Automotive OEM Market

• Rising demand for electric vehicles is driving the market growth

Market CAGR can be attributed to the rising demand for electric vehicles, environmental concerns, and major corporations' focus on carbon emission reduction are all factors propelling the global growth of the OEM Auto Parts Market. OEM is a term frequently used in the automotive and information technology industries. Initially, it was associated with a company that manufactured a product that another company subsequently resold or renamed. However, the meaning of this phrase has evolved, and it now has a different connotation.

For instance, OEM can refer to a company that manufactures the components that another company employs to assemble an entire system. In other instances, the business rebrands and sells another company's products.

Automotive Original Equipment Manufacturer coatings are a vital component of the automotive manufacturing industry. It functions as a shield against a hostile environment. Coatings for automobiles are of the utmost quality and durability. Moreover, automotive coatings have superior mechanical properties that safeguard vehicles from chemical exposure and blemishes. Coatings for automobile interiors enhance the surface's aesthetic appeal and impart tangible qualities that emanate comfort and luxury. Numerous precautions are taken when applying these coatings to prevent corrosion, and they can also withstand UV radiation.

The coating process includes the base coat, primer, and clearcoat phases, with the clearcoat providing a transparent and glossy finish. In the automotive industry, the coating is commonly used to improve the appearance and performance of vehicles.

As countries adopt stricter fuel efficiency requirements, there will be an increase in demand for lightweight, fuel-efficient OEM parts. The demand for lightweight, fuel-efficient components will drive the expansion of the industry. The market is anticipated to be driven throughout the forecast period by the government's diverse efforts to employ original products to reduce pollution and the rising disposable income in developing nations. In addition, the increasing demand for premium and hybrid vehicles in developing nations is anticipated to expand the market for original automotive equipment manufacturers.

In the coming years, the market for automotive original equipment manufacturers is anticipated to expand due to rapid technological advancements, increased demand for diesel engine vehicle filters, batteries, and innovation in automotive parts with the assistance of qualified and experienced technical staff. Service providers offer washing, lubrication, battery maintenance, and tire services. Periodic maintenance of motor vehicles is necessary. Due to the deployment of advanced connectivity features and the utilization of sensor data for maintenance, the market for automotive original equipment manufacturers will increase. Thus, driving the Original Equipment Manufacturer Market revenue.

Changing consumer preferences are a pivotal driver in the Global Automotive OEM Market Industry. Today's consumers are increasingly inclined towards vehicles that offer enhanced safety, connectivity, and fuel efficiency. The demand for SUVs and electric vehicles reflects this shift, as buyers prioritize features that align with their lifestyle and values. OEMs are responding by diversifying their product offerings to meet these evolving expectations. This adaptation is crucial for maintaining competitiveness in a market projected to grow significantly, reaching 62.6 USD Billion by 2035.

Government incentives are a crucial driver in the Global Automotive OEM Market Industry. Various countries are offering tax breaks, rebates, and subsidies to promote the adoption of electric vehicles and other eco-friendly technologies. These incentives not only encourage consumers to purchase greener vehicles but also motivate manufacturers to invest in sustainable practices. As a result, the market is poised for growth, with projections indicating a rise from 39.3 USD Billion in 2024 to 62.6 USD Billion by 2035, driven by supportive regulatory frameworks.

The Global Automotive OEM Market Industry is anticipated to witness substantial growth, with projections indicating an increase from 39.3 USD Billion in 2024 to 62.6 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate (CAGR) of 4.32% from 2025 to 2035. Such figures reflect the industry's resilience and adaptability in the face of evolving consumer demands and technological advancements. The market's expansion is likely to be fueled by ongoing investments in innovation and sustainability, positioning it for a robust future.

Sustainability initiatives are increasingly shaping the Global Automotive OEM Market Industry. Governments worldwide are implementing stringent emissions regulations, prompting manufacturers to adopt greener technologies. The shift towards electric vehicles (EVs) is a direct response to these regulations, with many OEMs committing to carbon neutrality by 2030. This trend not only aligns with consumer preferences for environmentally friendly options but also drives investment in sustainable manufacturing processes. As a result, the market is expected to expand significantly, with a projected CAGR of 4.32% from 2025 to 2035.

The Global Automotive OEM Market Industry is experiencing a surge in technological advancements, particularly in electric and autonomous vehicles. Innovations such as advanced driver-assistance systems (ADAS) and connectivity features are becoming standard. For instance, the integration of artificial intelligence in vehicle systems enhances safety and user experience. As manufacturers invest in research and development, the market is projected to grow from 39.3 USD Billion in 2024 to 62.6 USD Billion by 2035, reflecting a robust demand for technologically advanced vehicles.

The Global Automotive OEM Market Industry is significantly influenced by global supply chain dynamics. Factors such as geopolitical tensions and trade policies can impact the availability of critical components, including semiconductors. The ongoing adjustments in supply chains necessitate OEMs to enhance their resilience and flexibility. This situation has led to a reevaluation of sourcing strategies, with many manufacturers seeking to localize production to mitigate risks. As the market evolves, these supply chain considerations will play a crucial role in shaping the industry's future.

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The United States dominates the North American region. Due to technological advancements, this industry's market is expanding. The production of high-performance automobiles also contributes significantly to expanding this country's market. In addition, the development of automatic vehicles is boosting the regional oem auto industry.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: AUTOMOTIVE OEM MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe Automotive OEM market accounts for the second-largest market share. The European market is expanding due to the region's consistent employment growth. Germany has become the dominant nation. These factors are inflating the population's GDP. Further, the German Automotive OEM oem auto parts market held the largest market share, and the UK Automotive OEM market was the fastest growing market in the European region

The Asia-Pacific Automotive OEM Market is expected to grow at the fastest CAGR from 2024 to 2032. Rising environmental consciousness and developing cleaner vehicles with sustainable fuels are anticipated to boost the Korean market for Automotive Original Equipment Manufacturer. Favorable government policies are anticipated to cultivate opportunities for market leaders further. Moreover, China’s Automotive OEM market held the largest market share, and the Indian Automotive OEM market was the fastest-growing market in the Asia-Pacific region.

It has been determined that insurance companies base their vehicle insurance premiums and policies on the security levels of newly manufactured vehicles. In Japan, a large consumer base prefers personal vehicles with high-tech solutions to obtain a lower premium rate. This factor is anticipated to stimulate the growth of the automotive OEM market in the country.

Leading market players invest rapidly during the forecast period to stay ahead of the competition curve. Additionally, the market leaders are integrating a wider range of market developments such as new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. Additionally, our research indicates that the market leaders Automotive OEM industry are investing in offering solutions at a competitive price to gather consumers.

One of the major steps that the leaders in the global Automotive OEM industry are undertaking is operating their manufacturing plants at a local level. During the forecast period, the market leaders in the Automotive OEM industry are offering various products to their portfolio. Major players in the Automotive OEM market, including Toyota Motor Corporation, Volkswagen AG, Nissan, Honda Motor Co., Magna International Inc., and Continental AG, are investing in increasing their global presence.

Volkswagen AG, also known as the Volkswagen Group internationally, is a German multinational automaker headquartered in Wolfsburg, Lower Saxony, Germany. The company designs manufactures, and distributes passenger and commercial vehicles, electric motorcycle, engines, and turbomachinery and offers financing, leasing, and fleet management services. In 2016, it was the largest automaker in the globe in terms of sales, and it maintained this position in 2017, 2018, and 2019, selling 10.9 million vehicles. 

Over the past two decades, it has maintained the largest market share in Europe. It ranked seventh on the 2020 Fortune Global 500 list of the world's largest corporations. The Volkswagen Group sells automobiles under the Audi, Bentley, Cupra, Jetta, Lamborghini, Porsche, SEAT, Skoda, and Volkswagen brands, as well as motorcycles under the Ducati brand, light commercial vehicles under the Volkswagen Commercial Vehicles brand, and heavy commercial vehicles via the brands of listed subsidiary Traton (Navistar, MAN, Scania, and Volkswagen Truck & Bus). It is divided into two major divisions: Automotive and Financial Services.

Nissan Motor Corporation, frequently abbreviated to Nissan,[a] is a Japanese multinational automotive manufacturer headquartered in Nishi-ku, Yokohama, Japan. The company distributes its automobiles under the Nissan, Infiniti, and formerly the Datsun brands, as well as Nismo-branded performance-tuning products (including automobiles). The company dates back to the early 20th century, when the Nissan Zaibatsu, now known as Nissan Group, was founded. Since 1999, Nissan has been a member of the Renault–Nissan–Mitsubishi Alliance (Mitsubishi Motors joined in 2016), a partnership between Japanese automakers Nissan and Mitsubishi Motors and French automaker Renault. 

Renault held a 43.4% voting stake in Nissan until January 2023, while Nissan held a 15% non-voting stake in Renault. In a reorganization that occurred in January 2023, Renault's voting equities were reduced to 15%, bringing both manufacturers' voting stakes to parity. Since October 2016, Nissan has controlled Mitsubishi Motors with a 34% stake.