China Captures 61% of Global EV Traction Inverter Installation Volume in 3Q24, Europe Pushes Reforms to Rebound

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TrendForce’s latest findings show that global shipments of EV traction inverters reached 6.87 million units in the third quarter of 2024, representing a 7% QoQ increase, though the growth rate has slowed compared to the same period last year. Among the segments, PHEV traction inverter shipments grew by 16%, marking the highest growth across all powertrain types, though down from the 35% increase in the previous quarter.

The penetration rate of SiC inverters increased slightly by 1% compared to the previous quarter but declined 2% YoY. Significantly, China accounted for approximately 65% of the global SiC inverter installations. While power modules—the core components of these inverters—are still dominated by international semiconductor companies, China's localization policy is driving breakthroughs among domestic manufacturers, potentially challenging the leadership of global firms in the future.

Among Tier-1 suppliers, BYD benefitted from strong sales of its vehicle models, increasing its market share of traction inverter installations by 1% QoQ to 18%, surpassing Japan's Denso for the first time to become the global leader. Meanwhile, Inovance saw its market share rise to 6%, highlighting the growing competitiveness of Chinese suppliers in this sector. Collectively, China, Japan, and Tesla accounted for half of global installations, while the influence of European and American manufacturers continued to wane.

TrendForce highlights the growing regional divide in the traction inverter market. China's installations accounted for 61% of the global total in the third quarter owing to stable domestic demand. In contrast, Europe is under pressure from a shrinking market and is implementing aggressive reforms to reduce costs and enhance the competitiveness of its EV supply chain.

In the short term, the steady demand from China is expected to sustain growth in the traction inverter market. Over the long term, if Europe's automotive supply chain reforms are successfully executed, it could revitalize global traction inverter installation volume and the overall EV market.