PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1886923
PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1886923
The global electric vehicle (EV) aftermarket industry is expanding rapidly, supported by soaring EV adoption, increased government incentives, and growing demand for specialized repair and maintenance services. According to the report, the industry was valued at USD 62.55 billion in 2024, is projected to grow to USD 82.08 billion in 2025, and is expected to reach an impressive USD 211.21 billion by 2032, registering a robust CAGR of 14.5%. In 2024, Asia Pacific dominated the global market with a 51.56% share, driven by strong EV penetration, government subsidies, and rapid advancements in charging infrastructure.
The EV aftermarket includes a wide range of services and components used for vehicle maintenance, repair, replacement, and customization after the initial sale. Although electric vehicles contain fewer moving parts than internal combustion engine (ICE) vehicles, they require specialized services such as battery diagnostics, thermal management maintenance, power electronics repair, charging equipment servicing, and software updates. Furthermore, demand for EV-specific tires, suspension systems, and lightweight components is rising as automakers improve performance characteristics and durability to meet EV operational requirements.
Market Dynamics
Market Driver - Increasing Adoption of Electric Vehicles
The core driver of the EV aftermarket industry is the rising global adoption of EVs. Electric cars represented 18% of new car sales in 2023, a sharp rise from 14% in 2022, and only 2% in 2018, showing the rapid global shift toward clean mobility. As more EVs hit the road each year, the demand for aftermarket components-particularly batteries, tires, power electronics, motors, and software updates-continues to rise. Government incentives, including subsidies, tax exemptions, and charging network investments, further boost consumer interest and strengthen aftermarket growth opportunities.
Market Restraint - Limited Availability of Aftermarket Parts
Despite widespread EV growth, the aftermarket industry faces challenges due to limited access to essential EV components. OEMs typically retain tight control over key parts such as batteries, inverters, thermal management systems, and proprietary software. This restricts independent repair shops from accessing critical components. According to a 2024 study by Alix Partners and Berylls, aftermarket competitiveness is affected by factors such as restricted access to vehicle data, proprietary software coding requirements, and outdated diagnostic interfaces. These challenges limit competition and increase service costs for consumers.
Market Opportunity - Growing Demand for Maintenance & Repair Services
As EV adoption accelerates, maintenance and repair services represent a major opportunity. EVs require unique expertise for handling battery systems, thermal management, power electronics, and advanced software-based components. This opens avenues for certified EV service centers, battery refurbishment companies, and specialized diagnostic providers. The expanding EV fleet ensures long-term revenue opportunities for aftermarket suppliers, especially as vehicles age and require battery replacements or powertrain repairs.
Market Challenge - Fragmentation & Lack of Standardization
The EV market is highly fragmented, with each manufacturer using proprietary technologies and designs. This creates challenges in producing universal aftermarket components and complicates inventory management. Lack of standardization increases costs, slows service turnaround times, and limits cross-compatibility across EV brands.
Industry Trends
A major trend reshaping the industry is battery recycling and remanufacturing. As EV battery demand surges, companies are investing in processes to recover lithium, nickel, and cobalt. In October 2023, Stellantis partnered with Orano to launch a joint venture for recycling end-of-life batteries, strengthening resource sustainability and lowering supply chain risks.
Segmentation Overview
By Vehicle Type
Passenger cars held the largest market share in 2024, supported by rising EV ownership in China, India, Germany, and Norway.
The commercial vehicle segment is expected to grow fastest as fleet operators embrace EVs to lower fuel and maintenance costs.
By Component
The tire segment dominated the market due to higher replacement frequency driven by EV torque and vehicle weight.
Brake & suspension systems, electrical components, body parts, and charging-related equipment represent additional high-growth areas.
By Propulsion Type
Battery Electric Vehicles (BEVs) held the majority share in 2024, reflecting strong global sales.
The HEV segment is projected to expand quickly due to flexibility in regions with limited charging infrastructure.
Asia Pacific - Market Leader
With a market value of USD 32.25 billion in 2024, Asia Pacific held the largest share and is expected to maintain its dominance. Supportive government schemes such as India's PM E-DRIVE and Japan's EV subsidy programs fuel rapid aftermarket expansion.
Europe
Europe ranks second due to advanced EV technologies, regulatory support, and increased demand for software-defined vehicle maintenance.
North America
Robust infrastructure investments in charging networks and service facilities strengthen aftermarket development across the U.S., Canada, and Mexico.
Rest of the World
Growth is supported by rising corporate EV adoption and sustainable mobility initiatives.
Conclusion
Growing from USD 62.55 billion in 2024 to USD 211.21 billion by 2032, the electric vehicle aftermarket industry is positioned for long-term expansion. With rising EV deployment, technological advancements, and sustainability-focused policies, the aftermarket will remain a critical pillar supporting the global transition to electric mobility.
Segmentation By Vehicle Type
By Component
By Propulsion Type
By Region