Electric Passenger Car Components Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Electric Passenger Car Components Market is projected to expand from USD 155.01 Billion in 2025 to USD 260.68 Billion by 2031, reflecting a compound annual growth rate of 9.05%. This market encompasses specialized hardware vital for battery electric and plug-in hybrid vehicles, such as high-voltage battery packs, traction motors, thermal management systems, and power inverters. Growth is primarily fuelled by strict government emission mandates and significant financial incentives aimed at hastening the shift away from internal combustion engines. According to the China Association of Automobile Manufacturers, new energy vehicle sales reached 12.87 million units in 2024, a 35.5 percent year-on-year rise, confirming that robust vehicle demand is directly driving the need for sophisticated drivetrain and energy storage solutions.

However, market expansion faces a major obstacle due to supply chain volatility regarding critical raw materials essential for battery manufacturing. The industry's heavy dependence on specific regions for mining and processing nickel, cobalt, and lithium exposes it to geopolitical risks and price instability. Such volatility causes unpredictable production costs and potential delays in component delivery, acting as a significant barrier to the smooth scaling of global electric vehicle production capabilities.

Market Drivers

A fundamental catalyst for market growth is the rapid transition of Original Equipment Manufacturers (OEMs) toward all-electric vehicle lineups. Automakers are actively reorienting their manufacturing strategies from internal combustion engines to dedicated electric platforms, a shift that requires substantial supply chain localization for electric drivetrains and high-voltage batteries. This strategic realignment involves billions of dollars in capital expenditure to secure production capacity and minimize dependence on external suppliers, thereby ensuring output meets ambitious electrification goals. For instance, Toyota Motor Corporation confirmed in a February 2025 press release regarding its 'Toyota Powers On New North Carolina Automotive Battery Plant' that it has invested nearly $14 billion in the site to establish a dedicated hub for electrified powertrain components.

Simultaneously, growing consumer interest in zero-emission and sustainable mobility is driving the adoption of electric passenger vehicles, which increases the volume of necessary hardware. As transportation preferences shift toward environmentally friendly options, manufacturers are accelerating the production of power electronics and traction motors to satisfy this demand. This trend is reinforced by strong sales figures in key markets; Ford Motor Company reported in its 'Ford Electrifies 2024' press release from January 2025 that its U.S. electric vehicle sales rose by 34.8% in 2024 compared to the prior year. Although regional differences exist, the sector remains robust, with the European Automobile Manufacturers’ Association noting in 2025 that battery-electric vehicles accounted for a 13.6% market share of all new EU car registrations in 2024.

Market Challenges

The Global Electric Passenger Car Components Market is significantly restrained by volatility within the supply chain for critical raw materials. Because the industry depends heavily on specific geographic locations for extracting and processing nickel, cobalt, and lithium, it is vulnerable to trade disruptions and geopolitical instability. These factors cause erratic price swings for essential mineral inputs, which directly destabilize the production costs of traction motors and high-voltage battery packs. Consequently, manufacturers struggle to accurately forecast expenses, resulting in delayed investment decisions and obstructed production schedules for vital drivetrain components.

This unpredictability severely hampers the ability of component suppliers to scale their operations efficiently. High and unstable raw material costs frequently lead to increased prices for finished components, potentially reducing electric vehicle adoption rates in price-sensitive market segments. Such market headwinds are evident in major automotive regions where growth has encountered resistance; according to the European Automobile Manufacturers’ Association, the market share of battery electric cars in the European Union was 13.6 percent in 2024. This figure underscores the challenges the sector faces in achieving broad market penetration while navigating the cost pressures and supply vulnerabilities inherent in component manufacturing.

Market Trends

The market is experiencing a definitive move toward Silicon Carbide (SiC) power electronics and 800-volt electrical architectures to overcome charging speed constraints. By doubling the voltage from the standard 400-volt system, OEMs can enhance efficiency and shorten charging times through reduced current requirements, which allows for smaller cooling components and lighter wiring harnesses. This technological advancement drives the need for advanced hardware such as SiC-based inverters, which are increasingly becoming standard in mid-range and premium electric vehicles to optimize range. As noted by XPeng Inc. in an October 2024 press release titled 'XPENG delivers record 21,352 electric vehicles in September,' the company saw a 39 percent year-over-year increase in deliveries, confirming rising consumer demand for vehicles utilizing efficient 800-volt silicon carbide platforms.

Simultaneously, the use of Lithium Iron Phosphate (LFP) battery chemistries is growing rapidly to reduce manufacturing costs for mass-market vehicles. LFP cells remove the need for costly nickel and cobalt, providing a fire-resistant and stable solution for standard-range applications that changes the specifications for thermal hardware and battery management systems. This shift in chemistry effectively disconnects component pricing from the volatility of precious metal markets, enabling manufacturers to stabilize their supply chains. The magnitude of this transition is substantial; the International Energy Agency (IEA) reported in its 'Global EV Outlook 2025' from May 2025 that Lithium Iron Phosphate batteries accounted for nearly 50 percent of the global electric vehicle battery market in 2024, signaling a major industrial shift toward affordable electrification.

Key Players Profiled in the Electric Passenger Car Components Market

• Continental AG
• Robert Bosch GmbH
• Denso Corporation
• Hella GmbH & Co. KGaA
• Toyota Industries Corporation
• Hyundai Mobis
• Samsung SDI Co. Ltd.
• Panasonic Corporation
• Contemporary Amperex Technology Co. Ltd.
• BorgWarner Inc.

Report Scope

In this report, the Global Electric Passenger Car Components Market has been segmented into the following categories:

Electric Passenger Car Components Market, by Vehicle Type:

• SUV
• Sedan
• Hatchback
• MUV

Electric Passenger Car Components Market, by Propulsion Type:

• Battery Electric Vehicle
• Plug-in Hybrid Electric Vehicle
• Fuel Cell Electric Vehicle
• Hybrid Electric Vehicle

Electric Passenger Car Components Market, by Component Type:

• Battery Packs
• DC-DC Converter
• Controller & Inverter
• Motor
• On-Board Chargers
• Other Component Types

Electric Passenger Car Components Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Electric Passenger Car Components Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

This product will be delivered within 1-3 business days.