EV Inverters Market

EV Inverters Market Insights

“The global EV inverters market size was US$ 17.0 billion in 2024 and is likely to grow at a strong CAGR of 12.4% in the long run to reach US$ 40.4 billion in 2031.”

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Introduction

A traction inverter is an essential part of an EV, turning battery power into energy that runs the motor. It helps control speed, improve efficiency, and even recapture energy through regenerative braking for a smoother, more efficient drive. It enhances energy management to maximize range and performance. It works alongside battery management and motor control units to optimize vehicle performance. There has been an increase in focus on the development of smaller and lighter inverters, improving overall vehicle efficiency.

EV Inverters Market Drivers

• The escalating number of EV sales, together with increased EV manufacturing, promotes the need for inverters that convert electric battery power into efficient electric motor movement. 

•  Recent power electronics development has shifted production towards silicon carbide (SiC) and gallium nitride (GaN) inverters, which provide greater efficiency and decreased energy loss, coupled with enhanced vehicle operational performance. 

• Future advancements in battery technology drive the need for EV inverters capable of handling higher power loads, supported by enhanced thermal management systems for improved performance and safety. 

• Strict emission regulations, government subsidies, and driver demand for longer ranges drive automakers to choose efficient, lightweight, and compact inverters for EVs.

Segments' Analysis

Vehicle Insights

“LV is expected to remain the dominant vehicle of the EV eMotors market during the forecasted period.”

The market is segmented into LV (light vehicles) and M&HCV (medium—and heavy-duty commercial vehicles). LVs include passenger cars and LCVs (light commercial vehicles). The increasing motorization rate and higher production of passenger cars and LCVs are the key factors behind the market's dominance.

Stringent government policies and regulations, rising EV adoption, technological advancements in e-motors, fleet electrification, and growing R&D investment in passenger car and LCV e-motors are some other factors driving the LV’s demand in the market.

EV Insights

“Currently, HEVs dominate the EV inverters market, but BEVs are set to take the lead in the coming years.”

The market is segmented into BEV and HEV. HEVs offer a more affordable option than BEVs, providing longer driving ranges without range anxiety, making them a practical choice for current driving needs. BEVs will dominate the future market, driven by expanding charging infrastructure and advancements in battery technology, enabling faster charging and longer driving ranges. Government incentives, combined with lower maintenance costs, will gradually reduce BEV prices, making them more attractive to consumers.

Technology Insights

“IGBT is expected to remain the dominant technology type, whereas SiC is expected to be the second-largest technology type in the market during the forecast period.”

The market is segmented into IGBT, SiC, and GaN. IGBTs lead the market due to their proven performance, cost-effectiveness, and widespread use in EV inverters. They offer reliable operation, high efficiency, and scalability for modern EV systems.

SiC technology is the market's second-largest and second-fastest technology type, driven by its superior efficiency, higher power density, and reduced energy losses in EV applications.  Advancing technology and lower production costs are making SiC inverters more attractive for next-generation EVs, enabling better performance, longer range, and improved efficiency.

Number of Inverters Insights

“2 Inverters are expected to remain the dominant category of the market during the forecast period.”

The market is segmented into 1 inverter, 2 inverters, 3 inverters, and 4 inverters. The market-leading configuration of EVs uses two inverters to maximize performance and efficiency. Using two inverters in one system helps all-wheel-drive (AWD) and high-performance EVs drive better by improving traction, balancing power, and enhancing control with independent motors for the front and rear. The dual-inverter system improves efficiency while staying more cost-effective than advanced multi-inverter setups. The two-inverter configuration has become more popular because it provides enhanced redundancy and flexibility without requiring substantial weight or complexity increases. Manufacturers prefer this configuration to build a wide range of EVs, from standard to high-performance models, ensuring better market reach and higher customer satisfaction than single or multi-inverter designs.

Integration Insights

“Motor + Inverter integration is expected to remain dominant throughout the forecast period.”

The market is segmented into standalone, inverter + motor, inverter + DC-DC converter, and other integrations. The market leads with the inverter + motor integration type, as this integration improves performance while minimizing power waste and maximizing system efficiency. The integration type offers higher efficiency, compact design, cost savings, improved reliability, and better thermal management, making EVs more efficient and performance-driven. The combination provides better space efficiency, making it ideal for automakers looking to improve EV drivetrain performance while simplifying design.

Regional Insights

“Asia-Pacific is expected to remain the largest market for EV Inverters during the forecast period.”

In terms of region, the market is segmented into North America, Europe, Asia-Pacific, and RoW. Higher EV production, especially in China, strong government support (incentives and policies) increases adoption, advancement in battery and power electronics technology, and expanding charging infrastructure support EV adoption among consumers, which are key factors driving the region’s market. China remains the EV market leader, driven by its high manufacturing capacity, strong local demand, government incentives, advancements in power electronics, efficient supply chain, extensive charging infrastructure, and major EV manufacturers.

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Key Players

The market is moderately fragmented, with over 50 players across the region. Most of the major players compete in some of the governing factors, including price, service offerings, regional presence, etc. The following are the key players in the EV inverters market.

Here is the list of the Top Players (Based on Dominance)

• Denso Corporation

• BYD Auto Co., Ltd.

• Tesla, Inc.

• Nidec Corporation

• Dana Incorporated

• Valeo SA

Note: The above list does not necessarily include all the top players in the market.

Are you the leading player in this market? We would love to include your name. Please write to us at [email protected]

Recent Developments of EV Inverters Market

Recent Market JVs and Acquisitions:

A considerable number of strategic alliances, including M&As, JVs, etc., have been performed over the past few years:

• In December 2020, LG Electronics teamed up with Magna International Inc. to establish a joint venture to manufacture e-motors, inverters, and onboard chargers, supporting the global shift toward vehicle electrification. The newly formed company, LG Magna e-Powertrain Co., Ltd., combines the strengths of both companies in electric powertrain systems and world-class automotive manufacturing, aiming to drive innovation and efficiency in the EV industry.

Report Features

This report provides market intelligence most comprehensively. The report structure has been kept so that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.

• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.

• Market trend and forecast analysis.

• Market segment trend and forecast.

• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.

• COVID-19 impact and its recovery curve.

• Attractive market segments and associated growth opportunities.

• Emerging trends.

• Strategic growth opportunities for the existing and new players.

• Key success factors.

Market Segmentation

The EV Inverters market is segmented into the following categories:

By Vehicle Type

• Light Vehicles

• M&HCV

By EV Type

• BEV

• HEV

By Technology Type

• IGBT

• SiC

• GaN

By Number of Inverters

• 1 Inverter

• 2 Inverters

• 3 Inverters

• 4 Inverters

By Integration Type

• Standalone

• Motor + Inverter

• Inverter + DC-DC converter

• Other Integrations

By Region

• North America (Country Analysis: The USA, Canada, and Mexico)

• Europe (Country Analysis: Germany, France, The UK, Italy, Russia, and Rest of Europe)

• Asia-Pacific (Country Analysis: Japan, China, India, South Korea, and Rest of Asia-Pacific)

• Rest of the World (Country Analysis: Brazil, Argentina, and Others)

Research Methodology

This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s EV inverters market realities and future market possibilities for the forecast period.  The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for market participants and investors in identifying the low-hanging fruit available in the market and formulating growth strategies to expedite their growth process.

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 10 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respected clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Service portfolio, geographical reach, regional presence, and strategic alliances

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