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Report Description

Report Description

Forecast Period

2027-2031

Market Size (2025)

USD 219.57 Billion

CAGR (2026-2031)

13.18%

Fastest Growing Segment

Battery Packs

Largest Market

Asia Pacific

Market Size (2031)

USD 461.52 Billion

Market Overview

The Global Electric Vehicle Components Market will grow from USD 219.57 Billion in 2025 to USD 461.52 Billion by 2031 at a 13.18% CAGR. The global electric vehicle components market encompasses the specialized hardware required for electric propulsion including high voltage battery packs, traction motors, inverters, and thermal management systems. The expansion of this sector is fundamentally driven by stringent government emission regulations and financial incentives designed to accelerate the transition from internal combustion engines to zero emission transport. These legislative frameworks mandate automakers to increase the manufacturing volume of electrified drivetrains and necessitate the development of robust charging compatibility.

However, the market faces a significant impediment regarding the stability of supply chains for critical raw materials needed in battery production. Volatility in the availability of essential minerals such as lithium and cobalt can create production bottlenecks that hinder the ability to meet soaring vehicle demand. According to the China Association of Automobile Manufacturers, in 2024, the production of new energy vehicles exceeded nine million units during the first ten months of the year. This rapid scaling places immense pressure on existing component supply lines and highlights the challenge of aligning upstream mining capacities with the immediate needs of component manufacturers.

Key Market Drivers

Aggressive electrification targets and capital allocation by major automotive OEMs act as a primary catalyst for the component sector. Legacy manufacturers are restructuring their supply chains to accommodate the production of electric drivetrains, creating sustained demand for motors, inverters, and thermal systems. This strategic pivot involves massive financial commitments to secure manufacturing capabilities and proprietary technology stacks. According to Honda Motor Co., Ltd., May 2024, in the '2024 Business Briefing on Initiatives Key to the Electrification Strategy', the company plans to double its investment in electrification and software technologies to approximately 10 trillion yen through the fiscal year 2031. Such substantial capital injections directly accelerate the development and procurement of specialized hardware required to meet the volume goals set by these automotive giants.

Simultaneously, the continuous decline in lithium-ion battery costs is removing a major economic barrier to component adoption. As the battery pack typically dictates the overall vehicle price, cost reductions in this area allow for improved margins on other high-voltage components and broader market penetration. Improved manufacturing efficiencies and lower raw material prices contribute heavily to this downward pricing trend. According to Goldman Sachs, September 2024, in the 'Electric vehicle battery prices falling faster than expected' report, global average battery prices are forecast to fall to $80 per kilowatt-hour by 2026. This reduction enhances the affordability of electric mobility, thereby driving total vehicle volume. According to the International Energy Agency, in 2024, global electric car sales are projected to reach approximately 17 million units. This volume growth ensures a steady expansion of the addressable market for component suppliers.

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Key Market Challenges

The instability of supply chains for critical raw materials acts as a severe constraint on the global electric vehicle components market. As component manufacturers strive to produce high-voltage battery packs and traction motors, their output is frequently disrupted by the volatile availability of essential minerals like lithium and cobalt. When upstream mining capacities fail to align with the rapid scaling requirements of the automotive sector, production bottlenecks emerge. These delays prevent manufacturers from fulfilling automakers' orders on schedule, directly stalling the expansion of the broader electrified drivetrain market.

This disruption in the manufacturing pipeline has tangible consequences for industry output, causing fluctuations that impede steady market expansion. According to the Society of Motor Manufacturers and Traders, in 2024, the production volumes of electrified vehicles in the UK declined by 20.4% to 275,896 units compared to the previous year. Such a contraction in manufacturing output demonstrates how logistical and supply-side hurdles can physically limit the market's growth trajectory, regardless of consumer demand. Consequently, the component sector struggles to maintain consistent momentum, as the inability to secure reliable raw material inputs forces periods of stagnation.

Key Market Trends

Manufacturers are increasingly prioritizing Lithium Iron Phosphate (LFP) battery chemistries for standard-range vehicles to mitigate production costs and enhance thermal safety. This strategic shift allows automakers to reduce reliance on volatile nickel and cobalt supply chains while offering durable energy storage solutions that facilitate mass-market affordability. The rising dominance of this specific chemistry is evident in recent global deployment metrics, as it becomes the preferred choice for high-volume entry-level models. According to the International Energy Agency, April 2024, in the 'Global EV Outlook 2024', LFP batteries supplied more than 40% of electric vehicle demand globally by capacity in 2023, more than double the share recorded just three years prior.

Simultaneously, component suppliers are aggressively developing integrated 3-in-1 e-axle systems that combine the electric motor, power electronics, and transmission into a single compact unit. This architectural consolidation significantly reduces weight and packaging space, enabling vehicle manufacturers to streamline assembly processes and improve overall powertrain efficiency. Major Tier-1 suppliers are witnessing substantial financial growth from these electrified product lines as OEMs transition to these integrated modular designs. According to BorgWarner Inc., October 2024, in the 'Third Quarter 2024 Results' press release, the company expects its full-year 2024 eProduct sales to reach approximately $2.4 billion, representing a significant increase from the $2.0 billion recorded in the previous year.

Segmental Insights

The Battery Packs segment is recognized as the fastest-growing category within the Global Electric Vehicle Components Market. This trajectory is primarily driven by the escalating global production of electric vehicles in response to stringent emission mandates enforced by regulatory bodies such as the European Commission and the United States Environmental Protection Agency. As automakers accelerate the transition toward zero-emission fleets, the demand for high-capacity energy storage systems has intensified. Additionally, ongoing efforts to reduce manufacturing costs while improving range capabilities further stimulate the substantial requirement for these essential powertrain units.

Regional Insights

Asia Pacific maintains a leading position in the global electric vehicle components market due to the extensive manufacturing base in China, South Korea, and Japan. The region benefits from established supply chains for high-demand parts like batteries and electric motors, which significantly reduces production costs. This dominance is reinforced by supportive frameworks from authorities such as China's Ministry of Industry and Information Technology, which enforce mandates for new energy vehicle production. These factors combine to create a stable industrial environment that drives consistent demand for electric vehicle components.

Recent Developments

  • In November 2024, Denso Corporation and Fuji Electric Co., Ltd. announced that their joint plan for the investment and production of silicon carbide (SiC) power semiconductors was approved by the Japanese Ministry of Economy, Trade and Industry. The collaboration involved combining their respective automotive product development and manufacturing capabilities to expand the supply capacity of these critical components. The companies aimed to produce SiC power semiconductors that offer superior performance under high-voltage conditions, which are vital for battery electric vehicle systems. This partnership was established to ensure a stable domestic supply chain for essential electric vehicle electronics.
  • In October 2024, Contemporary Amperex Technology Co., Limited (CATL) launched the Freevoy Super Hybrid Battery, a hybrid vehicle battery designed to achieve a pure electric range exceeding 400 kilometers. The product featured 4C superfast charging technology, providing over 280 kilometers of range with a ten-minute charge. The design incorporated sodium-ion technology and a high-voltage electrolyte formulation to maintain performance in low temperatures. The company announced that this battery would be adopted by multiple automotive brands for their vehicle models beginning in 2025, addressing industry requirements for extended range in plug-in hybrid electric vehicles.
  • In August 2024, BorgWarner announced the debut of its Lithium Iron Phosphate (LFP) battery packs for commercial vehicles, developed through a collaboration with FinDreams Batteries. These packs were designed to improve cost-effectiveness and efficiency for commercial fleets. The company also introduced a new DC fast charging station offering a scalable power range from 120 kW to 360 kW. These technologies were subsequently presented at the IAA Transportation event in Germany. This launch expanded the company's portfolio of electric vehicle components, aiming to support the increasing demand for sustainable commercial transportation solutions globally.
  • In February 2024, Magna International secured a contract to supply a specialized primary rear eDrive system to a North American automotive original equipment manufacturer. This system, a variant of the company's 800V eDS Duo, was engineered to deliver 726 kW of power and 8,000 Nm of torque. The agreement involved integrating two electric motors, two inverters, and two gearboxes into a single package. Manufacturing was planned for the company’s facility in Ramos, Mexico, to support a high-end niche vehicle platform. The deal utilized the company's expertise in electric powertrain engineering to meet specific performance requirements for the electric vehicle market.

Key Market Players

  • Contemporary Amperex Technology Ltd.
  • LG Energy Solution Ltd
  • Panasonic Holdings Corporation
  • BYD Company Limited
  • Samsung SDI Co. Ltd
  • Tesla Inc.
  • Nidec Corp.
  • Magna International Inc.
  • ZF Friedrichshafen AG
  • Robert Bosch GmbH

By Vehicle Type

By Propulsion Type

By Component Type

By Region

  • Passenger Vehicles and Commercial Vehicles
  • Battery Electric Vehicle
  • Plug-in Hybrid Electric Vehicle
  • Fuel Cell Electric Vehicle
  • Hybrid Electric Vehicle
  • Battery Packs
  • DC-DC Converter
  • Controller & Inverter
  • Motor
  • On-Board Chargers
  • Other Component Types
  • North America
  • Europe
  • Asia Pacific
  • South America
  • Middle East & Africa

Report Scope:

In this report, the Global Electric Vehicle Components Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

  • Electric Vehicle Components Market, By Vehicle Type:
  • Passenger Vehicles and Commercial Vehicles
  • Electric Vehicle Components Market, By Propulsion Type:
  • Battery Electric Vehicle
  • Plug-in Hybrid Electric Vehicle
  • Fuel Cell Electric Vehicle
  • Hybrid Electric Vehicle
  • Electric Vehicle Components Market, By Component Type:
  • Battery Packs
  • DC-DC Converter
  • Controller & Inverter
  • Motor
  • On-Board Chargers
  • Other Component Types
  • Electric Vehicle Components Market, By Region:
  • North America
    • United States
    • Canada
    • Mexico
  • Europe
    • France
    • United Kingdom
    • Italy
    • Germany
    • Spain
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
  • South America
    • Brazil
    • Argentina
    • Colombia
  • Middle East & Africa
    • South Africa
    • Saudi Arabia
    • UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Electric Vehicle Components Market.

Available Customizations:

Global Electric Vehicle Components Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

  • Detailed analysis and profiling of additional market players (up to five).

Global Electric Vehicle Components Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

Table of content

1.    Product Overview

1.1.  Market Definition

1.2.  Scope of the Market

1.2.1.  Markets Covered

1.2.2.  Years Considered for Study

1.2.3.  Key Market Segmentations

2.    Research Methodology

2.1.  Objective of the Study

2.2.  Baseline Methodology

2.3.  Key Industry Partners

2.4.  Major Association and Secondary Sources

2.5.  Forecasting Methodology

2.6.  Data Triangulation & Validation

2.7.  Assumptions and Limitations

3.    Executive Summary

3.1.  Overview of the Market

3.2.  Overview of Key Market Segmentations

3.3.  Overview of Key Market Players

3.4.  Overview of Key Regions/Countries

3.5.  Overview of Market Drivers, Challenges, Trends

4.    Voice of Customer

5.    Global Electric Vehicle Components Market Outlook

5.1.  Market Size & Forecast

5.1.1.  By Value

5.2.  Market Share & Forecast

5.2.1.  By Vehicle Type (Passenger Vehicles and Commercial Vehicles)

5.2.2.  By Propulsion Type (Battery Electric Vehicle, Plug-in Hybrid Electric Vehicle, Fuel Cell Electric Vehicle, Hybrid Electric Vehicle)

5.2.3.  By Component Type (Battery Packs, DC-DC Converter, Controller & Inverter, Motor, On-Board Chargers, Other Component Types)

5.2.4.  By Region

5.2.5.  By Company (2025)

5.3.  Market Map

6.    North America Electric Vehicle Components Market Outlook

6.1.  Market Size & Forecast

6.1.1.  By Value

6.2.  Market Share & Forecast

6.2.1.  By Vehicle Type

6.2.2.  By Propulsion Type

6.2.3.  By Component Type

6.2.4.  By Country

6.3.    North America: Country Analysis

6.3.1.    United States Electric Vehicle Components Market Outlook

6.3.1.1.  Market Size & Forecast

6.3.1.1.1.  By Value

6.3.1.2.  Market Share & Forecast

6.3.1.2.1.  By Vehicle Type

6.3.1.2.2.  By Propulsion Type

6.3.1.2.3.  By Component Type

6.3.2.    Canada Electric Vehicle Components Market Outlook

6.3.2.1.  Market Size & Forecast

6.3.2.1.1.  By Value

6.3.2.2.  Market Share & Forecast

6.3.2.2.1.  By Vehicle Type

6.3.2.2.2.  By Propulsion Type

6.3.2.2.3.  By Component Type

6.3.3.    Mexico Electric Vehicle Components Market Outlook

6.3.3.1.  Market Size & Forecast

6.3.3.1.1.  By Value

6.3.3.2.  Market Share & Forecast

6.3.3.2.1.  By Vehicle Type

6.3.3.2.2.  By Propulsion Type

6.3.3.2.3.  By Component Type

7.    Europe Electric Vehicle Components Market Outlook

7.1.  Market Size & Forecast

7.1.1.  By Value

7.2.  Market Share & Forecast

7.2.1.  By Vehicle Type

7.2.2.  By Propulsion Type

7.2.3.  By Component Type

7.2.4.  By Country

7.3.    Europe: Country Analysis

7.3.1.    Germany Electric Vehicle Components Market Outlook

7.3.1.1.  Market Size & Forecast

7.3.1.1.1.  By Value

7.3.1.2.  Market Share & Forecast

7.3.1.2.1.  By Vehicle Type

7.3.1.2.2.  By Propulsion Type

7.3.1.2.3.  By Component Type

7.3.2.    France Electric Vehicle Components Market Outlook

7.3.2.1.  Market Size & Forecast

7.3.2.1.1.  By Value

7.3.2.2.  Market Share & Forecast

7.3.2.2.1.  By Vehicle Type

7.3.2.2.2.  By Propulsion Type

7.3.2.2.3.  By Component Type

7.3.3.    United Kingdom Electric Vehicle Components Market Outlook

7.3.3.1.  Market Size & Forecast

7.3.3.1.1.  By Value

7.3.3.2.  Market Share & Forecast

7.3.3.2.1.  By Vehicle Type

7.3.3.2.2.  By Propulsion Type

7.3.3.2.3.  By Component Type

7.3.4.    Italy Electric Vehicle Components Market Outlook

7.3.4.1.  Market Size & Forecast

7.3.4.1.1.  By Value

7.3.4.2.  Market Share & Forecast

7.3.4.2.1.  By Vehicle Type

7.3.4.2.2.  By Propulsion Type

7.3.4.2.3.  By Component Type

7.3.5.    Spain Electric Vehicle Components Market Outlook

7.3.5.1.  Market Size & Forecast

7.3.5.1.1.  By Value

7.3.5.2.  Market Share & Forecast

7.3.5.2.1.  By Vehicle Type

7.3.5.2.2.  By Propulsion Type

7.3.5.2.3.  By Component Type

8.    Asia Pacific Electric Vehicle Components Market Outlook

8.1.  Market Size & Forecast

8.1.1.  By Value

8.2.  Market Share & Forecast

8.2.1.  By Vehicle Type

8.2.2.  By Propulsion Type

8.2.3.  By Component Type

8.2.4.  By Country

8.3.    Asia Pacific: Country Analysis

8.3.1.    China Electric Vehicle Components Market Outlook

8.3.1.1.  Market Size & Forecast

8.3.1.1.1.  By Value

8.3.1.2.  Market Share & Forecast

8.3.1.2.1.  By Vehicle Type

8.3.1.2.2.  By Propulsion Type

8.3.1.2.3.  By Component Type

8.3.2.    India Electric Vehicle Components Market Outlook

8.3.2.1.  Market Size & Forecast

8.3.2.1.1.  By Value

8.3.2.2.  Market Share & Forecast

8.3.2.2.1.  By Vehicle Type

8.3.2.2.2.  By Propulsion Type

8.3.2.2.3.  By Component Type

8.3.3.    Japan Electric Vehicle Components Market Outlook

8.3.3.1.  Market Size & Forecast

8.3.3.1.1.  By Value

8.3.3.2.  Market Share & Forecast

8.3.3.2.1.  By Vehicle Type

8.3.3.2.2.  By Propulsion Type

8.3.3.2.3.  By Component Type

8.3.4.    South Korea Electric Vehicle Components Market Outlook

8.3.4.1.  Market Size & Forecast

8.3.4.1.1.  By Value

8.3.4.2.  Market Share & Forecast

8.3.4.2.1.  By Vehicle Type

8.3.4.2.2.  By Propulsion Type

8.3.4.2.3.  By Component Type

8.3.5.    Australia Electric Vehicle Components Market Outlook

8.3.5.1.  Market Size & Forecast

8.3.5.1.1.  By Value

8.3.5.2.  Market Share & Forecast

8.3.5.2.1.  By Vehicle Type

8.3.5.2.2.  By Propulsion Type

8.3.5.2.3.  By Component Type

9.    Middle East & Africa Electric Vehicle Components Market Outlook

9.1.  Market Size & Forecast

9.1.1.  By Value

9.2.  Market Share & Forecast

9.2.1.  By Vehicle Type

9.2.2.  By Propulsion Type

9.2.3.  By Component Type

9.2.4.  By Country

9.3.    Middle East & Africa: Country Analysis

9.3.1.    Saudi Arabia Electric Vehicle Components Market Outlook

9.3.1.1.  Market Size & Forecast

9.3.1.1.1.  By Value

9.3.1.2.  Market Share & Forecast

9.3.1.2.1.  By Vehicle Type

9.3.1.2.2.  By Propulsion Type

9.3.1.2.3.  By Component Type

9.3.2.    UAE Electric Vehicle Components Market Outlook

9.3.2.1.  Market Size & Forecast

9.3.2.1.1.  By Value

9.3.2.2.  Market Share & Forecast

9.3.2.2.1.  By Vehicle Type

9.3.2.2.2.  By Propulsion Type

9.3.2.2.3.  By Component Type

9.3.3.    South Africa Electric Vehicle Components Market Outlook

9.3.3.1.  Market Size & Forecast

9.3.3.1.1.  By Value

9.3.3.2.  Market Share & Forecast

9.3.3.2.1.  By Vehicle Type

9.3.3.2.2.  By Propulsion Type

9.3.3.2.3.  By Component Type

10.    South America Electric Vehicle Components Market Outlook

10.1.  Market Size & Forecast

10.1.1.  By Value

10.2.  Market Share & Forecast

10.2.1.  By Vehicle Type

10.2.2.  By Propulsion Type

10.2.3.  By Component Type

10.2.4.  By Country

10.3.    South America: Country Analysis

10.3.1.    Brazil Electric Vehicle Components Market Outlook

10.3.1.1.  Market Size & Forecast

10.3.1.1.1.  By Value

10.3.1.2.  Market Share & Forecast

10.3.1.2.1.  By Vehicle Type

10.3.1.2.2.  By Propulsion Type

10.3.1.2.3.  By Component Type

10.3.2.    Colombia Electric Vehicle Components Market Outlook

10.3.2.1.  Market Size & Forecast

10.3.2.1.1.  By Value

10.3.2.2.  Market Share & Forecast

10.3.2.2.1.  By Vehicle Type

10.3.2.2.2.  By Propulsion Type

10.3.2.2.3.  By Component Type

10.3.3.    Argentina Electric Vehicle Components Market Outlook

10.3.3.1.  Market Size & Forecast

10.3.3.1.1.  By Value

10.3.3.2.  Market Share & Forecast

10.3.3.2.1.  By Vehicle Type

10.3.3.2.2.  By Propulsion Type

10.3.3.2.3.  By Component Type

11.    Market Dynamics

11.1.  Drivers

11.2.  Challenges

12.    Market Trends & Developments

12.1.  Merger & Acquisition (If Any)

12.2.  Product Launches (If Any)

12.3.  Recent Developments

13.    Global Electric Vehicle Components Market: SWOT Analysis

14.    Porter's Five Forces Analysis

14.1.  Competition in the Industry

14.2.  Potential of New Entrants

14.3.  Power of Suppliers

14.4.  Power of Customers

14.5.  Threat of Substitute Products

15.    Competitive Landscape

15.1.  Contemporary Amperex Technology Ltd.

15.1.1.  Business Overview

15.1.2.  Products & Services

15.1.3.  Recent Developments

15.1.4.  Key Personnel

15.1.5.  SWOT Analysis

15.2.  LG Energy Solution Ltd

15.3.  Panasonic Holdings Corporation

15.4.  BYD Company Limited

15.5.  Samsung SDI Co. Ltd

15.6.  Tesla Inc.

15.7.  Nidec Corp.

15.8.  Magna International Inc.

15.9.  ZF Friedrichshafen AG

15.10.  Robert Bosch GmbH

16.    Strategic Recommendations

17.    About Us & Disclaimer

Figures and Tables

Frequently asked questions

Frequently asked questions

The market size of the Global Electric Vehicle Components Market was estimated to be USD 219.57 Billion in 2025.

Asia Pacific is the dominating region in the Global Electric Vehicle Components Market.

Battery Packs segment is the fastest growing segment in the Global Electric Vehicle Components Market.

The Global Electric Vehicle Components Market is expected to grow at 13.18% between 2026 to 2031.

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