According to the new research report on "Automotive Traction Inverter Market Forecast to 2028 - COVID-19 Impact and Global Analysis," published by The Insight Partners, the Automotive Traction Inverter Market is expected to reach US$ 39140.79 million by 2028, registering a CAGR of 17.2% from 2022 to 2028.

The Asia Pacific region comprises developed and developing economies such as Japan, Australia, China, India, and South Korea, which are undergoing rapid technological and infrastructural advancements. The region is bolstered by a strong automotive sector with key automotive manufacturing hubs in countries such as China, India, and South Korea, making them leading global vehicle manufacturing countries. However, increasing environmental concerns due to rising exhaust emissions have led to stringent emissions and fuel economy norms and government initiatives such as subsidies to promote the adoption of electric vehicles and zero-emission electric buses to replace heavy-duty diesel and gasoline buses. The resulting increase in demand for high-performance vehicles is expected to drive growth in the automotive traction inverter market. However, fluctuations in government policies and subsidies may impact the development of electric vehicles and, in turn, affect sales in the automotive traction inverter market.

The global trend towards electrification, combined with government regulations, is creating favorable conditions for the expansion of the automotive traction inverter market worldwide. For instance, in China, despite the reduced subsidies, sales growth in 2021 suggests that the EV market may continue to mature. The inclination of Chinese consumers towards new products, ongoing government subsidies, and municipal preference for EVs are driving this growth. Meanwhile, in India, the government approved thousands of electric buses for intra-city and interstate operations and last-mile connectivity, with a goal of producing them at affordable prices. These two countries account for the majority of EV sales in the Asia Pacific region, where the market for automotive traction inverters is expected to grow due to favorable regulations, low-cost electronic components, and the rapid expansion of EV charging infrastructure.

In response to the COVID-19 pandemic, governments in the Asia Pacific (APAC) region have implemented lockdown measures that have negatively impacted the manufacturing sector. China, a leading electric vehicle manufacturer in the region, was hit hard during Q1 and Q2 of 2020, with total new vehicle sales dropping by 7% for the year. The pandemic disrupted supply chains for automakers and two-tier and three-tier dealers, leading to production discontinuation in countries such as India. As a result, the automotive traction inverter market in China experienced a significant revenue loss of approximately 80% in February 2020, initially hindering its growth. However, as countries eased their lockdown measures, manufacturing facilities resumed operations, leading to a gradual recovery in the market.

Despite the COVID-19 pandemic's negative impact on the automotive sector in APAC, the demand for electric vehicles rose in 2020, leading to a favorable outcome for the automotive traction inverter market. China, a major EV manufacturing country in the region, witnessed a surge in demand with sales almost tripling to 3 million in 2021, surpassing the overall slow recovery of the auto industry. This represents the fastest expansion of the EV market in China since 2015. The Chinese government aims to achieve a 20% market share for EVs by 2025, and the remarkable increase in market share from 7.2% in January to 20% in December 2021 indicates that this goal is feasible.

The automotive traction inverter market segmentation is classified based on four key factors - propulsion, voltage, technology, and vehicle type. The propulsion type is further categorized into BEV, HEV, PHEV, and other types. The voltage type is divided into up to 200V, 200 to 900V, and 900V and others. The technology type is segmented into IGBT, MOSFET, and other types. Finally, the vehicle type is segmented into passenger cars, commercial vehicles, and other types.

Key Findings of Study:

China is the dominant force driving growth in the APAC automotive traction inverter market. With its rapidly growing automotive sector, China is an important player in the global market, and this is expected to continue into the foreseeable future. In 2021, China led the world in electric vehicle sales, which nearly tripled to 3.4 million. This means that more electric cars were sold in China in 2021 than in 2020. This growth in the electric car market outpaced the overall auto sector's slower recovery and represents the most rapid expansion of the electric car market in China since 2015. Market share for electric vehicles in China increased significantly, from 7.2% in January to approximately 20% in December. The Chinese government has set a goal for electric vehicles to account for 20% of the market share by 2025, and the results of 2021 suggest that this target is likely to be met. The increasing demand for electric vehicles is expected to drive demand for traction inverters, which will further boost growth in the global automotive traction inverter market.

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