| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 124.5 Billion |
| Market Size (2029) | USD 323.5 Billion |
| CAGR (2024 - 2029) | 21.22 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Asia-Pacific |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Electric Vehicle Parts And Components Market Analysis
The Electric Vehicle Parts And Components Market size is estimated at USD 124.5 billion in 2024, and is expected to reach USD 323.5 billion by 2029, growing at a CAGR of 21.22% during the forecast period (2024-2029).
Over the long term, major factors like the enactment of stringent emission and fuel economy norms, government incentives, and improving charging infrastructure are expected to drive the increasing adoption of electric vehicles, which will, in turn, drive the market studied.
- For instance, in January 2023, DAF announced the construction of a new electric truck assembly factory in Eindhoven, where the new generation DAF XD and XF Electric will be produced. These zero-emission vehicles have a range of more than 500 kilometers.
The governments in various countries are spending heavily on electric mobility projects, which are going to provide an opportunity for electric vehicle component manufacturers, as governments are encouraging automobile manufacturers and customers to produce and adopt electric vehicles. The rise in the demand for electric vehicles is also expected to increase the sales of the components used in electric vehicles, such as motors, batteries, DC-DC converters, power inverters, etc.
- For instance, in January 2023, PTT Synergy Group Berhad (PTTS) of Malaysia signed a memorandum of understanding (MOU) with SANY International Developing (M) Sdn. Bhd. and Rootcloud Technology Singapore Pte. Ltd. (RC) to collaborate in a business that provides EV support and solutions through electric battery leasing services as well as the provision of renewable energy and zero carbon logistic instruments.
The sales of EVs are also increasing globally. Therefore, players are also focusing on the development of electric parts and components.
- For instance, in January 2023, Sensata Technologies showcased its innovations that support vehicle electrification and a broad range of mission-critical sensors and electrical protection solutions for automotive and heavy vehicle off-road (HVOR) applications at the Auto Expo Components 2023.
The Asia-Pacific region is growing as a result of increased technological development, increased manufacturing and production of electric vehicles, increased integration of components in electric vehicles, and increased customer demand. Furthermore, increased government investment in continuous R&D with advanced technologies in components and increased infrastructure development expands the market to a greater extent.
EV Parts And Components Market Trends
Increasing Investments in Electric Vehicles Driving the Market
- Electric vehicles have become an integral part of the automotive industry, and they represent a pathway toward achieving energy efficiency, along with reduced emissions of pollutants and other greenhouse gases.
- The increasing environmental concerns, coupled with favorable government initiatives, are the major factors driving this growth. The annual sales volume of electric passenger cars is projected to cross the 5 million mark by the end of 2025, and it is expected to account for 15% of the overall vehicle sales by the end of 2025. Logistics and e-commerce sectors are also investing heavily in increasing their electric vehicle fleets.
- Several manufacturers have raised the bar to go beyond the previous announcements related to electric vehicles (EVs) with an outlook beyond 2025. More than ten of the largest original equipment manufacturers (OEMs) have declared electrification targets for 2030 and beyond. Significantly, some OEMs plan to reconfigure their product lines to produce only electric vehicles.
- For instance, Mercedes-Benz is in the process of restructuring its strategy to increase profits by focusing on higher-priced luxury vehicles. As part of its plan to go all-electric by 2030, the manufacturer intends to upgrade its product portfolio and discontinue lower-cost models.
- Volkswagen is planning to spend USD 36 billion on electric cars across its mass-market brands by 2024 end. According to the company, by 2025, at least 25% of its global sales will be electric vehicles.
- Mahindra & Mahindra (M&M) is one of the leading vehicle manufacturers in Asia. The company is planning to launch new electric vehicles. At present, the company has only one electric model, eVerito.
- Volvo announced that it will only sell electric cars starting in 2030. Ford will only sell electric cars in Europe starting in 2030. General Motors plans to offer only electric vehicles after 2035. Volkswagen aims for 70% electric car sales in Europe and 50% in China and the United States by 2030. Stellantis aims for 70% of the electric car sales in Europe and 35% in the United States.
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Asia-Pacific Anticipated to Witness Significant Growth
- Rising government emphasis on increasing the adoption of electric vehicles and the availability of government incentives for electric vehicles are expected to drive the demand for electric vehicles in Asia-Pacific during the forecast period. Governing bodies of several countries from Europe, North America, and Asia-Pacific have announced their plans to phase out fuel-powered vehicles during the upcoming ten years. This will also have a positive impact on the growth of electric vehicles during the forecast period.
- The market studied in Asia-Pacific is expected to grow at a faster rate, followed by Europe and North America, as countries such as China and Japan are inclined toward innovation, technology, and the development of advanced electric vehicles. Moreover, ASEAN countries are engaged in large electric mobility projects.
- China is a key player in the global electric vehicle industry. Moreover, the government of China is encouraging people to adopt electric vehicles. The country is planning to completely switch to electric mobility by 2040. The Chinese electric passenger car market is also one of the largest worldwide, and it has been growing rapidly over the last few years and is expected to grow higher during the forecast period, which is also going to have a positive impact on the demand for electric vehicle parts and components market.
- Japan has one of the best electric vehicle ecosystems in the world. Automotive companies like Toyota and Nissan are taking steps toward building electric vehicles in the country. The developments in the hybrid and electric vehicle market can be gauged by the presence of a number of players in the country. These favorable factors are expected to drive the market for hybrid and electric vehicles in Japan.
- The Indian government has been formulating various strategies to reduce pollution in the country. For instance, India, with its FAME and FAME II policies, has been providing incentives to customers and attractive options for investors as well as manufacturers to set up EV plants to propel the nation toward the faster adoption of green vehicles. Automobile manufacturers in India are also taking initiatives and investing in R&D practices to provide affordable electric cars in India.
- For instance, in January 2023, Tata AutoComp Systems Limited (Tata AutoComp) displayed a wide range of parts that it has already localized and is offering to the EV segment. Tata AutoComp has also been working on lightweight products and solutions to help electric vehicles extend their range. Such factors are likely to drive the market’s growth over the coming years.
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EV Parts And Components Industry Overview
The key players in the global electric vehicle parts and components market include Denso Corporation, Robert Bosch GmbH, Continental AG, Contemporary Amperex Technology Co. Ltd, Panasonic Corporation, BorgWarner Inc., LG Chem Ltd, Hitachi Ltd, and others.
The evolving partnerships between manufacturers and automotive companies are expected to expand the market studied globally. For instance, in January 2022, Volkswagen and Bosch signed a memorandum of understanding (MoU) in order to industrialize the production of battery cells. The companies intend to establish a project unit to investigate the feasibility of industrial-scale solutions for battery manufacturing in Europe.
Both intend to provide integrated battery production systems, as well as on-site ramp-up and maintenance support for battery cell and system manufacturers, as well as the entire range of processes and components required for large-scale battery cell and system manufacturing.
- In May 2024, Phoenix Motor Inc., a manufacturer of heavy-duty transit buses and provider of electrification solutions for medium-duty vehicles, started producing its fourth-generation drivetrain for Class 4 shuttle buses and trucks.
- In May 2024, Toyota started planning to begin producing EV batteries in 2025 at its new factory in North Carolina for hybrids, plug-in hybrids, and EVs.
- A patent application published by the United States Patent and Trademark Office (USPTO) on March 21, filed by Ferrari in 2023, detailed a triple-motor EV with sound generators and strategically placed inlets and outlets to channel sound into the cabin.
- The Tata Group announced in February 2024 that its new multibillion-pound UK battery manufacturing facility will be located in Bridgwater, southwest England.
- In April 2023, Bosch Research and the Technical University of Munich's Chair of High-Performance Converter Systems (HLU) collaborated on innovative solutions for future "Charger-Converters." This key component in electric vehicles combines two functions: charging the high-voltage battery from the AC power grid and transferring energy between the high-voltage and low-voltage systems.
Electric Vehicle Parts And Components Market Leaders
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Continental AG
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Panasonic Corporation
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Samsung SDI Co. Ltd
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Denso Corporation
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Robert Bosch GmbH
- *Disclaimer: Major Players sorted in no particular order
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Electric Vehicle Parts And Components Market News
- April 2024: Scientists discovered a new process that could significantly advance the development of next-generation rechargeable batteries, potentially doubling the range of current electric vehicles. This research could enable a transition from conventional lithium-ion batteries, used in devices from smartphones to electric cars, to solid-state sodium batteries, which are cheaper and safer.
- February 2024: Indian automaker Mahindra & Mahindra (M&M) is considering establishing a battery plant for its electric vehicles (EVs). The company will assess the feasibility of the plant before exploring partnership opportunities.
- November 2023: Advanced Electric Machines (AEM), a sustainable motor manufacturing specialist primarily serving the automotive industry, has secured GBP 23 million (USD 29 million) in investment to scale up production at its Northeast UK facility, expand its global sales footprint, and enhance R&D capabilities.
- January 2023: Robert Bosch Venture Capital GmbH, a subsidiary of Bosch, announced that it invested in the formation of Beijing Kawen New Energy Vehicle Co. Ltd with Boyuan Private Equity Capital Management Company Ltd, Beiqi Foton, Beijing SinoHytec Co. Ltd, and Shenzhen Fuyuan Smart Investment Partnership. Kawen Vehicle will concentrate on the research, development, manufacturing, and sale of battery electric vehicles, hydrogen-powered commercial vehicles, and related core components and systems.
EV Parts And Components Industry Segmentation
Electric vehicles have several electric power components, including the motor and battery.
The global electric vehicle parts and components market is segmented by vehicle type, propulsion type, component type, and geography. By vehicle type, the market is segmented into passenger vehicles and commercial vehicles. By propulsion type, the market is segmented by battery electric vehicles, plug-in hybrid electric vehicles, fuel cell electric vehicles, and hybrid electric vehicles. By component type, the market is segmented by battery packs, DC-DC converters, controller & inverters, motors, onboard chargers, and others. By geography, the market is segmented by North America, Europe, Asia-Pacific, and the Rest of the World. The report offers market size and forecast in value (USD) for the above segments.
| By Vehicle Type | Passenger Cars | |
| Commercial Vehicles | ||
| By Propulsion Type | Battery Electric Vehicle | |
| Plug-in Hybrid Vehicle | ||
| Fuel Cell Electric Vehicle | ||
| Hybrid Electric Vehicle | ||
| By Component Type | Battery Packs | |
| DC-DC Converters | ||
| Controller & Inverter | ||
| Motor | ||
| Other Component Types | ||
| Onboard Charger | ||
| By Geography | North America | United States |
| Canada | ||
| Rest of North America | ||
| By Geography | Europe | Germany |
| United Kingdom | ||
| France | ||
| Spain | ||
| Rest of Europe | ||
| By Geography | Asia-Pacific | China |
| India | ||
| Japan | ||
| South Korea | ||
| Rest of Asia-Pacific | ||
| By Geography | Rest of World | South America |
| Middle East and Africa |
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Electric Vehicle Parts and Components Market Research FAQs
How big is the Electric Vehicle Parts And Components Market?
The Electric Vehicle Parts And Components Market size is expected to reach USD 124.5 billion in 2024 and grow at a CAGR of 21.22% to reach USD 323.5 billion by 2029.
What is the current Electric Vehicle Parts And Components Market size?
In 2024, the Electric Vehicle Parts And Components Market size is expected to reach USD 124.5 billion.
Who are the key players in Electric Vehicle Parts And Components Market?
Continental AG, Panasonic Corporation, Samsung SDI Co. Ltd, Denso Corporation and Robert Bosch GmbH are the major companies operating in the Electric Vehicle Parts And Components Market.
Which is the fastest growing region in Electric Vehicle Parts And Components Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Electric Vehicle Parts And Components Market?
In 2024, the Asia-Pacific accounts for the largest market share in Electric Vehicle Parts And Components Market.
What years does this Electric Vehicle Parts And Components Market cover, and what was the market size in 2023?
In 2023, the Electric Vehicle Parts And Components Market size was estimated at USD 98.08 billion. The report covers the Electric Vehicle Parts And Components Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Electric Vehicle Parts And Components Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What role does technology play in Electric Vehicle Parts Market growth?
Technological advancements in EV components are crucial for improving vehicle performance, efficiency, and affordability, thereby driving the Electric Vehicle (EV) Parts Market growth.
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Electric Vehicle Components Industry Report
The global electric vehicle parts and components market is witnessing a significant surge, fueled by the growing demand for sustainable transportation. This market, covering battery packs, motors, and charging systems, is propelled by technological advancements and the expanding EV ecosystem. Electric vehicle component manufacturers and companies are leading this shift, focusing on innovations in battery technology, electric powertrains, and charging infrastructure.
The market size and market share are crucial aspects of the industry report, highlighting the dynamic landscape and growth potential. The market analysis delves into various segments, including vehicle and propulsion types, component types, and sale channels. The market report provides comprehensive insights, with a market research focus on trends and growth. Industry analysis is essential for understanding the market forecast and historical overview.
Asia-Pacific is experiencing rapid growth due to technological advancements and supportive government policies, providing vast opportunities for stakeholders. The market trends and market growth are driven by industry analysis and industry reports, which offer a detailed market forecast and industry overview. Market leaders are capitalizing on the electrification trend, ensuring significant market value and segmentation.
The industry outlook and market review emphasize the importance of industry information and research companies. The market predictions and market data are crucial for understanding the market segmentation and industry statistics. The report pdf is available for download, providing a comprehensive market overview and market outlook.
Overall, the industry research and industry sales highlight the market's potential, with industry size and industry trends offering valuable insights. The report example showcases the market's growth rate and market value, ensuring stakeholders are well-informed about the market dynamics and opportunities.
