Industrial motor demand at its peak, electric vehicles and ESS are growing rapidly
Top Chinese demand and production, largest Chinese related market
The electric vehicle and ESS markets are expected to grow rapidly over the next five years amid strong demand for industrial motors, the largest market for power converters.
According to a recent report by Yole Intelligence, the power converter market is expected to reach $146.1 billion in 2028, growing at a CAGR of 8.7% from 2022 to 2028.
▲2022 Market Size by Application of Power Converters and Forecast for 2028 (Source: Yole Intelligence)
According to the report, industrial motors will be the largest market for power converters in 2022, but power converters for electric vehicles are expected to continue to grow rapidly, growing to the third largest market size after solar power generation and industrial motors in 2028.
Additionally, the ESS-related power converter market is expected to record a high average annual growth rate of 30.3% over the next five years.
As of 2023, Chinese companies are at the top of the list of major manufacturers of power converters, followed by companies from the United States, Europe, and Japan.
This is because China has the largest market size for wind turbines, electric vehicles, and solar power inverters, and is more price competitive than the US and European countries, so Chinese companies have a high market share.
