The Global Electric Vehicle Components Market is projected to grow at CAGR of close to 30% during the forecast period, on account of surging sales of electric vehicles on the back of growing awareness about vehicle emission and government subsidies on purchase of these vehicles. As the electric vehicle market continues to expand, replacement demand is expected to increase in the future years, projects the report of ResearchAndMarkets.com.
In 2016, the transportation sector accounted for over 24% of global greenhouse gases (GHG) emission, so economies plan to tackle the situation by electrification of public fleet, which will result in increased demand for electric vehicles and components in the coming years. This is anticipated to give substantial boost to the market across the globe.
The market can be segmented based on component, vehicle type, end-user and region. In terms of vehicle type, electric three-wheeler held the dominant share in 2019. However, on account of favorable government policies for pushing the sales of electric passenger cars, the market share of this segment is projected to increase over the next five years.
Based on geography, globally, Asia-Pacific is the leading region in the electric vehicle components markets due to growing sales and production of electric vehicles in countries such as Japan, India, China, among others. Moreover, China held the record sales of 1.1 million electric vehicles in 2018 worldwide and the country is projected to lead the regional market as well.
Major companies in the Global Electric Vehicle Components Market include Robert Bosch GmbH, Denso Corporation, Samsung SDI Co. Ltd., Contemporary Amperex Technology Co. Ltd. (CATL), BYD Co. Ltd., Siemens AG, Hitachi Ltd., Mitsubishi Electric Corp., OptimumNano Energy Co. Ltd, etc. The companies operating in the market are using organic growth strategies like geographical expansion to increase their share in the electric vehicle components market. For instance, in 2018, CATL and Samsung announced to open their subsidiaries in North America as part of their expansion growth strategies.