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The automotive on-board power inverter market size is forecast to increase by USD 162.2 million, at a CAGR of 4.28% between 2023 and 2028. The market is experiencing significant growth due to several key factors. One of the primary drivers is the increasing adoption of programmable logic controllers (PLCs) in industries, which necessitates the use of power inverters for converting DC power from batteries to AC power for operating these controllers. Another trend influencing the market is the emergence of digitalization and Industry 4.0, which requires advanced power conversion solutions for integrating advanced technologies such as sensors, actuators, and communication systems in vehicles. Moreover, consumer choice for large vehicles such as SUVs and pickup trucks. However, cybersecurity concerns related to industrial relays and power inverters pose a significant challenge to market growth.
Market Forecast 2024-2028
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The automotive on-board power inverter market is rapidly evolving, driven by the increasing adoption of electric vehicles (EVs) and stringent government regulations aimed at reducing emissions. These inverters, crucial for converting DC power from batteries to AC power for vehicle systems, are integral to both battery electric vehicles (BEVs) and plug-in hybrid vehicles (PHEVs). Key innovations include the use of wide-bandgap semiconductors like silicon carbide and gallium nitride, which enhance efficiency and DC power supply output systems. Advanced materials in automotive inverters, such as those found in Tesla Power walls and lithium solar batteries, contribute to improved performance and self-sufficiency in vehicles. The integration of photovoltaic (PV) solar panel systems and solar technologies, along with a focus on clean energy transportation solutions, aligns with the zero carbon approach and sustainable mobility goals. Charging infrastructure advancements, including air-cooled and forced ventilation systems, are crucial for efficient operation. The market also benefits from innovations in heat removal systems and automotive inverter materials, ensuring better reliability and efficiency in power output electronics.
The rapidly expanding e-hailing business has totally disrupted the taxi industry. In this sector, the vehicle driver is the last person in the customer-facing value chain. Therefore, they play an essential role in the process of building the fleet operator's image. Therefore, driver retention strategies are very important for fleet operators, which directly affects the quality of their services.
Furthermore, automotive on-board inverters are one of the keys to improving comfort and convenience for taxi drivers and can contribute to driver retention. On-board inverters allow drivers to power their personal electronic devices, such as smartphones, laptops, and tablets throughout the day. Therefore, the need to satisfy drivers through strong driver retention strategies is expected to have a positive impact on the market during the forecast period.
The increase in electronic content in modern vehicles has raised the vehicle's energy demand. This leads to the need for efficient energy management systems in vehicles. Inverters in cars draw energy from the vehicle's battery to power external electronic devices. The same battery also powers the in-vehicle electronic systems.
In addition, OEM automakers are trying to educate customers on how to manage their power demands on external electronics. Additionally, the advent of electric vehicles will make energy management even more important. Therefore, OEM automakers are concentrating on developing more efficient energy management solutions. This will bring great benefits to the growth of the market during the forecast period.
OEMs do not recommend users use the onboard inverter when the vehicle is turned off. Powering electronic devices when the vehicle engine is off often causes the vehicle's battery to drain quickly. Failure to follow this procedure can negatively impact the vehicle's battery and lead to other system failures in the vehicle.
Additionally, most integrated inverters have a maximum output of 150W. These inverters can be ideally used for personal electronic devices. However, when traveling long distances, users attempt to use these inverters to heavy power-consuming devices and end up meeting the problem of running out of battery. This has a negative impact on the growth of the market during the forecast period.
The passenger cars segment will account for a major share of the market's growth during the forecast period.? The increasing penetration of personal electronic devices, such as smartphones, tablets, and laptops, is driving the automotive on-board power inverters market as they are necessary for providing power to these devices. Furthermore, the average time paid on vehicles has risen significantly over the past five years. This illustrates the requirement for auxiliary support systems to power the mobile electronic devices of vehicle owners, thereby increasing the demand for automotive on-board power inverters.
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The passenger cars segment was valued at USD 487.30 million in 2018. The market is influenced by the increasing focus of suppliers on launching new variants of car inverters. Additionally, automotive on-board power inverters will increase as OEMs offer power inverters as standard on many of their new vehicles. This could be due to the growing dependence and usage of mobile electronic devices, which will influence buyers' purchasing decisions. Therefore, these factors will have a positive impact on the growth of the market during the forecast period.
Based on type, the market has been segmented into up to 150w and more than 150w. The up to 150w?segment will account for the largest share of this segment.?Market growth in this segment is anticipated to drive demand for automotive on-board power inverters from customers who use personal electronics while traveling. The automotive on-board power inverters market up to 150W is expected to witness steady growth due to the relatively large use of personal electronic devices, such as gaming consoles, DVD players, laptops, and, more importantly, for downloads. mobile phone; These devices require less energy. The passenger car segment is the main user of vehicle inverters in this range. In the passenger car segment, the SUV segment is likely to be the main contributor to the market for this type of inverter. Indeed, the number of SUVs equipped with on-board inverters is the highest in the passenger car segment. Thus, such factors will drive the growth of the market segment during the forecast period.
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North America is estimated to contribute 58% to the growth by 2028. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. In the US, people prefer owning a vehicle rather than using public transportation to get around. This increases the adoption of personal vehicles, driving the automotive on-board power inverter market in the region.
Moreover, consumer choice for large vehicles such as SUVs and pickup trucks in the US and Canada is driving market growth in the region. Additionally, growing credit availability, the emergence of new models, and better leasing options have boosted the adoption of these vehicles in the region. Additionally, consumer trends towards vehicles with high ground clearance, off-road capabilities, and towing capabilities are some of the other factors driving demand for automotive on-board power inverters. Thu, such factors will drive the growth of the market.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
BESTEK, Cobra Electronics Corporation and Escort Inc., COTEK Electronic Ind. Co. Ltd., DAS Companies Inc., ERAYAK, Hitachi Ltd., Koninklijke Philips N.V., Lear Corp., Marelli Holdings Co. Ltd., ON Semiconductor Corp., Robert Bosch GmbH, Samlex America Inc., Schumacher Electric Corp., Sensata Technologies Inc., Stanley Black and Decker Inc., STMicroelectronics International N.V., Sungrow Power Supply Co. Ltd., Toyota Industries Corp., and VisIC Technologies Inc.
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The market is a significant segment in the automotive industry, focusing on the production and application of Inverters in vehicles. An Inverter is a Device that converts DC power from a Battery into AC power, supplying power to various electrical appliances in a Vehicle such as Mobile phone chargers, Laptops, and Connected-vehicle services. Common configurations include Cigarette lighter sockets, Fuse panel, and 12V accessory sockets. The increasing adoption of electrical appliances and Handheld devices in vehicles, coupled with the demand for vehicles, is driving the growth of the Automotive Inverter Market. Electric Vehicles, a key segment, are witnessing significant growth due to environment problems, including CO2 emissions, and the Automobile sector's focus on Fuel efficiency requirement and greenhouse gas emission reduction. The OEMs segment is a significant contributor to the market, with high spending power and a focus on improving motor performance through torque and speed optimization. Inverters play a crucial role in controlling AC frequency and Power Output, ensuring high output density despite space constraints and regulatory requirements. The market is expected to reach Terawatt capacity with the integration of solar capacity in contemporary automobiles.
Market Scope |
|
Report Coverage |
Details |
Page number |
175 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.28% |
Market growth 2024-2028 |
USD 162.2 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.04 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 58% |
Key countries |
US, China, Japan, Canada, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Ampeak, BESTEK, Cobra Electronics Corporation and Escort Inc., COTEK Electronic Ind. Co. Ltd., DAS Companies Inc., ERAYAK, Hitachi Ltd., Koninklijke Philips N.V., Lear Corp., Marelli Holdings Co. Ltd., ON Semiconductor Corp., Robert Bosch GmbH, Samlex America Inc., Schumacher Electric Corp., Sensata Technologies Inc., Stanley Black and Decker Inc., STMicroelectronics International N.V., Sungrow Power Supply Co. Ltd., Toyota Industries Corp., and VisIC Technologies Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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