Product Code: FBI112108
Growth Factors of traction inverter Market
The global traction inverter market is expanding rapidly as electric mobility becomes central to automotive innovation worldwide. In 2024, the market reached a value of USD 8.57 billion, reflecting the accelerating shift toward electrified transportation. By 2025, the market is projected to grow further to USD 11.13 billion, supported by strong EV adoption, government emission regulations, and advancements in power electronics. Looking ahead to 2032, the market is expected to escalate sharply to USD 40.39 billion, registering a robust CAGR of 20.20%. In 2024, Asia Pacific led the global market, holding 46.56% share due to strong EV penetration in China, South Korea, Japan, and India.
Traction inverters are critical components in electric and hybrid vehicles, responsible for converting DC energy from the battery into AC energy to power the motor. This enables precise torque control, efficient energy use, and enhanced vehicle performance. Traction inverters also facilitate regenerative braking-converting kinetic energy into electrical energy-making them indispensable for modern EV powertrains.
Market Drivers
Rising Adoption of BEVs and HEVs Boosts Demand
The traction inverter market is primarily driven by global efforts to reduce carbon emissions through widespread electrification of transportation. In 2023, new European Union regulatory frameworks increased pressure on OEMs to reduce fleet emissions, accelerating investments in BEVs and HEVs. Automotive giants such as Tesla, Volkswagen, Toyota, and Ford are intensifying electrification strategies, directly increasing traction inverter demand. The global transition is reinforced by government incentives and expanding charging infrastructure. For example, the U.S. government's clean energy initiatives have strengthened EV manufacturing capacity, fueling strong traction inverter market growth from USD 8.57 billion (2024) to USD 11.13 billion (2025).
Market Trends
Shift Toward Silicon Carbide (SiC) and GaN Technologies
A major trend shaping the market is the adoption of SiC and GaN wide-bandgap semiconductors, which offer superior switching performance, higher efficiency, and improved thermal stability. These next-generation materials support higher voltage systems, enabling faster charging and greater driving range. Companies such as Texas Instruments, Infineon Technologies, and STMicroelectronics are introducing SiC-based inverter solutions, while automotive OEMs are integrating these innovations into upcoming EV platforms. Additionally, vehicle-to-grid (V2G) capabilities are gaining relevance, making inverters crucial for bidirectional energy flow.
Market Restraints
High Manufacturing Costs and Supply Constraints
Despite strong demand, high manufacturing and installation costs remain major barriers. Advanced semiconductors like SiC and GaN increase production expenses due to specialized fabrication processes. Supply chain volatility-including shortages of rare earth materials-further complicates inverter manufacturing. Moreover, inconsistent charging infrastructure development in emerging markets slows mass EV adoption. These challenges, however, are being mitigated gradually through R&D investments and vertical integration strategies by major automotive firms.
Segmentation Overview
By Technology
- MOSFETs dominate the market and are projected to account for 56% of the market share in 2025, owing to their efficiency at low-medium power ranges.
- IGBTs remain critical for high-power applications and are set to grow at 20.90% CAGR through 2032.
By Vehicle Type
- Passenger cars hold the largest share and are expected to capture 52% in 2025, driven by mass-market EV demand.
- Two-wheelers show the fastest growth, with a projected 22.00% CAGR, especially in Asia Pacific.
By Propulsion Type
- Battery Electric Vehicles (BEVs) lead the segment with 77% share in 2024.
- Hybrid Electric Vehicles (HEVs) also show strong uptake, driven by consumer demand for flexible powertrains.
By Voltage
- The 201-900V range dominates and is expected to secure 62.80% market share in 2025, supporting most passenger EV platforms.
- The above 901V segment shows remarkable growth potential, recording a 26.70% CAGR, driven by next-gen high-performance EVs.
Regional Insights
Asia Pacific
Asia Pacific recorded USD 3.98 billion in 2024, driven by China's EV leadership and rapid regional electrification. The region is forecasted to continue dominating, with China reaching USD 4.71 billion in 2025.
Europe
Europe is predicted to achieve USD 3.30 billion in 2025, supported by stringent emission norms and EV expansion across Germany, the U.K., and France.
North America
North America is expected to reach USD 2.37 billion in 2025, with the U.S. contributing USD 2.19 billion, fueled by high EV adoption rates and strong semiconductor innovation.
Conclusion
The global traction inverter market is on a strong growth trajectory, expanding from USD 8.57 billion (2024) to USD 40.39 billion (2032). With rapid advancements in SiC/GaN technologies, regulatory support, and rising EV penetration, traction inverters will remain central to next-generation electric mobility and energy-efficient transportation systems.
Segmentation By Vehicle Type
- Two Wheeler
- Passenger Car
- Commercial Vehicle
- Train
By Propulsion Type
By Technology
By Voltage
- Up to 200V
- 201 to 900V
- Above 901V
By Region
- North America (By Technology, By Vehicle Type, By Propulsion Type, By Voltage)
- U.S. (By Vehicle Type)
- Canada (By Vehicle Type)
- Mexico (By Vehicle Type)
- Europe (By Technology, By Vehicle Type, By Propulsion Type, By Voltage)
- U.K. (By Vehicle Type)
- Germany (By Vehicle Type)
- France (By Vehicle Type)
- Rest of Europe (By Vehicle Type)
- Asia Pacific ( By Technology, By Vehicle Type, By Propulsion Type, By Voltage )
- China (By Vehicle Type)
- India (By Vehicle Type)
- Japan (By Vehicle Type)
- South Korea (By Vehicle Type)
- Rest of Asia Pacific (By Vehicle Type)
- Rest of the World (By Technology, By Vehicle Type, By Propulsion Type, By Voltage)
Table of Content
1. Introduction
- 1.1. Research Scope
- 1.2. Market Segmentation
- 1.3. Research Methodology
- 1.4. Definitions and Assumptions
2. Executive Summary
3. Market Dynamics
- 3.1. Market Drivers
- 3.2. Market Restraints
- 3.3. Market Opportunities
- 3.4. Market Trends
4. Key Insights
- 4.1. Key Industry Developments - Mergers, Acquisitions & Partnerships
- 4.2. Latest Technological Advancements
- 4.3. Porters Five Forces Analysis
- 4.4. Suppliers Outlook
- 4.5. Impact of COVID-19 Pandemic on Global Traction Inverter Market
5. Global Traction Inverter Market Analysis, Insights and Forecast, 2019-2032
- 5.1. Key Findings / Definition
- 5.2. Market Analysis, Insights and Forecast - By Vehicle Type
- 5.2.1. Two Wheeler
- 5.2.2. Passenger Car
- 5.2.3. Commercial Vehicle
- 5.2.4. Train
- 5.3. Market Analysis, Insights and Forecast - By Propulsion Type
- 5.4. Market Analysis, Insights and Forecast - By Technology
- 5.4.1. IGBT
- 5.4.2. MOSFET
- 5.5. Market Analysis, Insights and Forecast - By Voltage
- 5.5.1. Up to 200V
- 5.5.2. 201 to 900V
- 5.5.3. Above 901V
- 5.6. Market Analysis, Insights and Forecast - By Region
- 5.6.1. North America
- 5.6.2. Europe
- 5.6.3. Asia Pacific
- 5.6.4. Rest of the World
6. North America Traction Inverter Market Analysis, Insights and Forecast, 2019-2032
- 6.1. Market Analysis, Insights and Forecast - By Vehicle Type
- 6.1.1. Two Wheeler
- 6.1.2. Passenger Car
- 6.1.3. Commercial Vehicle
- 6.1.4. Train
- 6.2. Market Analysis, Insights and Forecast - By Propulsion Type
- 6.3. Market Analysis, Insights and Forecast - By Technology
- 6.3.1. IGBT
- 6.3.2. MOSFET
- 6.4. Market Analysis, Insights and Forecast - By Voltage
- 6.4.1. Up to 200V
- 6.4.2. 201 to 900V
- 6.4.3. Above 901V
- 6.5. Market Analysis, Insights and Forecast - By Country
- 6.5.1. U.S.
- 6.5.1.1. Market Analysis, Insights and Forecast - By Vehicle Type
- 6.5.2. Canada
- 6.5.2.1. Market Analysis, Insights and Forecast - By Vehicle Type
- 6.5.3. Mexico
- 6.5.3.1. Market Analysis, Insights and Forecast - By Vehicle Type
7. Europe Traction Inverter Market Analysis, Insights and Forecast, 2019-2032
- 7.1. Market Analysis, Insights and Forecast - By Vehicle Type
- 7.1.1. Two Wheeler
- 7.1.2. Passenger Car
- 7.1.3. Commercial Vehicle
- 7.1.4. Train
- 7.2. Market Analysis, Insights and Forecast - By Propulsion Type
- 7.3. Market Analysis, Insights and Forecast - By Technology
- 7.3.1. IGBT
- 7.3.2. MOSFET
- 7.4. Market Analysis, Insights and Forecast - By Voltage
- 7.4.1. Up to 200V
- 7.4.2. 201 to 900V
- 7.4.3. Above 901V
- 7.5. Market Analysis, Insights and Forecast - By Country
- 7.5.1. U.K.
- 7.5.1.1. Market Analysis, Insights and Forecast - By Vehicle Type
- 7.5.2. Germany
- 7.5.2.1. Market Analysis, Insights and Forecast - By Vehicle Type
- 7.5.3. France
- 7.5.3.1. Market Analysis, Insights and Forecast - By Vehicle Type
- 7.5.4. Rest of Europe
- 7.5.4.1. Market Analysis, Insights and Forecast - By Vehicle Type
8. Asia Pacific Traction Inverter Market Analysis, Insights and Forecast, 2019-2032
- 8.1. Market Analysis, Insights and Forecast - By Vehicle Type
- 8.1.1. Two Wheeler
- 8.1.2. Passenger Car
- 8.1.3. Commercial Vehicle
- 8.1.4. Train
- 8.2. Market Analysis, Insights and Forecast - By Propulsion Type
- 8.3. Market Analysis, Insights and Forecast - By Technology
- 8.3.1. IGBT
- 8.3.2. MOSFET
- 8.4. Market Analysis, Insights and Forecast - By Voltage
- 8.4.1. Up to 200V
- 8.4.2. 201 to 900V
- 8.4.3. Above 901V
- 8.5. Market Analysis, Insights and Forecast - By Country
- 8.5.1. China
- 8.5.1.1. Market Analysis, Insights and Forecast - By Vehicle Type
- 8.5.2. Japan
- 8.5.2.1. Market Analysis, Insights and Forecast - By Vehicle Type
- 8.5.3. India
- 8.5.3.1. Market Analysis, Insights and Forecast - By Vehicle Type
- 8.5.4. South Korea
- 8.5.4.1. Market Analysis, Insights and Forecast - By Vehicle Type
- 8.5.5. Rest of Asia Pacific
- 8.5.5.1. Market Analysis, Insights and Forecast - By Vehicle Type
9. Rest of the World Traction Inverter Market Analysis, Insights and Forecast, 2019-2032
- 9.1. Market Analysis, Insights and Forecast - By Vehicle Type
- 9.1.1. Two Wheeler
- 9.1.2. Passenger Car
- 9.1.3. Commercial Vehicle
- 9.1.4. Train
- 9.2. Market Analysis, Insights and Forecast - By Propulsion Type
- 9.3. Market Analysis, Insights and Forecast - By Technology
- 9.3.1. IGBT
- 9.3.2. MOSFET
- 9.4. Market Analysis, Insights and Forecast - By Voltage
- 9.4.1. Up to 200V
- 9.4.2. 201 to 900V
- 9.4.3. Above 901V
10. Competitive Analysis
- 10.1. Key Industry Developments
- 10.2. Global Market Rank Analysis (2024)
- 10.3. Competitive Dashboard
- 10.4. Comparative Analysis - Major Players
- 10.5. Company Profiles
- 10.5.1. Siemens AG (Germany)
- 10.5.1.1. Overview
- 10.5.1.2. Products & services
- 10.5.1.3. SWOT Analysis
- 10.5.1.4. Recent Developments
- 10.5.1.5. Strategies
- 10.5.1.6. Financials (Based on Availability)
- 10.5.2. Infineon Technologies AG (Germany)
- 10.5.2.1. Overview
- 10.5.2.2. Products & services
- 10.5.2.3. SWOT Analysis
- 10.5.2.4. Recent Developments
- 10.5.2.5. Strategies
- 10.5.2.6. Financials (Based on Availability)
- 10.5.3. Continental AG (Germany)
- 10.5.3.1. Overview
- 10.5.3.2. Products & services
- 10.5.3.3. SWOT Analysis
- 10.5.3.4. Recent Developments
- 10.5.3.5. Strategies
- 10.5.3.6. Financials (Based on Availability)
- 10.5.4. Robert Bosch GmbH (Germany)
- 10.5.4.1. Overview
- 10.5.4.2. Products & services
- 10.5.4.3. SWOT Analysis
- 10.5.4.4. Recent Developments
- 10.5.4.5. Strategies
- 10.5.4.6. Financials (Based on Availability)
- 10.5.5. Delphi Technologies (UK)
- 10.5.5.1. Overview
- 10.5.5.2. Products & services
- 10.5.5.3. SWOT Analysis
- 10.5.5.4. Recent Developments
- 10.5.5.5. Strategies
- 10.5.5.6. Financials (Based on Availability)
- 10.5.6. Hitachi Automotive Systems (Japan)
- 10.5.6.1. Overview
- 10.5.6.2. Products & services
- 10.5.6.3. SWOT Analysis
- 10.5.6.4. Recent Developments
- 10.5.6.5. Strategies
- 10.5.6.6. Financials (Based on Availability)
- 10.5.7. Mitsubishi Electric Corporation (Japan)
- 10.5.7.1. Overview
- 10.5.7.2. Products & services
- 10.5.7.3. SWOT Analysis
- 10.5.7.4. Recent Developments
- 10.5.7.5. Strategies
- 10.5.7.6. Financials (Based on Availability)
- 10.5.8. Toshiba Corporation (Japan)
- 10.5.8.1. Overview
- 10.5.8.2. Products & services
- 10.5.8.3. SWOT Analysis
- 10.5.8.4. Recent Developments
- 10.5.8.5. Strategies
- 10.5.8.6. Financials (Based on Availability)
- 10.5.9. Texas Instruments Incorporated (U.S.)
- 10.5.9.1. Overview
- 10.5.9.2. Products & services
- 10.5.9.3. SWOT Analysis
- 10.5.9.4. Recent Developments
- 10.5.9.5. Strategies
- 10.5.9.6. Financials (Based on Availability)
- 10.5.10. ABB Ltd (Switzerland)
- 10.5.10.1. Overview
- 10.5.10.2. Products & services
- 10.5.10.3. SWOT Analysis
- 10.5.10.4. Recent Developments
- 10.5.10.5. Strategies
- 10.5.10.6. Financials (Based on Availability)