Traction Converters Market

Global Traction Converters Market Size (2024-2032):

The Global Traction Converters Market was worth US$ 1.28 billion in 2023 and is anticipated to reach a valuation of US$ 2.35 billion by 2032 from US$ 1.37 billion in 2024, and it is predicted to register a CAGR of 7% during the forecast period 2024-2032.

Current Scenario of the Global Traction Converters Market

Traction converters are used merely to control or adjust motor speed by supplying the AC current with variable frequency. In this modern transportation system, locomotives, metros, and trains are featured with electric propulsion. New generation diesel/electric locomotives are coming with AC traction motors that require efficiency in controlling the speed according to the requirements.  The quick adoption of the electric propulsion systems architectures in both developed and developing countries is attributed to leveraging the growth rate of the global traction converters market. The expansion of the electric means of transportation is ascribed to the adoption of these systems for effective speed control methods. The feasibility of adopting different strategies to promote safety and efficient operation modes. These converters are made to tolerate vibrations and shock at variable temperatures. These are playing an important role in modern transportation, where the popularity of electric vehicles is increasing eventually.

MARKET DRIVERS

The rising population globally is certainly one of the major factors fuelling the growth rate of the traction converters market. The growing population is directly inclined to boost the need for various transportation facilities across the world. The demand to launch innovative transportation facilities with the latest technologies is surging the market's growth rate. In recent eras, the popularity of electric locomotives, metro rails, and electric/hybrid vehicles has increased at a faster rate. Subsequently, the growing urban population and their desire for the most advanced featured vehicles is attributed to showcasing the need for traction converters.

In addition, the establishment of electric vehicle infrastructure to combat environmental pollution, majorly in developed and developing countries, is elevating the growth rate of the traction converters market. Government initiatives and steps to promote the advantages of using electric vehicles by reducing electricity prices and improving the transportation sector are quietly raising the demand for electric vehicles in urban areas. 

• According to the International Energy Agency, 1.4 million electric registrations took place in the US in 2023, and the demand for electric vehicles is growing strong every year. About 3.3 million electric cars are on the road in this country in 2023.

The prominence of taking steps forward to make a greener environment by totally reducing pollution and quickly adopting proper transportation facilities is likely to promote the growth rate of the market.

Along with this, the railway infrastructure is also slowing down the adoption of new systems that adopt electric traction. In Europe, more than 60% of the trains run on electricity, which is an important factor in fueling the growth rate of traction converters. Electrification of the railway system in Europe is the key element in adopting modern systems that gear up the demand for traction converters in any way. The European government is making significant progress in making the electrified railways a more convenient and efficient means of transportation.

MARKET RESTRAINTS

However, the cost of raw materials in the electronics industry is slowly increasing, which is becoming a burden for small and medium-scale industries. Supply chain disruptions are also one of the factors that cause the rising cost of final products, which is likely to degrade the growth rate of the traction converters market. Reluctance to adopt new technological advancements in transportation in rural areas due to a lack of complete awareness and high maintenance costs is likely to degrade the growth rate of the market. The high cost of electric vehicles due to the abundant availability of raw materials is the major aspect of the rising cost of the final products.

Difficulty in ensuring efficient operations using traction converters is expected to degrade the growth rate of the market. Operational services of the traction converters are slightly difficult due to various interoperability concerns, leading to the adoption of another source for efficient operations in the electric locomotives, which is slightly degrading the market's growth rate.

MARKET OPPORTUNITIES

The rising efforts to launch innovative electric vehicles at affordable prices with all new features and the growing support from government organizations through investments are elevating the growth rate of the market.

• In 2024, STMicroelectronics launched STPower Silicon Carbide MOSFET technology, which is its fourth generation and brings new benchmarks in elevating power efficiency. This technology is majorly optimized for traction converters, which are an important component of electric vehicle power trains. Furthermore, the company is committed to delivering prominent electric mobility and industrial efficiency.

The rising prominence of reducing global warming due to environmental pollution by elevating urban transportation facilities is solely to create huge growth opportunities for the market during the forecast period. The concern about environmental pollution has surged in recent times with the growing number of natural calamities globally. There is a need to take measures to reduce global warming effects by combating pollution, especially the use of a number of diesel/petrol vehicles. In emerging countries like India and China, the demand to launch new-generation electric trains is likely to surge the growth rate of the market to the extent in the coming years.

MARKET CHALLENGES

The traction converters' market share has been facing huge challenges in recent times due to rising economic crises across the globe. The worst hit of the COVID-19 pandemic worsened the economic growth of many countries due to lockdown restrictions and shutdown of industries during that period. However, the world is slowly gaining back into the pre-COVID situation, but the crisis is merely continuing even in developed countries, which is likely to impede the growth rate of the market during the forecast period. The growing competition between industries with a number of new entrants is specifically acting as a barrier for key players.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Traction Converters Market Analysis By Type

The propulsion converter segment is leading with the dominant share of the traction converter market. These converters are highly important for electric locomotives because they offer smooth operations. Depending on the requirements like power, noise, and characteristics, the propulsion converter is used according to the effective functioning of the systems. The integrated compact converter segment is expected to hit the highest CAGR by the end of 2032. There are many challenges with conventional converters for electric vehicles, but those are all overcome with the quick launch of integrated compact converters. These converters are proposed for the advanced launch of electric vehicles, which is gaining huge popularity in recent times.

Global Traction Converters Market Analysis By Application

The diesel locomotive segment is thriving to lead the growth rate of the market with the increasing need for the rising number of public transportation like trains and others. The electric locomotive segment is attributed to have a significant growth rate during the forecast period. Government initiatives to launch high-speed trains, especially in India, China, and other popular countries, are escalating the growth rate of the traction converters market. The high need to combat air pollution by increasing the use of renewable energy-sourced vehicles also levels up the growth rate of the market.

REGIONAL ANALYSIS

The North American traction converters market has held a prominent growth rate for the past few years and is expected to continue the same flow in the coming years. Developed countries like the US and Canada have greatly proposed the use of only electric trains, buses, cars, bikes, and others for the past few years, which is gearing up for the market's growth rate. The importance of the use of traction converters is increasing, especially in urban areas. Growing awareness among people to combat air pollution by using electric transportation like metro and light rail networks.

• According to the American Public Transportation Association, light-run systems run in more than 30 cities in the USA. Boston, Los Angeles, San Diego, San Fransico, Philadelphia, and Portland, among others, achieve more than 30 million passengers travel in light rail systems every year.

High disposable income and rising popularity for the launch of innovative electric vehicles in Canada are ascribed to leverage the growth rate of the market in the coming years.

Asia Pacific traction converters are anticipated to have the highest CAGR throughout the forecast period. India and China are the major countries contributing a major share of the market. The growing economy in both countries is a key factor that is accelerating the growth rate of the market. China has the high-speed rail network in the world, providing great convenience for the passengers. The need to establish proper management by using all the latest technology is emphasizing the growth rate of the market in this country.

Europe is next to Asia Pacific in leading the market growth rate owing to rising per capita income. Most European countries, such as the UK, Germany, France, Italy, Spain, and others, are connected with a world-class railway network with proper safety measures. The major goal of these countries is to make net zero emissions by the end of 2050, and the step towards quickly adopting electric locomotives will pose huge opportunities for the market.

Middle East Africa, and Latin America are likely to have a steady growth rate during the forecast period.

KEY PLAYERS IN THE GLOBAL TRACTION CONVERTERS MARKET

Companies prominent in the global traction converters market include Toshiba, CAF Power & Automation, Medha Servo Drives Private Limited, Voith, RXPE, Nomad Digital Ltd., and Cgglobal., and Others.

RECENT HAPPENINGS IN THE GLOBAL TRACTION CONVERTERS MARKET

• In 2024, Toshiba unloaded its first three of 68 Toshiba electric locomotives at the port of Hualien. The modern elector locomotives are designed for the specific needs of clients in Taiwan, where the company was awarded to supply spare parts and locos by the National Railway's procurement agent, Bank of Taiwan, in 2019.

DETAILED SEGMENTATION OF THE GLOBAL TRACTION CONVERTERS MARKET INCLUDED IN THIS REPORT

This research report on the global traction converters market has been segmented and sub-segmented based on type and application region.

By Type

• Propulsion Converter
• Integrated Compact Converter

By Application

• Diesel Locomotive
• Electric Locomotive
• EMU
• Metro
• DEMU

By Region

• North America - (U.S, Canada)
• Europe - (UK, France, Spain, Germany, Italy, Russia, Sweden, Denmark, Switzerland, Netherlands, Turkey, Czech Republic & Rest of Europe)
• Asia Pacific - (India, China, Japan, South Korea, Australia & New Zealand, Thailand, Malaysia, Vietnam, Philippines, Indonesia, Singapore & Rest of APAC)
• Latin America - (Brazil, Mexico, Argentina, Chile & Rest of LATAM)
• Middle East & Africa - (KSA, UAE, Israel, rest of GCC countries, South Africa, Ethiopia, Kenya, Egypt, Sudan, rest of MEA)