March 5, 2021, 1:22 a.m. EST

Automotive Market: Size & Trends Shows a Rapid Growth by 2025

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Mar 05, 2021 (Market Insight Reports) -- The global automotive industry is expected to register steady growth over the forecast period 2019-2025. The automotive industry contributes significantly towards the economy of several major countries and also is considered to be the backbone of many nation's GDP. Major factors that will augment the industry growth over the forecast period include rising disposable income and increasing focus on the development and rolling out of electric vehicles on road. Governments across the globe are providing subsidies on the purchase of electric vehicles to combat the environmental issues arising due to pollution from conventional vehicles. Thereby, focusing on surging the fleet size of electric vehicles in the existing vehicle fleet size of the country. Further, the disposable income of the consumer is rising due to which they are more likely to shift towards the more technologically equipped vehicles which are normally higher at price. Hence, likely to augment the global automotive market value.

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However, the industry is facing a heavy headwind amidst the global economic downturn and trade war between China and the US. Moreover, there are several other factors at the regional level that are affecting the industry growth rate in a particular region. For instance, factors such as raising GST on automobile vehicles and mandatory implementation of BS-VI from April 2020 are responsible for the decline in the automotive industry growth rate in India. While the industry has not recovered from these above factors, it has hit a hard brake with the recent outbreak of COVID-19 pandemic. The spread of coronavirus across the globe has forced plants to shut down, disrupted supply chain and quarantined workforces. Several automotive giants such as Volkswagen AG, Hyundai, Toyota, and Tesla have shut down their production plants for a definite period, causing severe impact on the global automotive industry.

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The report analyzes the global automotive market on the basis of sales channels, product type, propulsion technology, and geography. Based on the sales channel, the market is segmented into OEM and aftermarket. Based on product type, the market is classified into passenger vehicles and commercial vehicles. Passenger vehicle segments which include 2 wheelers and passenger cars is expected to dominate the global automotive market over the forecast period. Further, based on propulsion technology, the market is divided into conventional vehicles and new energy vehicles. The conventional vehicle segment held the dominating share in the global market in 2018, whereas, new energy vehicle segment which includes fully electric vehicles and hybrid electric vehicles is estimated register robust growth over the forecast period.

Geographically, the market is analyzed into North America, Europe, Asia-Pacific, and the Rest of the World. Asia-Pacific held the dominating share in the global automotive market with China holding around one-third of the global automotive consumption. Apart from China, economies such as India, South Korea, and Japan are also influencing the automotive industry growth of the Asia-Pacific. North America and Europe also home several automotive companies such as Tesla, Daimler AG, Volkswagen AG, Renault SA, and others which further contribute significantly towards the global automotive industry. However, the recent outbreak of COVID-19 has severely impacted the automotive industry across the globe. China has been hit hard by this spread of the virus as the country is an epicenter of the COVID-19. Several provinces in China including Wuhan and Hubei, which collectively fulfills around 60% of China's automotive vehicle production demand, have been quarantined. This has led to disruptions in the supply chain.

Automotive Market Segmentation

  • Sales Channel

  • OEM

  • Aftermarket

  • Product Type

  • Passenger Vehicle

  • Commercial Vehicle

  • Propulsion Technology

  • Conventional Vehicles

  • New Energy Vehicles

Regional Analysis

North America

  • United States

  • Canada

Europe

  • UK

  • Germany

  • Italy

  • Spain

  • France

  • Rest of Europe

Asia-Pacific

  • China

  • India

  • Japan

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