Automotive Industry Market Overview:
The Automotive Industry is projected to grow USD 6,070.4 billion till 2030 from the value of USD 3,566.5 Billion in 2022, exhibiting a compound annual growth rate (CAGR) of 6.9% during the forecast period (2023 - 2030). The Automotive Industry market size was valued at USD 3,296.8 billion in 2021. Increasing demand for high-end passenger vehicles, and urbanization and rising infrastructure spending in the economy are driving the automotive market growth.
Global initiatives like the Paris Agreement have prompted numerous nations to begin imposing higher emissions regulations for new vehicle models. As a result, automakers are starting to diversify their company into the field of electric mobility. Between 2020 and 2022, the amount spent on automotive R&D worldwide increased significantly, propelled by the booming plug-in electric light vehicle (PEV) market, which more than quadrupled year-over-year in 2021. Market leaders in this space include China and the US, with new electric vehicle registrations and new launches in China expected to increase by 155% in 2023 over the previous year.
In August 2023, BYD, a Chinese EV manufacturer, challenged Li Auto with the release of its second premium SUV in a month through a Mercedes-Benz partnership. A new luxury sport-utility vehicle (SUV) was introduced by BYD, which is financed by Warren Buffett, through its partnership with Mercedes-Benz. Just one month after the launch of its previous model, the pure-electric N7, in mainland China, Shenzhen Denza New Energy Automotive, which is 90% owned by BYD, has started accepting orders for its plug-in-hybrid N8 model.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Auto Industry Market Trends
Urbanization and Rising Infrastructure Spending in the Economy to boost market growth
Rapid population growth, urbanization, infrastructure, and industrial expansion are the primary drivers of commercial vehicle sales growth. The industrial sector is increasing, particularly in emerging nations, creating jobs in industries such as building, mining, and tourism. The availability of jobs has increased the number of commuters, resulting in a strong demand for public transportation or personal automobiles. With the rise of e-commerce, there has been a surge in need for small, medium, and large commercial trucks for logistics and transportation. The logistics industry has evolved from just providing services to providing customer-centric solutions. As a result, the need for commercial vehicles for transportation has skyrocketed. Manufacturers are developing new vehicle designs, decreasing load factors and size, and modifying cars to meet weight limits. The mining and construction sectors have benefited from urbanization. New residential developments, smart city programs, and the growing demand for flyovers and bridges contribute to a strong demand for technologically sophisticated freight vehicles.
E-commerce and digital transformation are also important in improving the transportation and logistics sector. Increased industrialization promotes infrastructural development. Consumer demand for customized transportation solutions, telematics integration, and the rising popularity of shared mobility are all significant factors impacting the growth of the commercial vehicle industry. After researching the benefits of connectivity and telematics in transforming transportation and logistics operations, several Original Equipment Manufacturers have introduced commercial vehicles with connectivity features such as accident warnings, traffic data, weather reports, and roadwork updates. This, in turn, will likely boost commercial vehicle sales throughout the projection period. A favorable regulatory environment and extra government incentives have increased demand for commercial electric cars. Governments are investing a greater proportion of their budgets in improving road infrastructure to boost their respective areas' transportation and logistics industries. The government of India budgeted USD 24.27 billion for the infrastructure sector in its 2020-2021 federal budget, mostly for highway renewable energy and transportation. As a result, growing urbanization and rising infrastructure investment will likely propel global automotive market growth.
However, urbanization and rising infrastructure spending in the economy. For instance, increasing demand for high-end passenger vehicles is another factor driving the growth of the Automotive Industry revenue.
Automotive Market Segment Insights:
Automotive Industry Vehicle Type Insights
The Automotive market segmentation, based on Vehicle Type, includes Passenger Car, Commercial Vehicle. The passenger car segment bifurcates into Hatchback, Sedan, SUV, MUV and commercial vehicle bifurcates into LCVs, Heavy Trucks, Buses & Coaches. The passenger vehicle segment held the majority share in 2021 contribution to around ~50-55% in respect to the Automotive market revenue. This is primarily owing to the rising demand for high-end passenger vehicles.
- October 2022 Volkswagen GOLF Model now has been launched with a new safety feature, the centre airbag, which helps to prevent possible contact between the heads of the people sitting on the front seats in the event of a side collision. An additional standard lap belt tensioner for the front row has been added to enhances safety even further.
- March 2022 Ford has announced its significant steps towards an all-electric future in Europe. The Company is going to introduce three new electric passenger vehicles and four new electric commercial vehicles in Europe by 2024 and is planning to sell more than 600,000 electric vehicles in the region by 2026.
Automotive Industry Propulsion Type Insights
The Automotive Industry segmentation, based on propulsion type, includes ICE Vehicle and Electric Vehicle. The ICE Vehicle segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. The ICE vehicle segment held the majority share in 2021 contribution to around ~85-90% in respect to the Automotive Industry. Nothing like EVs, which takes hours to recharge, ICE vehicle can be refueled in minutes. Hence, due to ICE vehicle advantages implants for automotive industry positively impacts the market growth.
Figure 2: Automotive Industry, by Propulsion, 2021 & 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
- In August 2023, Zeekr 001 confirmed its plan to launch shooting brake and Zeekr X SUV in Kazakhstan, according to plans revealed by China's Geely Automobile Holdings, the owner of the luxury electric car brand Zeekr. After recently announcing ambitions to sell cars in Europe and Israel by the end of 2023, Zeekr has now announced its expansion into other areas.
For the purpose of establishing a sales network and after-sales support in Kazakhstan, Zeekr will work in conjunction with its regional partner Orbis Auto. With client deliveries anticipated in November, pre-sales will start in September.
Automotive Industry Regional Insights
By Region, the study segments the market into North America, Europe, Asia-Pacific and Rest of the World. Asia Pacific Automotive Industry accounted for USD 1,643.3 billion in 2021 and is expected to exhibit an 7.4% CAGR during the study period. This is attributed to availability of financing choices, rising disposable income across the region.
Further, the major countries studied are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: Automobiles Industry Share By Region 2021(%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
North America Automobiles industry accounts for the second-largest market share due to continued development of advanced safety technologies for light commercial vehicles and heavy commercial vehicles to keep the driver safe from accidents. Further, the US Auto Industry held the largest market share, and the Canada Automotive Industry was the fastest growing market in the North America region
The Asia-Pacific Automotive Industry is expected to grow at a CAGR of 7.4% from 2022 to 2030. This is due to the increasing governmental mandates for improving vehicle safety have strongly contributed to the Asia-Pacific automotive demand. Moreover, China Automotive Industry held the largest market share, and the India Automotive Industry was the fastest growing market in the Asia-Pacific region
For instance, India Automotive Industry is growing due to rising the income of middle class people and a vast youth population will result in great demand. On the other hand, in Japan, due to the presence of major players such as Toyota, Honda, and Nissan, the auto industry is an essential pillar of the economy and propels the growth of the market. Hence, Asia-Pacific is anticipated to register the highest growth rate over the forecast period from 2022–2030.
Automotive Industry Key Market Players & Competitive Insights
Major market players are spending a lot of money on R&D to increase their product lines, which will help the automobiles industry grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the automobiles industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
The global automotive market is characterized by the presence of many international and regional manufacturers. The global market is highly competitive, with all the players competing to gain a larger market share. The automotive manufacturers compete based on cost, product quality, reliability, and aftermarket services. Increasing technological advancements in automobile sector have larger growth opportunities in OEM manufacturers. heavily growing product manufacturers for technologies like infotainment systems, advanced safety features, and connectivity features will exabit themselves from their competitors and drive market growth. Therefore, the manufacturers must provide innovative and efficient products which are also cost-effective to survive and succeed in a competitive market environment.
Volkswagen AG, Mercedes-Benz Group AG, Ford Motor Company, Tesla Inc, Toyota Motor Corporation, BYD Company Ltd, Hyundai Motor Company, SAIC Motor Corp Ltd, Nissan Motor Co Ltd, Fiat S.P.A, General Motors, Bayerische Motoren Werke AG, Tata Motors Ltd, Suzuki Motor Corporation are the major players in the market, competing in terms of a variety of products for the global Automotive market and their components, as well as efficiency, reliability, affordability, and advanced technology. The primary focus of the players is to provide advanced products to aid in increasing adoption, which could help strengthen a country’s growth with advanced products. Although global players dominate the market, a few regional and other local players with a limited market share also have a prominent presence in this market.
The major players would look to strengthen their regional presence through mergers & acquisitions of local and global players; they are expected to expand their presence and solutions in these countries during the forecast period. Therefore, manufacturers must develop new technologies to stay at par with emerging technology trends that could affect the competitiveness of their product lines in the market.
Auto manufacturing is a complex and highly competitive industry, with car manufacturers constantly innovating to improve the performance, safety, and efficiency of their vehicles. In recent years, there has been a growing emphasis on electric and hybrid vehicles, as car manufacturers strive to reduce emissions and meet the increasing demand for more sustainable transportation options.car manufacturers are companies that design, develop, and produce automobiles or cars. They typically have large factories where various components of the car are manufactured and assembled into a finished product.
List of the key Automotive Companies Listed In this Research Report are
- Volkswagen AG
- Mercedes-Benz Group AG
- Ford Motor Company
- Tesla Inc.
- Toyota Motor Corporation
- BYD Company Ltd.
- SAIC Motor Corp Ltd.
- Fiat S.P.A
- General Motors among others
Auto industry News & Developments
- October 2022The Volkswagen Group and Xanadu, the Canadian Quantum Technology Company have established a multiyear research program and the goal of this collaboration is to accelerate Volkswagen’s adoption of quantum computers to develop battery materials that are safe, light and more cost effective.
- September 2022:Hyundai Motor Group expanded its strategic partnership with KT Corporation (KT), Korea's leading telecommunications company for undertaking joint research on 6G autonomous driving technology and Advanced Air Mobility (AAM) communication network based on satellite communication.
- September 2022:Ford chooses Valencia plant in Spain, for its next-gen electric vehicle architecture. This will help the company to build a profitable business in Europe, increase Ford’s offering of premium electric, high performance, fully connected vehicles that can meet the demand of the European customers.
Automobile industry Segmentation:
Automobile industry Vehicle Type Outlook
Passenger Car
- Hatchback
- Sedan
- SUV
- MUV
Commercial Vehicle
- LCVs
- Heavy Trucks
- Buses & Coaches
Automobile industry Propulsion Type Outlook
-
ICE Vehicle
-
Electric Vehicle
Automobile industry Regional Outlook
-
North America
- US
- Canada
-
Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
-
Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
-
Rest of the World
- Middle East
- Africa
- Latin America
Report Scope:
| Report Attribute/Metric | Details |
| Market Size 2021 | USD 3,296.8 billion |
| Market Size 2022 | USD 3,566.5 billion |
| Market Size 2030 | USD 6,070.4 billion |
| Compound Annual Growth Rate (CAGR) | 6.9% (2022-2030) |
| Base Year | 2021 |
| Forecast Period | 2022-2030 |
| Historical Data | 2018 & 2020 |
| Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Vehicle Type, Propulsion type, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Volkswagen AG, Mercedes-Benz Group AG, Ford Motor Company, Tesla Inc, Toyota Motor Corporation, BYD Company Ltd, Hyundai Motor Company, SAIC Motor Corp Ltd, Nissan Motor Co Ltd, Fiat S.P.A, General Motors |
| Key Market Opportunities | Technological Advancements and Innovations in the Automotive Industry |
| Key Market Dynamics | Increasing Demand for High-End Passenger Vehicles Urbanization and Rising Infrastructure Spending in the Economy |