Electric Vehicle Parts and Components Global Market Report 2024

The electric vehicle parts and components market size has grown rapidly in recent years. It will grow from $183.61 billion in 2023 to $214.08 billion in 2024 at a compound annual growth rate (CAGR) of 16.6%. The growth observed in the historical period can be attributed to the enforcement of stringent emission regulations, advancements in charging infrastructure, increased consumer awareness and demand, global initiatives to address climate change, and a decrease in battery costs.

The electric vehicle parts and components market size is expected to see rapid growth in the next few years. It will grow to $384.31 billion in 2028 at a compound annual growth rate (CAGR) of 15.8%. The anticipated growth in the forecast period can be attributed to the expansion of electric vehicle (EV) model offerings, rising expectations for increased range and performance, a concentrated effort on incorporating sustainable and recyclable materials, the growing trend of localized manufacturing, and the development of solid-state batteries. Key trends expected in the forecast period include advancements in battery technology, the utilization of lightweight materials and optimized design, the integration of advanced driver assistance systems, a shift towards 800v architecture, and increased collaborations and partnerships.

The anticipated rise in the adoption of electric vehicles is expected to drive the growth of the electric vehicle parts and components market. Electric vehicles, propelled by one or more electric motors powered by an onboard battery pack, rely on the collaborative functioning of various parts and components to efficiently convert, store, distribute, and utilize electrical energy. For instance, data from September 2022 provided by the International Energy Agency, an autonomous intergovernmental organization based in France, revealed that electric vehicle sales nearly doubled to 6.6 million in 2021 compared to 2020, resulting in a total of 16.5 million electric vehicles on the road. Hence, the increasing adoption of electric vehicles is a key driver for the growth of the electric vehicle parts and components market.

The growing sales of hybrid electric vehicles (HEVs) are also expected to contribute to the expansion of the electric vehicle parts and components market. HEVs, which utilize a combination of an internal combustion engine and an electric motor, necessitate a sophisticated traction motor system, leading to an increased demand for various components and parts. This includes electric motors, batteries, power electronics, and related components. According to the U.S. Department of Energy, a US-based agency overseeing energy policy and production, sales of hybrid-electric vehicles (HEVs) in the United States rose from 6.7% in 2022 to 7.2% in 2023. Therefore, the heightened sales of hybrid electric vehicles play a significant role in propelling the growth of the electric vehicle parts and components market.

A prominent trend is the increasing focus on product innovations in the electric vehicle parts and components market. Companies within this market are actively pursuing the development of new technologies to fortify their market positions. A notable example is Volkswagen, a Germany-based vehicle manufacturer, which introduced a groundbreaking AV battery named Astroinno in May 2023. This battery boasts a remarkable 1000 km range and is designed to have superior energy density compared to conventional lithium-iron-phosphate (LFP) batteries. Furthermore, it offers a cost advantage over batteries primarily reliant on nickel and cobalt. The Astroinno battery, powered by a 140 kilowatt-hour (kWh) battery pack, can be charged from a low level to 80% in just 18 minutes, maintaining an 88% yield rate even at temperatures as low as -20 degrees Celsius.

Major players in the electric vehicle parts and components market are significantly increasing their investments in the development of efficient and powerful electric vehicle (EV) batteries. This strategic approach aims to strengthen their market positions and deliver superior batteries to meet the evolving demands of their customers. For instance, Toyota, a Japanese-based automotive manufacturer, announced a substantial investment of $5.6 billion in new plants dedicated to manufacturing electric vehicle battery packs in Japan and the United States in August 2022. Additionally, in October 2023, Umicore Rechargeable Battery Materials Canada Inc., a Canada-based battery materials manufacturing company, disclosed a substantial investment of $2.761 billion for the construction of a new manufacturing facility in Loyalist Township, Ontario, Canada. This facility will produce precursor cathode active materials (pCAM) and cathode active materials (CAM), crucial components for manufacturing batteries for electric vehicles (EVs). Moreover, Umicore, a Belgium-based rechargeable battery materials supplier, revealed a significant $1.5 billion investment in an electric vehicle (EV) battery facility in Ontario, Canada, in October 2022.

In January 2022, Eaton Corporation PLC, an Ireland-based electrical products manufacturing company, completed the acquisition of Royal Power Solutions for a deal amounting to $600 million. Through this strategic acquisition, Eaton Corporation aims to capitalize on long-term development trends in their electrical, aerospace, and mobility businesses. Royal Power Solutions, a US-based auto parts manufacturer, specializes in producing electrical connector parts for industrial and automotive applications.

Major companies operating in the electric vehicle parts and components market report are Ford Motor Company, General Motors, BMW Group, Robert Bosch GmbH, Tesla Inc., Siemens AG, Nissan Motor Manufacturing Ltd., Panasonic Corporation, Contemporary Amperex Technology Co. Ltd., Denso Corporation, Continental AG, Hyundai Mobis Co Ltd., Magna International Inc., ABB Ltd., Toyota Industries Corporation, Aptiv PLC, BorgWarner Inc., Samsung SDI Co Ltd., Maruti Suzuki Ltd., Hella KGaA Hueck & Co., NIO Inc., Ashok Leyland Ltd., Rivian Automotive Inc., Amara Raja Batteries Ltd., QuantumScape Corporation, Eastman Auto & Power Ltd., Okaya Power Ltd., Faraday Future, Sparco Batteries Pvt Ltd.

Asia-Pacific was the largest region in the electric vehicle parts and components market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the electric vehicle parts and components market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the electric vehicle parts and components market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Key components within electric vehicle parts and components include battery packs, DC-DC converters, controllers and inverters, motors, and onboard chargers. These components find application in various vehicle types, including passenger cars and commercial vehicles. Passenger cars, designed primarily for transporting passengers, can be categorized into different propulsions such as battery electric vehicles, plug-in hybrid vehicles, fuel cell electric vehicles, and hybrid electric vehicles. The distribution channels for these components include original equipment manufacturers (OEM) and the aftermarket.

The electric vehicle parts and components market research report is one of a series of new reports that provides electric vehicle parts and components market statistics, including electric vehicle parts and components industry global market size, regional shares, competitors with a electric vehicle parts and components market share, detailed electric vehicle parts and components market segments, market trends and opportunities, and any further data you may need to thrive in the electric vehicle parts and components industry. This electric vehicle parts and components market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The electric vehicle parts and components market consists of sales of batteries, electric motors, power electronics, infrastructure for charging, and a thermal management system. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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