<2025> Key Components for Electric Vehicles and Industry Trends: Technology, Market, and Policy Analysis
As
electrification advances, the role of internal combustion engine components is
diminishing, while the share of electrification components is expanding.
According
to statistics from the Japan Auto Parts Industries Association, approximately
11,000 components disappear in the electrification process, of which 6,900
(62%) are engine-related parts and 2,100 (19%) are components related to
driveline and power transmission. The remaining 19% are electrical components
for internal combustion engines, such as engine control units.
At
the same time, as the application scope of electronic control technologies
expands—such as lane-keeping systems, telematics, and autonomous steering and
braking—the introduction of new electronic components including motors,
inverters, and reducers is accelerating the industry’s transition toward
electronics-centered powertrains.
This
shift also affects industry entry dynamics. While it presents challenges for
traditional mechanical parts manufacturers, it offers new growth opportunities
for IT, electronics, and software companies. As a result, competition among
related companies and collaboration structures between automakers and parts
suppliers are being reshaped.
With
the convergence of electrification and autonomous driving, the industry is
transitioning from hardware-centric to software-centric architectures, and
business model development linked with IT is required from the early stages of
vehicle design.
Discussions
on the EV parts industry have so far been centered on batteries, but the
influence of key power electronics components—such as motors, inverters,
reducers, OBCs, high-voltage components, thermal management systems, and BMS—on
performance, cost, and safety is growing.
As
global OEMs pursue in-house component development, supply-chain restructuring,
and regionally diversified production, there is a growing need for a systematic
assessment of technological competitiveness and industrial structures for
non-battery components.
In
particular, following the return of the Trump administration in 2025, the
United States is undergoing full-scale review of IRA-related policies,
including discussions on repeal or reduction of existing provisions and
restructuring of regulatory and incentive frameworks, increasing volatility in
policy direction.
This
report provides a comprehensive analysis of technologies, markets, and policies
with a focus on key EV components. Excluding the battery, it examines electric
motors, inverters, reducers, onboard chargers (OBC), high-voltage cables,
thermal management systems, and battery management systems (BMS), summarizing
the technical overview, development trends, and industrial/market trends of
each component. It also analyzes and compares the strategies and developments
of EV OEMs and component manufacturers, as well as policy changes related to
electric vehicles in Korea, China, Japan, North America, and Europe, to present
an integrated view of industry trends.
Overview 7
1.1 Changes in the Automotive Industry 7
1.2 Component Restructuring Driven by
Electrification 12
1.3 Supply Chain Reorganization in the
Era of Electrification and Autonomous Driving 15
Understanding Electric Vehicles 20
2.1 Definition of Electric Vehicles 20
2.2 Types of Electric Vehicles 21
2.2.1 Hybrid Electric Vehicle (HEV) 22
2.2.2 Plug-in Hybrid Electric Vehicle
(PHEV) 27
2.2.3 Battery Electric Vehicle (BEV) 31
2.2.4 Extended-Range Electric Vehicle
(EREV) 35
2.3 Market Outlook for Electric
Vehicles 40
2.4 Components for Electric Vehicles 44
2.4.1 Battery System 44
2.4.2 Electric Drive System 45
2.4.3 High-Voltage Components 46
2.4.4 HVAC and Thermal Management
System 47
2.4.5 Charging Infrastructure 47
2.4.6 Cost Structure of EV Components 49
3. Analysis of Key Components 52
3.1 Motor 52
3.1.1 Technical Overview 52
3.1.2 Development Trends 58
3.1.3 Industry and Market Trends 69
3.2 Inverter 70
3.2.1 Technical Overview 70
3.2.2 Development Trends 74
3.2.3 Industry and Market Trends 78
3.3 Reduction Gear 80
3.3.1 Technical Overview 80
3.3.2 Development Trends 87
3.3.3 Industry and Market Trends 90
3.4 Onboard Charger (OBC) 91
3.4.1 Technical Overview 91
3.4.2 Development Trends 94
3.4.3 Industry and Market Trends 98
3.5 High-Voltage Cable 100
3.5.1 Technical Overview 100
3.5.2 Development Trends 103
3.5.3 Industry and Market Trends 113
3.6 HVAC System 114
3.6.1 Technical Overview 114
3.6.2 Development Trends 116
3.6.3 Industry and Market Trends 125
3.7 Battery Management System (BMS) 126
3.7.1 Technical Overview 126
3.7.2 Development Trends 138
3.7.3 Industry and Market Trends 150
4. Policies and Industry Trends Related
to Electric Vehicles 152
4.1 Global Policies on Electric
Vehicles 152
4.1.1 Korea 154
4.1.2 China 158
4.1.3 Japan 161
4.1.4 North America 164
4.1.5 Europe 168
4.2 Status of Automotive OEMs 174
4.3 Status of Component Manufacturers 189
4.3.1 Korea 189
4.3.2 China 196
4.3.3 Japan 200
4.3.4 North America 206
4.3.5 Europe 210
Reference 214