The global Automotive Assembly Market is estimated to be valued at US$ 41,490 Mn in 2022 and is expected to exhibit a CAGR of 5.80% over the forecast period from 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The automotive assembly market consists of manufacturers engaged in the assembly of automotive vehicles. Automotive assembly involves fitting together of all the vehicle components and systems such as powertrain, electrical, chassis and various other automotive parts to develop a finished automobile. The growing adoption of electric vehicles owing to strict emission norms, rising fuel costs and government support for EVs is driving growth of the automotive assembly market. Electric vehicles have advantages such as zero emission, lower operating costs and incentives offered by governments which is increasing their demand globally.
Market key trends:
One of the major trends in the automotive assembly market is growing electrification. Electric vehicles are the future of automotive industry with growing environmental concerns around the world. Automakers are heavily investing in development of electric powertrains and batteries to push electric vehicle adoption. According to International Energy Agency, the global electric car fleet grew by 63% to over 10 million in 2021. The electric car stock is estimated to account for over 30% of new car sales by 2030. Governments are also supporting EV growth with initiatives like incentives for EV purchases, investments in charging infrastructure development which is expected to boost automotive assembly market during the forecast period.
Porter's Analysis
Threat of new entrants: Low barrier to entry creates threat of new players entering the market leading to intense competition.
Bargaining power of buyers: Large automotive manufacturers have significant bargaining power over suppliers due to their volume requirements and importance in supply chains.
Bargaining power of suppliers: Suppliers of critical automotive components such as electronics and powertrains have some bargaining power due to differentiated offerings.
Threat of new substitutes: Emerging mobility solutions such as ride-sharing pose a long term threat to private vehicle ownership.
Competitive rivalry: Intense competition exists among incumbent automakers to launch new models and improving technologies leading to pressure on pricing and profits.
Key Takeaways
Global Automotive Assembly Market Demand is expected to witness high growth, exhibiting CAGR of 5.80% over the forecast period, due to increasing investments in infrastructure development and rising vehicle ownership. The market was valued at US$ 41,490 Mn in 2021.
Regional analysis: North America dominates the global automotive assembly market currently owing to presence of major automakers in US. Asia Pacific is expected to grow at the fastest pace during the forecast period supported by large automotive manufacturing hub in China and emerging economies adopting personal vehicles rapidly.
Key players: Key players operating in the automotive assembly market incorporate BMW Group, Daimler, Ford Motor, General Motors, Honda Motor, Hyundai Motor, SAIC Motor, Stellantis, Toyota Motor, Volkswagen Group, and others. Automakers are focusing on new technologies such as electric and autonomous vehicles to gain competitive edge.
Key Takeaways
The US automotive assembly market is the largest globally and is expected to witness high growth exhibiting a CAGR of over 5% till 2030 driven by strong demand for trucks and SUVs in the country. Regional analysis: The Midwestern US states such as Ohio, Michigan and Indiana dominate the domestic automotive assembly currently with over half of the capacity concentrated in these traditional automaking hubs. Key players: Major automakers in the US automotive assembly market include General Motors, Ford, Stellantis, Tesla, BMW and Volkswagen. These players are investing heavily in new production facilities, joint-ventures and technology upgrades to strengthen their presence.
Read More- https://www.newsstatix.com/automotive-assembly-market-future-prospects-and-growth-analysis/
