Inverters and Contactors to Generate the Highest Revenues in Global Power Electronic Market for xEVs by 2025


Frost & Sullivan pointed out that the infotainment systems and driver assistance technologies present growth opportunities for power electronic providers, finds Frost & Sullivan

Frost & Sullivan’s recent analysis, Global Analysis of Power Electronic Market for Electric and Hybrid Vehicles, Forecast to 2025, finds that the global power electronic market is expected to multiply by 2025 due to the rising demand for electric and hybrid vehicles (xEVs). As the xEV market is expected to reach 25 million units by 2025, inverters and contactors will generate the highest revenues in the power components market over the forecast period.

“Due to increased battery capacity and motor power for xEVs, the demand to manage and maintain vehicle performance and safety, which is the energy management system of the vehicle, has grown,” said Anjan Hemanth Kumar, automotive & transportation research director at Frost & Sullivan.

The inverter market is likely to garner $8.67 billion in revenue by 2025 from $2.84 billion in 2019 at an impressive compound annual growth rate (CAGR) of 24 per cent. The contactor market is expected to generate $6.8 billion in revenue over the same timeframe with a 22.6 per cent rise in CAGR from $2.01 billion in 2019.

Biggest driving factors

Infotainment systems and driver assistance technologies, as per the report, are the two biggest driving factors for the increased adoption of wire harnesses, contactors, connectors, and inverters.

OEMs worldwide are looking at electric and hybrid vehicles as viable solutions to comply with the evolving stringent emission and fuel regulations, presenting immense growth prospects for vendors in the power electronic market space. These include the inclusion of lightweight alloys (cables), SiC and GaN semiconductors for inverters and converters, and the adoption of low-cost/lightweight ceramics for contactors are emerging trends that market participants can capitalize on; The use of integrated systems will reduce design complexity and help OEMs adopt modular vehicle architecture for plug-in hybrid electric vehicles (PHEV) and battery electric vehicles (BEV).
OEMs’ transition to a modular architecture for xEVs to enhance power conversion, space, and cost savings. Wire harness systems will reduce the size of the 12V cables by using aluminum and copper alloys; Wide-gap semiconductors for power electronic systems will be the next go-to technology for inverters and converters, whereas contractors will use inert gas sealing technology for controlled DC relays in power electronic systems.

“Suppliers from Germany and China are pioneers in power electronic systems. Companies from these countries partner with original equipment manufacturers (OEMs) to develop, design, and manufacture components,” added Kumar.


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