Future of EV Manufacturing Market

Report Code AT 9248
Published in Nov, 2024, By MarketsandMarkets™
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Future of EV Manufacturing Market by Vehicle type (Passenger Cars and Commercial Vehicles), and Region - Global Forecast to 2035

 

Overview

The Future Of EV Manufacturing Market size is projected to grow from 15,707 thousand units in 2024 to 46,315 thousand units by 2035, at a CAGR of 10.3%. The future of the EV manufacturing market is being shaped by several key factors, including the integration of circular economy principles and the trend towards platformization. Major automakers are developing modular EV platforms that can be used across multiple models. For instance, In January 2024, Stellantis Unveils BEV-native STLA Large Platform with 800 Km/500 Mile Range and the Ultimate Flexibility to Cover a Wide Spectrum of Vehicles. Further, stricter global emission regulations are pushing manufacturers to produce more eco-friendly vehicles, which accelerates EV production.

Future of EV Manufacturing Market

Global Future of EV Manufacturing Market Dynamics

Driver: Advancement in EV manufacturing process

Advances in electric vehicle manufacturing processes are aimed at improving efficiency, reducing costs and enhancing sustainability. Automakers are increasingly using automation and robotics to streamline production lines, reduce human error, and speed up assembly. Innovations such as the Tesla Gigapress, which casts large one-piece vehicle parts, simplify production by minimizing the number of parts and assembly steps. Battery manufacturing has also seen improvements, with automakers such as GM developing modular platforms such as Ultium, allowing flexible production for different EV models on the same line. In addition, BMW is investing heavily in developing a new, dedicated electric vehicle architecture called “Neue Klasse.” This platform, set for launch in 2025, will be specifically designed for EVs and promises significant range, performance, and efficiency advancements. Overall, these advances make EV production faster, more cost-effective and more environmentally friendly.

Restraint: High Costs and manufacturing infrastructure challenges impact EV manufacturing growth

The growth of electric vehicle production is significantly hampered by high costs and problems with manufacturing infrastructure, which create obstacles for companies looking to expand production. The initial investment required for state-of-the-art production facilities, advanced machinery and the integration of new technologies often places a significant financial burden on manufacturers, especially smaller or emerging market players. In addition, sourcing critical materials such as lithium and cobalt increases these costs due to market price fluctuations and supply chain disruptions. In addition, existing manufacturing infrastructure may not be optimized for EV production, requiring retrofitting or building entirely new plants, further increasing costs. This problem is compounded by the demand for specialized

labor and skills, as the transition to electric vehicles requires a workforce that is knowledgeable about current battery systems and automotive technologies. So, in addition to delaying the adoption of EV production, the combination of these exorbitant costs and infrastructure constraints also poses a serious threat to the long-term viability and competitiveness of manufacturers in an increasingly crowded market.

 

Opportunity: Development in smart manufacturing facilities

The development of intelligent manufacturing facilities is revolutionizing the future of electric vehicle manufacturing, providing opportunities for automakers to streamline operations, reduce costs, and improve sustainability. Integrating Al, IoT and automation, these advanced factories increase production efficiency and flexibility and enable rapid adaptation to evolving EV technologies such as solid-state batteries and lightweight materials. Major OEMs are catching on to this trend. For instance, with the new smart factory Hyundai Motor Group Metaplant America (HMGMAs), whose commercial production is expected in the first half of 2025. Further, the BMW Group is advancing factory planning with full digitization and setting a new standard in automotive manufacturing. The upcoming factory in Debrecen, scheduled to open in 2025, is the first facility to be fully planned and verified virtually in collaboration with NVIDIA. These plants drive innovation, reduce emissions and help accelerate the global adoption of electric cars.

Challenge: Shortages of semiconductors and critical raw materials

The electric vehicle manufacturing sector faces significant challenges due to shortages of semiconductors and critical raw materials such as lithium, cobalt and nickel. The semiconductor shortage, caused by supply chain disruptions and rising demand, has delayed production plans and forced automakers to favor high-margin models, limiting availability. Meanwhile, the scarcity of critical raw materials, exacerbated by geopolitical tensions, limited mining capacities, and growing global EV adoption, has raised costs and constrained battery production. These issues underscore the urgency for automakers to diversify supply sources, invest in recycling technologies, and explore alternative battery chemistries like Sodium-ion or solid-state solutions to ensure sustainable growth.

Global Future of EV Manufacturing Market Ecosystem Analysis

Top Companies in Future of EV Manufacturing Market
 

Passenger car hold the largest market share during the forecast period

Passenger car is expected to have a largest market size in the EV market as OEMs are looking to build more advanced models to respond to growing consumer demand and regulatory pressures for sustainable transportation. In addition, OEMs are heavily investing in R&D to improve efficiency of batteries, vehicle range, and overall performance and reduce costs through economies of scale. For instance, in February 2024, Toyota Motor Corporation is investing USD 1.3 billion in its Kentucky assembly plant to add a battery pack assembly line. Innovations such as modular platforms, solid-state batteries and the integration of smart technologies continue to put passenger cars at the forefront of the electric drive market. Coupled with supportive government incentives and expanding charging infrastructure, the passenger car segment is poised to dominate electric vehicle production and sales in the forecast period.

China holds the major share in the market

China holds the largest market share in the EV market. Over 30 Chinese cities such as Beijing, Shenzhen, Guangzhou and among others have committed to completely electrifying their public transportation networks. Also, the government has implemented regulations to encourage the use of electric vehicles and lessen reliance on oil. For instance, Beijing encourages people to switch to electric vehicles by only issuing 10,000 permits each month for gas-powered cars. The Chinese government is also constructing charging stations nationwide to meet its goal of charging 20 million electric vehicles by 2025. Such programs are pushing more people to switch to electric vehicles, and as a result, more automakers are moving their operations to China.

In 2023, China's new electric car registrations increased by 35% to 8.1 million. Further, According to IEA, China aims to reach a 50% sales share by 2030 in so-called “key air pollution control regions”, and 40% across the country by 2030 to support the national action plan for carbon peaking. This ambitious goal is part of the country's efforts to reduce emissions and transition to a more sustainable economy. This target is part of China's broader strategy to achieve carbon neutrality by 2060 and solidify its position as the world leader in EV production and adoption.

LARGEST MARKET IN 2024- 2029
CHINA FASTEST GROWING MARKET IN THE REGION
Future of EV Manufacturing Market Size and Share

Recent Developments of Future of EV Manufacturing Market

  • Tesla is currently developing a next-generation electric vehicle platform that will be its third mainstream platform. This platform is designed to be flexible and support multiple vehicle models with minimal adjustments. Vehicles based on this platform are not expected before 2025.
  • In September 2024, Lithium Australia has signed an exclusive three-year agreement with BYD Auto to significantly grow its battery recycling operations in Australia as part of its efforts to drive towards a circular economy for battery recycling.
  • In May 2024, SAIC Motor and Audi officially signed a cooperation agreement to jointly develop the Advanced Digitized Platform, following a memorandum of understanding signed in July 2023.
  • In January 2024, BYD revealed its new AI-powered Xuanji architecture as part of its Integrated Vehicle Intelligence strategy, which the company believes will be a game changer for the auto industry.

Key Market Players

List of Top Future of EV Manufacturing Market Companies

The Future of EV Manufacturing Market is dominated by a few major players that have a wide regional presence. The major players in the Future of EV Manufacturing Market are

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Scope of the Report

Report Attribute Details
Market size available for years 2024–2035
Forecast units Volume (Thousand Units)
Segments Covered Vehicle Type, and Region
Regions covered China, Asia Pacific (excl. China), North America, and Europe

 

Key Questions Addressed by the Report

What is the size of the electric vehicle market?
The electric vehicle market is projected to reach 15,707 thousand units in 2024 to 46,315 thousand units in 2035, at a CAGR of 10.3%.
What are the driving factors impacting the growth of future of EV Manufacturing market?
The future of electric vehicle manufacturing will be driven by advancements in modular and flexible assembly platforms, enabling cost-effective production across diverse vehicle models. Increasing automation and the integration of Industry 4.0 technologies, such as AI and IoT, will enhance efficiency and precision, while sustainable practices, including circular economy strategies, will address regulatory and consumer demands for eco-friendly solutions.
Who are the winners in the future of EV Manufacturing market?
The future of EV Manufacturing market is dominated by key players such as Tesla (US), BYD (China), Volkswagen (Germany), SAIC Motor (China), and Stellantis NV (Netherlands). These companies manufacture batteries and develop new technologies. These companies have set up R&D facilities and offer best-in-class products to their customers.
Which region will have the fastest-growing EV Market?
Asia Pacific (excl. China) is estimated to be the fastest-growing market during the forecast period.
What countries are covered in Europe for the future of EV manufacturing market?
The countries covered in report for the future of EV manufacturing market are Austria, Germany, France, Netherlands, UK, Spain, Norway, and Sweden.

 

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Table of Contents

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TITLE
PAGE NO
TABLE OF CONTENTS
 
1 EXECUTIVE SUMMARY 
 
2 MARKET DEFINITION/SCOPE/RESEARCH METHODOLOGY 
    2.1 DEFINITION 
    2.2 SCOPE OF STUDY (INCLUSION/EXCLUSION) 
    2.3 RESEARCH METHODOLOGY 
 
3 EV MARKET LANDSCAPE (2024-2035) 
    3.1 EV SALES, BY REGION 
           3.1.1 CHINA
           3.1.2 APAC (EXCL CHINA)
           3.1.3 NA
           3.1.4 EUROPE
    3.2 EV SALES, BY VEHICLE TYPE 
           3.2.1 PC
           3.2.2 CV
    3.3 INSIGHTS ON ICE VS EV SALES FORECAST 
    3.4 GOVERNMENT REGULATION AND TARGETS 
           3.4.1 GOVERNMENT REGULATIONS
           3.4.2 GOVERNMENT INCENTIVES & SUBSIDIES
           3.4.3 GLOBAL ZEV TARGETS
           3.4.4 COMPANY ZEV PLANS
 
4 EV MANUFACTURING ECOSYSTEM ANALYSIS 
    4.1 ECOSYSTEM (WILL COVER INSIGHTS ON CURRENT ECOSYSTEM AND FUTURE INTEGRATION OPPORTUNITIES FOR EACH STAKEHOLDER) 
           4.1.1 RAW MATERIAL SUPPLIERS
           4.1.2 TIRE-2 COMPONENT MANUFACTURERS (WIRE HARNESS, OTHERS)
           4.1.3 TIRE-1 COMPONENT MANUFACTURERS (BATTERY, E-MOTORS, BMS, OTHERS)
           4.1.4 OEMS
                    4.1.4.1 INHOUSE VS OUTSOURCING STRATEGIES
 
5 CURRENT STATE AND FUTURE TRENDS OF EV MANUFACTURING 
    5.1 INTRODUCTION 
    5.2 DESIGN 
    5.3 PROTOTYPING 
    5.4 MANUFACTURING (COMPONENT & VEHICLE) 
    5.5 ASSEMBLY 
 
6 INSIGHTS ON ONGOING SHIFT IN EV COMPONENTS MANUFACTURING 
    6.1 BATTERY (CELL-TO-PACK, CELL TO CHASSIS, STRUCTURAL BATTERY, MODULE TO CHASSIS) 
    6.2 PLATFORM (MODULAR PLATFORM) 
    6.3 PROPULSION SYSTEM 
 
7 OEM STRATEGIES 
    7.1 TESLA 
           7.1.1 CIRCULAR ECONOMY STRATEGY
                    7.1.1.1 RECYCLED MATERIALS/COMPONENTS
           7.1.2 FUTURE PLANS FOR EV PRODUCTION
                    7.1.2.1 ROLE OF AI
                    7.1.2.2 DIGITIZATION/SMART MANUFACTURING FACTORY
           7.1.3 PLATFORMIZATION
                    7.1.3.1 PLANS FOR EV SKATEBOARD SHARING
                    7.1.3.2 PLATFORM SHARING
    7.2 BYD 
    7.3 VOLKSWAGEN 
    7.4 ZHEJIANG GEELY HOLDING GROUP 
    7.5 SAIC MOTOR 
    7.6 STELLANTIS NV 
    7.7 BMW GROUP 
    7.8 HYUNDAI GROUP 
    7.9 FORD MOTOR CORPORATION 
    7.1 GENERAL MOTORS 
 
8 KEY TAKEAWAYS AND RECOMMENDATIONS 
    8.1 KEY TAKEAWAYS 
    8.2 STRATEGIC RECOMMENDATIONS (FLEXIBLE MANUFACTURING, IMPROVEMENT IN UTILIZATION CAPACITY) 
 
9 APPENDIX 

The study involved analyzing the recent developments, trends, and performance of the players and the electric vehicle market in 2024, along with the projections for 2035. The analysis was based on the sales volume of the EVs around the world. The study also analyzes the primary targets for EVs, market adoption, advancement in EV manufacturing techniques, and government electrification goals—exhaustive secondary research collected information on the market, peer, and parent markets. The next step was to validate these findings, assumptions, and sizing with the industry experts. The bottom-up approaches were employed to estimate the market size in EV sales for the segments considered.

Secondary Research

In the secondary research process, various secondary sources such as company annual reports/presentations, press releases, industry association publications such as Society Of Manufacturers Of Electric Vehicles (SMEV), European Automobile Manufacturers’ Association (ACEA), Electric Vehicle Association (EVA), California Department of Motor Vehicles, White papers published by various industry experts, Corporate filings (such as annual reports, investor presentations, and financial statements), Trade, business, and related associations, International Organization for Standardization (ISO), articles, directories, technical handbooks, World Economic Outlook, trade websites, and technical articles are used to identify and collect information useful for an extensive commercial study of future of EV manufacturing.

Primary Research

The bottom-up approaches were used to estimate and validate the size of the electric vehicle market. Country-level vehicle production per vehicle type (Passenger car, Commercial vehicle) derived from secondary sources, paid databases such as Marklines and country level association, and validated through primary interviews. The market for electric vehicles was projected based on factors such as government and OEM targets, emission regulations, and investments by OEMs & Tier-1 companies. These projections were further validated through primary research.

Future of EV Manufacturing Market Size, and Share

To know about the assumptions considered for the study, download the pdf brochure

Future of EV Manufacturing Market : Top-Down and Bottom-Up Approach

Future of EV Manufacturing Market Top Down and Bottom Up Approach

Market Definition

EV Manufacturing refers to the process of designing, developing, and producing electric vehicles (EVs), which are vehicles powered by electric motors and rechargeable batteries instead of traditional internal combustion engines. This process encompasses the integration of innovative technologies, advanced materials, and efficient production systems to meet the growing demand for sustainable and environmentally friendly transportation solutions

Stakeholders

  • Automobile Organizations/Associations
  • Electric vehicle manufacturers and suppliers
  • Regional manufacturing associations and automobile associations
  • Component suppliers for electric vehicles
  • Regional emission standard regulatory authorities
  • Research Professionals

Report Objectives

  • To analyze the electric vehicle market performance till 2035
  • To analysis government and OEMs targets of ZEVs.
  • To provide critical developments expected to take place till 2035 and beyond.
  • Identify the technological trends likely to impact the market during the forecast period.
  • To identify significant growth segments and growth opportunities till 2035.
  • To project the electric vehicle sales from 2024 to 2035.
  • To analysis EV manufacturing ecosystem
  • To provide current and future trend of EV manufacturing.
  • To track and analyze various strategies such as circular economy, platformization, smart manufacturing and other strategies by key industry participants.

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Growth opportunities and latent adjacency in Future of EV Manufacturing Market

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