|Fastest Growing Market:||Asia-Pacific|
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The Electric Vehicle Parts and Components Market was valued at USD 122.53 Billion in 2021 and is expected to reach a value of USD 318.47 Billion by 2027, registering a CAGR of above 21.05% during the forecast period (2022 – 2027).
The COVID-19 pandemic has affected almost every industry around the globe; however, the demand for electric vehicle parts and components is growing significantly, owing to factors such as the continuous demand and sales of electric vehicles every year. For instance, despite the pandemic, the sales of electric vehicles, such as passenger cars, have shown positive growth in various countries in the regions, such as Asia-Pacific and Europe.
Some of the major factors driving the growth of the market studied are the enactment of stringent emission and fuel economy norms, government incentives, and improving charging infrastructure, which is leading to the increasing adoption of electric vehicles. This adoption of electric vehicles will propel the demand for electric motors during the forecast period.
The governments in various countries are spending heavily on electric mobility projects, which are going to provide an opportunity to the electric vehicle component manufacturers, as governments are encouraging the automobile manufacturers and customers to produce and adopt electric vehicles. The rise in the demand for electric vehicles is also expected to increase the sales of the components used in electric vehicles, such as motors, batteries, DC-DC converters, power inverters, etc.
Scope of the Report
Electric Vehicles have several electric power components, including the motor, battery, onboard charger, power electronics, and the Electric Power Control Unit (EPCU). All are necessary for the conversion of the battery's electricity into the kinetic force that propels the EV forward.
The Electric Vehicle Parts and Components Market is Segmented by Vehicle Type, Propulsion Type, Component Type, and Geography.
By Vehicle Type, the market is segmented into Passenger Vehicles and Commercial Vehicles.
By Propulsion Type, the market is segmented as Battery Electric Vehicle (BEV), Plug-in Hybrid Electric Vehicle (PHEV), and Hybrid Electric Vehicle (HEV)),
By Component Type, the market is segmented as Battery Packs, DC-DC Converters, Controller & Inverter, Motor, On-Board Chargers, and Others.
And by Geography, the market is segmented as North America, Europe, Asia-Pacific, and the Rest of the World.
Key Market Trends
Increasing Investments In Electric Vehicles Driving the m
Electric vehicles have become an integral part of the automotive industry, and it represents a pathway toward achieving energy efficiency, along with reduced emission of pollutants and other greenhouse gases. The increasing environmental concerns, coupled with favorable government initiatives, are the major factors driving this growth. The annual sales volume of electric passenger cars is projected to cross the 5 million mark by the end of 2025, and it is expected to account for 15% of the overall vehicle sales by the end of 2025.
Several manufacturers have raised the bar to go beyond the previous announcements related to EVs with an outlook beyond 2025. More than ten of the largest OEMs have declared electrification targets for 2030 and beyond.
Significantly, some OEMs plan to reconfigure their product lines to produce only electric vehicles. For instance,
- In 2021, General Motors announced its plans to raise its spending on electric and autonomous vehicles to USD 20 billion by 2025. The company is expected to launch 20 new electric models by 2023 and aims to sell more than 1 million electric cars a year in the United States and China over the forecast period.
- Volkswagen is planning to spend USD 36 billion on electric cars across its mass-market brands by 2024. According to the company, by 2025, at least 25% of its global sales will be electric vehicles.
- Mahindra & Mahindra (M&M) is one of the leading vehicle manufacturers in Asia. The company is planning to launch new electric vehicles. At present, the company has only one electric model, eVerito. However, by 2021, M&M may launch the electric KUV, followed by the S210 (the electric version of XUV300) a year later.
- Volvo announced that it will only sell electric cars from 2030. Ford will only sell electric cars in Europe from 2030. General Motors plans to offer only electric vehicles after 2035. Volkswagen aims for 70% electric car sales in Europe and 50% in China and the United States by 2030. Stellantis aims for 70% of the electric car sales in Europe and 35% in the United States.
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Asia-Pacific Dominating the Market.
Rising government emphasis on increasing the adoption of electric vehicles and the availability of incentives from the government for electric vehicles are expected to drive the demand for electric vehicles during the forecast period. Governing bodies of several countries from Europe, North America, and Asia-Pacific have announced their plans to phase out fuel-powered vehicles during the upcoming 10 years. This will also have a positive impact on the growth of electric vehicles during the forecast period.
Asia-Pacific is expected to grow at a faster rate, followed by Europe and North America, as countries such as China and Japan are inclined toward innovation, technology, and the development of advanced electric vehicles. Moreover, ASEAN countries are engaged in large electric mobility projects.
China is a key player in the global electric vehicle industry. Moreover, the government of China is encouraging people to adopt electric vehicles. The country is planning to completely switch to electric mobility by 2040. The Chinese electric passenger car market is also one of the largest worldwide, and it has been growing rapidly over the last few years and is expected to grow higher in the forecast period, which is also going to have a positive impact on the demand for electric vehicle parts and components market.
Japan has one of the best electric vehicle ecosystems in the world. Automotive companies like Toyota and Nissan are taking steps toward building electric vehicles in the country. The developments in the hybrid and electric vehicle market can be gauged by the presence of a number of players in the country. These favorable factors are expected to drive the market for hybrid and electric vehicles in Japan.
The Indian government has been formulating various strategies to reduce pollution in the country. For instance, The country, with its FAME and FAME II policies, has been providing incentives to customers and attractive options for investors as well as manufacturers to set up EV plants to propel the nation toward the faster adoption of green vehicles. Additionally, automobile manufacturers in India are also taking initiatives and investing in R&D practices to provide affordable electric cars in India; for instance,
- In February 2021, Hyundai announced to spend INR 1,000 crore on the development of new affordable EVs. The vehicles would be manufactured locally, and the company is in talks with local vendors to source the components. Hyundai may also seek a strategic partnership with its sister brand, Kia, as it also has plans to add EVs to its portfolio in India. The company is also working on a mass-market, more affordable electric car for India that is expected to debut by 2024.
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The key players in the global market include Denso Corporation, Robert Bosch GmbH, Continental AG, Contemporary Amperex Technology Co. Ltd., Panasonic Corporation, BorgWarner Inc, LG Chem Ltd., Hitachi Ltd., and others.
The evolving partnerships between manufacturers and automotive companies are expected to expand the studied market globally. For instance,
- In January 2022, Volkswagen and Bosch signed a memorandum of understanding (MoU) in order to industrialize the production of battery cells. The companies intend to establish a project unit to investigate the feasibility of industrial-scale solutions for battery manufacturing in Europe. Both intend to provide integrated battery production systems, as well as on-site ramp-up and maintenance support for battery cell and system manufacturers, as well as the entire range of processes and components required for large-scale battery cell and system manufacturing.
- In October 2021, Samsung SDI and Stellantis signed an MOU (memorandum of understanding) to produce EV batteries for North America. Samsung SDI plans to build a battery plant in the United States under the agreement to supply batteries for Stellantis vehicles.
- In April 2022, Denso Corporation (Denso) developed electric vehicle (EV) products that will be supplied to the Toyota bZ4x and Subaru Solterra. The products include a current sensor that detects the flow of charging and discharging battery electricity, an electricity supply unit (ESU) that integrates the functions of battery charging, electrical power conversion, and electrical power distribution, and a heat pump system that extracts heat from the air and uses it as a heat source for the vehicle climate control system, and a radiant heating system that warms the lower body of the passengers (only for bZ4X). Denso will also provide sensors that monitor battery voltage and temperature, as well as a battery monitoring electronic control unit (ECU) that monitors the battery's status.
- In March 2022, Panasonic Corporation (Panasonic) announced that it is considering buying a plant in the United States to boost its lithium-ion battery production capacity for Tesla electric vehicles (EVs), Tesla Inc. (Tesla), and sites in Oklahoma and Kansas are likely to benefit from the plant.
- In January 2022, Bosch (China) Investment Ltd. (Bosch China) stated that it would participate in the 2022 Haikou International New Energy Vehicle & Connected Mobility Show with a variety of products (2022 Haikou NEV Show). A dedicated battery system solution for medium and heavy-duty commercial vehicles, a compact eAxle that integrates the motor, power electronics, and transmission into one system, the power electronic controller INVCON3U, an onboard charging, and distribution unit, and a thermal management system for electric vehicles are among the products available.
Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Vehicle Type
5.1.1 Passenger Cars
5.1.2 Commercial Vehicles
5.2 Propulsion Type
5.2.1 Battery Electric Vehicle
5.2.2 Plug-in Hybrid Vehicle
5.2.3 Fuel Cell Electric Vehicle
5.2.4 Hybrid Electric Vehicle
5.3 Component Type
5.3.1 Battery Packs
5.3.2 DC-DC Converters
5.3.3 Controller & Inverter
5.3.5 Onboard Charger
5.4.1 North America
18.104.22.168 United States
22.214.171.124 Rest of North America
126.96.36.199 United Kingdom
188.8.131.52 Rest of Europe
5.4.3 Asia Pacific
184.108.40.206 South Korea
220.127.116.11 Rest of Asia-Pacific
5.4.4 Rest of World
18.104.22.168 South America
22.214.171.124 Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Continental AG
6.2.2 Robert Bosch GmbH
6.2.3 Denso Corporation
6.2.4 Hella GmbH & Co. KGaA
6.2.5 Toyota Industries Corporation
6.2.6 Hyundai Mobis
6.2.7 Samsung SDI Co Ltd
6.2.8 Panasonic Corporation
6.2.9 Contemporary Amperex Technology Co. Ltd.,
6.2.10 BorgWarner Inc
6.2.11 LG Chem Ltd.
6.2.12 Hitachi Ltd
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Electric Vehicle Parts and Components Market market is studied from 2018 - 2027.
What is the growth rate of Electric Vehicle Parts and Components Market?
The Electric Vehicle Parts and Components Market is growing at a CAGR of 21.05% over the next 5 years.
What is Electric Vehicle Parts and Components Market size in 2018?
The Electric Vehicle Parts and Components Market is valued at 122 Billion USD in 2018.
What is Electric Vehicle Parts and Components Market size in 2027?
The Electric Vehicle Parts and Components Market is valued at 318 Billion USD in 2027.
Which region has highest growth rate in Electric Vehicle Parts and Components Market?
Asia-Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Electric Vehicle Parts and Components Market?
Asia-Pacific holds highest share in 2021.
Who are the key players in Electric Vehicle Parts and Components Market?
Continental AG, Panasonic Corporation, Samsung SDI Co. Ltd, Denso Corporation, Robert Bosch GmbH are the major companies operating in Electric Vehicle Parts and Components Market.