HEV/EV Power Inverter Market Size, Share, Growth Analysis, By Propulsion Type(Hybrid Electric Vehicle, Plug-in Hybrid Electric Vehicle, Battery Electric Vehicle, and Fuel Cell Electric Vehicle), By Vehicle Type(Passenger Cars, and Commercial Vehicle), By Region - Industry Forecast 2024-2031

HEV/EV Power Inverter Market Drivers

Increased Sales of Electric Vehicles

• The automotive industry has readily embraced electric vehicles as an essential aspect, providing a means to enhance energy efficiency and decrease emissions of harmful pollutants and greenhouse gasses. The increasing concerns about the environment and the encouraging support from governments play pivotal roles in propelling the expansion of this market. Additionally, the market is driven further by the growing sales of Battery Electric Vehicles (BEVs) and Plug-in Hybrid Electric Vehicles (PHEVs), as well as the reduced costs of inverter components, resulting from material advancements and improved packaging methods. Furthermore, the necessity to address the high price associated with batteries has led to advancements in inverters and other power electronics, alongside efforts to enhance vehicle performance. Governments across the globe have also implemented various incentives and policies to encourage consumers to opt for electric vehicles over traditional ones. Anticipated factors driving market growth during the forecast period include the rapid global sales expansion and ongoing technological advancements in electric vehicle power inverters.

Rise in Investments on Electric Vehicles

• The electric vehicle industry is experiencing significant growth and is expected to continue expanding in the foreseeable future. Many vehicle manufacturers and related industries view electric vehicles as a lucrative investment opportunity, contributing to the surge in the electric vehicle and EV charging station market. The global electric bus market is particularly promising, with China leading the way and driving the demand for e-buses during the forecast period. Government initiatives to promote e-mobility are further boosting the sales of electric buses. Additionally, Thailand plays a significant role in the automotive sector, being the 11th largest automotive producer in the world and the leading producer in the ASEAN region. The continuous advancements in power inverters for electric vehicles are also anticipated to be a key driver for the market's growth in the forecast period.

HEV/EV Power Inverter Market Restraints

Lack of Sufficient Infrastructure for Electric Vehicles

• Although electric vehicles offer numerous benefits both for the environment and in terms of cost savings, they have not yet achieved widespread adoption. The limited availability of charging infrastructure poses a significant constraint for the electric vehicle industry. This lack of charging options hinders the growth of electric vehicles, making it challenging for the market of electric vehicle power inverters to flourish. Consequently, this situation negatively impacts the production and acceptance of electric vehicles, further inhibiting the expansion of the market for EV power inverters. The disparity between the demand for charging facilities and the distribution of infrastructure discourages the manufacturing of electric vehicles and presents additional barriers to the market's growth.

High Cost of Electric Vehicles

• One of the significant restraints of the HEV/EV power inverter market is the high cost of electric vehicles. The cost of electric vehicles is comparatively higher than conventional fuel-based vehicles, and this may deter potential customers from purchasing electric vehicles, thereby hindering the demand for power inverters.