The electric vehicle component industry is rising, led by the worldwide growing road traction of electric vehicles.

The rest of the world is about to experience the highest CAGR. The rising penetration of electric vehicles more specifically in Brazil, and Mexico propel the demand for various components.

EV manufacturers are shifting their focus from synchronous motors to induction motors. For instance; Tesla integrates induction motors in various models such as Model X and Teska Model 3.

In addition, automotive companies are adopting induction motors, as they are highly efficient and support reducing magnetic losses by decreasing the inverter’s voltage.

Therefore, high-performance electric vehicles are widely integrated with these motors, resulting in industry propulsion.

In addition, government initiatives to encourage the adoption of electric vehicles also boost industry growth. Governments of various countries offer purchase rebates, tax exemptions, and financial incentives to encourage clean mobility.

China leads the APAC based industry, owing to the government initiatives in the form of subsidies propelling the purchase of new electric vehicles.

The EV component manufacturing facilities are primarily penetrating in the countries such as Japan, China, Koream and the U.S. It is ascribed to scalability of production volumes, government support in the form of incentives and subsidies, and growing penetration of electrive vehicle manufacturers.

Company players are participating in the acquisitions, mergers, and product launches to improve their position in the industry, and remain on the competitive edge.

The major companies operating in the industry are; Robert Bosch GmBH, Panasonic Corp., Siemens AG, BYD Co. Ltd., Mitsubishi Electric Corp., Tesla Inc., BYD Co. Ltd., OptimumNano Energy Co. Ltd., LG Innotek Co. Ltd, DENSO Corp., and ABB Ltd.

Therefore, the growing adoption of electric vehicles led by rising environmental concerns boost the demand for electric vehicle components.