Electric Vehicle Parts and Components Global Market Opportunities and Strategies to 2032

This report describes and explains the electric vehicle parts and components market and covers 2017-2022, termed the historic period, and 2022-2027, 2032F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global electric vehicle parts and components market reached a value of nearly $156.25 billion in 2022, having grown at a compound annual growth rate (CAGR) of 19.41% since 2017. The market is expected to grow from $156.25 billion in 2022 to $413.62 billion in 2027 at a rate of 21.49%. The market is then expected to grow at a CAGR of 16.38% from 2027 and reach $882.95 billion in 2032.

Growth in the historic period resulted from increased sales of hybrid electric vehicles (HEVs), growth in domestic component manufacturing and rise in disposable incomes of people. Factors that negatively affected growth in the historic period included high development cost of EVs and related components.

Going forward, growing demand for electric vehicles, rising environmental regulations and emission requirements, increasing investments by governments for electric vehicles will drive the market. Factors that could hinder the growth of the electric vehicle parts and components market in the future include high initial cost of electric vehicle parts and components.

The electric vehicle parts and components market is segmented by component into battery packs, DC-DC converters, controllers and inverters, motors, onboard chargers and other components. The battery packs market was the largest segment of the electric vehicle parts and components market segmented by component, accounting for 75.1% or $117.30 billion of the total in 2022. Going forward, the motors segment is expected to be the fastest growing segment in the electric vehicle parts and components market segmented by component, at a CAGR of 21.26% during 2022-2027.

The electric vehicle parts and components market is segmented by vehicle into passenger cars and commercial vehicles. The passenger cars market was the largest segment of the electric vehicle parts and components market segmented by vehicle, accounting for 81.7% or $127.63 billion of the total in 2022. Going forward, the commercial vehicle segment is expected to be the fastest growing segment in the electric vehicle parts and components market segmented by vehicle, at a CAGR of 23.99% during 2022-2027.

The electric vehicle parts and components market is segmented by propulsion into battery electric vehicle, plug-in hybrid vehicle and fuel cell electric vehicle. The battery electric vehicle market was the largest segment of the electric vehicle parts and components market segmented by propulsion, accounting for 74.3% or $116.01 billion of the total in 2022. Going forward, the fuel cell electric vehicle segment is expected to be the fastest growing segment in the electric vehicle parts and components market segmented by propulsion at a CAGR of 28.22% during 2022-2027.

The electric vehicle parts and components market is segmented by sales channel into OEM (original equipment manufacturer) and aftermarket. The OEM (original equipment manufacturer) market was the largest segment of the electric vehicle parts and components market segmented by sales channel, accounting for 74.8% or $116.85 billion of the total in 2022. Going forward, the OEM (original equipment manufacturer) segment is expected to be the fastest growing segment in the electric vehicle parts and components market segmented by sales channel, at a CAGR of 22.21% during 2022-2027.

Asia-Pacific was the largest region in the electric vehicle parts and components market, accounting for 67.4% or $105.35 billion of the total in 2022. It was followed by North America, Western Europe and then the other regions. Going forward, the fastest-growing regions in the electric vehicle parts and components market will be Asia-Pacific and South America, where growth will be at CAGRs of 22.5% and 20.7% respectively. These will be followed by North America and Western Europe, where the markets are expected to grow at CAGRs of 20.4% and 19.7% respectively.

The global electric vehicle parts and components market is highly fragmented, with a large number of small players operating in the market. The top ten competitors in the market made up to 12.61% of the total market in 2022. The market fragmentation can be attributed to the presence of a large number of small players in different geographies. Robert Bosch GmbH was the largest competitor with 3.05% share of the market, followed by Samsung SDI Co Ltd. with 2.82%, Denso Corporation with 1.47%, Hyundai Mobis Co Ltd. with 1.12%, Panasonic Corporation with 1.00%, Toyota Industries Corporation with 0.70%, Continental AG with 0.66%, Siemens AG with 0.63%, Tesla Inc. with 0.58% and Hitachi Ltd with 0.57%.

The top opportunities in the electric vehicle parts and components market segmented by component will arise in the battery packs segment, which will gain $201.32 billion of global annual sales by 2027. The top opportunities in the electric vehicle parts and components market segmented by vehicle will arise in the passenger cars segment, which will gain $202.13 billion of global annual sales by 2027. The top opportunities in the electric vehicle parts and components market segmented by propulsion will arise in the battery electric vehicle segment, which will gain $186.04 billion of global annual sales by 2027. The top opportunities in the electric vehicle parts and components market segmented by sales channel will arise in the OEM (original equipment manufacturer) segment, which will gain $201.67 billion of global annual sales by 2027. The electric vehicle parts and components market size will gain the most in China at $141.48 billion.

Market-trend-based strategies for the electric vehicle parts and components market include focus on innovative product developments in batteries for longer range, increasing investments in developing efficient and powerful electric vehicle (EV) batteries, adopting new technological solutions such as advanced sensors for electric vehicles, developing new parts and components for electric vehicles and strategic partnerships and collaborations.

Player-adopted strategies in the electric vehicle parts and components market include focus on enhancing business operations through strategic investments, strengthening operational capabilities through securing new contracts and enhancing operational capabilities through business expansion.

To take advantage of the opportunities, the analyst recommends the electric vehicle parts and components companies to focus on innovative product developments in batteries for longer range, focus on adoption of new sensor technologies, focus on development of new components to enhance EV performance, focus on increasing investments in EV batteries manufacturing, focus on fast-growing components, expand in emerging markets, continue to focus on developed markets, focus on strategic partnerships and collaborations, focus on fast-growing sales channels, provide competitively priced offerings, participate in trade shows and events, continue to use B2B promotions, focus on fast-growing vehicle types and target EV fleet operators.