EV Inverter Market - Forecast (2022 - 2027)
EV Inverter Market - Forecast (2022 - 2027)
EV Inverter Market size is projected to reach US$ 35.29 billion by 2026 and is estimated to grow at around CAGR 10.9% during the forecast period 2021-2026.

EV Inverter Market size is projected to reach US$ 35.29 billion by 2026 and is estimated to grow at around CAGR 10.9% during the forecast period 2021-2026. The robust growth of the Electric Vehicle (EV) Inverter Market is majorly attributed to the huge investments towards the expansion of electric vehicle charging infrastructure and increasing development of electrification technology to reduce fuel consumption. Growth in sales of Battery Electric Vehicles and the high cost of batteries (~$156/kWh in 2020) has necessitated the improvement of inverters and other power electronic for improving the performance of vehiclesThe rising demand for renewable energy sources and increasing government regulations to curb carbon emission are boosting the traction inverter market. With the rapid growth of inverters in electric mobility and intelligent transportation system for converting electricity derived from a DC (Direct Current) source to AC (Alternating Current) for electric motors is set to drive an electric vehicle delivering significant savings on fuel, the demand for Electric Vehicle integrated inverter system has gained a huge traction.

Report Coverage

The report: “EV Inverter Market Forecast (2021-2026)”, by IndustryARC, covers an in-depth analysis of the following segments of the EV Inverter Market.

By Propulsion Type: Battery electric vehicle, plug-in, hybrid electric vehicle
By Inverter type: Traction inverter, soft-switching inverter
By Inverter Power: <50 kW, 50-100 kW, 100- 200 kW, >200 kW
By Level of Integration: Integrated inverter system, separate inverter system, and mechatronic integration system
By Vehicle Type: Passenger car, Commercial Vehicles
By Geography: North America(U.S., Canada and Mexico); Europe(U.K., Germany, Italy, France, Spain, Russia,Rest of Europe); APAC (China, Japan, South Korea, India, Australia,Rest of APAC); South America(Brazil, Argentina, Rest of Americas);  RoW (Middle East & Africa)

Key Takeaways


  • APAC estimated to dominate the market during 2021-2026 owing to high sales of electric vehicles in emerging countries such as China and India.
  •  Increasing penetration of electric vehicles and high demand for traction inverters are augmenting the market.
  • Technical inefficiency is one of the challenges impeding the growth of the market.
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EV Inverter Market Segment Analysis- by Inverter type

By Inverter type, EV Inverter Market has been segmented into traction inverter and soft-switching inverter. Traction dominated the market in 2020 acquiring an EV Inverter market share of 63% and is estimated to hold the major share during 2021-2026. The demand for traction inverter is driven by several key technologies, including power device materials, power capacitors and cooling technologies. The traction inverter is responsible for converting energy from the vehicle's battery in order to drive the motors in the drivetrain and this key component has a direct impact on road performance, driving range and reliability of the vehicle ensuring dependability and safety for the driver and passengers. Such advanced capabilities of traction inverter are the major key factors driving the market. For instance, Nidec Corporation estimates that it is capable of supplying traction motor systems that can power 98% of electric passenger vehicles and has set a target of reaching 35% global market share in the EV traction motor market by 2030. In February 2021, Nidec Corporation announced to acquire Mitsubishi Heavy Industries Machine Tool to support push into EV drives. Such acquisitions are set to drive the market between 2021 and 2016.

EV Inverter Market Segment Analysis- By Vehicle

By Vehicle Type, EV Inverter Market has been segmented into passenger vehicles and commercial vehicles. Passenger cars are estimated to account for the largest market share of 64% by 2026 growing at a CAGR of 14.9% due to growth in personal mobility, rising income per capita and improved lifestyle in emerging countries such as India and China. According to China Association Automobile Manufacturers (CAAM), electric vehicle sales in China including battery powered, plug-in hybrid and hydrogen fuel cell cars jumped 164% year on year in July, 2021 to 2,71,000 units. The rise in intelligent transportation system and connected mobility has contributed to the growth of the market. The growing trend among the automakers of combining inverter with electric motor for improving efficiency of the EVs with a reduced space and weight occupancy in the vehicle is set to drive the market during 2021-2026.

EV Inverter Market Segment Analysis- By Geography

By Geography, EV Inverter Market has been segmented under North America, Europe, APAC, South America and RoW. APAC dominated the EV Inverter market in 2020 with a share of 33% and is estimated to hold the major market share of 37% by 2026. APAC is also estimated to grow at the fastest CAGR 12.5% from 2021 to 2026 owing to maximum sales of EVs in emerging countries such as China, India, Japan and South Korea. Government’s stringent policies towards reducing carbon footprint has catalyzed the sales of EV in this region. APAC region is estimated to be the dominant adopter of electric vehicles during the forecast period 2021-2026 and the rising promotion of green transportation such as hybrid electric vehicles are fostering the market. The ongoing developments and rising investments towards incorporation of new technologies into electric vehicles are driving the electric vehicle inverter market. According to The Times of India report, Tata Nexon has sold 1022 units in August 2021 in India. Such growth in electric vehicle sales in personal mobility segment has contributed to the growth of the market.


EV Inverter Market Drivers

Rapid penetration of electric vehicles globally are contributing towards EV Inverter market growth

The growing trend among automotive industries of transition towards electrification of vehicles to curb the carbon footprint is catalyzing the market.  Inverter Market has witnessed a rising number of innovations due to the growing demand for driver safety and comfort features that increase the durability of the automobile and with the rising adoption of electric parking brake (EPB) systems improving the driver convenience by ensuring driver-assist functions including automatic brake release the demand for EV inverters has also gained a huge traction. Increasing incorporation of various handheld devices in EV such as mobile charger, gaming console and household appliances, the adoption of electric vehicle inverters is anticipated to witness an increasing trend during the forecast period 2021-202. In May 2019, Hitachi Automotive System announced that Audi has adopted its electric vehicle (EV) inverter for its mass production EV, e-tron. Such developments are anticipated to bring growth in EV inverter market during 2021-2026.

Increasing demand for traction inverter is catalyzing the market

Increasing stringent government regulations to control and curb the air pollution has led many countries to opt for higher adoption of electric vehicles. The growth in electric vehicle sales has led to the demand for more efficient and higher-output electric motors, traction inverters, and other electric powertrain systems that will contribute to high performance EVs.  The EV traction inverters equipped with a compact, high-efficiency power module, developed for providing high power density output to maximize EV performance has contributed to the growth of the market. In September 2021, global semiconductor manufacturer ROHM announced a strategic partnership with Geely Automobile group to introduce ROHM’s SiC power devices in high efficiency traction inverters that are being integrated in electric vehicle platform. Such partnerships are boosting the EV inverter market.

EV Inverter Market Challenges

Technical inefficiency is analyzed to hamper the EV Inverter market growth

Government authorities are implementing rules and policies globally and also initiating incentives, such as cut-down in vehicle tax, bonus payments, and premium, for buyers of electric vehicles in the respective countries to support the electric vehicles sales growth. For instance, California Air Resources Board (CARB) has implemented ‘Zero Emission Vehicle’ (ZEV) regulation to achieve the state’s long-term emission reduction goals by promoting the sales of full battery-electric, hydrogen fuel cell, and plug-in hybrid-electric vehicles to limit smog forming and greenhouse gas emissions. In spite of this, EV inverter growth rate is hindered by technical inefficiency. In the electric vehicles more energy from the battery is taken to inverter resulting in switching losses, thereby impacting on the overall vehicle performance and it also reduces the thermal efficiency of electronic components in the electric drive system. Such factors are hampering the adoption of EVs.

EV Inverter Market Landscape

Production Innovation, Acquisitions, Collaboration, and R&D activities are key strategies adopted by players in the EV Inverter Market. In 2020, the market of EV Inverter industry outlook has been fragmented by several companies.   EV Inverter top 10 companies include


  1. Continental AG
  2. Robert Bosch GmbH
  3. Hitachi Ltd.
  4. Toyota Motor Corporation
  5. Denso Corporation
  6. Hyundai Mobis Co. Ltd.
  7.  Mitsubishi Electric Corporation
  8.  Eaton Corporation
  9. Fuji Electric BYD
  10. Danfoss Group


Acquisitions/Production Innovation


  • In September 2021, General Motors has unveiled its latest series of electric motors consisting of inverter, accessory power module, onboard charging module and other power electronics for reducing costs, weight and manufacturing complexity while increasing reliability to power future EVs.
  • In July 2021, Hitachi announced to build new electric vehicle component factories in Japan, U.S. and China by the end of 2022 to expand capacity about six-fold and strengthen its position as an EV part supplier.


Relevant Report Title:

Electric Vehicles (EV) Market – Forecast (2021 - 2026)
Report Code: ATR 0007

Electric Motor Market - Forecast (2021-2026)
Report Code: ESR 0732

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