Global EV Traction Inverter Market Sees Strong Growth in 4Q24
TrendForce’s latest report highlights the robust growth of the global EV traction inverter market, with installations reaching 8.67 million units in the fourth quarter of 2024, representing a 26% quarter-on-quarter increase. The surge in demand from China and Europe drove a 28% increase in installations for both Battery Electric Vehicles (BEVs) and Plug-in Hybrid Electric Vehicles (PHEVs) compared to the previous quarter. This growth momentum propelled Huawei into the top five global traction inverter suppliers for the first time.
In 2024, total global traction inverter shipments reached 27.21 million units. Silicon Carbide (SiC) inverters saw increased adoption, particularly driven by Tesla and Chinese automakers, achieving a 16% penetration rate in Q4, the highest of the year. This trend indicates a positive outlook for the competitive power semiconductor industry.
Despite the market growth, geopolitical tensions pose challenges. The Biden administration initiated a six-month investigation into China’s SiC industry before leaving office, a move expected to continue under the current administration. This investigation is likely to play a strategic role in shaping future U.S.-China relations.
BYD surpassed Japan’s Denso in the third quarter of 2024 to become the global market leader, maintaining its top position in Q4. Notably, Huawei entered the global top five suppliers, driven by strong sales of its AITO EV series. With three Chinese companies now among the top five suppliers, the market is witnessing a shift away from the traditional dominance of European, American, and Japanese suppliers.
Looking ahead, TrendForce predicts that China and Europe will continue to drive growth in the traction inverter market in the short term. The demand for traction inverters is particularly high in BEVs, solidifying China’s pivotal role in the market.
While policy risks, such as a potential shift towards oil over electrification in the U.S., remain a concern, China’s EV market is expected to maintain its momentum. Government incentives for vehicle replacement programs and expansion into overseas markets are projected to support a 14% annual growth rate in global traction inverter shipments in 2025.
The market outlook is optimistic, with the potential for continued growth and innovation in the global EV traction inverter market. With key players like BYD and Huawei leading the way, the industry is poised for further advancements in the coming years.
