Electric Vehicle Parts and Components Market Report 2025

The electric vehicle parts and components market size has grown rapidly in recent years. It will grow from $210.77 billion in 2024 to $243.79 billion in 2025 at a compound annual growth rate (CAGR) of 15.7%. The growth in the historic period can be attributed to stringent emission regulations, improvements in charging infrastructure, consumer awareness and demand, global efforts to combat climate change, reduction 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 $439.2 billion in 2029 at a compound annual growth rate (CAGR) of 15.9%. The growth in the forecast period can be attributed to expansion of ev model offerings, increased range and performance expectations, focus on sustainable and recyclable materials, increasing localization of manufacturing, development of solid-state batteries. Major trends in the forecast period include advancements in battery technology, lightweight materials and design optimization, integration of advanced driver assistance systems, transition to 800v architecture, collaborations and partnerships.

The rising adoption of electric vehicles is expected to drive the growth of the electric vehicle parts and components market in the future. An electric vehicle is powered by one or more electric motors that draw energy from an onboard battery pack. The efficiency and functionality of electric cars depend on the collaboration of various parts and components that convert, store, distribute, and utilize electrical energy effectively. For instance, in 2024, a report from the International Energy Agency (IEA) indicated that global electric car registrations reached nearly 14 million in 2023, bringing the total to 40 million and representing a 35% increase from 2022. Electric vehicles accounted for about 18% of all car sales, with battery electric cars making up 70% of the electric car stock. Thus, the increasing adoption of electric vehicles is fueling 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 include 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 2024. 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.

Electric vehicle parts and components encompass the various elements that constitute electric vehicles, including batteries, electric motors, power electronics, and charging systems. These components convert electrical energy into mechanical power, allowing the vehicle to operate efficiently and sustainably. They are essential for enhancing the performance, range, and overall functionality of electric vehicles.

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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