A recent study by TrendForce on traction inverters for electric vehicles shows that strong growth in pure electric vehicle sales in the fourth quarter of 2025 drove global traction inverter installations to approximately 9.65 million units, a near two-year high. This figure reflects not only the continued advancement of the automotive electrification transformation but also the increasing demand for electric drive systems in individual vehicles.
Looking at quarterly trends, driven by the peak car sales season, inverter shipments exceeded 8.67 million units in the fourth quarter of 2024; while in the fourth quarter of 2025, demand in both the Chinese and European markets rebounded, further boosting shipment volumes.
Although declining component costs led to a slight decrease in overall market revenue from $5.5 billion to $5.3 billion, the market maintained a trend of increasing volume and stable prices. This indicates that even with increasingly fierce industry competition, continuous technological upgrades are helping to maintain the average selling price of products.
In the fourth quarter of 2025, high-voltage systems above 550 volts (mainly supporting 800-volt architectures) achieved the fastest growth, with installed capacity increasing by 38% year-on-year to approximately 1.39 million units, raising the market penetration rate to 14%. Systems in the 300-550 volt voltage range remained the market mainstream, with installed capacity reaching 6.04 million units; conversely, low-voltage systems below 300 volts saw an 11% year-on-year decrease in installed capacity compared to 2024. The accelerating shift of the automotive industry towards high-voltage platforms has also driven the widespread application of silicon carbide power devices—these devices effectively improve the efficiency of electric drive systems and enable fast charging for vehicles.
The concentration of the global traction inverter market remained relatively stable. BYD, with its vertically integrated business model, continued to dominate the market, holding a market share of approximately 17% in the fourth quarter of 2025; Denso maintained its second-place position with an 11% market share, remaining a core supplier in the Japanese automotive supply chain.
Huawei, Inovance Technology, and other Chinese domestic suppliers each hold approximately 4% to 5% of the market share. Combined with BYD's leading position, these figures highlight the growing momentum of localization in China's electric drive technology.
TrendForce points out that the global traction inverter market is gradually transitioning from an early phase of rapid expansion to a new stage of simultaneous large-scale development and technological upgrades.
In the future, market growth will be driven by multiple factors: the further popularization of 800-volt high-voltage platforms, the increased application of all-in-one integrated electric drive systems, and the continued decline in the cost of silicon carbide power modules.
TrendForce also states that as OEMs continuously strengthen their independent R&D capabilities and promote higher levels of vertical integration, competition across the supply chain will intensify. Suppliers capable of providing high-voltage solutions and possessing strong system integration capabilities are expected to gain a significant advantage in the new wave of automotive electrification.
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