AUTOMOTIVE MARKET REPORT OVERVIEW

The size of the global automotive market was estimated at USD 2085 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 2.79% to reach USD 2746 billion by 2032. In 2023, Asia-Pacific will have the largest share of the automobile market.

There are many different businesses and organizations in the automotive industry. Automobiles, their components, and other automotive-related items are all included in this market. The vehicles are further divided into passenger and commercial categories. This sector encompasses a broad spectrum of development, production, design, marketing, and sales of motor vehicles, often known as automakers. The Latin word "motivus," which means "of motion," and the Greek word "autos," which means "self," are the roots of the English word "automotiv." It alludes to a type of autonomous vehicle. Elmer Sperry was the first to use the word.

It took a while for the car sector to evolve. In the past, human workers assembled the components of cars and other vehicles by hand. The industry developed a variety of technology and equipment to combine vehicle parts as a result of this procedure. The industry introduced a sophisticated method for assembling a vehicle's components in the 1960s.

COVID-19 Impact

Restrictions on Transportation Impeded Automotive Sales

In comparison to pre-epidemic levels, demand for automobiles has exceeded expectations in every region due to the unprecedented and startling global COVID-19 pandemic. When the pandemic ends, the demand for automobiles will revert to its pre-pandemic levels, which is what caused the increase in CAGR.

COVID-19- The global market was devastated by the abrupt pandemic breakout. The market's expansion was halted by the epidemic and lockdown, and the automotive digital services sector was no different. To stop the epidemic from spreading further, the transportation sector was halted and people were advised not to leave their houses. The COVID-19 epidemic has had a detrimental effect on the general automobile sector and, by extension, the vehicle industry. In comparison to 2020, there were fewer new car registrations in 2021. Additionally, in the midst of the pandemic, a variety of players are attempting to come up with novel solutions to manage the condition, including the use of vehicles for medical supplies because they offer convenient, inexpensive conveyance with exceptional maneuverability.

LATEST TRENDS

Steady Adoption of Cars to Augment Market Growth

The rising per capita income of the population is increasing the demand for cars in the global market. Passenger automobiles are the most frequent mode of mobility in developed countries. The industry has seen enormous uptake of advanced technologies that include enhanced driver assistance systems (ADAS). The demand for automobiles is being fueled by the adoption of electric vehicles. The number of passenger cars is rising in developing nations owing to the increasing per capita income. The population is highly inclined towards convenience, increasing the demand for cars. The population travels by car to experience convenience and comfort in traveling. These factors are estimated to augment automotive market growth.

AUTOMOTIVE MARKET SEGMENTATION

·         By Type Analysis

By type, the market is segmented into passenger and commercial vehicles.

·         By Application Analysis

Based on application, the market is classified into personal use, municipal use, and business use.

DRIVING FACTORS

Rapid Adoption of E-Vehicle to Surge Market Growth

The demand for an electric vehicle is increasing as it works on electricity. These cars work on electric motors instead of internal combustion engines, which require a continuous supply of energy from batteries to manage. These automobiles use various batteries. There are several nickel-based designs among them, along with molten salt, lithium-ion, zinc-air, and others. Since traditional modes of transportation contribute to environmental pollution, electric vehicles were largely created to return them. Due to various technical breakthroughs, it has gained popularity. It outperforms traditional cars in terms of fuel efficiency, low maintenance costs, ease of home charging, smoother driving, and reduced engine noise. Batteries, hybrids, and plug-in hybrid electric vehicles are the three different forms of electric vehicles. Additionally, electric cars are more efficient and require less maintenance. These factors are estimated to surge automotive market growth.

Rising Popularity of Autonomous Vehicles to Propel Market Growth

The capacity of automobiles to sense their surroundings, an autonomous or driverless vehicle can drive itself and carry out important tasks without the assistance of a human. It senses the environment and navigates by creating a dynamic 3D map of that environment using light detection and ranging (LiDAR), artificial intelligence (AI) software, radio detection and ranging (RADAR), and cameras. Most self-driving vehicles build and update an internal map of their surroundings using a variety of sensors, including RADAR. There are several degrees of autonomy, from fully autonomous to semi-autonomous, that require driver assistance. These vehicles also outperform traditional vehicles in terms of safety, fuel efficiency, and traffic congestion & emissions reduction due to their lower gas & battery capacity usage. 

RESTRAINING FACTORS

High Cost of the Product to Challenge Market Growth

The automotive market may experience challenges due to the high manufacturing cost and data management. The high cost of the product resists the middle-class population from purchasing advanced automotive, which is estimated to affect market growth.

AUTOMOTIVE MARKET REGIONAL INSIGHTS

Asia Pacific to Be the Global Leader Backed By the Rapid Adoption of Advanced Technology

Asia Pacific is projected to hold a major contribution in the automotive market share accredited to the steady adoption of advanced technologies by the automotive industry. The region focuses on the constant development of the automotive industry.

Europe is estimated to show the second-highest growth in the global market attributable to the rising disposable income of the population. The rising disposable income is leading to the demand for cars in the region. 

North America is expected to show sizable growth in the global market owing to the rising adoption of electric vehicles in the region. 

KEY INDUSTRY PLAYERS

Key Players Focusing On Innovative Technology Development to Grow in Market

Businesses are working on developing new technology to offer more easy ways to increase product portfolio. Companies also use innovative practices and techniques to create new technologies. Companies are focused on acquisitions and investments to increase sales. The marketplace is competitive as a result of the existence of numerous huge firms. An extensive worldwide consumer base and the execution of operations through specialized distribution networks are other characteristics. The key companies strive to gain a higher market share by launching new products. 

List Of Top Automotive Companies

• Daimler
• Renault
• Suzuki
• Toyota
• BMW
• PSA
• Ford
• Hyundai
• Volkswagen Group
• General Motors
• Honda
• Nissan
• Fiat Chrysler Automobiles
• Geely
• SAIC

REPORT COVERAGE

An overview of the product is provided along with the product description. Numerous industry elements are included in the research. The market insights are prepared by utilizing large sample sizes for data-gathering modules. The study provides in-depth market insights. The stage includes gathering market data or related data using a variety of sources and tactics. It involves going over and organizing all the information gathered during the previous advance. It also covers the investigation of information discrepancies found across various information sources. Market statistical and coherent models are used to assess and estimate market data.