Automotive Assembly Market Size was valued at USD 42.8 Billion in 2023. The Automotive Assembly market industry is projected to grow from USD 45.4 Billion in 2024 to USD 69.2 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.20% during the forecast period (2024 - 2032). Increasing demand for vehicles worldwide and advancements in manufacturing technologies are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Market CAGR for automotive assembly is driven by various factors, which include populace boom, urbanization, growing disposable earnings, and improving standards of living across areas. As more humans aspire to own non-public automobiles for commuting, entertainment, and way of life functions, the call for motors stays continually high. Emerging economies, especially, play a vital role in using this demand as they undergo rapid industrialization and urban expansion. Moreover, the need for commercial vehicles for logistics, transportation, and infrastructure improvement contributes to the overall call for car assembly.
Advancements in manufacturing technologies constitute some other enormous motive force shaping the automobile meeting market. The enterprise is witnessing a change driven by improvements in automation, robotics, synthetic intelligence (AI), and additive manufacturing. This technology permits automotive producers to decorate production performance, lessen expenses, enhance product fine, and shorten time-to-market. For instance, robotics and automation streamline meeting line techniques, leading to higher productivity and consistency in manufacturing operations. AI-powered predictive protection structures assist in minimizing downtime by detecting and addressing capacity device failures earlier than they arise. Additive production strategies, consisting of 3D printing, offer flexibility in prototyping and production, taking into account fast iteration and customization of car additives.
Regulatory necessities and environmental concerns play a substantial role in driving innovation and shaping the automotive assembly market. Stringent emissions regulations, gas efficiency standards, and sustainability desires imposed through governments and regulatory bodies worldwide compel automotive producers to invest in cleaner and greener technology. As a result, there is a growing cognizance of developing electric-powered automobiles (EVs), hybrid motors, and opportunities for gasoline-powered cars within the car assembly industry. Manufacturers invest closely in research and development to lay and bring green motors that reduce carbon emissions and decrease environmental effects.
For instance, urbanization trends contribute appreciably to vehicle demand. The United Nations estimates that through 2050, around 68% of the sector's populace will stay in urban regions, necessitating expanded mobility solutions. As a result, demand for Automotive Assembly will increase because of the rising urbanization. Thus, driving the Automotive Assembly market revenue.
The Automotive Assembly Market segmentation, based on Vehicle Type, includes Passenger Vehicle and Commercial Vehicles. In 2023, the passenger vehicle segment dominated the market, accounting for around 67% of market revenue. Passenger cars dominate due to better client demand for non-public transportation and lifestyle preferences, surpassing commercial car sales in most international markets.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The Automotive Assembly Market segmentation, based on Component, includes Engine, Driving, System, Control System, Accessories, and Others. In 2023, the engine category generated the most income as it constitutes the middle electricity unit of cars, crucial for propulsion, and reviews chronic innovation for performance and emission management.
The Automotive Assembly Market segmentation, based on Assembly Line, includes automated and semi-automated. In 2023, the automated assembly segment dominated the market, accounting for 59% of market revenue. Automated assembly prevails because of its performance, precision, and potential for excessive quantity production, aligning with enterprise developments towards accelerated automation and technological integration.
By region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. North America boasts a mature car industry, with set-up players like the "Big Three" (General Motors, Ford, and Stellantis) and numerous technology businesses using innovation in electric and self-sufficient automobiles. Additionally, the vicinity's robust client base and supportive regulatory surroundings contribute to its dominance.
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.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Automotive Assembly market accounts for the second-largest market share. Stringent emissions policies power innovation in cleaner technologies, positioning Europe as a pacesetter in electric-powered and hybrid cars. Further, the German Automotive Assembly market held the largest market share, and the UK Automotive Assembly market was the fastest-growing market in the European region.
The Asia-Pacific Automotive Assembly Market is expected to grow at the fastest CAGR from 2024 to 2032 because of rapid economic growth, burgeoning middle-class populations, and the presence of major automotive manufacturing hubs in countries like China, Japan, and South Korea. Moreover, China’s Automotive Assembly market held the largest market share, and the Indian Automotive Assembly market was the fastest-growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development to introduce innovative capabilities, designs, and technologies of their motors, attracting customers seeking unique and superior merchandise. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, promoting, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Automotive Assembly industry must offer cost-effective items.
Forming strategic alliances or entering into joint ventures with complementary firms is one of the key business tactics used by manufacturers in the global Automotive Assembly industry to benefit clients and increase the market sector. In recent years, the Automotive Assembly industry has offered some of the most significant product innovations. Major players in the Automotive Assembly market, including BMW Group, Daimler, Ford Motor, General Motors, Honda Motor, Hyundai Motor, SAIC Motor, Stellantis, Toyota Motor, Volkswagen Group, and Others, are attempting to increase market demand by investing in research and development operations.
The BMW Group, a renowned German multinational corporation, was founded in 1916 as an aircraft engine manufacturer. Today, it stands as a global leader in luxury vehicles and motorcycles. The company operates under three primary business segments: BMW Automobiles, which focuses on developing, manufacturing, and selling automobiles, including off-road vehicles; BMW Motorrad, dedicated to motorcycles; and Rolls-Royce, known for luxury vehicles. With over 106,000 employees across 150 countries, BMW Group sells over 1 million vehicles annually. The company's strategic focus on innovation, quality, and customer satisfaction has propelled it to the forefront of the automotive industry. BMW's commitment to technological advancements, environmental sustainability, and social responsibility underscores its position as a powerful international entity shaping the future of mobility. According to the announcement made in January 2024, BMW is allocating 650 million euros ($711 million) towards transforming its primary facility in Munich to focus solely on electric vehicle production by the conclusion of 2027.
Daimler AG, the renowned German automotive manufacturer, has a rich history dating back to the companies founded by Gottlieb Daimler and Karl Benz in the late 19th century. Today, the company operates under the Mercedes-Benz brand, producing premium and luxury cars, vans, and commercial vehicles. With over 166,000 employees worldwide, Daimler is a global automotive industry leader known for its commitment to innovation, sustainability, and technological advancements. The company's product portfolio includes a wide range of vehicles, from passenger cars to heavy-duty trucks, as well as a comprehensive suite of financial and mobility services. Daimler's strategic focus on electrification, autonomous driving, and digital transformation positions it at the forefront of the evolving automotive landscape. The company's strong brand recognition, manufacturing expertise, and customer-centric approach have solidified its position as a dominant player in the global automotive market. In August 2020, Daimler AG secured a controlling interest in the Chinese electric vehicle manufacturer BYD.
June 2021: Fiat Chrysler Automobiles (FCA) and Aurora Innovation unveiled a collaborative venture aimed at advancing autonomous driving technology.
March 2021: General Motors and LG Chem revealed a collaborative endeavor to establish a joint venture focused on battery production.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 42.8 Billion |
| Market Size 2024 | USD 45.4 Billion |
| Market Size 2032 | USD 69.2 Billion |
| Compound Annual Growth Rate (CAGR) | 6.20% (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, Component, Assembly Line, Distribution Channel, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | BMW Group, Daimler, Ford Motor, General Motors, Honda Motor, Hyundai Motor, SAIC Motor, Stellantis, Toyota Motor, Volkswagen Group, and Others |
| Key Market Opportunities | Advancements in Manufacturing Technologies |
| Key Market Dynamics | Global Demand for Vehicles |
Frequently Asked Questions (FAQ) :
The Automotive Assembly Market size was valued at USD 45.4 Billion in 2023.
The global market is projected to grow at a CAGR of 6.20% during the forecast period, 2024-2032.
North America had the largest share of the global market
The key players in the market are BMW Group, Daimler, Ford Motor, General Motors, Honda Motor, Hyundai Motor, SAIC Motor, Stellantis, Toyota Motor, Volkswagen Group, and Others.
The passenger vehicle category dominated the market in 2023.
The automated assembly line had the largest share in the global market.
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.)
