Electric Vehicle Components Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Electric Vehicle Components Market is segmented By Vehicle Type (Hybrid Electric Vehicles (HEVs), Plug-in Hybrid Electric Vehicles (PHEVs), Battery Electric Vehicles (BEVs), Fuel-cell Electric Vehicle (FCEV), Others), By Product Type (Primary Components, Bottles & Cans, Electric Motors, Motor Controller, Electric Brakes, Secondary Components, Displays, Others), By Application (Electric Passenger Cars, Electric Light commercial vehicles (LCV), Electric Heavy commercial vehicles (HCV), Others), and By Region (North America, South America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Electric Vehicle Components Market Overview

The Global Electric Vehicle Components Market is expected to grow at a CAGR of 20% during the forecast period (2024-2031). 

An electric motor for propulsion powers an electric vehicle. An electric vehicle uses a battery to store energy supplied to the electric motor through a controller. The controller regulates the energy flow from the battery to the electric motor based on the power requirement. APAC led the global EV components market accounting for a share of around 38%. Competitive rivalry intensifies Bosch GMBH, BYD Company Ltd., Shuanglin Group and others operating in the market.

Once again, the global EV market began to find adoption by 2010 when mass production and marketing of Nissan Leaf and Chevrolet Volt started in the US. They were the only two top tier 1 mass-produced electric models until 2012.

Electric Vehicle Components Market Scope

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Electric Vehicle Components Market Dynamics

The development and adoption of green vehicles are the major solutions to reduce the emissions of GHGs. Alternate fuel vehicles run on alternative energy sources such as electricity, hybrid energy, solar energy, wind energy, or biofuels. ➢ APAC, North America, and Europe are the regions that are implementing stringent regulations regarding fuel emissions and tax incentives for the adoption of EVs.

Countries globally have implemented stringent emission norms to lower GHG emissions, reducing the causes of global warming to an extent. Automakers/ governments target reducing CO2 emissions to an average of 95 g/Km by 2020.

Automakers need to develop zero-emission vehicles or nearly zero-emission vehicles to meet emission standards that are becoming more stringent. These regulations have led to an increased focus on EVs, thereby driving the market growth during the forecast period.

Tax incentives and subsidies for EV manufacturers and end-users are the other drivers that foster market growth. China, Japan, the US, and countries in Europe have policies most favourable to the EV market's growth.

For instance, the US allows a federal tax subsidy of up to USD 7,500 to purchase pure or plug-in HEVs. State-level tax incentives apply to the purchase of HEVs. Further, China's government offers tax incentives of up to USD 9,280 to purchase pure EVs. Such subsidies and tax incentives from various countries fuel these vehicles' production locally, increasing EVs' sales.

Electric Vehicle Components Market Segmentation Analysis

The development and adoption of green vehicles are the major solutions to reduce the emissions of GHGs. Alternate fuel vehicles run on alternative energy sources such as electricity, hybrid energy, solar energy, wind energy, or biofuels.

APAC, North America, and Europe are the regions that are implementing stringent regulations regarding fuel emissions and tax incentives for the adoption of EVs.

Countries globally have implemented stringent emission norms to lower GHG emissions, reducing the causes of global warming to an extent. Automakers/ governments target reducing CO2 emissions to an average of 95 g/Km by 2020.

 Automakers need to develop zero-emission vehicles or nearly zero-emission vehicles to meet emission standards that are becoming more stringent. These regulations have led to an increased focus on EVs, thereby driving the market growth during the forecast period.

Tax incentives and subsidies for EV manufacturers and end-users are the other drivers that foster market growth. China, Japan, the US, and countries in Europe have policies most favourable to the EV market's growth.

For instance, the US allows a federal tax subsidy of up to USD 7,500 to purchase pure or plug-in HEVs. State-level tax incentives apply to the purchase of HEVs. Further, China's government offers tax incentives of up to USD 9,280 to purchase pure EVs. Such subsidies and tax incentives from various countries fuel these vehicles' production locally, increasing EVs' sales.

The development and adoption of green vehicles are the major solutions to reduce the emissions of GHGs. Alternate fuel vehicles run on alternative energy sources such as electricity, hybrid energy, solar energy, wind energy, or biofuels.

APAC, North America, and Europe are the regions that are implementing stringent regulations regarding fuel emissions and tax incentives for the adoption of EVs.

Countries globally have implemented stringent emission norms to lower GHG emissions, reducing the causes of global warming to an extent. Automakers/ governments target reducing CO2 emissions to an average of 95 g/Km by 2020.

Automakers need to develop zero-emission vehicles or nearly zero-emission vehicles to meet emission standards that are becoming more stringent. These regulations have led to an increased focus on EVs, thereby driving the market growth during the forecast period.

Tax incentives and subsidies for EV manufacturers and end-users are the other drivers that foster market growth. China, Japan, the US, and countries in Europe have policies most favourable to the EV market's growth.

For instance, the US allows a federal tax subsidy of up to USD 7,500 to purchase pure or plug-in HEVs. State-level tax incentives apply to the purchase of HEVs. Further, China's government offers tax incentives of up to USD 9,280 to purchase pure EVs. Such subsidies and tax incentives from various countries fuel these vehicles' production locally, increasing EVs' sales.

The asynchronous AC motor, also known as induction motor (IM), transfers the power from the stator to the rotor through magnetic induction. These motors use conductive coils in the rotor, such as aluminium and copper, instead of permanent magnets. The stator is made by stacking thin slotted steel laminations placed inside steel or cast iron frames.

Windings of the stator pass through the slots. The current passing through the stator produces a magnetic field that induces a current in the rotor coils, which generates a secondary magnetic field in the rotor producing torque. The stator winding induced with current creates a magnetic field around the rotor. Therefore, no undesired current or voltage is produced when electricity is not supplied to the motor. However, power loss in the rotor is nearly three times higher than that of PMSM, which reduces the motor's efficiency and can cause overheating.

Squirrel-cage IM (SCIM) and wound rotor (WR) IM are the two types of asynchronous AC motors. SCIM is used in industrial applications as they are more economical and reliable. Tesla Motors uses these motors in which copper windings are used in the rotor to reduce the heating issues.

Automakers and suppliers are continuously working toward introducing cheaper high-power electric motors to improve EVs' performance and range. The switch reluctance (SR) motor is one such area of ongoing research.

On the other hand, SR motors use a half-bridge converter that converts the power to produce high torque densities. They are inexpensive, and their performance is similar to that of PMSMs.

The asynchronous AC motor, also known as induction motor (IM), transfers the power from the stator to the rotor through magnetic induction. These motors use conductive coils in the rotor, such as aluminium and copper, instead of permanent magnets. The stator is made by stacking thin slotted steel laminations placed inside steel or cast iron frames.

Electric Vehicle Components Market Geographical Share

In 2019, APAC led the global EV components market accounting for a share of around 38%. North America followed the region with a share of XX% and Europe with a share of about XX%. APAC's market share can be attributed to the high production and sales of HEVs in Japan and EVs in China.

Besides, the domestic presence of established OEMs such as Toyota Industries, Honda Motor, Hyundai Motor, Nissan Motor, and BYD Auto, along with prominent tier 1 suppliers such as DENSO, Hitachi Automotive Systems, and Mitsubishi Electric, are driving the growth of the EV and auto parts markets in the region.

China and Japan contribute to more than 70% of APAC's market share due to the increased production and sales of EVs and auto parts. South Korea, India, and Hong Kong will emerge as strong markets for EVs during the forecast period. This will increase the production and sales of related parts such as batteries, power inverters, and motors.

Key factors for the development of the EV motor market in China and Japan include the following:

➢ Domestic presence of established automakers

➢ China controls more than 93% of rare earth elements used for manufacturing PMSMs and BLDCMs.

➢ Home to prominent power electronics manufacturers

Key factors for the development of the EV motor market in China and Japan include the following:

➢ Low-cost market owing to highly advanced domestic EV models.

➢ Joint ventures of foreign automakers with domestic companies for entering the market

➢ Aggressive green car policies from governments

➢ Regulations regarding emissions

➢ Development of charging infrastructure

China has strengthened its position in the global EV market over the past three years. The growth is attributable to well-established domestic automakers and auto parts manufacturers. Most of the other regions depend on China for rare earth materials, batteries, and power electronics products. These factors have led to establishing a low-cost EV component market in China, thereby making the country a major supplier in the global EV motor market during the forecast period.

The government of China has created the most attractive subsidies and incentive packages to promote green vehicles. The purchase of EVs is supported by subsidies of up to $13,530 and other attractions such as reserved free parking spaces, low rate public charging units, and tax returns.