Electric Vehicle Parts And Components Market Size

Electric Vehicle Parts and Components Market Analysis

The electric vehicle parts and components market is valued at USD 122.53 billion and is expected to reach a value of USD 318.47 billion, registering a CAGR above 21.05% during the forecast period.

• The COVID-19 pandemic affected almost every industry around the globe; despite the pandemic, the demand for electric vehicle parts and components observed significant growth, owing to factors such as the rising demand and sales of electric vehicles.
• Over the long term, 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.
• For instance, in January 2023, DAF announced the construction of a new electric truck assembly factory in Eindhoven, where production of the new generation DAF XD and XF Electric will begin this spring. These zero-emission vehicles have a range of more than 500 kilometers.
• The governments in various countries are spending heavily on electric mobility projects, which are going to provide an opportunity for electric vehicle component manufacturers, as governments are encouraging 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.
• For instance, in January 2023, PTT Synergy Group Berhad (PTTS) of Malaysia signed a memorandum of understanding (MOU) with SANY International Developing (M) Sdn. Bhd. and Rootcloud Technology Singapore Pte. Ltd. (RC) to collaborate in a business that provides EV support and solutions through electric battery leasing services as well as the provision of renewable energy and zero carbon logistic instruments.
• Moreover, post-pandemic, the sales of EVs are also increasing. Therefore, players are also focusing on the development of electric parts and components.
• For instance, in January 2023, Sensata Technologies showcased its innovations that support vehicle electrification and a broad range of mission-critical sensors and electrical protection solutions for automotive and heavy vehicle off-road (HVOR) applications at the Auto Expo Components 2023.
• The Asia-Pacific region is growing as a result of increased technological development, increased manufacturing and production of electric vehicles, increased integration of components in electric vehicles, and increased customer demand. Furthermore, increased government investment in continuous R&D in the market with advanced technologies in components and increased infrastructure development, which expands the market to a greater extent during the forecast period.