European markets, where electric vehicle adoption is accelerating. Siemens, for example, launched its new high-efficiency traction inverters designed for rail applications in 2022, aimed at enhancing energy savings in public transport systems. In March 2023, ABB introduced a next-generation traction inverter for electric buses, emphasizing its compact design and high performance. Additionally, the merger between Panasonic and Tesla in 2021, focused on electric vehicle batteries and powertrains, underscores the importance of traction inverters in the broader EV ecosystem. In Europe, the European Union's Green Deal and its push towards electrification in transportation continue to boost the market. With regulations tightening around carbon emissions, traction inverter manufacturers are collaborating and innovating to offer energy-efficient solutions for electric buses, trains, and vehicles.
Recent Developments:
In June 2024, NXP Semiconductors partnered with ZF Friedrichshafen to develop next-generation SiC-based traction inverter solutions for electric vehicles. Utilizing NXP's GD316x high-voltage gate drivers, these inverters aim to enhance efficiency, extend EV range, and reduce charging stops.
In July 2024, onsemi was selected as the primary provider for Volkswagen Group's next-generation electric vehicles, delivering a fully optimized power system solution based on its latest EliteSiC M3e platform. This collaboration aims to enhance electric vehicle performance and efficiency.
SCOPE OF THE REPORT
The scope of this report covers the market by its major segments, which include as follows:
GLOBAL TRACTION INVERTER MARKET KEY PLAYERS- DETAILED COMPETITIVE INSIGHTS
BYD Company Limited
Continental AG
Dana Incorporated
Delphi Technologies PLC
Denso Corporation
Hitachi Automotive Systems, Ltd.
Infineon Technologies AG
Lear Corporation
Mitsubishi Electric Corporation
Robert Bosch GmbH
Semikron International GmbH
Siemens AG
STMicroelectronics N.V.
Toyota Industries Corporation
Valeo S.A.
Yaskawa Electric Corporation
Others
GLOBAL TRACTION INVERTER MARKET, BY COMPONENT- MARKET ANALYSIS, 2019 - 2032
IGBT Modules
MOSFET Modules
Capacitors
GLOBAL TRACTION INVERTER MARKET, BY VOLTAGE RANGE- MARKET ANALYSIS, 2019 - 2032
Low Voltage (<300V)
Medium Voltage (300-600V)
High Voltage (>600V)
GLOBAL TRACTION INVERTER MARKET, BY PROPULSION TYPE- MARKET ANALYSIS, 2019 - 2032
Battery Electric Vehicles (BEVs)
Hybrid Electric Vehicles (HEVs)
Plug-in Hybrid Electric Vehicles (PHEVs)
GLOBAL TRACTION INVERTER MARKET, BY END-USER- MARKET ANALYSIS, 2019 - 2032
Automotive
Railways
Industrial
GLOBAL TRACTION INVERTER MARKET, BY REGION- MARKET ANALYSIS, 2019 - 2032
North America
The U.S.
Canada
Europe
Germany
France
Italy
Spain
United Kingdom
Russia
Netherlands
Sweden
Poland
Rest of Europe
Asia Pacific
India
China
South Korea
Japan
Australia
Thailand
Indonesia
Philippines
Rest of APAC
Latin America
Brazil
Mexico
Argentina
Colombia
Rest of LATAM
The Middle East and Africa
Saudi Arabia
United Arab Emirates
Israel
Turkey
Algeria
Egypt
Rest of MEA
Table of Contents
1. Traction Inverter Market Overview
1.1. Study Scope
1.2. Market Estimation Years
2. Executive Summary
2.1. Market Snippet
2.1.1. Traction Inverter Market Snippet by Component
2.1.2. Traction Inverter Market Snippet by Voltage Range
2.1.3. Traction Inverter Market Snippet by Propulsion Type
2.1.4. Traction Inverter Market Snippet by End-User
2.1.5. Traction Inverter Market Snippet by Country