Global shipments of EV traction inverters saw a 7% quarter-on-quarter increase in the third quarter of 2024, according to TrendForce’s latest report. This growth, although slightly slower than the previous year, indicates a positive trend in the market. The report also highlighted the increase in shipments of PHEV traction inverters by 16%, showing significant growth in this segment.
The penetration rate of SiC inverters slightly increased by 1% compared to the previous quarter but declined by 2% year-on-year. China played a major role in the global installations of SiC inverters, accounting for approximately 65% of the market. While international semiconductor companies still dominate the production of power modules for these inverters, Chinese manufacturers are making strides due to the country’s localization policy, potentially posing a challenge to global leaders in the future.
Among Tier-1 suppliers, BYD experienced a boost in market share, reaching 18% of traction inverter installations and surpassing Japan’s Denso to become the global leader. Inovance also saw an increase in market share to 6%, showcasing the growing competitiveness of Chinese suppliers in the market. China, Japan, and Tesla collectively accounted for half of global installations, with European and American manufacturers losing some influence.
The traction inverter market is showing a growing regional divide, with China leading installations at 61% of the global total in the third quarter. On the other hand, Europe is facing a shrinking market and is implementing reforms to enhance the competitiveness of its EV supply chain. While China’s steady demand is expected to fuel growth in the short term, successful reforms in Europe could revitalize global traction inverter installation volume and the overall EV market in the long term.
The trends in the EV traction inverter market indicate a dynamic landscape with shifting market shares and regional dynamics. As the market continues to evolve, it will be interesting to see how different regions adapt to changes and drive innovation in the industry.
