Electric Vehicle Components Market Forecasts to 2030 – Global Analysis By Electric Vehicle Type (Battery Electric Vehicle, Commercial Vehicles, Passenger Vehicles and Plug-in Hybrid Electric Vehicle), Component (Battery Pack, Electric Motors, Power Electr

Electric Vehicle Components Market Forecasts to 2030 – Global Analysis By Electric Vehicle Type (Battery Electric Vehicle, Commercial Vehicles, Passenger Vehicles and Plug-in Hybrid Electric Vehicle), Component (Battery Pack, Electric Motors, Power Electronics and Other Components), End User and By Geography

According to Stratistics MRC, the Global Electric Vehicle Components Market is accounted for $229.16 billion in 2024 and is expected to reach $845.22 billion by 2030 growing at a CAGR of 24.3% during the forecast period. Electric vehicles (EVs) consist of several key components that work together to provide efficient and sustainable transportation. At the heart of an electric vehicle is its battery pack, which stores electrical energy for propulsion. These batteries typically use lithium-ion technology due to its high energy density and reliability. Charging infrastructure, including onboard chargers and external charging stations, is essential for replenishing the battery's energy, EVs incorporate sophisticated control systems and software to monitor and regulate various aspects such as energy consumption, braking regeneration, and overall vehicle dynamics.

Market Dynamics:

Driver:

Infrastructure development

As governments and private sectors invest in expanding charging networks, the reliability and convenience of EVs improve significantly. Infrastructure development includes establishing more charging stations in urban areas, along highways, and in residential areas, reducing range anxiety among EV owners. Infrastructure development supports innovation in EV components themselves, fostering research into more efficient batteries, lightweight materials, and advanced electronics. Moreover, advancements in charging technology, such as faster chargers and smart grid integration, optimize energy use and reduce charging times, enhancing the overall user experience.

Restraint:

High upfront cost of electric vehicles

The high upfront cost of electric vehicles (EVs) primarily stems from several factors inherent to their design and technology. Battery packs, which are crucial and expensive components of EVs, contribute significantly to their overall cost. These batteries utilize advanced materials like lithium-ion, which are costly to produce and refine. EVs require specialized electric drivetrains and control systems that are more complex and expensive than traditional internal combustion engines. However, the economies of scale in EV production have not yet reached levels comparable to those of conventional vehicles, which further drives up their manufacturing costs.

Opportunity:

Advancements in battery technology

Advancements in battery technology are revolutionizing electric vehicle components by vastly improving their efficiency, range, and sustainability. Traditional lithium-ion batteries are being replaced or enhanced with newer iterations like solid-state batteries, offering higher energy densities and longer lifespans. These advancements enable electric vehicles (EVs) to travel farther on a single charge while reducing charging times. Moreover, enhanced battery technology contributes to the overall reduction of EV weight and size, optimizing vehicle performance and handling.

Threat:

Manufacturing capacity

The bottleneck in electric vehicle component manufacturing capacity poses a significant challenge to the industry's growth. As demand for electric vehicles (EVs) rises, manufacturers face constraints in scaling up production of critical components such as batteries, electric motors, and charging infrastructure. These constraints stem from various factors including limited production facilities, supply chain disruptions, and the complex nature of transitioning from traditional automotive manufacturing to EV-specific technologies. The specialized materials and processes required for EV components add further complexity to ramping up production capacity.

Covid-19 Impact:

The COVID-19 pandemic significantly impacted the electric vehicle (EV) industry, particularly its supply chain and component availability. As the virus spread globally, many manufacturers faced disruptions in production due to factory closures, reduced workforce, and logistical challenges. This led to delays in the manufacturing and delivery of key EV components such as batteries, semiconductors, and electronic control units. However, consumer demand for EVs fluctuated as economic uncertainties arose, affecting sales projections and investment in EV technologies.

The Battery Electric Vehicle segment is expected to be the largest during the forecast period

Battery Electric Vehicle segment is expected to be the largest during the forecast period. Battery technology is at the forefront, with ongoing developments focused on increasing energy density, reducing charging times, and enhancing lifespan. This progress is crucial for extending driving ranges and improving overall efficiency. Advancements in vehicle electronics and software systems are enabling better integration of components, enhancing vehicle connectivity, autonomy, and user experience. As the BEV segment continues to grow, these advancements not only improve the performance and accessibility of electric vehicles but also contribute to reducing carbon footprints and advancing sustainable transportation solutions globally

The Fleet Operators segment is expected to have the highest CAGR during the forecast period

Fleet Operators segment is expected to have the highest CAGR during the forecast period. By integrating advanced EV components, such as batteries, motors, and charging infrastructure, fleet operators aim to reduce operational costs and environmental impact. These enhancements promise greater efficiency, longer operational range, and reduced maintenance compared to traditional combustion engine vehicles. Moreover, the move towards electrification aligns with global efforts to curb greenhouse gas emissions and mitigate climate change. Fleet operators benefit not only from cost savings over the vehicle lifecycle but also from regulatory incentives promoting clean energy adoption.

Region with largest share:

North America region commanded the largest share of the market over the extrapolated period. Companies are increasingly investing in sustainable practices aimed at reducing carbon footprints and promoting environmental stewardship. This involves innovations in manufacturing processes, such as the use of renewable energy sources and efficient recycling techniques, which contribute to overall sustainability goals across the region. Moreover, these initiatives spur technological advancements in EV components, making them more energy-efficient and cost-effective over time. By prioritizing sustainability, corporations not only meet regulatory requirements but also appeal to environmentally conscious consumers and investors throughout the region.

Region with highest CAGR:

Europe region is projected to hold profitable growth during the forecasted period. Through a strategic framework of subsidies, tax breaks, and regulatory measures, governments have incentivized both consumers and businesses to adopt electric vehicles and invest in related technologies. These policies aim to reduce greenhouse gas emissions, enhance energy security, and promote sustainable transportation solutions. In particular, financial incentives such as purchase subsidies for electric vehicles, grants for research and development in EV technology, and infrastructure investments in charging stations have been pivotal across the region. Regulatory measures include stringent emission standards and mandates for automakers to produce a certain percentage of zero-emission vehicles, spurring innovation and competitiveness in the regional market.

Key players in the market

Some of the key players in Electric Vehicle Components market include Amara Raja Batteries Ltd, Ashok Leyland, Avtec Limited, Eastman Auto & Power Ltd, Exicom Tele-Systems Ltd, Exide Industries Ltd, Hyundai Motor Company, Okaya Power Pvt. Ltd, SEG Automotive India Private Limited, Sparco Batteries Pvt. Ltd, Tata Motors Limited, Tesla Motors and Volkswagen Group.

Key Developments:

In June 2024, Amara Raja signs licensing agreement with GIB EnergyX for Li-ion cells tech. As part of the agreement, GIB EnergyX, a subsidiary of Gotion High-Tech Co Ltd, will license Gotion's 'LFP technology' for lithium-ion cells to Amara Raja Advanced Cell Technologies (ARACT), a wholly-owned arm of Amara Raja Energy & Mobility Ltd.

In June 2024, Amara Raja Energy & Mobility has acquired an additional 4.5 percent stake in electric vehicle battery maker InoBat for 20 million euros (nearly Rs 180 crore).

Electric Vehicle Types Covered:
• Battery Electric Vehicle
• Commercial Vehicles
• Passenger Vehicles
• Plug-in Hybrid Electric Vehicle

Components Covered:
• Battery Pack
• Electric Motors
• Power Electronics
• Other Components

End Users Covered:
• Government Agencies
• Fleet Operators
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements