The EV Contract Manufacturing Market Size is valued at USD 9.8 Bn in 2023 and is predicted to reach USD 68.5 Bn by the year 2031 at an 27.7% CAGR during the forecast period for 2024-2031.
EV Contract Manufacturing is an increasingly crucial strategy for electric vehicle (EV) businesses to address market challenges and maintain competitiveness in a rapidly evolving industry. This approach benefits both early-stage original equipment manufacturers (OEMs) and traditional automakers transitioning to EV production. By outsourcing the manufacturing of specific parts or entire vehicles to third-party manufacturers, companies can leverage specialized expertise, reduce production costs, and increase flexibility. For conventional OEMs, contract manufacturing helps minimize short-term capital expenditures while optimizing production capabilities and capacity. This allows EV companies to scale efficiently and meet growing market demand without significant investment in their manufacturing facilities. Electric vehicle producers can adjust their output levels according to demand through contract manufacturing, saving money on costly infrastructure purchases. This might be especially crucial for new businesses and smaller enterprises that are still expanding and might not have the capital to invest in their production plants. Decreases in indirect manufacturing costs can also be achieved by scalability.
The Battery Electric Vehicle (BEV) segment is expanding rapidly, driven by increasing consumer demand for zero-emission vehicles, government regulations on emissions, and incentives promoting EV adoption. As a result, both established automakers and new entrants need to ramp up production quickly to meet market demand, which often requires outsourcing manufacturing to third parties. The BEV segment is highly competitive, with numerous automakers launching new electric models to capture market share. Contract manufacturing helps companies speed up production timelines and bring vehicles to market more quickly by leveraging the established production capabilities of third-party manufacturers. This is especially beneficial for startups or traditional automakers entering the BEV space, as it allows them to focus on innovation while contract manufacturers handle production scalability.
The EV Contract Manufacturing Market is segmented based on the services, vehicle type, and propulsion type. Based on the services, the market is divided into design and development, vehicle assembly, automotive electronics, and component manufacturing. Based on the vehicle type, the market is divided into passenger vehicles and commercial vehicles. Based on the propulsion type, the market is categorized into battery electric vehicle (BEV), plug-in hybrid electric vehicle (PHEV), and fuel cell electric vehicle (FCEV).
Based on the services, the market is divided into design and development, vehicle assembly, automotive electronics, and component manufacturing. Among these, the vehicle assembly segment is expected to have the highest growth rate during the forecast period. Vehicle assembly involves integrating various components such as the battery, electric drivetrain, chassis, and other essential systems into a functional electric vehicle. This process requires high precision, extensive labor, and advanced manufacturing facilities, making it a key area for outsourcing. As the demand for electric vehicles grows, automakers need to quickly scale production to meet market needs. Contracting out vehicle assembly allows them to expand their production capacity without investing heavily in building or upgrading assembly plants. This is especially important for companies that are launching new models or entering new markets.
Based on the vehicle type, the market is divided into passenger vehicles and commercial vehicles. Among these, Battery Electric Vehicles BEVs are leading the transition to electric mobility due to their zero-emission profile, simpler architecture (fewer moving parts compared to PHEVs and FCEVs), and increasing government regulations focused on reducing emissions. The growing market size of BEVs creates a higher demand for contract manufacturing services. Governments globally are increasingly promoting BEVs through incentives, stricter emissions regulations, and investments in charging infrastructure. This has created a robust market for BEVs, pushing automakers to increase production and rely on contract manufacturers to meet growing demand.
The Asia-Pacific region, especially China and South Korea, dominates the global battery supply chain, which is a critical component for EVs. This cost advantage encourages automakers, including foreign OEMs, to outsource manufacturing to this region. Lower operational costs make the region attractive for contract manufacturing of EV components and complete vehicle assembly. Governments across Asia-Pacific, particularly in China, Japan, and South Korea, have implemented strong policies to promote the development and adoption of electric vehicles. These include subsidies for EV production, incentives for R&D, tax benefits for EV manufacturers, and investments in EV infrastructure.
|
Report Attribute |
Specifications |
|
Market Size Value In 2023 |
USD 9.8 Bn |
|
Revenue Forecast In 2031 |
USD 68.5 Bn |
|
Growth Rate CAGR |
CAGR of 27.7% from 2024 to 2031 |
|
Quantitative Units |
Representation of revenue in US$ Bn and CAGR from 2024 to 2031 |
|
Historic Year |
2019 to 2023 |
|
Forecast Year |
2024-2031 |
|
Report Coverage |
The forecast of revenue, the position of the company, the competitive market structure, growth prospects, and trends |
|
Segments Covered |
By Services, Vehicle Type, and Propulsion Type. |
|
Regional Scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
|
Country Scope |
U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico; The UK; France; Italy; Spain; China; Japan; India; South Korea; Southeast Asia; South Korea; South East Asia |
|
Competitive Landscape |
BMW AG, BYD Company Ltd., Daimler AG, Faraday Future Inc., Fisker Inc., Foxconn Technology Group, LG Chem, Magna International Inc., Rivian Automotive LLC, Stellantis N.V., Valmet Automotive Inc. |
|
Customization Scope |
Free customization report with the procurement of the report and modifications to the regional and segment scope. Particular Geographic competitive landscape. |
|
Pricing and Available Payment Methods |
Explore pricing alternatives that are customized to your particular study requirements. |
Chapter 1. Methodology and Scope
1.1. Research Methodology
1.2. Research Scope & Assumptions
Chapter 2. Executive Summary
Chapter 3. Global EV Contract Manufacturing Market Snapshot
Chapter 4. Global EV Contract Manufacturing Market Variables, Trends & Scope
4.1. Market Segmentation & Scope
4.2. Drivers
4.3. Challenges
4.4. Trends
4.5. Investment and Funding Analysis
4.6. Porter's Five Forces Analysis
4.7. Incremental Opportunity Analysis (US$ MN), 2024-2031
4.8. Global EV Contract Manufacturing Market Penetration & Growth Prospect Mapping (US$ Mn), 2023-2031
4.9. Competitive Landscape & Market Share Analysis, By Key Player (2023)
4.10. Use/impact of AI on Building Integrated Photovoltaic Industry Trends
Chapter 5. EV Contract Manufacturing Market Segmentation 1: By Services, Estimates & Trend Analysis
5.1. Market Share by Services, 2023 & 2031
5.2. Market Size (Value US$ Mn) & Forecasts and Trend Analyses, 2019 to 2031 for the following Services:
5.2.1. Design and Development
5.2.2. Vehicle Assembly
5.2.3. Automotive Electronics
5.2.4. Component Manufacturing
Chapter 6. EV Contract Manufacturing Market Segmentation 2: By Vehicle Type, Estimates & Trend Analysis
6.1. Market Share by Vehicle Type, 2023 & 2031
6.2. Market Size (Value US$ Mn) & Forecasts and Trend Analyses, 2019 to 2031 for the following Vehicle Types:
6.2.1. Passenger vehicles
6.2.2. Commercial vehicles
Chapter 7. EV Contract Manufacturing Market Segmentation 3: By Propulsion Type, Estimates & Trend Analysis
7.1. Market Share by Propulsion Type, 2023 & 2031
7.2. Market Size (Value US$ Mn) & Forecasts and Trend Analyses, 2019 to 2031 for the following Propulsion Types:
7.2.1. Battery Electric Vehicle (BEV)
7.2.2. Plug-In Hybrid Electric Vehicle (PHEV)
7.2.3. Fuel Cell Electric Vehicle (FCEV)
Chapter 8. EV Contract Manufacturing Market Segmentation 6: Regional Estimates & Trend Analysis
8.1. Global EV Contract Manufacturing Market, Regional Snapshot 2023 & 2031
8.2. North America
8.2.1. North America EV Contract Manufacturing Market Revenue (US$ Million) Estimates and Forecasts by Country, 2024-2031
8.2.1.1. US
8.2.1.2. Canada
8.2.2. North America EV Contract Manufacturing Market Revenue (US$ Million) Estimates and Forecasts by Services, 2024-2031
8.2.3. North America EV Contract Manufacturing Market Revenue (US$ Million) Estimates and Forecasts by Vehicle Type, 2024-2031
8.2.4. North America EV Contract Manufacturing Market Revenue (US$ Million) Estimates and Forecasts by Propulsion Type, 2024-2031
8.3. Europe
8.3.1. Europe EV Contract Manufacturing Market Revenue (US$ Million) Estimates and Forecasts by Country, 2024-2031
8.3.1.1. Germany
8.3.1.2. U.K.
8.3.1.3. France
8.3.1.4. Italy
8.3.1.5. Spain
8.3.1.6. Rest of Europe
8.3.2. Europe EV Contract Manufacturing Market Revenue (US$ Million) Estimates and Forecasts by Services, 2024-2031
8.3.3. Europe EV Contract Manufacturing Market Revenue (US$ Million) Estimates and Forecasts by Vehicle Type, 2024-2031
8.3.4. Europe EV Contract Manufacturing Market Revenue (US$ Million) Estimates and Forecasts by Propulsion Type, 2024-2031
8.4. Asia Pacific
8.4.1. Asia Pacific EV Contract Manufacturing Market Revenue (US$ Million) Estimates and Forecasts by Country, 2024-2031
8.4.1.1. India
8.4.1.2. China
8.4.1.3. Japan
8.4.1.4. Australia
8.4.1.5. South Korea
8.4.1.6. Hong Kong
8.4.1.7. Southeast Asia
8.4.1.8. Rest of Asia Pacific
8.4.2. Asia Pacific EV Contract Manufacturing Market Revenue (US$ Million) Estimates and Forecasts by Services, 2024-2031
8.4.3. Asia Pacific EV Contract Manufacturing Market Revenue (US$ Million) Estimates and Forecasts by Vehicle Type, 2024-2031
8.4.4. Asia Pacific EV Contract Manufacturing Market Revenue (US$ Million) Estimates and Forecasts By Propulsion Type, 2024-2031
8.5. Latin America
8.5.1. Latin America EV Contract Manufacturing Market Revenue (US$ Million) Estimates and Forecasts by Country, 2024-2031
8.5.1.1. Brazil
8.5.1.2. Mexico
8.5.1.3. Rest of Latin America
8.5.2. Latin America EV Contract Manufacturing Market Revenue (US$ Million) Estimates and Forecasts by Services, 2024-2031
8.5.3. Latin America EV Contract Manufacturing Market Revenue (US$ Million) Estimates and Forecasts by Vehicle Type, 2024-2031
8.5.4. Latin America EV Contract Manufacturing Market Revenue (US$ Million) Estimates and Forecasts by Propulsion Type, 2024-2031
8.6. Middle East & Africa
8.6.1. Middle East & Africa EV Contract Manufacturing Market Revenue (US$ Million) Estimates and Forecasts by country, 2024-2031
8.6.1.1. GCC Countries
8.6.1.2. Israel
8.6.1.3. South Africa
8.6.1.4. Rest of Middle East and Africa
8.6.2. Middle East & Africa EV Contract Manufacturing Market Revenue (US$ Million) Estimates and Forecasts by Services, 2024-2031
8.6.3. Middle East & Africa EV Contract Manufacturing Market Revenue (US$ Million) Estimates and Forecasts by Vehicle Type, 2024-2031
8.6.4. Middle East & Africa EV Contract Manufacturing Market Revenue (US$ Million) Estimates and Forecasts by Propulsion Type, 2024-2031
Chapter 9. Competitive Landscape
9.1. Major Mergers and Acquisitions/Strategic Alliances
9.2. Company Profiles
9.2.1. BMW AG
9.2.1.1. Business Overview
9.2.1.2. Key Product/Service Offerings
9.2.1.3. Financial Performance
9.2.1.4. Geographical Presence
9.2.1.5. Recent Developments with Business Strategy
9.2.2. BYD Company Ltd.
9.2.3. Daimler AG
9.2.4. Faraday Future Inc.
9.2.5. Fisker Inc.
9.2.6. Foxconn Technology Group
9.2.7. LG Chem
9.2.8. Magna International Inc.
9.2.9. Rivian Automotive LLC
9.2.10. Stellantis N.V.
9.2.11. Valmet Automotive Inc.
9.2.12. Other Prominent Players
Global EV Contract Manufacturing Market by Services
Global EV Contract Manufacturing Market – By Vehicle Type
Global EV Contract Manufacturing Market – By Propulsion Type
Global EV Contract Manufacturing Market – By Region
North America-
Europe-
Asia-Pacific-
Latin America-
Middle East & Africa-
InsightAce Analytic follows a standard and comprehensive market research methodology focused on offering the most accurate and precise market insights. The methods followed for all our market research studies include three significant steps – primary research, secondary research, and data modeling and analysis - to derive the current market size and forecast it over the forecast period. In this study, these three steps were used iteratively to generate valid data points (minimum deviation), which were cross-validated through multiple approaches mentioned below in the data modeling section.
Through secondary research methods, information on the market under study, its peer, and the parent market was collected. This information was then entered into data models. The resulted data points and insights were then validated by primary participants.
Based on additional insights from these primary participants, more directional efforts were put into doing secondary research and optimize data models. This process was repeated till all data models used in the study produced similar results (with minimum deviation). This way, this iterative process was able to generate the most accurate market numbers and qualitative insights.
Secondary research
The secondary research sources that are typically mentioned to include, but are not limited to:
The paid sources for secondary research like Factiva, OneSource, Hoovers, and Statista
Primary Research:
Primary research involves telephonic interviews, e-mail interactions, as well as face-to-face interviews for each market, category, segment, and subsegment across geographies
The contributors who typically take part in such a course include, but are not limited to:
Data Modeling and Analysis:
In the iterative process (mentioned above), data models received inputs from primary as well as secondary sources. But analysts working on these models were the key. They used their extensive knowledge and experience about industry and topic to make changes and fine-tuning these models as per the product/service under study.
The standard data models used while studying this market were the top-down and bottom-up approaches and the company shares analysis model. However, other methods were also used along with these – which were specific to the industry and product/service under study.
