Dublin, Sept. 16, 2025 (GLOBE NEWSWIRE) -- The "Traction Inverter Market Outlook 2025-2034: Market Share, and Growth Analysis By Propulsion (Battery Electric Vehicle (BEV), Hybrid Electric Vehicles (HEV), Plug-In Hybrid Electric Vehicles (PHEV), Other Propulsion), By Technology, By Vehicle" report has been added to ResearchAndMarkets.com's offering.
Traction Inverter Market is valued at USD 17.7 billion in 2025. Further the market is expected to grow by a CAGR of 16.1% to reach global sales of USD 67.6 billion in 2034 
The Traction Inverter Market plays a critical role in the electric mobility ecosystem by enabling the conversion of DC power from batteries into AC power to drive electric motors in electric vehicles (EVs), hybrid electric vehicles (HEVs), and trains. As electric propulsion systems continue to evolve, traction inverters are becoming more sophisticated, energy-efficient, and compact, featuring advanced semiconductor technologies such as silicon carbide (SiC) and gallium nitride (GaN).
These components directly impact vehicle efficiency, range, and performance, making them central to OEM innovation strategies. With the global push for decarbonization and electrification in transport, demand for high-performance traction inverters is accelerating across passenger cars, commercial vehicles, and mass transit systems.
In 2024, the market experienced notable momentum, driven by widespread adoption of electric and hybrid drivetrains, particularly in Europe and China. Automakers focused heavily on vertically integrating inverter development, with some launching proprietary in-house inverter platforms to gain tighter control over powertrain efficiency and IP. Suppliers rolled out next-gen inverters with high-voltage capabilities and increased power density, optimized for fast-charging and extended driving ranges. Additionally, cost reductions in SiC components and rising demand for 800V architectures propelled more automakers to adopt cutting-edge inverter technology, enhancing energy conversion efficiency and reducing system losses across all vehicle classes.
Looking ahead to 2025 and beyond, the traction inverter market is expected to grow exponentially as global EV adoption continues to climb. The emergence of new powertrain architectures - such as e-axles and integrated drive units - will further integrate inverter functions into compact modules. OEMs are expected to prioritize scalable inverter platforms that support a wide range of vehicles and regional powertrain requirements.
SiC-based inverters will see broader commercialization across mid-segment vehicles as production costs fall and performance metrics outperform traditional silicon-based counterparts. Governments will likely continue incentivizing high-efficiency EV components, bolstering R&D and deployment. However, thermal management and cost optimization for mass-market applications will remain key challenges for inverter developers.
Key Insights Traction Inverter Market
- Increased integration of SiC (silicon carbide) technology in traction inverters for higher efficiency, compactness, and improved thermal performance.
- Development of integrated powertrain systems combining inverter, motor, and transmission into single units for space and weight savings.
- Widespread adoption of 800V architectures to support ultra-fast charging and better power density in EVs and heavy-duty transport applications.
- Shift toward in-house inverter development by automakers to improve IP ownership, design control, and supply chain security.
- Growing focus on over-the-air (OTA) software updates and inverter diagnostics to support smart vehicle functionalities and real-time performance tuning.
- Rising global sales of electric vehicles due to emission regulations, fuel economy standards, and governmental support for EV infrastructure.
- Technological advancements in power electronics enabling higher energy conversion efficiency and compact, lightweight inverter designs.
- OEM demand for flexible and scalable inverter platforms that can be used across different vehicle models and classes.
- Cost and energy savings driven by improved thermal management and the adoption of advanced semiconductors like SiC and GaN.
- Maintaining thermal stability and performance in high-power applications, especially in compact integrated inverter units, remains a challenge - requiring continuous advancements in cooling systems and material design to avoid power losses and ensure long-term reliability.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 150 |
| Forecast Period | 2025 - 2034 |
| Estimated Market Value in 2025 | 17.7 Billion |
| Forecasted Market Value by 2034 | 67.6 Billion |
| Compound Annual Growth Rate | 16.0% |
| Regions Covered | Global |
Key Topics Covered:
Traction Inverter Market Latest Trends, Drivers and Challenges, 2025-2034
- Traction Inverter Market Overview
- Market Strategies of Leading Traction Inverter Companies
- Traction Inverter Market Insights, 2025-2034
- Leading Traction Inverter Types, 2025-2034
- Leading Traction Inverter End-User industries, 2025-2034
- Fast-Growing countries for Traction Inverter sales, 2025-2034
- Traction Inverter Market Drivers and Restraints
- Traction Inverter Demand Drivers to 2034
- Traction Inverter Challenges to 2034
- Traction Inverter Market- Five Forces Analysis
- Traction Inverter Industry Attractiveness Index, 2024
Global Traction Inverter Market Value, Market Share, and Forecast to 2034
- Global Traction Inverter Market Overview, 2024
- Global Traction Inverter Market Revenue and Forecast, 2025-2034 (US$ Billion)
- Global Traction Inverter Market Size and Share Outlook By Product Type, 2025-2034
- Global Traction Inverter Market Size and Share Outlook By Application, 2025-2034
- Global Traction Inverter Market Size and Share Outlook By Technology, 2025-2034
- Global Traction Inverter Market Size and Share Outlook By End User, 2025-2034
- Global Traction Inverter Market Size and Share Outlook By End User, 2025-2034
- Global Traction Inverter Market Size and Share Outlook by Region, 2025-2034
Companies Featured
- Infineon Technologies AG
- Continental AG
- Delphi Technologies Plc
- Hitach Ltd.
- Mitsubishi Electric Corporation
- Siemens AG
- Toshiba Corporation
- Voith GmbH & Co. KGaA
- Curtiss-Wright Industrial Group
- Dana Incorporated
- Robert Bosch GmbH
- Tesla Inc.
- ZF Friedrichshafen AG
- BYD Company Limited
- BorgWarner Inc
For more information about this report visit https://www.researchandmarkets.com/r/u8x3tu
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