The automotive industry is garnering much attention from various sectors, due to which it can expect a smooth run with a CAGR of 3% during the forecast period. During that time, the automotive industry market value can grow from 110 Million Units in 2019 to 185 Million Units by 2027.
The automotive motor is designed in such a way that it will convert electric energy into mechanical energy. This combination of electronics and mechanics has led to creating a blend of an increased number of vehicles in the market and provided convenience and comfort features to automobiles. Many devices use electronic power in various applications to run an efficient automobile eg. seating control, power steering, and others. The automotive industry is the world’s fourth-largest industry. Out of which India is the world's fourth-largest manufacturer of cars and seventh-largest manufacturer of commercial vehicles in the past few years. In the automobile market, two-wheelers and passenger vehicles dominate the domestic Indian auto market.
Due to the outbreak of Covid-19, many countries imposed a complete lockdown for more than a year. It turned to impact the production and manufacturing of electric vehicles and battery components. There was a real positive impact on the automobile market. However, the total number of automotive markets has increased in 2020 as compared to 2019. In the second half of 2020, the industry witnessed recovery 2020. The small Tier II and Tier III manufacturing component market was affected so negatively. Due to corona, the entire world was shut down and the electric vehicle market took a hit. Post-2020, the supply contracts and new product developments are expected to lead the automotive market. The spread of the novel coronavirus has had its impact on various sectors of different world economies.
The government has taken various measures to combat the effect of the pandemic on this market. Accelerated business is expected because of this. We hope that soon the market will flourish as estimated.
The major types of automobiles are cars, light and heavy commercial vehicles, and heavy buses. Automobiles are categorized based on the type of fuel consumption capacity as in gasoline, diesel, electric, and other fuels. Electric cars or EV’s are gaining popularity in recent days. Also, some vehicles that use green alternatives like CNG and flex-fuel cars are in demand for both commercial and consumer automotive markets.
The increased demand for high-performance motors is one of the driving factors in the Automotive Industry Market. The growing demand for compact and energy-efficient motors. High-performance permanent magnets offer immediate benefits.
Considering the stringent regulations to reduce the CO2 emissions are likely to change the automotive sector. Now the consumers are becoming more aware of the impact of vehicular emission on the environment. So, electric vehicles are more considered than traditional vehicles. Government measures like tax subsidies to promote the adoption of electric vehicles have been effectively considered.
The major restraining factor in automotive industry market is the limited availability and the volatility of the material that is used in production. The less availability of material and cost competitiveness in manufacturing of the automobiles. The companies look for alternatives with availability and sustainability of the product.
The rapid deterioration of the motors due to excessive heat resulted in automotive failure. Some of the primary reason include in automotive industry market report:
- Overload - Maintaining the levels that will help to keep the excessive heat to a minimum.
- Starting and Stopping - online motor testing to keep a check on monitoring the start and stop rate.
- Poor power condition - If the power is low more heat will be generated
- Operating conditions - If the conditions are not favorable it will lead to excessive heat and will result in clogged ducts and high ambient pressure.
Some of the major market players are:
The automotive industry market is mainly segmented based on type, power output, and region. Out of all the segments, in-vehicle type passenger cars are the most important factors that are driving the global automotive industry market as per the overall manufacturing. Also, the increasing population in developing countries is driving the Automotive Industry Market. The technology has been modified and frequently changing demands from consumers in regards to luxury and fuel-efficiency features. The market growth is supported by the increased demands of electric vehicles are changing the market trends.
By Motor Type
By EV Type
By Vehicle Type
By Power Output
Europe is one of the regions that is providing the highest shares in the global automotive industry market. It is estimated to account for a share of 23% in 2021, the Automotive Industry Market is expected to witness a CAGR of 39.5% during the forecast period. At present, electric vehicles are highly expensive and largely depend on government funds, subsidies, and incentives. Countries such as Germany, France, the UK, and Italy are considered for the major market growth under Europe. The prominent presence of original equipment manufacturer OEMs offers market growth and new technology opportunities to the automotive market growth in the region. Many environmental factors encourage the market players to develop advanced vehicles and spare parts that are also a factor for the market growth.
In 2019, the expertise in E-mobility research was the expansion of R&D departments and was done by ZF Friedrichshafen AG at its divisional headquarters in Schweinfurt, Germany. In 2020, Mahle Group in Stuttgart, Germany invested around $3.5 million for equipment like e-axles and e-drive units for a wide range of electric and hybrid vehicles. The major Automotive Industry Market has automobile manufacturers that have been making profits in the market.
The technological advancements in electric vehicles have played an immense role in the growth of the Automotive Industry Market. There are new technologies that are taking over the attention of EV manufacturers on a global level.
In October 2019, BMW Group gave its largest production order for transmission Magna technologies. This multi-year contract has front-wheel drive dual-clutch transmissions and hybrid transmission variants.
In January 2021, BYD Co. Ltd. launched its DM-i super hybrid technology for plug-in hybrid electric vehicles (PHEVs).
In February 2021, Schaeffler Group announced, by 2024, design and manufacture a hybrid EV drive unit comprising two electric motors and transmission with integrated power electronics. A high-performance and low fuel consumption technology were introduced.
In August 2020, BorgWarner Inc. announced that they are creating a power-packed integrated drive module (IDM) for Ford. it has a thermal management system and gearbox
that is integrated with power electronics and motor.
In November 2020, ZF Friedrichshafen AG introduced a new concept of “Plug-Hybrid Electric Vehicle” (PHEV) that will help in the reduction of Co2 emissions.
In March 2019, Nidec Corporation presented a prototype of automotive motor design and fitted in the wheel hubs and it benefited the vehicle for higher efficiency.
In August 2018, Robert Bosch GmbH has announced the new development of the electric powertrain for vans and trucks with two versions that were with or without transmission system that reduces the complexity of the electrical and makes the powertrain efficient and compact.
The above report has insight and completes an analysis of the demand and the market growth of the automotive industry market. It has depicted the market segmentation and the regional analysis of the global shares of the automotive market. The key players and the key developments have been mentioned in detail. The complete market research has provided a picture that with the increasing market standard and the consumer expectations the development and technology analysis shows that the market shares will increase during the forecast period. The risen R&D and new developments had given a perspective wherein the Automotive Industry Market will propel at a higher pace.
|Market Size||2027: 185 Million Units|
|CAGR||3% CAGR (2020-2027)|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||By Technology, By Application, By Vehicle type, By EndMarket|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Toyota, GM, Volkswagen, Hyundai Motors, Ford, Nissan, Honda, PSA, Suzuki, Renault, Fiat, Daimler AG, Chrysler, Chana Automobile, Tata Motors,|
|Key Market Opportunities||
|Key Market Drivers||Increased demand for high-performance motors|
Frequently Asked Questions (FAQ) :
The automotive industry market is prognosticated to strike 3% CAGR.
Increasing demand for vehicles, rising shift towards electric cars, adoption of advancing technologies, etc. are poised to have a positive influence on the augmentation of the automotive industry market.
Increasing complexities of vehicle architecture and high cost of vehicles can restrain the growth of the automotive industry market.
North America, due to rising investments, is anticipated to exhibit fastest rate of growth.
Asia Pacific has secured the pole position.
The key players are Volkswagen AG (Germany), Toyota Motor Corporation (Japan), General Motors (US), SAIC Motor Corporation Limited (China), Nissan Motor Corporation (Japan), Ford Motor Company (US), Hyundai Motor Company (South Korea), Honda Motor Corporation (Japan), Fiat Chrysler Automobiles (US), and Daimler AG (Germany).