Electric Vehicle Power Inverter Market Size (2024 - 2029)

EV Power Inverter Market Analysis

The Electric Vehicle Power Inverter Market size is estimated at USD 7.65 billion in 2024, and is expected to reach USD 21.26 billion by 2029, growing at a CAGR of 22.66% during the forecast period (2024-2029).

Governments in various countries are spending heavily on electric mobility projects. They are trying to provide opportunities for electric vehicle power inverter manufacturers. The governments are also encouraging automobile manufacturers and customers to produce and adopt electric vehicles. The rise in the demand for electric vehicles is also expected to increase the sales of the components used in electric vehicles, such as power inverters.

With growing stringent emission standards globally, automakers are gradually shifting their production from conventional engine vehicles to hybrid and electric vehicles. In addition, governments initiated incentives, such as a cut down in vehicle tax, bonus payments, and premiums, for buyers of electric vehicles in the respective countries to support electric vehicle sales growth. The increasing charging station facilities in the regions, especially in Europe, North America, and Asia-Pacific, particularly in Japan and China, further supported the growing electric vehicle sales.

Several manufacturers raised the bar to go beyond the announcements related to electric vehicles with an outlook beyond 2025. More than ten of the largest OEMs declared electrification targets for 2030 and beyond. Significantly, some OEMs plan to reconfigure their product lines to produce only electric vehicles. For instance, in the first trimester, General Motors announced its plans to raise its spending on electric and autonomous vehicles to USD 20 billion by 2025. The company launched 20 new electric models by the end of 2023 and aimed to sell more than 1 million electric cars a year in the United States and China over the forecast period.

EV Power Inverter Industry Segmentation

The electric power inverter is a device installed in an electric vehicle to convert high-power DC to AC. The converter current is further utilized by motors to run several other AC-compatible devices and sensors.

The electric vehicle power inverter market is segmented by propulsion type, vehicle type, and geography. By propulsion type, the market is segmented into hybrid electric vehicles, plug-in hybrid vehicles, battery electric vehicles, and fuel cell electric vehicles. By vehicle Type, the market is segmented into passenger cars and commercial vehicles. By Geography, the market is segmented into North America, Europe, Asia-Pacific, and the rest of the world. The report offers market size and forecasts in terms of value (USD) for all the above segments.