Traction Inverter Market Report 2026

The traction inverter market size has grown rapidly in recent years. It will grow from $20.3 billion in 2025 to $23.43 billion in 2026 at a compound annual growth rate (CAGR) of 15.4%. The growth in the historic period can be attributed to growth of electric vehicle production, advancements in power semiconductor technologies, rising adoption of hybrid drivetrains, increasing investments in automotive electrification, improvements in inverter efficiency.

The traction inverter market size is expected to see rapid growth in the next few years. It will grow to $41.49 billion in 2030 at a compound annual growth rate (CAGR) of 15.4%. The growth in the forecast period can be attributed to increasing penetration of battery electric vehicles, rising demand for silicon carbide inverters, expansion of charging infrastructure ecosystems, growing focus on vehicle range optimization, increasing investments in next-generation power electronics. Major trends in the forecast period include increasing adoption of high-efficiency power electronics, rising use of igbt and mosfet technologies, growing demand for compact and lightweight inverters, expansion of ev and hybrid vehicle production, enhanced focus on thermal management solutions.

The rising popularity of electric vehicles is expected to drive the growth of the traction inverter market going forward. An electric vehicle (EV) is a vehicle powered by an electric motor that uses energy stored in rechargeable batteries. Traction inverters are used in electric vehicles to convert direct current (DC) from the battery into alternating current (AC), enabling precise control of motor speed and torque, which is critical for vehicle performance and efficiency. For instance, in April 2024, according to the International Energy Agency (IEA), a France-based intergovernmental organization, global electric car sales reached nearly 14 million units in 2023, with EVs accounting for about 18% of all new car sales, up from 14% in 2022. Therefore, the growing adoption of electric vehicles is driving the growth of the traction inverter market.

Leading companies in the traction inverter market are concentrating on advancements in new technologies, including next-generation silicon carbide (SiC) technology for electric vehicle (EV) traction inverters. This technology enables higher switching frequencies and reduces conduction losses, enhancing the overall efficiency and performance of inverters in electric and hybrid vehicles. For example, in October 2024, STMicroelectronics NV, a semiconductor manufacturing corporation based in Switzerland, introduced its fourth-generation STPOWER silicon carbide (SiC) MOSFET technology, tailored specifically for EV traction inverters. This new generation offers significantly reduced on-resistance, faster switching speeds, and increased robustness, making it well-suited for both 400V and 800V applications. Available in 750V and 1200V classes, the technology aims to boost power efficiency and density, benefiting not only the automotive industry but also high-power industrial applications such as solar inverters and energy storage systems.

In March 2023, Germany-based semiconductor company Infineon Technologies acquired GaN Systems for $830 million. This acquisition is intended to expand Infineon’s portfolio of gallium nitride (GaN) power conversion solutions, meeting the rising demand for efficient, high-performance power systems across sectors such as renewable energy, electric vehicles, and consumer electronics. GaN Systems, a Canadian company, specializes in developing and applying traction inverters that leverage advanced GaN technology.

Major companies operating in the traction inverter market report include Robert Bosch GmbH, Hitachi Ltd., Continental AG, Mitsubishi Electric Corporation, ABB Ltd., Toshiba Corporation, Lear Corporation, Texas Instruments Incorporated, Parker Hannifin Corporation, STMicroelectronics N.V., BorgWarner Inc., Infineon Technologies AG, Renesas Electronics Corporation, Dana Incorporated, ON Semiconductor, Fuji Electric Co. Ltd., Voith GmbH & Co. KGaA, Yaskawa Electric Corporation, Curtiss Aeroplane and Motor Company, Delphi Technologies PLC.

North America was the largest region in the traction inverter market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the traction inverter market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the traction inverter market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The traction inverter market consists of sales of inverter units, power modules, control software, cooling systems, and sensors. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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