Automotive Manufacturing Equipment Market

Automotive Manufacturing Equipment Market Outlook from 2024 to 2034

The global automotive manufacturing equipment market size is estimated to reach US$ 6.8 billion in 2024. It is anticipated to register strong growth, with overall automotive manufacturing equipment demand rising at a CAGR of 11.1% during the forecast period. Accordingly, the total market valuation is projected to reach US$ 19.4 billion by 2034.

Demand remains high for conveyor belts owing to their growing usage in the automotive sector for moving materials and parts. The target segment is expected to thrive at 11.0% CAGR during the assessment period.

Automotive manufacturing equipment, consisting of several machines, devices, and tools, is witnessing strong demand, and the trend is expected to continue through 2034. This is due to their growing adoption in the automotive sector.

The ultimate search for enhanced productivity and reduced labor costs is prompting the automotive industry to embrace automation. This, in turn, is expected to fuel sales of automotive manufacturing equipment during the assessment period.

Several automotive manufacturers are employing advanced manufacturing technologies to boost their productivity, improve product quality, and reduce labor costs. This is expected to boost the growth of the automotive manufacturing equipment industry.

Some widely used equipment in the auto sector include conveyor belts, bending machines, stamping presses, CNC machines, grinding machines, and drilling and milling machines. Similarly, welding robots, assembly robots, painting robots, and coordinate measuring machines (CMMs) are employed in the automotive industry.

Leading automotive equipment manufacturers are expanding their product portfolios by launching advanced technologies, including smart robots and advanced CNC machines, to meet growing demand for the auto sector. For instance,

• In November 2023, Yaskawa Electric Corporation introduced the MOTOMAN NEXT series to realize a new industrial automation revolution. The new generation of robots has autonomous adaptivity to the environment and makes judgments.

Other Factors Boosting the Automotive Manufacturing Equipment Market Growth

• Rising production and sales of passenger and commercial vehicles globally
• Growing adoption of smart and connected technologies, like advanced robotics and automation systems, in the automotive industry to improve efficiency, reduce production time, and enhance overall quality
• Rising popularity of collaborative robots (cobots) in automotive manufacturing
• Growing importance of flexible manufacturing systems in the automotive industry
• Increasing investments in automotive assembly line equipment as well as automotive welding equipment

Global Automotive Manufacturing Equipment Market Trends

Rapid Penetration of Automation is a Key Market-shaping Trend

• Integration of Industry 4.0 technologies like IoT, AI, and data analytics in the auto sector to create smart and connected manufacturing environments for better decision-making and real-time monitoring
• Rising emphasis of automotive manufacturers to enhance operational efficiency and reduce production costs
• Adoption of 3D printing and additive manufacturing technologies
• Growing popularity of electric and autonomous vehicles
• Rise of ‘Dark Factories’ or inclination towards ‘Lights Out Manufacturing’

Historical Vs. Future Automotive Manufacturing Equipment Market Insights

Global sales of automotive manufacturing equipment grew at a CAGR of 13.8% from 2019 to 2023. Total market valuation at the end of 2023 reached about US$ 6.0 billion. Over the forecast period, the global market for automotive manufacturing equipment is set to grow at 11.1% CAGR.

During the historical period, top automakers increasingly adopted automation due to the labor shortage caused by the COVID-19 pandemic. For instance, they employed automotive welding equipment, robotic manufacturing systems, and automotive painting equipment. As a result, the demand for automotive manufacturing equipment grew rapidly.

In the assessment period, factors like the growing adoption of smart manufacturing practices and rising demand for autonomous vehicles are expected to boost the automotive manufacturing equipment market growth. Similarly, advancements in CNC machines and robotic manufacturing systems will benefit the market.

Governments across the world are enforcing stringent regulations and emission standards to promote sustainable practices and address environmental issues. Compliance with these regulations often necessitates using novel manufacturing equipment in the automotive industry, fueling their demand.

Nikhil Kaitwade

Principal Consultant

Talk to Analyst

Find your sweet spots for generating winning opportunities in this market.

Talk to Analyst

Semi-annual Market Update

Insights into Key Trends

• Growing Emphasis on Lightweight Materials

Rising demand for fuel-efficient vehicles and growing environmental concerns are prompting the automotive sector to utilize lightweight materials like carbon fiber, aluminum, and advanced composites. This is expected to boost the target market as the adoption of these materials requires specialized manufacturing equipment to handle their unique properties.

• Transition toward Electric and Hybrid Vehicles

There is a gradual transition from traditional internal combustion engine vehicles towards electric and hybrid ones. This is anticipated to uplift demand for automotive manufacturing equipment as these vehicles require different assembly processes and equipment.

To capitalize on this trend and boost their sales, top companies are introducing advanced automotive production machinery and robots. For instance, in April 2020, YASKAWA launched a shelf-type robot called MOTOMAN-GP300R. The new robot lineup will help companies shorten the line length to save space and construct high-value lines during the assembly process of lightweight vehicles or environmentally friendly vehicles.

Country-wise Insights

The table below highlights the automotive manufacturing equipment market revenue in top nations. The United States, China, and Japan are expected to remain the top three consumers of automotive production machinery, with expected valuations of US$ 3.5 billion, US$ 3.2 billion, and US$ 2.1 billion, respectively, in 2034.

The below table shows the estimated growth rates of the top countries. South Korea, the United Kingdom, and China are set to record high CAGRs of 13.3%, 12.3%, and 12.1%, respectively, through 2034.

Robust growth of the automotive industry across these countries is a key factor boosting the automotive manufacturing equipment market. Similarly, these countries are witnessing rising adoption of automation and digital twin technology, creating growth opportunities for automotive manufacturing equipment manufacturers.

Rising Adoption of Industry 4.0 in the United States Propelling Demand

The United States automotive manufacturing equipment market size is projected to reach US$ 3.5 billion in 2034. It will continue to dominate the global market, with overall demand for automotive manufacturing equipment rising at 11.3% CAGR throughout the forecast period. Some of the key drivers/trends include:

• Increasing adoption of Industry 4.0 technologies like automation, artificial intelligence (AI), and robotics in the automotive sector
• Growing demand for environmentally friendly vehicles, including electric vehicles, fuel cell vehicles, and hybrid vehicles
• Rising emphasis of United States-based automakers on improving efficiency and productivity in their manufacturing operations
• Surging popularity of robotic automotive automation manufacturing solutions
• Increasing labor costs

Advanced technologies like automation and robotics are gaining immense traction across industries like manufacturing and automotive in the United States. These technologies help industries increase productivity while reducing labor requirements. This is expected to drive demand for automotive manufacturing equipment in the nation.

Several automakers in the United States are employing robots for welding, painting, and assembly tasks. As per the International Federation of Robotics (IFR), around 30787 industrial robot units were installed in the United States during 2020. Thus, the growing adoption of robots will likely play a key role in fostering the growth of the automotive manufacturing market through 2034.

The strong presence of top automotive manufacturers and rising government support are expected to positively impact sales of automotive manufacturing equipment. Similarly, the growing popularity of electric and hybrid vehicles will likely improve the nation’s automotive manufacturing equipment market share through 2034.

Booming Automotive Sector Fueling Sales in China

As per the latest analysis, sales of automotive manufacturing equipment in China are projected to soar at 12.1% CAGR during the forecast period. By 2034, China's automotive manufacturing equipment market value is set to total US$ 3.2 billion, driven by factors like:

• Flourishing the automotive industry
• Increasing penetration of automation and other Industry 4.0 technologies in the auto sector to improve efficiency, quality, and productivity
• Rising export of vehicles as well as robots
• Growing support for the government
• Increasing importance of automotive assembly line equipment and robotic manufacturing systems

When it comes to automotive manufacturing, China leads from the forefront. It is the world’s leading automotive market and is set to witness robust growth owing to rising vehicle demand. This, in turn, is expected to fuel sales of sophisticated automotive manufacturing equipment.

An increasing push from the government for industrial automation is acting as a catalyst fueling the growth of China's automotive manufacturing equipment industry. Various initiatives and policies are being launched in China to promote the production and usage of robotics.

For instance, China introduced a five-year plan in 2021 to transform the country into a global robotics innovation hub by 2025. From the electronics to the automotive sector, manufacturers constantly embrace automation and robotics. This will likely foster market growth through 2034.

China is home to several leading robot manufacturing companies. As per the U.S. International Trade Commission, there are around 7,000 robotics companies in China. Easy accessibility and reduction in robot prices are expected to benefit China market during the forecast period.

Rapid Transition toward Electric Vehicles Spurring Market Growth in Japan

Japan’s automotive manufacturing equipment market is poised to exhibit a CAGR of 11.9% during the forecast period. It will likely attain a valuation of US$ 2.1 billion by 2034. This is attributable to factors like:

• Transition towards electric and hybrid vehicles
• Growing demand for lightweight materials
• Increasing adoption of automation in the auto sector
• Ongoing innovation in automotive manufacturing equipment like robots and CNC machines
• Rising need for automotive testing equipment and smart manufacturing
• Growing need for advanced automotive machine tools

Amid rising environmental concerns and the implementation of stringent regulations, Japan’s automotive industry is embracing electrification. This is expected to drive demand for advanced automotive manufacturing technologies.

Electric and hybrid vehicles are gaining wider popularity in the country, which is expected to boost the growth of the automotive manufacturing equipment market. This is because these vehicles require different processes and equipment than traditional internal combustion engine vehicles.

Category-wise Insights

The section below offers profound insights into top segments and their respective growth rates for the assessment period. Based on equipment type, the conveyor belt segment is set to grow at a robust CAGR of 11.0% through 2034. By vehicle type, the passenger vehicles segment will likely exhibit a CAGR of 10.5% during the forecast period.

Conveyor Belt Remains Highly Sought-after Equipment Type

As per the latest analysis, conveyor belts remain the most sought-after equipment type in the automotive industry. The target segment is projected to grow at a robust CAGR of 11.0% during the forecast period.

The rising usage of conveyor belts for moving materials and parts around automotive factories is a key factor driving the growth of the target segment. Conveyors automate the movement of parts and vehicles, thereby streamlining production flow and reducing labor costs. They operate continuously, maximizing throughput and minimizing downtime.

• As the auto sector continues to develop and improve, so too does the need for efficient manufacturing processes. It becomes essential for automotive companies to utilize equipment like conveyor systems to minimize overhead expenses amid rising labor costs. This will likely uplift conveyor belt demand during the forecast period.
• Conveyor belts are gaining wider popularity in the automotive sector due to their simplicity, versatility, and low cost.
• The universality of conveyor belts across various stages compared to equipment with more specific functions contributed to their higher overall demand. They are used throughout the entire automotive assembly process, from transporting raw materials to finished vehicles.
• Depending on production needs, conveyor belts can be easily adapted to different configurations and lengths. This modularity allows automotive manufacturers to adjust their conveyor systems without significant equipment overhauls, further driving demand.
• Another factor fueling sales of conveyor belts is their easy integration with automation. Modern conveyor belts can be integrated with automation systems for efficient control and material handling.
• Top automotive equipment manufacturers are responding to this growing demand by introducing durable, easy-to-install conveyor belts. New conveyor belts made with durable materials and requiring minimal maintenance are entering the market.

Demand for robots is also expected to increase significantly during the assessment period. This is attributable to the increasing installation of robots in the automotive sector to handle various tasks due to their efficiency and versatility.

Leading automotive giants are increasingly employing robots, including articulated robots, in their facilities to improve safety and productivity as well as reduce labor costs. Robots are expected to replace around 20 million jobs by 2030, as per the Oxford Economics. This will create lucrative growth opportunities for automotive manufacturing equipment companies.

As robotic technology continues to advance, the role of robots in automotive manufacturing is set to grow even further. Hence, the robot segment will likely record strong growth during the assessment period.

Passenger Vehicles Segment Leading the Charge in Fostering Market Growth

Based on vehicle type, the passenger vehicles segment is expected to grow at a CAGR of 10.5% during the assessment period. As a result, it will generate lucrative growth opportunities for automotive manufacturing equipment companies.

• Rising demand for passenger vehicles globally is a key factor expected to drive the target segment during the forecast period.
• Passenger vehicles represent a significantly larger market globally than commercial vehicles. This translates to a higher demand for equipment dedicated to their production.
• Passenger cars also have shorter lifespans and see higher replacement rates than commercial vehicles. This leads to a constant need for new vehicle production and supporting equipment.
• Passenger cars like SUVs and sedans have specific manufacturing requirements. This is driving demand for specialized equipment, thereby fostering the growth of the target segment.
• The emergence of new technologies like advanced driver-assistance systems (ADAS), electric vehicles, and autonomous driving in the passenger vehicle segment will necessitate investments in specialized equipment.

Competitive Landscape

The automotive manufacturing equipment market is highly competitive due to the presence of several players. Top manufacturers of automotive equipment are constantly innovating to develop novel solutions integrated with advanced technologies. For instance, they are introducing advanced automotive robots and CNC machines.

Many automotive production machinery companies are also employing strategies like partnerships, facility expansions, acquisitions, mergers, and collaborations. These strategies will help them boost their revenue and gain a competitive edge in the market. Similarly, they are participating in exhibitions and other events to expand their customer reach.

Recent Developments in the Automotive Manufacturing Equipment Market

• In 2022, FANUC, a prominent leader in robots, CNCs, and ROBOMACHINEs, unveiled its latest automation solutions, including new robots, cobots, and factory automation technologies at IMTS.
• In June 2023, Nidec Machine Tool Corporation announced the establishment of a new cutting tool factory in India to meet rising demand for automotive and related components. The new factory will increase the company’s production capacity by 1.5X and will produce pinion cutters, hob cutters, and other cutting tools.
• In September 2020, KUKA received a major order from the Korea-based company SEOJIN Industrial for 185 KUKA robots. The company will use these robots to manufacture car parts.

Scope of the Report

Automotive Manufacturing Equipment Market by Category

By Equipment Type:

• Conveyor Belt
• CNC Machine
• Robot
• Injection Molding Machine

By Vehicle Type:

• Passenger Vehicles
• Commercial Vehicles

By Region:

• North America
• Latin America
• Western Europe
• Eastern Europe
• East Asia
• South Asia and Pacific
• Middle East and Africa