North America Automotive Market Size was valued at USD 510.2 Billion in 2022. The Automotive market industry is projected to grow from USD 535.71 Billion in 2023 to USD 791.48 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.0% during the forecast period (2024 - 2032). Increasing consumer demand for electric vehicles (EVs) and sustainable mobility solutions is one of the major market drivers driving the Automotive market in North America
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The automotive market is experiencing a significant boost due to the escalating demand for electric vehicles (EVs). As concerns about environmental sustainability and climate change intensify, consumers are increasingly gravitating towards cleaner and greener transportation options. EVs, powered by electricity rather than traditional internal combustion engines, represent a pivotal shift towards a more sustainable future in the automotive industry. One of the primary factors driving the surge in EV demand is the global push for reducing carbon emissions. Governments around the world are implementing stricter emission regulations and incentivizing the adoption of electric vehicles to combat air pollution and mitigate the impacts of climate change. This has led to a growing awareness among consumers about the environmental impact of traditional vehicles, prompting a shift towards EVs as a cleaner alternative.
Another key driver propelling the automotive market is the rapid evolution of autonomous driving and connected car technologies. Integrating artificial intelligence, sensors, and communication systems is revolutionizing the driving experience and enhancing safety, efficiency, and convenience. Autonomous driving technology aims to reduce accidents and improve road safety by minimizing human error. Advanced driver-assistance systems (ADAS), such as adaptive cruise control, lane-keeping assistance, and automated emergency braking, are standard features in modern vehicles. As these technologies continue to mature, the automotive market is witnessing a paradigm shift towards fully autonomous vehicles, paving the way for safer and more efficient transportation. Connected car technologies leverage the power of the internet and real-time data to enhance the overall driving experience. Features like vehicle-to-vehicle communication, predictive maintenance alerts, and in-car infotainment systems are becoming commonplace. The integration of smart connectivity not only improves convenience for drivers but also opens up new avenues for innovative services and business models within the automotive ecosystem.
The North America Automotive market segmentation, based on Vehicle Type, includes Passenger Cars, Commercial Vehicles (Medium and Heavy Commercial Vehicles, Light Commercial Vehicles), and Two-Wheelers. The passenger cars segment dominated the market. The sheer volume of passenger cars on the roads reflects the widespread adoption of personal transportation for daily commuting and individual mobility needs. As urbanization continues globally, more people are seeking efficient and convenient modes of personal transportation, and passenger cars cater to this demand.
Figure 1: North America Automotive Market by Vehicle Type, 2023 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The automotive market in the United States is experiencing growth due to several factors contributing to increased demand and market expansion. A robust economy and low unemployment rates have bolstered consumer confidence, increasing spending on big-ticket items such as automobiles. Additionally, historically low interest rates have made financing more attractive, encouraging consumers to make vehicle purchases. The shift towards SUVs and trucks, which often come with higher price tags, has been a notable trend in the v market. Consumer preferences for larger, more versatile vehicles have driven higher transaction prices and contributed to the overall revenue growth in the automotive sector. Moreover, advancements in automotive technology, including electric vehicles (EVs) and autonomous driving features, have captured the interest of U.S. consumers. Government incentives and a growing awareness of environmental sustainability have further fueled the adoption of electric vehicles, contributing to the expansion of the automotive market.
Figure 2: North America Automotive Market Share By Region 2023 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Leading market players are striving to differentiate their offerings through innovative features, design, and technology. Introducing new models with advanced safety features, fuel efficiency, connectivity, and autonomous driving capabilities helps attract consumers and gain a competitive edge. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, customer-centric approaches, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Automotive industry must offer cost-effective items.
Major players in the Automotive market are attempting to increase market demand by investing in research and development operations, including BMW AG, Daimler AG, Fiat Chrysler Automobiles NV, Ford Motor Company, General Motors Company, Groupe Renault, Harley-Davidson, Honda Motor Company Ltd, Hyundai Motor Company, Nissan Motor Co. Ltd, Tesla Inc., Toyota Motor Corporation, Volkswagen AG, and Yamaha Motor Co. Ltd.
July 2022: Cadillac revealed the Celestiq showcase, presenting a forward-looking, handcrafted, all-electric flagship sedan using Ultium-based electric technology. The show car offers a glimpse into Cadillac's future, showcasing innovative materials, cutting-edge technologies, and meticulous craftsmanship that embody the brand's vision.
July 2022: Amazon commenced the deployment of its custom electric delivery vehicles, developed by Rivian, for package deliveries. These electric vehicles are now operational in cities such as Baltimore, Chicago, Dallas, Kansas City, Nashville, Phoenix, San Diego, Seattle, and St. Louis, marking a significant step in Amazon's commitment to sustainable and electric logistics.
January 2022: Tesla Inc. entered into a supply agreement with Talon Metals Corp., a subsidiary of Talon Nickel LLC, to source nickel. This strategic agreement aims to facilitate the production of battery materials, ensuring a more environmentally friendly approach to electric vehicle battery manufacturing – from mine to battery cathode.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 510.2 Billion |
| Market Size 2023 | USD 535.71 Billion |
| Market Size 2032 | USD 791.48 Billion |
| Compound Annual Growth Rate (CAGR) | 5.0% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Vehicle Type and Region |
| Region Covered | North America |
| Countries Covered | United States, Canada, Mexico, and Rest of North America |
| Key Companies Profiled | BMW AG, Daimler AG, Fiat Chrysler Automobiles NV, Ford Motor Company, General Motors Company, Groupe Renault, Harley-Davidson, Honda Motor Company Ltd, Hyundai Motor Company, Nissan Motor Co. Ltd, Tesla Inc., Toyota Motor Corporation, Volkswagen AG, and Yamaha Motor Co. Ltd. |
| Key Market Opportunities | · Infrastructure Investment for Electric Vehicles · Development of Connected Car Technologies |
| Key Market Dynamics | · Growing Electric Vehicle Adoption · Advancements in Autonomous Driving Technologies |
Frequently Asked Questions (FAQ) :
The North America Automotive market size was valued at USD 535.71 Billion in 2023.
The market is projected to grow at a CAGR of 5.0% during the forecast period, 2024-2032..
The key players in the market are BMW AG, Daimler AG, Fiat Chrysler Automobiles NV, Ford Motor Company, General Motors Company, Groupe Renault, Harley-Davidson, Honda Motor Company Ltd, Hyundai Motor Company, Nissan Motor Co. Ltd, Tesla Inc., Toyota Motor Corporation, Volkswagen AG, and Yamaha Motor Co. Ltd, among others.
The passenger car category dominated the market in 2023.
Leading companies partner with us for data-driven Insights.
Kindly complete the form below to receive a free sample of this Report
Team Lead - Research With a technical background as bachelor's in mechanical engineering, with mba in operations management , swapnil has 6+ years of experience in market research, consulting and analytics with the tasks of data mining, analysis, and project execution. he is the poc for our clients, for their consulting projects running under the automotive/a&d domain. swapnil has worked on major projects in verticals such as aerospace & defense, automotive and many other domain projects. he has worked on projects for fortune 500 companies' syndicate and consulting projects along with several government projects.
Get in Touch
© 2024 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)
