Automotive Industry Market Size

Automotive Industry Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The automobile industry is undergoing a period of tremendous expansion. In 2024 it will reach $ 2132 billion and in 2035 will reach $ 2999 billion. This represents a CAGR of 3.15 percent between 2025 and 2035, and reflects a steady increase in demand and innovation in the industry. The market is being driven by several key factors, including the technological development of electric vehicles (EVs), the growing preference for sustainable transportation, and the integration of smart technology such as driverless cars and connected cars. The leading car companies, such as Tesla, Toyota, and Volkswagen, are investing heavily in research and development in order to stay ahead of the competition. Strategic alliances with technology companies and investment in batteries are crucial for companies in the industry to stay relevant. Government regulations aimed at reducing harmful emissions and the transition to a low-carbon economy are also pushing the industry forward. The automobile industry is a dynamic and growing part of the world economy.

Regional Market Size

Regional Deep Dive

The automobile industry is undergoing a profound change in the various regions of the world, prompted by technological developments, changing customer preferences, and the pressures of regulatory changes. North America is characterized by the strong demand for electric vehicles and the use of autonomous drive systems. Europe is focusing on the development of electric mobility and the stricter regulation of emissions. The growth of Asia-Pacific is driven by urbanization and the growing purchasing power of the population. The Middle East and Africa (MEA) are investing in their transport networks and are introducing modern mobility solutions. Latin America is undergoing difficult economic times, but governments are promoting the development of new mobility solutions, especially electric mobility.

North America

• Biden's push for the e-car is a goal of 50 percent of new car sales in the United States by 2030. This has a strong influence on the strategies of the automakers.
• As a result, many automobile companies, including General Motors and General Motors, are producing a lot of EVs, and General Motors announced an investment of $ 35 billion by 2025 in EVs and self-driving vehicles.
• The development of the sharing economy and the mobility-as-a-service platforms has changed the behavior of consumers and is increasing the demand for connected and driverless vehicles.

Europe

• By the year 2050, Europe is to be the first continent to become climate-neutral. The European Union's Green Deal requires car manufacturers to develop electric and hydrogen engines.
• The ID.4 and the other electric vehicles are part of the Volkswagen Group's strategy of transitioning to electric mobility. By 2025, the company will have invested about 73 billion in electrification and digitalization.
• The introduction of the seventh generation of emissions standards, the Euro 7, will drive manufacturers to reduce fuel consumption and lower emissions, which will have an effect on production processes.

Asia-Pacific

• The EV market in China is the largest in the world, and the government is now trying to encourage EV manufacturers with subsidies and a good charging network.
• Japan's automobile manufacturers, such as Toyota, are now investing heavily in hydrogen fuel cell vehicles, hoping to lead the world in the development of alternative energy vehicles as the world moves toward electrification.
• “Make in India” has encouraged the manufacture of electric car components in India. And the Tata Motors has expanded its electric car offerings to meet the growing domestic demand.

MEA

• In the United Arab Emirates, the emirate of Dubai has invested in the future of its cities, with projects such as the Autonomous Transport System, which aims to have 25 percent of its transportation fleet be self-driving by the year 2030.
• Vision 2030, which aims to diversify the economy and reduce dependence on oil, has included the development of an automobile industry.
• Electric cars are gaining in popularity, and government incentives and the presence of companies like Tesla are encouraging this.

Latin America

• Brazil is leading the way in the adoption of electric cars in Latin America. The government is giving tax incentives to the purchase of electric cars and to the production of them in the country.
• The electric vehicles that are being launched by the European car manufacturers, such as the Volkswagen and the Renault, are being adapted to the Latin American market, addressing the need for cheap and easy means of transport.
• The automobile market is also influenced by economic factors. Changes in currency exchange rates affect the price of vehicles and therefore the purchasing power of consumers.

Did You Know?

“Then, in 2022, electric cars accounted for almost ten percent of all new cars in Europe, a substantial increase from the two percent of the year before. This marked the rapid shift towards sustainable mobility.” — European Automobile Manufacturers Association (ACEA)

Segmental Market Size

The electric vehicle (EV) sector is a key part of the automobile industry, which is currently experiencing strong growth driven by the growing demand for sustainable transport solutions. The main driving forces behind this growth are a greater awareness of the environment, the implementation of stricter emissions regulations, and the development of new battery technology with longer ranges and better performance. The EV industry is a growth industry, and major manufacturers such as Tesla and Ford, along with more established companies such as General Motors, are investing heavily in EV development, demonstrating their strong commitment to this new and growing market.

In California and Norway, electric cars are already in use in large numbers. Among the first to make electric cars are Rivian and Lucid Motors, which have developed new electric models. The purchase of electric cars is being encouraged by the government, and by the worldwide demand for sustainable development. Also, new charging stations and smart grids are ensuring that the car industry will adapt to changing preferences and regulations.

Future Outlook

The world’s automobile industry is expected to rise steadily from 2024 to 2035, when it will grow from $2,132 billion to $2,999 billion. This translates into a CAGR of 3.15% from 2024 to 2035. The industry’s rise is being driven by several key factors, including the increasing demand for electric vehicles (EVs), the increasing popularity of self-driving vehicles, and the increasing demand for connected cars. In 2035, it is expected that EVs will make up approximately 30% of total vehicle sales, as a result of stricter emissions regulations and substantial investments in charging stations, as forecast by the International Energy Agency.

The car industry is also undergoing major changes, with technological innovations and government policy aimed at achieving greater resource efficiency. It is a fact that the governments of the world are adopting stricter standards for exhaust emissions and are encouraging the adoption of electric vehicles. Artificial intelligence and machine learning are also expected to enhance the safety and efficiency of cars, and so help to increase the number of buyers. The car industry is also expected to change with the times, with the development of shared mobility and car subscriptions, which are likely to grow as a result of changes in consumer preferences. The car industry is on a growth path, and the changes are likely to be dramatic and will help to define mobility in the coming decade.