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.
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.
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.
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.