Global EV Component Market to Reach $157.4 Bn by 2025: Report

With the burgeoning EV demand worldwide, the global EV component market is projected to reach USD 157.4 billion by 2025 from USD 22.2 billion in 2018

With the burgeoning electric vehicle (EV) demand worldwide, the production of related components is set to get a boost. According to ResearchAndMarkets.com, the global electric vehicle component market is projected to reach USD 157.4 billion by 2025 from USD 22.2 billion in 2018 at a compound annual growth rate (CAGR) of 29.4 percent during the forecast period of 2019 to 2024.

When a component is taken into consideration, the report added, the EV component market is categorised into battery pack, controller, electric vehicle supply equipment, high-voltage cable, thermal management system, motor, DC-DC converter, power distribution module, and vehicle interface control module.

The battery pack category is projected to account for the major share of the market during the forecast period, as it the most important part of the vehicles, it noted. “Moreover, battery pack accounts for approximately 35-50 percent of the total cost of EVs, which is why this component is the major revenue contributor to the market,” the report explained.

“The market is witnessing growth because of the rising adoption of EV and declining cost of the components used in them. On the basis of end-use, the market is bifurcated into original equipment manufacturers (OEM) and aftermarket, among which, the larger demand for electric vehicle components was created by the OEMs division in 2018,” the report added.

People are becoming more aware of the adverse effects of vehicular emissions on the environment, which is why the adoption of EVs is rising, further driving the electric vehicle component market. Pointing a key trend in the EV component market, the report further stated that manufacturers are giving more preference to induction motors over synchronous motors. ” The reason for this is that the induction motors have improved efficiency and aid in reducing the magnetic losses by decreasing the inverter voltage,” it underlined.

In addition to this, these motors need minimal maintenance because of the absence of slip rings, brushes, and commutators, which is why their popularity has increased in recent years.

In October 2019, a new report had revealed that India has the potential to become one of the largest electric vehicles (EV) markets in the world, with the government pushing for the segment in order to curb pollution and reduce reliance on import-dependent fossil fuel. However, the uptake of EVs has been slow due to the high upfront and lifecycle costs, but a long-term investment in research and development (R&D) will create sustained growth, according to the report by the World Economic Forum and Ola Mobility Institute.

“Apart from investment, government backing and direction will be crucial for accelerating adoption and deployment of electric mobility,” it added.