Automotive OEM Market

A Summary of the Automotive OEM Market Developments

The global Automotive OEM Market is projected to have an average-paced CAGR of 4.17% during the forecast period. The current valuation of the market is USD 35.16 Billion in 2023. The market value of the automotive OEM market is anticipated to surpass a market valuation of USD 52.90 Billion by the year 2033.

A historical market valuation of USD 32.4 Billion has been recorded by the analysts of Future Market Insights for the concerned market during the base year.This growth is supported by:

• The rise in demand for automotive OEMs in the large manufacturer of commercial and passenger vehicles.
• Due to the rising populace and the need for the commute, the passenger vehicle segment is witnessing robust growth, which in turn is fueling the market share of automotive OEMs.
• The market for cars is also on a spike, owing to the rising disposable income of the population across the developing economies, and is making the need for automotive OEMs more significant in 2023.
• The surge in demand for products that are highly durable is also identified as a key growth propelling factor in the automotive OEMs industry.
• Rising concern amongst customers regarding their safety is expected to raise the market shares for automotive OEMs in the upcoming years.
• Technological advances in the industry that include the introduction of remote keyless entry systems are estimated to boost the demand for automotive OEMs in the long run.

Report Attribute	Details
Automotive OEM Market Value (2023)	USD 35.16 Billion
Automotive OEM Market Anticipated Value (2033)	USD 52.90 Billion
Automotive OEM Projected Growth Rate (2023 to 2033)	4.17%

Identifying the Key Limitations Pertaining to the Automotive OEMs Market

Although the market is projected to have healthy growth through the forecast period, there are certain elements identified that are likely to hinder the pace of advancement in the long run. The high cost associated with the OEM parts and components is a major impeding factor of the market.

Additionally, it is identified that there is a prevalence of counterfeit OEM products that are most likely to pose a threat and challenge the market expansion of automotive OEMs through the foreseen years.

Stringent Government Policies - A Benediction to Boon?

After an in-depth analysis of the market, it has been revealed that there is rigorous innovation in technology across the automotive OEM sphere. The manufacturers in the automotive OEM market are unraveling advancements in their product offerings to further expand the market through 2033.

Governments across developing nations have made stringent regulations and policies for the attainment of fuel efficiency in vehicles. In addition to that regulations have also been formulated to keep vehicle emissions under control. Owing to government initiatives, the demand for vehicles across the globe is on a rapid rise. This aspect is estimated to stir up the market dynamics in the automotive OEMs market through 2033.

A Contrast with the Historical Market Scenario

It is identified that the automotive OEM market is witnessing an unprecedented surge in the recent few years. There has been an approximate rise of USD 2.76 Billion from the base year to the current. This growth in market valuation can be highly attributed to the technological innovations made in automotive OEMs.

There is a rising demand from consumers to enhance their digital experiences during the journey. They are willing to spend on cars that offer fully operational facilities, due to the rising disposable income across emerging economies. High demand for diesel engine vehicles, demand for batteries, and, a rise in demand for innovative automotive parts are expected to be prime elements fueling the sale of automotive OEMs during the period 2018 to 2022.

Category-wise Insights

Glare Upon the Domineering Market Segments

Commercial Vehicles – By Vehicle Type

It is identified that the commercial vehicle type segment is likely to exert dominance through the forecast period. This segment has been recording a significant pace of growth and has accounted for the largest market share from 2018 to 2022. Currently, the segment is moving forward at a moderate pace, registering a CAGR of 6.8% during the projection period.

This segment is likely to surpass all the other segments that include passenger cars and electric vehicles. The market is currently at a valuation of USD 1,453.73 Million and is estimated to reach a market value of USD 2,806.69 by 2033.

Manufacturers in the automotive OEM market are focusing on environmentally sustainable solutions and developing commercial vehicles that reduce carbon emissions. Furthermore, an increase in logistics and transportation in regard to e-commerce is a key reason fueling the commercial vehicle segment.

Powertrain – By Component Type

The powertrain segment by component type category is most likely to dominate the automotive OEM market through the forecast period. The segment is estimated to record a robust CAGR of 14.9% through 2033. Currently, the market is valued at USD 109.63 Billion in 2023 and is likely to surpass a valuation of USD 439.67 Billion by 2033.

The growth of this segment can be attributed to the demand for electric vehicles. The growth in environmental concerns and surge in energy consumption is fueling the adoption of powertrains. Growth in the innovation of hybrid vehicles, manufactured by renowned automobile companies is likely to foster the growth of the powertrains segment in the automotive OEM market.

Country-wise Insights

Upsurge in Production and Sales of Automobiles Across Diverse Countries Untangle Lucrative Revenue Pockets

Statistics:

Country/Region	Statistics
United States	The USA is expected to hold a significant market share for automotive OEMs through 2033. Currently, the country is responsible for an approximate CAGR of 6.6%.
Europe	The European automotive OEM market is anticipated to flourish at a considerable rate. This region accounted for a market share of 20.5% during the base year and is estimated to hold considerable shares through the projection period.
Japan	Japan is estimated to dominate the Asia-Pacific automotive OEM market through the forecast period. Sales of automotive in Japan have increased by 28.6% from 2018 to 2022.
Korea	Korea is identified to have notable growth in the automotive OEM market during the projection period. A 5.1% surge in the market share of automotive has been witnessed from 2022 to 2023.

Growth Propellants:

Country/Region	Growth Propellants
United States	The North American region is dominated by the USA The market across this domain is expanding due to the innovation in technologies. Another key factor contributing to the growth of the market in this country is the high-performance production of cars. Additionally, the development of automatic automotive is surging the automotive OEM market in the region.
Europe	The market in Europe is fostering due to the consistent rise in employment levels across the region. Germany has emerged as the leading country. Factors are inflating the GDP of the population. The rise in disposable income has boosted the production and sale of vehicles. This is making a major contribution to the growth of the automotive OEM market in Europe.
Japan	It is identified that the insurance companies are formulating their vehicle insurance premiums and policies as per the security levels of the vehicles manufactured. The wide base of customers are preferring personal cars with high-tech solutions for availing the lower rate of premium across Japan. This factor is expected to propel the market growth of automotive OEMs in the country.
Korea	Rising awareness about the environment and the development of cleaner vehicles with sustainable fuels is expected to bolster the market of automotive OEMs across Korea. Favorable government policies are estimated to further curate opportunities for key players in the market.

Start-up Ecosystem

Digitalization of Interfaces Gives an Edge to New Entrants for Penetrating the Market

The new entrants in the automotive OEM market are leveraging advancements in technology to launch new products and gain a competitive advantage.

These firms are continually investing in research and development activities to keep themselves in tandem with the changing consumer preferences and end-use industry demands. Efforts are being made to strengthen their foothold in the market and aid the further progression of the automotive OEM market.

Top 2 Start-ups to Watch For

Cruise

This firm is a USA-based startup company that is creating self-driving vehicles, with the aim of linking places with people. This firm was formed in the year 2013 and they aim towards delivering experiences to customers in a safe and secure manner.

Minus Zero

This start-up organization is designing electric autonomous vehicles. It is an Indian start-up firm that is developing level-5 autonomous electric vehicles. The start-up combines nature-inspired artificial intelligence with edge computing that is less dependent on expensive sensor suites.

Moreover, its driverless technology does not rely on lane marking for road mapping, ensuring accurate detections even on rough roads. The computer-vision-enabled edge hardware also allows higher frame rates for object detection and segmentation.

Competitive Landscape

The manufacturers in the automotive OEM market are leveraging advancements in technology to launch new products and gain a competitive advantage. These firms are continually investing in research and development activities to keep themselves in tandem with the changing consumer preferences and end-use industry demands.

Efforts are being made to strengthen their foothold in the market and aid the further progression of the automotive OEM market. Thus, the market is likely to witness significant growth through 2032.

Thales Group a French multinational company is making rigorous efforts to build and design electrical systems for automobiles. It is shifting its research and development focus towards automotive OEM virtual car keys that are likely to easily unlock cars with the use of smartphones.

Tesla is identified to gain popularity for its robust autonomous technology. It has recently released an over-the-air software update to strengthen its systems. In a way, automotive OEM manufacturers are identified to team up with experts and researchers for troubleshooting issues in the advanced systems.

Recent Developments

• Two Indian Companies, Mahindra and Mahindra Tata Motors have increased their market share by about 5% in the Indian market, one in every five cars is made by these Indian OEMs, which are sold in India.
• In July 2021, MasterBeat Corporation announced that it's JTEC Autoworld launched the Amazon retail segment of its online automotive parts platform. JTEC has a plan of utilizing Amazon and several other e-commerce platforms for accelerating the sales and marketing of automotive OEM products.
• Recently, the 3M collision repair application was launched by the 3M company, which is an application tool for mobiles. It is identified to help with the expert technical support provided by the shop technicians and the personnel for distributor sales.

Some of the key companies in the market are

• Toyota Motor Corporation.
• Volkswagen AG.
• Nissan.
• Honda Motor Co.
• Magna International Inc.
• Continental AG.
• CIE automotive.
• Siemens.
• BMW AG.
• Exide Industries Limited.
• Denso Corp.
• Robert Bosch, GMbH.
• Valeo
• Aptiv
• Ford Motor Company.
• Mitsubishi Motors Corp.

Key Segments in the Automotive OEM Market

By Components:

• Powertrain
• Chassis
• Electronics and Electrical
• External Body
• Car Interiors

By Vehicle Type:

• Commercial vehicles
• Passenger cars
• Electric cars

By Distribution Channel :

• Retailers
• Wholesalers
• Distributors

By Region:

• North America
• Latin America
• Asia Pacific
• Middle East and Africa(MEA)
• Europe

Frequently Asked Questions

What is the Growth Outlook for the Automotive OEM Market?

The growth outlook for the automotive OEM market is predicted to advance at a CAGR of 4.17% from 2023 to 2033.

Which Region Leads the Automotive OEM Market?

The North American region is anticipated to lead the automotive OEM market during the forecast period.

What is the market valuation of Automotive OEM in 2023?

The market valuation of the automotive OEM market stands at USD 35.16 Billion in 2023.

How much Growth Potential does the Automotive OEM hold?

The automotive OEM market is likely to hold a valuation of USD 52.90 Billion by 2033.

Which sector is the key driver in the Automotive OEM Market?

The automobile industry sector is the key driver in the automotive OEM market.