Published: November 2019 | Report Code: AT11759 | Available Format: PDF | Pages: 151
The electric vehicle component market size was $22.2 billion in 2018, and it is set to reach $157.4 billion by 2025, advancing at a CAGR of 29.4% between 2019 and 2025. This growth can be ascribed to the rising adoption of electric vehicles (EVs) worldwide.
The Rest of the world (RoW) is set to experience the fastest growth in the electric vehicle component industry, at a CAGR of over 40.0%, during 2019–2025. As the region is still in the nascent phase of EV adoption, it accounted for less than 2.5% of the market revenue in 2018. However, the penetration of EVs is surging here at a considerable rate, especially in Mexico and Brazil, which is propelling the demand for their various components.
The shifting preference of EV manufacturers to induction motors from synchronous motors has become a major market trend. For instance, Tesla Inc., one of the leading EV companies, integrates induction motors in many of its models, such as Tesla Model X and Tesla Model 3. Automakers are shifting to induction motors as they are more efficient and assist in decreasing the magnetic losses by reducing the voltage of the inverter. Thus, the increasing adoption of these motors in high-performance EVs will drive the electric vehicle component market growth in the coming years.
Another growth driver for the market is the increasing government support for EV adoption. Governments of several countries are offering tax exemptions, financial incentives, and purchase rebates to promote clean mobility. For instance, the U.S. federal government provides an Internal Revenue Service (IRS) tax credit of $2,500 to $7,500, based on the capacity of EVs and their battery size.
The battery pack category, within the component segment, held the largest share in the market for electric vehicle components in 2018. This is because the battery pack accounts for 35–50% of the overall price of an EV. Among the various sub-components of a battery pack, the battery cell accounted for a significant share in 2018.
The original equipment manufacturer (OEM) category registered the higher demand under the end use segment in 2018. This can be ascribed to the mushrooming production of EVs across the globe. The faster growth in the near future is expected in the aftermarket category due to the rising demand for replacement parts and components.
The Asia-Pacific (APAC) electric vehicle component market recorded the highest revenue in 2018 due to the large-scale adoption of EVs in the region. The major factors behind the high sales of EVs include the soaring government support, escalating environmental concern, and rising operational cost of internal combustion engine (ICE)-powered automobiles. Among APAC nations, China generated the highest revenue in 2018. This is because the government of China has been providing a subsidy on the purchase of new EVs since 2017, as a result of which EV sales in the country grew by more than 60% between 2017 and 2018.
The manufacturing of electric vehicle components is primarily concentrated in China, Japan, South Korea, and the U.S., with all the top manufacturing companies located in these four countries. This is mainly attributed to the scalability of production volumes, presence of government incentives and subsidies, as well as a rapidly growing consumer base in the form of electric vehicle manufacturers. The major players operating in the electric vehicle component market are Robert Bosch GmbH, Contemporary Amperex Technology Co. Ltd., Panasonic Corp., Siemens AG, DENSO Corp., LG Chem Ltd., Tesla Inc., Hitachi Ltd., ABB Ltd., Samsung SDI Co. Ltd., BYD Co. Ltd., Mitsubishi Electric Corp., LG Innotek Co. Ltd., and OptimumNano Energy Co. Ltd.
In recent years, the major players in the global electric vehicle component market have taken several strategic measures, such as product launches, mergers and acquisitions, and facility expansions, to gain a competitive edge in the industry. For instance, in July 2019, Robert Bosch GmbH announced that it would take up a 50% stake in MAGURA Bike Parts, a subsidiary of MAGURA, in order to introduce a joint venture under the name MAGURA Bosch Parts & Services GmbH & Co. KG. Similarly, in April 2019, LG Chem entered into a joint venture with VinFast Trading and Production LLC (a subsidiary of Vingroup and manufacturer of vehicles) to start the production of battery packs for the Vietnamese start-up’s electric scooters and other upcoming electric vehicles.
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