Electric Vehicle Power Inverter Market Size

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).

The pandemic has affected almost every industry around the globe; however, the demand for the electric vehicle power inverter market is growing significantly, owing to factors, such as the continuous demand and sales of electric vehicles every year. For instance, despite the pandemic, the sales of electric vehicles, such as passenger cars, have shown positive growth in various countries in the regions, such as Asia-Pacific and Europe. However, The automotive industry witnessed significant growth in terms of electric vehicle production in 2021, which is likely to increase the demand for power inverters during the forecast period.

Over the medium term, governments in various countries are spending heavily on electric mobility projects, which are going to provide an opportunity for electric vehicle power inverter manufacturers, as governments are 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 across the globe, automakers are gradually shifting their production from conventional engine vehicles to hybrid and electric vehicles. In addition, governments have 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. Also, the increasing charging station facilities in the regions, especially in Europe, North America, and Asia-Pacific, particularly in Japan and China, have further supported the growing electric vehicle sales.

Several manufacturers have raised the bar to go beyond the announcements related to electric vehicles with an outlook beyond 2025. More than ten of the largest OEMs have 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 of 2021, General Motors announced its plans to raise its spending on electric and autonomous vehicles to USD 20 billion by 2025. The company is expected to launch 20 new electric models by 2023 and aims to sell more than 1 million electric cars a year in the United States and China over the forecast period.