The global automotive market size was valued at USD 2085.78 billion in 2022 and is projected to touch USD 2746.49 billion by 2032, exhibiting a CAGR of 2.79% during the forecast period. Asia-Pacific holds leading position in automotive market share in 2023.
The automotive market comprises various companies and organizations. This market includes various parts and types of the automotive industry, such as cars, their parts, and others. The cars are further classified into commercial and passenger vehicles. This industry is a wide range of development, manufacturing, designs, marketing, and motor vehicle selling, which are also called automakers. The word automotive is taken from the Greek “autos,” which means “self,” and the Latin “motivus,” which means “of motion.” It refers to a form of self-powered vehicle. The term was introduced by Elmer Sperry.
The evolution of the automotive industry took a long time. Previously, cars and other automobiles were manufactured manually by assembling the parts by human workers. This process led the industry towards the development of various machinery and equipment to merge automobile parts. In the 1960s, the industry launched an advanced process to assemble the parts of a vehicle.
The global COVID-19 pandemic has been unprecedented and staggering, with automotive experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The rise in CAGR is attributable to automotive market growth demand returning to pre-pandemic levels once the pandemic is over.
COVID-19- The sudden outbreak of the pandemic created havoc in the global market. The pandemic and lockdown stagnated the growth of the market, and the automotive digital services market was no exception. The transport industry was put on hold, and the population was suggested not to step out of their homes to prevent the further spread of the pandemic. The general automobile sector and, consequently, the vehicle industry have both been negatively impacted by the COVID-19 pandemic. The number of new vehicle registrations fell during the year 2021 compared to 2020. 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.
“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.
By type, the market is segmented into passenger and commercial vehicles.
Based on application, the market is classified into personal use, municipal use, and business use.
“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.
“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.
“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 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.
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.
| REPORT COVERAGE | DETAILS |
|---|---|
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Market Size Value In |
US$ 2085.78 Billion in 2022 |
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Market Size Value By |
US$ 2746.49 Billion by 2032 |
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Growth Rate |
CAGR of 2.79% from 2022 to 2032 |
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Forecast Period |
2024-2032 |
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Base Year |
2023 |
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Historical Data Available |
Yes |
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Regional Scope |
Global |
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Segments Covered |
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By Types
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By Application
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