Global Electric Vehicle Power Inverter Market Dynamics Propelling the Global Electric Vehicle Power Inverter Market Owing to Growing Electric Vehicle Adoption & Advancements in Power Electronics
The Global Electric Vehicle Power Inverter Market is estimated to be valued at US$ 7.06 Bn in 2024 and projected to exhibit a CAGR of 22.7% over the forecast period 2024-2031. Rising demand for electric vehicles across the globe due to stringent emission norms and growing environmental concerns is a major factor driving the sales of electric vehicle power inverters. Furthermore, advancements in power electronics enabling efficient power conversion are also fueling the market growth.
Market Dynamics:
Growing electric vehicle adoption across the globe is one of the primary factors driving the demand for electric vehicle power inverters. Various governments are offering lucrative subsidies and tax rebates on electric vehicles to curb vehicular emissions. This is encouraging automakers to invest heavily in developing electric vehicles. Advancements in power electronics with the capability to deliver more power from smaller packages are also boosting the electric vehicle power inverter market. Technologies such as silicon carbide and gallium nitride devices enable compact power modules with higher power density, efficiency, and lower costs. Additionally, the growing need for fast charging of electric vehicles has necessitated more powerful onboard chargers with higher power ratings. This is prompting automakers and power inverter manufacturers to develop advanced three-phase inverters integrated with fast charging capabilities.
Growing Environmental Concerns to Reduce Emissions is Driving Growth in the EV Power Inverter Market
Electric vehicles are being widely adopted as they produce zero direct emissions compared to gasoline-powered vehicles. Governments across the world are promoting the use of electric vehicles to reduce air pollution and curb greenhouse gas emissions from the transportation sector. Various countries and cities have announced plans to phase out petrol and diesel vehicles in the coming years which is boosting the demand for electric vehicles. As the sales of electric vehicles increase, it is directly driving the growth of the EV power inverter market as these vehicles require sophisticated power inverters to convert DC power from the batteries to AC power required by electric motors.
Increasing Investments in Setting up Charging Infrastructure is Supporting Higher EV Adoption
Lack of adequate public charging infrastructure is one of the major barriers for the mass adoption of electric vehicles. However, companies and governments are making large investments to set up EV charging stations across cities, highways and residential areas. In China also, the government’s efforts to install more chargers as well as incentives for consumers and manufacturers are attracting higher EV purchases. As these investments in charging infrastructure proliferate globally, they help address range anxiety issues and boost customer confidence in electric vehicles which will propel the demand for EV power inverters.
High Cost of EVs and Batteries is Hindering Market Growth
The upfront cost of electric vehicles is still significantly higher than gasoline vehicles mainly due to the high cost of lithium-ion batteries. The average lithium-ion battery pack costs around US$ 10,000 presently which makes EVs more expensive than ICE vehicles. Additionally, concerns around battery life, replacement costs and disposal are posing challenges for widespread EV adoption. Until battery costs come down substantially, many consumers especially in developing nations will hesitate in purchasing electric vehicles due to their high prices. This is a major restraint for the EV power inverter market’s growth in the short to medium term.
Dependence on Imported Battery Raw Materials Exposes the Industry to Supply Risks
Countries like China dominate the global lithium-ion battery production. However, critical raw materials used in batteries such as lithium, cobalt, graphite etc. are imported from other nations. For example, China imports most of its lithium from Australia and cobalt from the Democratic Republic of the Congo. Any geopolitical tensions or natural disasters in major exporting countries can disrupt the supply of these raw materials and impact battery manufacturing. This dependence on imports exposes the EV industry including inverter makers to supply chain risks. Ensuring reliable sourcing of raw materials through diversification and local sourcing could help address this challenge.
Growing Private Investment in Battery R&D Offers Huge Market Opportunities
Over the last few years, billions of dollars have been invested by companies like Tesla, Panasonic, LG Chem, etc. in developing advanced, low-cost lithium-ion battery technologies. Startups are also exploring new battery chemistries beyond lithium-ion like solid-state, lithium-sulfur etc. that promise higher energy density and faster charging. Successful commercialization of low-cost, high-performance batteries will significantly lower the costs of electric vehicles. This, in turn, will boost consumer demand and open lucrative opportunities for EV power inverter manufacturers to tap into the growing EV market globally. Additionally, investments in battery recycling can further drive down costs and enhance supply security of raw materials.
Rising Demand for Commercial Fleets Presents a Major Growth Avenue
Electric trucks and buses are gaining rapid traction in the commercial logistics sector due to their lower operating costs compared to diesel vehicles. Major fleet operators are actively transitioning to EVs considering the total cost of ownership. Governments are also providing subsidies and tax credits for purchasing electric commercial vehicles. This rising adoption of electric trucks and buses will generate huge demand for associated EV components including onboard chargers and DC-DC converters. Power inverter manufacturers can capitalize on this opportunity by developing specialized commercial-grade products optimized for logistics fleets.
Link: https://www.coherentmarketinsights.com/market-insight/electric-vehicle-power-inverter-market-5265
Key Developments:
- In October 2022, ENECHANGE Ltd., a prominent energy technology firm dedicated to fostering a net-zero society through digital solutions, revealed its intention to deploy 30,000 electric vehicle (EV) chargers throughout Japan by 2027. This initiative is designed to improve EV charging services across all 47 prefectures in Japan, supporting the nation's shift towards cleaner transportation.
- In March 2022, Toyota Kirloskar Motor (TKM), a collaboration between Toyota Motor Corporation and the Kirloskar Group, announced a project to launch India's first hydrogen-powered fuel cell electric vehicle (FCEV), the Toyota Mirai, in one of the world's largest emerging automotive markets. This initiative is intended to expedite India's shift towards clean transportation. TKM will partner with the International Centre for Automotive Technology (ICAT), the government's testing agency, to assess the viability of the Toyota Mirai FCEV for Indian roads and climate conditions. The production of the Toyota Mirai will take place at TKM's facility in Bidadi, Karnataka.
- In March 2022, Sony Group Corporation, a global leader in technology and entertainment, and Honda Motor Co., Ltd., a well-known Japanese automobile manufacturer, announced their strategic partnership by signing a memorandum of understanding (MoU). This agreement details their plans to establish a joint venture aimed at developing and distributing high-value-added battery electric vehicles (EVs), with the goal of enhancing mobility services and contributing to a more sustainable transportation future.
- In October 2021, Robert Bosch, a global leader in technology and engineering solutions, launched a new electric motor and inverter specifically tailored for commercial vehicles (CVs). The 230 e-motor is designed to work in conjunction with Bosch's advanced silicon carbide (SiC) inverter, which significantly minimizes energy losses and improves the driving range of commercial vehicles. This innovative solution underscores Bosch's dedication to advancing electrification within the automotive industry.
Key Players:
Aptiv PLC (BorgWarner Inc.), BYD COMPAY LTD., Continental AG, CWB Automotive Electronics Co., Ltd., DENSO Corporation, Eaton Corporation, Hitachi Astemo, Ltd. (Subsidiary of Hitachi, Ltd.), Infineon Technologies AG, Lear Corporation, Marelli Holdings Co., Ltd., Meidensha Corporation, Mitsubishi Electric Corporation, Robert Bosch GmbH, Toyota Industries Corporation, and Valeo Group
