Car Manufacturing Market Trends

Car Manufacturing Market Overview:

Global Car Manufacturing Market Size was valued at USD 1.7 Billion in 2022. The Car Manufacturing market industry is projected to grow from USD 2.04 Billion in 2023 to USD 8.77 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 20.00% during the forecast period (2023 - 2032). The growing demand for electric vehicles and advancements in automotive technology, such as autonomous driving capabilities are the key market drivers fueling the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Car Manufacturing Market Trends

Increasing demand for electric vehicles (EVs) is driving the market growth

Market CAGR for Car Manufacturing is being driven by the surging demand for electric vehicles (EVs). As global awareness of environmental issues continues to rise, there is a growing emphasis on sustainable and eco-friendly transportation solutions. Electric vehicles, powered by rechargeable batteries, have gained significant traction as an alternative to traditional internal combustion engine vehicles. Several factors contribute to the increasing demand for EVs. First and foremost is the heightened awareness of climate change and the need to reduce greenhouse gas emissions. Governments worldwide are implementing stringent emission standards and offering incentives to promote the adoption of electric vehicles. These incentives may include tax credits, subsidies, and infrastructure development, such as charging stations. As a result, consumers are increasingly inclined to choose electric vehicles, both to benefit from these incentives and to contribute to environmental conservation.

Another key driver shaping the car manufacturing market is the rapid pace of technological advancements, particularly in the realm of autonomous driving. As artificial intelligence and sensor technologies evolve, the automotive industry is witnessing a paradigm shift towards autonomous and semi-autonomous vehicles. The integration of advanced driver assistance systems (ADAS) and autonomous features not only enhances safety but also transforms the driving experience.

The third driver influencing the car manufacturing market is the integration of global connectivity and smart features into vehicles. The modern automobile is evolving into a connected and intelligent device, offering a wide array of features that enhance convenience, safety, and entertainment. The rise of the Internet of Things (IoT) has enabled cars to become part of the broader ecosystem of connected devices. Smart features include in-car infotainment systems, voice recognition, navigation assistance, and connectivity with smartphones and other devices. The integration of 5G technology further enhances data transfer speeds and connectivity, enabling real-time updates and communication between vehicles, infrastructure, and the surrounding environment. These smart features not only cater to consumer preferences for a seamless and connected driving experience but also pave the way for future innovations, such as vehicle-to-everything (V2X) communication.

According to BloombergNEF, lithium-ion battery prices fell by 89% between 2010 and 2020. As battery costs continue to decrease, electric vehicles become more cost-competitive with traditional internal combustion engine vehicles, fostering greater consumer acceptance. As a result, it is anticipated that throughout the projection period, demand for Car Manufacturing will increase due to the decreasing cost of EV Batteries. Thus, driving the Car Manufacturing market revenue.

Car Manufacturing Market Segment Insights:

Car Manufacturing Equipment Type Insights

The global Car Manufacturing market segmentation, based on Equipment Type includes CNC Machines, Conveyor Belts, Injection Molding Machine, Robot (Assembly Robot, Painting Robot, Welding Robot), Stamping Machine, and Welding Machine. The CNC machine segment dominated the market, accounting for more than a quarter of market revenue. This is linked to the precision and efficiency offered by automated processes. CNC machines are predominantly used in automatic mode of operation.

Car Manufacturing Mode of Operation Insights

The global Car Manufacturing market segmentation, based on Mode of Operation includes Automatic and Semi-Automatic. The semi-automatic segment dominated the market, accounting for more than half of market revenue. The semi-automatic mode strikes a balance between precision and adaptability in welding operations.

Figure 1: Global Car Manufacturing Market, by Equipment Type, 2023 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Car Manufacturing Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. The North American Car Manufacturing market area will dominate this market. The region is home to key players in various industries, including technology, automotive, aerospace, and healthcare. The United States, in particular, has a robust manufacturing sector, supported by a skilled workforce, research and development capabilities, and a large consumer market.

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

Figure 2: Global Car Manufacturing Market Share By Region 2023 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe’s Car Manufacturing market accounts for the second-largest market share due combination of technological expertise, well-established manufacturing traditions, and a commitment to sustainability. European countries, especially Germany, are renowned for their precision engineering and high-quality manufacturing across diverse sectors such as automotive, machinery, and pharmaceuticals. Further, the German Car Manufacturing market held the largest market share, and the UK Car Manufacturing market was the fastest-growing market in the European region

The Asia-Pacific Car Manufacturing Market is expected to grow at the fastest CAGR from 2023 to 2032. Countries like China, Japan, South Korea, and emerging economies in Southeast Asia have become manufacturing hubs for a wide range of industries. Asia-Pacific benefits from cost-effective labor, vast consumer markets, and substantial investments in infrastructure development. Moreover, China’s Car Manufacturing market held the largest market share, and the Indian Car Manufacturing market was the fastest-growing market in the Asia-Pacific region.

Car Manufacturing Key Market Players & Competitive Insights

Leading market players are focusing on continuous product innovation such as the development of new vehicle models with advanced features, improved fuel efficiency, and cutting-edge technologies. Market participants are also adopting a variety of strategic activities to expand their global footprint, with important market developments including new product launches, Customer-Centric Approaches, Brand Loyalty Programs, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Car Manufacturing industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Car Manufacturing industry to increase their market share. In recent years, the Car Manufacturing industry has offered some of the most significant advantages to Consumers. Major players in the Car Manufacturing market, including ABB, FANUC CORPORATION, KUKA AG, Yaskawa Electric Corporation, Kawasaki Heavy Industries, Ltd, AMADA CO., LTD., and others, are attempting to increase market demand by investing in product development to increase their product line and cater to diverse consumer needs.

ABB is a big company that's good at using technology to make things work better. They've been around for a long time, and their 105,000 employees are always coming up with new ideas to make industries better. ABB focuses on different areas like making things electric, helping things move, automating processes, and using robots. They use smart software to make everything run smoothly in important processes like manufacturing and power. ABB is dedicated to being excellent and is a strong influence in the industry, working on solutions that make things work better, are good for the environment, and improve how industries around the world operate. In March 2022, ABB  introduced two new robots, IRB 5710 and IRB 5720, to improve the manufacturing of electric vehicles by providing additional speed and flexibility. These robots featured a sturdy design, high speed, and precision, contributing to elevated productivity and performance, resulting in increased uptime.

FANUC is a big Japanese company that is good at making things work automatically. They are experts in robots and computer systems that control machines. FANUC has different parts in Japan, the USA (Fanuc America Corporation), and Luxembourg (FANUC Europe Corporation), and they offer a lot of products and services to help with automation. FANUC started as part of Fujitsu and grew from creating early systems that control machines. They are known as one of the world's biggest makers of industrial robots and have three main parts of their business: Factory Automation (FA), ROBOT, and ROBOMACHINE. What makes FANUC special is that they promise to support their products for as long as people use them. FANUC sees FA, ROBOT, and ROBOMACHINE as important parts of one big FANUC family. In January 2022, FANUC CORPORATION introduced the M-1000iA robot, designed to handle heavy items like automotive components and battery packs for electric vehicles. The robot could move widely in all directions and carry a payload of 1000 kg. This capability helped manufacturers boost their production output and maximize efficiency.

Key Companies in the Car Manufacturing market include

• ABB


• FANUC CORPORATION


• KUKA AG


• Yaskawa Electric Corporation


• Kawasaki Heavy Industries, Ltd


• AMADA CO., LTD.


• AIDA ENGINEERING, LTD.


• Dürr Group


• Schuler Group


• TRUMPF


• Universal Robots


• Daifuku Co., Ltd.


• Yamazaki Mazak Corporation

Car Manufacturing Industry Developments

January 2023: KUKA AG introduced the latest KUKA KR FORTEC ultra family, featuring five robot variations tailored for specific tasks. These robots are equipped with a double-link arm to ensure excellent stiffness and precision. The payload capacity of these robots ranges from 480 kg to 800 kg, meeting the increased demand in the electromobility sector.

March 2022: Stellantis N.V. and LG Energy Solution (LGES) announced that they had signed binding, definitive agreements to set up the initial large-scale, local electric vehicle battery manufacturing facility in Canada. The joint venture company was slated to manufacture cutting-edge lithium-ion battery cells and modules, fulfilling a substantial portion of Stellantis' vehicle production needs in North America.

Car Manufacturing Market Segmentation:

Car Manufacturing Equipment Type Outlook

• CNC Machine


• Conveyor Belt


• Injection Molding Machine


• Robot
  
  
  
  • Assembly Robot
  
  
  • Painting Robot
  
  
  • Welding Robot
  
  
  
  


• Stamping Machine


• Welding Machine

Car Manufacturing Mode of Operation Outlook

• Automatic


• Semi-Automatic

Car Manufacturing Regional Outlook

• North America


• US


• Canada


• Europe


• Germany


• France


• UK


• Italy


• Spain


• Rest of Europe


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America