Electric Vehicle Component Market Research Report with Top Players and Growth Opportunity


Posted December 3, 2021 by Rahul_Gautam

What are Factors Pushing Up Demand for Electric Vehicle Component in APAC?
 
The increasing implementation of favorable government policies regarding electric vehicle deployment in several countries is positively impacting the worldwide demand for electric vehicle components. The governments of many countries are also providing financial incentives in the form of tax exemptions and purchase rebates for augmenting the sales of electric vehicles. For example, in the U.S., an Internal Revenue Service (IRS) tax credit of $2,500 to $7,500 is provided on the purchase of a new electric vehicle by the federal government.

According to various reports, over 5.1 million electric cars were sold all over the world in 2018, registering an increment of more than 2 million from 2017. Furthermore, according to several estimates, the size of the total electric car fleet will surpass 130 million by 2030. Thus, with the surging in electric vehicle manufacturing and deployment, the demand for electric vehicle components and parts is predicted to soar sharply across the world in the forthcoming years.

Apart from the aforementioned factors, the rapidly falling costs of electric vehicle components are also propelling their sales around the world. This is driving the advancement of the global electric vehicle component market. According to the forecast of P&S Intelligence, a market research company based in India, the valuation of the market will grow from $22.2 billion in 2018 to $157.4 billion by 2025. Furthermore, the market is predicted to advance at a CAGR of 29.4% from 2019 to 2025.

Motors, battery packs, controllers, electric vehicle supply equipment (EVSE), high-voltage cables, DC-DC converters, power distribution modules (PDMs), thermal management systems, and vehicle interface control module (VCIM) are the most widely sold electric vehicle components across the world. Out of these, the sales of the battery packs were found to be the highest during the last few years. The battery packs consist of battery management systems (BMS), battery cells, and battery thermal management systems.

Amongst these, the demand for battery cells is currently very high all over the world. Aftermarket companies and original equipment manufacturers (OEMs) are the biggest end users of electric vehicle components. Between the two, the usage of electric vehicle components was higher in OEMs in the past years. However, aftermarket companies are predicted to generate higher demand for electric vehicle parts and components in the upcoming years, on account of the mushrooming demand for replacement parts and components.

Geographically, the sales of electric vehicle components are currently the highest in the Asia-Pacific (APAC) region. This is because of the surging manufacturing and sales of electric vehicles in the regional countries. For example, the Chinese government has been providing various subsidy schemes for augmenting the sales of electric vehicles in the country from 2017. Because of this scheme, the sales of electric vehicles grew sharply in the country (more than 60%) from 2017 to 2018.

Hence, it is safe to say that the sales of electric vehicle components will surge sharply all over the world in the forthcoming years, primarily because of the increasing deployment of electric vehicles, on account of the escalating air pollution levels and the implementation of favorable government policies in several countries.
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Issued By Rahul Gautam
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Categories Automotive , Business
Tags 2021 electric vehicle component market , electric vehicle component market , electric vehicle component market 2021 , electric vehicle component market demand , electric vehicle component market outlook , electric vehicle component market size , electric vehicle component market trend
Last Updated December 3, 2021