Electric Vehicle Parts and Components Market Report 2026

The electric vehicle parts and components market size has grown rapidly in recent years. It will grow from $239.25 billion in 2025 to $274.93 billion in 2026 at a compound annual growth rate (CAGR) of 14.9%. The growth in the historic period can be attributed to growth in early electric vehicle adoption, rise in lithium-ion battery usage, increasing development of basic power electronics, expansion of hybrid vehicle technologies, reliance on conventional electric motors.

The electric vehicle parts and components market size is expected to see rapid growth in the next few years. It will grow to $494.25 billion in 2030 at a compound annual growth rate (CAGR) of 15.8%. The growth in the forecast period can be attributed to increasing demand for advanced solid-state batteries, rapid growth of fast-charging technologies, expansion of connected vehicle infrastructure, development of high-efficiency power electronics, rising production of lightweight ev components. Major trends in the forecast period include expansion of electrification-centric vehicle architectures, advancement of intelligent ev component manufacturing, adoption of AI-based powertrain optimization, integration of IoT-connected ev systems, development of sustainable ev component materials.

The rising adoption of electric vehicles is expected to drive the growth of the electric vehicle parts and components market in the future. An electric vehicle is powered by one or more electric motors that draw energy from an onboard battery pack. The efficiency and functionality of electric cars depend on the collaboration of various parts and components that convert, store, distribute, and utilize electrical energy effectively. For instance, in 2024, a report from the International Energy Agency (IEA) indicated that global electric car registrations reached nearly 14 million in 2023, bringing the total to 40 million and representing a 35% increase from 2022. Electric vehicles accounted for about 18% of all car sales, with battery electric cars making up 70% of the electric car stock. Thus, the increasing adoption of electric vehicles is fueling the growth of the electric vehicle parts and components market.

Major companies operating in the electric vehicle parts and components market are focusing on developing innovative products such as air conditioners and engine cooling modules to improve energy efficiency, extend battery life, and enhance overall vehicle performance. Air conditioners and engine cooling modules are thermal management systems in electric vehicles that regulate cabin temperature and maintain optimal operating conditions for batteries and powertrain components. For instance, in September 2024, DENSO Corporation, a Japan-based mobility supplier, began inverter production at its Fukushima plant to expand manufacturing capabilities in Japan and strengthen its competitiveness in the electrification sector. The Fukushima plant, previously focused on automotive thermal products, established a new production line for inverters, which are essential components for automotive electrification. This complements existing inverter production at DENSO’s Hirose and Anjo plants, making Fukushima the third inverter production site in Japan.

In January 2025, Advik Hi-Tech Private Limited, an India-based global automotive components manufacturer, acquired Powersports MTG for an undisclosed amount. Through this acquisition, Advik aims to gain advanced technology and expertise in hydraulic braking and clutch systems, enhancing its product portfolio and establishing a manufacturing presence in Europe. Powersports MTG is a Germany-based company that produces mechanical and hydraulic brake and clutch systems for two-wheelers.

Major companies operating in the electric vehicle parts and components market are Ford Motor Company, General Motors, BMW Group, Robert Bosch GmbH, Tesla Inc., Siemens AG, Nissan Motor Manufacturing Ltd., Panasonic Corporation, Contemporary Amperex Technology Co. Ltd., Denso Corporation, Continental AG, HyundAI Mobis Co Ltd., Magna International Inc., ABB Ltd., Toyota Industries Corporation, Aptiv plc, BorgWarner Inc., Samsung SDI Co Ltd., Maruti Suzuki Ltd., Hella KGaA Hueck & Co., NIO Inc., Ashok Leyland Ltd., Rivian Automotive Inc., Amara Raja Batteries Ltd., QuantumScape Corporation, Eastman Auto & Power Ltd., Okaya Power Ltd., Faraday Future, Sparco Batteries Pvt Ltd.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs have influenced the electric vehicle parts and components market by raising costs for imported batteries, rare-earth materials, power electronics, and charging components. Passenger and commercial EV manufacturers in Asia-Pacific, Europe, and North America face higher production and sourcing expenses due to global supply chain dependencies. Despite these challenges, tariffs are promoting domestic manufacturing of motors, batteries, and inverters, encouraging regionalized supply chains, and accelerating innovation toward cost-efficient and sustainable EV component technologies.

The electric vehicle parts and components market research report is one of a series of new reports that provides electric vehicle parts and components market statistics, including electric vehicle parts and components industry global market size, regional shares, competitors with a electric vehicle parts and components market share, detailed electric vehicle parts and components market segments, market trends and opportunities, and any further data you may need to thrive in the electric vehicle parts and components industry. This electric vehicle parts and components market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Electric vehicle parts and components encompass the various elements that constitute electric vehicles, including batteries, electric motors, power electronics, and charging systems. These components convert electrical energy into mechanical power, allowing the vehicle to operate efficiently and sustainably. They are essential for enhancing the performance, range, and overall functionality of electric vehicles.

Key components within electric vehicle parts and components include battery packs, DC-DC converters, controllers and inverters, motors, and onboard chargers. These components find application in various vehicle types, including passenger cars and commercial vehicles. Passenger cars, designed primarily for transporting passengers, can be categorized into different propulsions such as battery electric vehicles, plug-in hybrid vehicles, fuel cell electric vehicles, and hybrid electric vehicles. The distribution channels for these components include original equipment manufacturers (OEM) and the aftermarket.Asia-Pacific was the largest region in the electric vehicle parts and components market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the electric vehicle parts and components market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the electric vehicle parts and components market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The electric vehicle parts and components market consists of sales of batteries, electric motors, power electronics, infrastructure for charging, and a thermal management system. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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