Electric Vehicle Component Market To Generate Revenue Worth USD 472.7 Billion by 2030

The electric vehicle component market is expected to generate revenue of USD 472.7 billion by 2030, registering a CAGR of 21.3% during the forecast period (2024–2030). This can be ascribed to the surging manufacturing of high-quality electric vehicles and the increasing sales of EVs, due to the rising cost of fuel, the growing concern of people toward environmental pollution, and the enactment of stringent emission and fuel economy norms. Moreover, major players and existing players are playing a huge role in driving the expansion of this market to a significant degree.

In addition, the market for electric vehicles (EVs) has seen substantial growth, largely attributed to the rising awareness and acceptance among consumers. As consumers become increasingly informed about the advantages of electric vehicles, the market has witnessed significant expansion and those are more likely to consider them as viable alternatives for gasoline or diesel vehicles. Also, word-of-mouth recommendations and positive experiences shared by early adopters have influenced others to embrace electric vehicles.

Hike in the Requirement of OEMs

The original equipment manufacturers (OEMs) category dominates the market, as they register the highest demand for EV components, due to the increasing need for such components to develop new EVs and maintain supply chain strategies. Also, the industry trends and governmental policies in major automotive markets are providing great support for the growth in the proportion of electric car sales. In addition, OEMs are expected to embrace the electric vehicle market on a broader scale, and a large number of OEMs has already announced their intention to increase the production of different models, including compact hatchback to high-end sedans like Tesla Model 3.

Furthermore, the battery pack category holds the largest share in the market for electric vehicle components, as battery packs are essential components of electric vehicles, serving as the primary component for energy storage.

APAC Market To Witness the Fastest Growth

Based on region, the Asia-Pacific electronic vehicle component market is projected to register the highest growth rate during the projected period of 2024–2030. This can be driven by the availability of raw materials and cheaper labor, the presence of major manufacturers, the integration of components in electric vehicles, increased customer demand and sales of electric vehicles in countries like China and India, government subsidiaries, and the existence of large-scale domestic production facilities in the region.

In addition, the development of new technology in this sector, the increased production of electric vehicles, and the amplified development of infrastructure are projected to expand the demand for electronic vehicle components to a larger extent during the forecast period.

Some of the key players in the 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 Optimum Nano Energy Co. Ltd.