|Market Size in 2022
|Market Forecast in 2030
|CAGR (in %)
|USD 2810.63 Billion
|USD 3969.84 Billion
The global automobile market size was worth around USD 2810.63 billion in 2022 and is predicted to grow to around USD 3969.84 billion by 2030 with a compound annual growth rate (CAGR) of roughly 4.42% between 2023 and 2030.
An automobile is defined as a vehicle with wheels and the ability to self-propel over long and short distances. The main intention of an automobile is to transport goods, materials, animals, or people from one location to another on land. The market deals with the designing, manufacturing, distribution, and after-sales services of various types of automobiles including larger vehicles such as trucks & buses and more compact vehicles including cars and motorcycles. The automobile industry has undergone several changes since the invention of the first vehicle with most current vehicles running on internal combustion engines (ICE) however, the future is expected to be dominated by electric vehicles (EVs). In the last couple of years, the market has witnessed several expansion opportunities purely led by research & development and the need for more passenger vehicles. The industry players have also encountered several challenges during the growth phase. The same trend is expected in the future with multiple growth opportunities and barriers that automobile companies must navigate through to survive in the long run.
Increasing investments in public transport infrastructure to drive market growth
The global automobile market is expected to witness growth owing to the increasing focus and investment in public transport infrastructure, especially heavy-duty and long-range buses. Several factors led to higher pressure on regional governments to reevaluate the existing transport architecture and redesign it as per the new-age needs of the end consumers. A primary reason is the growing traffic rate on roads caused by more passenger or personal vehicles on the road instead of public service automobiles. Factors such as poor conditions of public buses, lack of efficient & extensive connectivity, and limited seating arrangements are some of the reasons that impact people’s view of public buses. However, to reduce traffic rates, governments must invest in creating a robust public transport infrastructure to attract more travelers thus reducing dependency on private care. For instance, in July 2023, UBS Univers Busservice GmbH, a German bus company and MarinoBus, an Italian bus company, announced that they were adding more double-decker buses by Setra to establish a longer fleet of buses. These units are equipped with driver-assistance technology and light-emitting diode (LED) lighting making them ideal for long distances.
Growing demand for affordable private vehicles in emerging economies has extensive growth potential
Automobile companies including manufacturers and suppliers are focusing on tapping into the changing buying patterns in emerging economies with a large population of middle-income groups that is rising at a steady pace. Companies are launching new segments of affordable cars and motorbikes to meet the growing demand in countries such as India, China, Africa, and others. Apart from selling the vehicles, businesses are investing in setting up new manufacturing facilities that allow them better measures to navigate through regional regulations related to the global automobile market. For instance, in August 2023, the Maruti Suzuki Fronx sport utility vehicle (SUV) debuted in the South African market. The car range is Maruti’s smallest car and is currently available at a price of 2.79 lakh Rand. Similarly, until March 2023, the region had already witnessed the launch of 6 new cars.
Environmental impact of automobile production and operations to restrict market growth
The global automobile market growth is likely to be restricted owing to the severe environmental impact of producing automobiles and operating them. Vehicle manufacturing is a resource-intensive process. It requires large quantities of raw materials including products such as metal, rubber, glass, and plastic for its individual components. For instance, a 2017 report indicated that nearly 10% of deforestation in the Amazon was a result of mining activities. On the other hand, the production of synthetic rubber used for tire-making causes severe and irreparable damage to the ecosystem. While these issues represent one end of the spectrum, the operational impact of automobiles cannot be ignored. This includes the emission of harmful and toxic gasses especially from vehicles powered by ICE and depleting resources of fossil fuel to meet the gas and petrol demand from the automobile sectors. These factors are likely to impede future growth in the industry.
Growing market for electric vehicles to provide growth opportunities
The automobile industry players are expected to gain tremendous growth momentum owing to the increasing demand for electric vehicles including compact passenger cars and larger buses or trucks. Factors such as growing awareness about the impact of fuel consumption on the environment, rising prices of petrol, diesel, and gas, and rising number of EV suppliers have created a sustainable and steadily growing segment of EV consumers. In the last few years, EVs have become affordable as there are multiple players operating in the segment. Earlier since there were limited players the cost of EV was higher. In September 2023, Nissan, a leading automobile manufacturer announced that it will stop producing ICE vehicles in Europe and henceforth only electric-powered automobiles will be produced by the brand in the European territory. The company intends to achieve this vision of supplying only EVs by 2030. In August 2023, Renault, another leading player, announced that it plans to introduce at least two new models of fully electric vehicles in its entry-level car segment called Kwid in the coming 3 to 4 years. The growth in the EV segment is expected to be further encouraged by the rising investments in developing a supporting infrastructure that allows fast charging of EVs over long-distance along with increasing focus on research and development that improves charging duration.
Rising prices of raw materials and market uncertainty to challenge market growth
The global market growth is expected to be challenged by the increasing prices of raw materials including steel, rubber, glass, and plastic among other components. Additionally, modern automobiles are equipped with digital systems such as remote monitoring, advanced driver assistance systems, augmented reality head-up displays, and many more leading to added expense. On the other hand, the automobile industry is highly sensitive to external environments such as income rate, disposable income, and socio-political factors which leads to higher uncertainty, especially over the long term.
The global automobile market is segmented based on propulsion type, vehicle type, and region.
Based on propulsion type, the global market segments are electric vehicle and internal combustion engine vehicle. In 2022, the highest growth was observed in the internal combustion engine vehicle segment primarily because the ICE vehicles enjoy the benefits of a mature and well-established segment. Most vehicles on the road at present times are powered by ICE since they are more affordable and the number of vehicle suppliers is higher. However, the electric vehicle segment witnessed a significant growth rate in 2022 especially since more companies are now providing hybrid variants along with greater influences from changing fuel prices. In 2022, Ford automobiles sold over 61000 EVs in 2022.
Based on vehicle type, the automobile industry divisions are commercial vehicles and passenger vehicles. In 2022, the highest revenue was registered in the passenger vehicles segment driven by the high volume of transactions involved in terms of personal cars and motorbikes. Changing consumer needs, rising disposable income, higher availability & access to financial assistance, and the presence of a wide range of options to choose from where the leading segmental growth propellers. The commercial vehicles segment is mainly driven by increased spending on public transport systems. Between 1995 and 2020, the UK, EU-27 countries, Switzerland, and Norway have spent nearly €1.5 trillion on road infrastructure.
|Market Size in 2022
|USD 2810.63 Billion
|Market Forecast in 2030
|USD 3669.84 Billion
|CAGR of 4.42
|Number of Pages
|Key Companies Covered
|Ford Motor Company, BMW Group, Volkswagen Group, Hyundai Motor Company, Toyota Motor Corporation, General Motors Company, Fiat Chrysler Automobiles, Honda Motor Co. Ltd., Daimler AG, Nissan Motor Co. Ltd., and others.
|By Propulsion Type, By Vehicle Type, and By Region
|North America, Europe, Asia Pacific (APAC), Latin America, Middle East, and Africa (MEA)
|2017 to 2021
|2023 - 2030
|Avail customized purchase options to meet your exact research needs. Request For Customization
Asia-Pacific to register the highest growth rate during the projected period
The global automobile market will be led by Asia-Pacific during the forecast period. The region is home to some of the largest and dominant automobile manufacturers across the globe. Additionally, countries such as China, India, Japan, and South Korea have extensive vehicle manufacturing production facilities that act as attracting grounds for international players. China is currently the world’s largest producer and distributor of all vehicles including EVs and ICEs. China’s automobile manufacturers are eyeing the market potential of developed countries in a bid to gain more momentum.
For instance, in October 2023, China’s Chery Automobile announced its intention to enter the European market as the company intends to launch 3 SUV models in the coming 2 to 3 years. Asian countries have a high availability of raw materials used in automobile manufacturing, They have access to a large and skilled human resource pool and a rapidly growing domestic market for affordable and luxury automobiles. Furthermore, increasing regional investment in public transport infrastructure may further fuel regional market growth.
The global automobile market is led by players like:
By Propulsion Type
By Vehicle Type
An automobile is defined as a vehicle with wheels and the ability to self-propel over long and short distances.
The global automobile market is expected to witness growth owing to the increasing focus and investment in public transport infrastructure, especially heavy-duty and long-range buses.
According to study, the global automobile market size was worth around USD 2810.63 billion in 2022 and is predicted to grow to around USD 3969.84 billion by 2030.
The CAGR value of the automobile market is expected to be around 4.42% during 2023-2030.
The global automobile market will be led by Asia-Pacific during the forecast period.
The global automobile market is led by players like Ford Motor Company, BMW Group, Volkswagen Group, Hyundai Motor Company, Toyota Motor Corporation, General Motors Company, Fiat Chrysler Automobiles, Honda Motor Co., Ltd., Daimler AG, and Nissan Motor Co., Ltd.
The report explores crucial aspects of the automobile market including a detailed discussion of existing growth factors and restraints while also browsing future growth opportunities and challenges that impact the market.