|Status : Published||Published On : Jan, 2023||Report Code : VRAT4063||Industry : Automotive & Transportation||Available Format :||Page : 169|
The global electric vehicle component market was valued at USD 24.5 billion in 2022. Government support for electric vehicle adoption, increasing the need to reduce greenhouse gas emissions,s and reducing the cost of components, propelling the growth of the market.
Insight by Component
On the basis of component, the global electric vehicle component market is categorized into battery pack, motor, controller, electric vehicle supply equipment, dc–dc converter, high-voltage cable, power distribution module, thermal management system, and vehicle interface control module, wherein battery pack category held the largest share in the market in 2018. This is due to the fact that battery pack accounts for around 34–51% of the overall cost of electric vehicles, which makes the battery pack category the largest revenue contributor compared to others in the market.
The battery pack is further sub-segmented into battery cells, battery management systems (BMS), battery thermal management systems, and other ancillary components. Among these segments, the battery cell was the largest revenue generator in 2020 in the market.
Insight by End Use
Based on end use, the electric vehicle component market is segmented into original equipment manufacturer (OEM) and aftermarket. Between these two end users, the higher demand for electric vehicle components was witnessed by the OEMs category in the market in 2020, owing to the increasing manufacturing of electric vehicles across the globe. However, the aftermarket category is expected to witness the faster growth during the forecast period.
Rising preference for induction motors and a shift toward lithium–nickel–manganese–cobalt (NMC) oxide batteries from lithium–iron phosphate (LFP) batteries are the key trends observed in the electric vehicle component market, globally.
Global electric vehicle component market has been driven by several key factors, including government support for electric vehicle adoption, the increasing need to reduce greenhouse gas emission, and reducing cost of components.
China has an aggressive target to reduce carbon emission and adopt electric vehicles. As reported by Forbes, the central and local government in China spent $ 7.7 billion on electric vehicles subsidiary in 2017. Similarly, in China electric vehicles are exempt from purchase taxes during 2014 – 2017, Chinese government has further extended it to 2020. The Chinese government at Centre offers consumers subsidy renews its plans in every two or three years. For battery electric vehicles, subsidies were around 40 to 60% of the vehicle cost. Also, in 2018, the country implemented dual-credit policy which targets automakers selling passenger vehicles based on their average fuel consumption credits and new energy vehicle credits. This applies to the manufacturers of 30,000 vehicles or more annually. All the above-stated factors help in the growth of the electric vehicle component market.
The high initial cost of electric vehicles is hindering the growth of the electric vehicle component market, globally.
Geographically, Asia-Pacific has accounted for the largest share in the electric vehicle component market, globally and is predicted to grow significantly during the forecast period. The growth of this market is attributed to the huge adoption of electric vehicles in the region, led by China, more than any other region. Increasing environmental concerns, and rising government support for electric vehicles in the form of subsidies are the major factors driving the demand for electric vehicles in China.
Some of the key players operating in the global electric vehicle component market are Siemens AG, DENSO Corp., LG Chem Ltd., Tesla Inc., Hitachi Ltd., ABB Ltd., Samsung SDI Co. Ltd., BYD Co. Ltd., Robert Bosch GmbH, Contemporary Amperex Technology Co. Ltd., Panasonic Corp., OptimumNano Energy Co. Ltd., Mitsubishi Electric Corp., and LG Innotek Co. Ltd.
- Identifying variables and establishing market impact.
- Establishing market trends regionally.
- Analyzing opportunities and market penetration rates by understanding product commercialization, and regional expansion.
- Analyzing demand and supply trends and changes in industry dynamics to establish future growth.
- Analyzing sustainability strategies adhered to by market participants in an attempt to determine the future course of the market.
- Analyzing historical market trends and super-imposing them on the current and future variables to determine the year-on-year trends.
- Understanding adoption, production, export, import, and regulatory framework.
- Estimated and forecasted data was validated through industry experts.
- Apart from industry experts, data triangulation methods were used for validation.
- Bottom-up and top-down approach has been used for the estimation and forecast of market data, whereas the top-down approach was used for validation.
- Demand, as well as supply-side surveys, were conducted in order to understand the industry dynamics and data validation.
VynZ Research conducts extensive primary research to understand the market dynamics, validate market data and have key opinions from industry experts. The key profiles approached within the industry include, CEO, CFO, CTO, President, Vice President, Product Managers, Regional Heads, and Others. Also, end-user surveys comprising of consumers are also conducted to understand consumer behavior.
Source: VynZ Research
Source: VynZ Research