Electric Vehicle Components Market

Electric Vehicle Components Market Outlook (2022-2032)

The global electric vehicle component market is valued at USD 148.32 Billion in 2022. The market is further expected to gain size of USD 1001.95 Billion by the year 2032. The market is expected to grow with a CAGR of 21.05% in the forecast period.

The motor is powered by rechargeable batteries, which can be charged at home or at an EV charging station. These vehicles run on a few technologies, such as battery electric vehicles(BEV), plug-in hybrid electric vehicles(PHEV), and range extender (hybrid) electric vehicles (HEV). Three primary components in an electric car and motorcycles are an electric engine, a battery, and a motor controller. Other than these, monitoring displays and electric brakes are vital components.

Batteries used in electric vehicles come in three types, out of which lithium-ion batteries are quite expensive yet have good performance, lead-acid batteries are the cheapest in price, and nickel metal hydride batteries are moderately priced and have a higher output than lead-acid batteries. Motors used in electric vehicles are DC motors, AC induction motors switched reluctance motors and permanent magnet synchronous motors.

Electric vehicles originated in the late 18th century. Since then there have been numerous developments in the electric vehicle including the evolution of batteries, no noise pollution at all, and adaption of the technology in cars after bicycles and motorcycles. The use of lightweight material in the manufacturing of e-vehicles gives a new dimension to e-motor racing.

Report Attributes	Details
Market size (2022 A)	USD 148.32 Billion
Base Year for Estimation	2022
Forecast duration for this research	2022-2032
Forecasted Market value (2032 F)	USD 1001.95 Billion
Global Market Growth rate (2022-2032 E)	CAGR of 21.05%
Key Companies Profiled	Borgwarner Inc. Jing-Jin Electric Technologies Co., Ltd. Meidensha Corporation Nidec Corporation Shuanglin Group Zhongshan Broad-Ocean Motor Co. Ltd.

What are the drivers of electric vehicle components?

Government initiatives like cutting down emissions from conventional vehicles by promoting electric vehicles are leading to major growth in the electric vehicle component market. The enormous increase in pollution and a hefty amount of expenditure on exhaustible fuel is bending people towards e-vehicles, resulting in tremendous growth in the electric vehicle component market.

The use of a simple DC motor reduces the maintenance cost of the vehicle, which is a major driver for the electric vehicle component market. Launching of more e-vehicles such as light and heavy commercial vehicles, and e-rickshaws for public use coupled with health and environmental benefits from its use is set to grow the electric vehicle component market.

Electric vehicles have a very limited range compared to traditional vehicles, batteries require regular charging. Lesser implementation of outdoor charging stations results in sudden shutting down of the vehicle, hence hybrid electric vehicles is preferred. The high costs of e-vehicles are still a challenge to the electric vehicle component market. The Battery in an e-vehicle gradually loses its capacity to hold the charge, though over a long time it is still a lagging part of the electric vehicle component market. Charging infrastructure for heavy commercial vehicles such as trucks also adds to that.

Heightened interest in electric vehicles has opened a number of opportunities for the global market. From start-up entrepreneurs lured by government initiatives to multinational companies investing a whole lot of money in technological innovations in e-vehicles and their components. There’s a surge in aftermarket sales of components.

Recently technologies such as swappable batteries, look-wise upgraded designs, and more weight-cutting are trending in the electric vehicle component market.

What are the restraints for the market?

The lack of charging infrastructure is a major deterrent for this industry. The lower availability of public electric vehicle infrastructure is reducing the adoption of these vehicles and so for the components. The demand for such components remains unfulfilled.

The demand for EVs is anticipated to gain growth in the forecast period. The countries like the Netherlands have the most density of charging density for every 100 km. The UK is another country where there are almost 3 charging stations every 100 Km. Countries like UAE, Japan, and South Korea are stepping into the market and are expected to gain a major share of the market.

However, government support for electric vehicles and components is likely to bring progress to this market. The US government has invested heavily in electric vehicle components and charging stations. Lower or zero registration fees, and import taxes that propel the adaptation of electric vehicles.

Which region holds the major share of this market?

Asia Pacific leads in the sales of e-vehicles because of countries like India and China owing to benefits such as government subsidies and large-scale domestic production hence increasing the electric vehicle component market. North America, Latin America, and Europe are also estimated to drive the global electric vehicle component market owing to a significant focus on minimizing vehicular emissions leading to the growing use of e-vehicles over the coming ten years. The governments in this region are actively taking steps to improve infrastructure and components. Countries like China and India are set to be dominant market space for EVM components owing to the rise in sales of electric cars.

Japan is a leading country in the use of hybrid e-vehicles hence contributing to the electric vehicle component market. The Middle East is expected to exhibit restricted growth in the electric vehicle component market because of the lesser adaption of e-vehicles over the years. Whereas in Africa many countries are looking forward to low-cost renewable fuels, generating demand for electricity-based vehicles, creating scope for the electric vehicle component market.

Segment wise Insights

On the basis of Channels, the original manufacturers of electric vehicle components dominate the market share owing to rising demand from customers. These companies dominate as they are involved in the production of components likely to drive the market in the forecast period.

Based on the type of Vehicles, commercial EVs hold the highest growth in the market. There is an alarming increase in the use of electric cars which is the rising consumption of batteries. The effectiveness of the EV’s reduction of pollution is propelling demand for components for electric vehicles.

On the basis of the Component types, battery parts are accounting for the largest share of the market owing to high demand. The production of such components integrated into EVs drives growth rates. About 40% of the largest growth in EVs is owing to the increased vehicle charging components segment.

Recent development

The market is characterized by key players which are offering a wide range of EV components that are particularly dedicatedly to the production of passenger cars and electric buses. Companies focused on innovation and technologically driven change. These companies are opting for strategic collaboration and mergers in order to increase business reach. These players are focused on the research and development into electric vehicle components that make these firms stay competitive in the market.

• In 2022 March the Panasonic Corporation announced the setting up of a plant to boost the manufacturing of lithium batteries. Tesla increased their benefits due to Panasonic corporation.
• In 2021 February The introduction of Hyundai in the development of electric vehicle parts enhanced cost effectivity. The collaboration of Kia and Hyundai have been working on EV components in India and are likely to get a major market share in the forecast period.

Electric Vehicle Components Market : Segmentation

• By Vehicle Type :

  • Electric bicycles
  • Electric cars
  • Electric rickshaws
  • Electric motorcycles
  • Electric Light commercial vehicle(LCV)
  • Electric Heavy commercial vehicle(HCV)

• By Product Type :

  • Primary Components
  • Batteries
  • Electric Motor
  • Motor Controller
  • Secondary Components
  • Electric brakes
  • Monitoring displays
  • Others

• By Sales Channel :

  • OEM (Original Equipment Manufacturer)
  • Aftermarket

• By Region :

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • Asia Pacific
  • Japan
  • Middle East and Africa