In 2024, the ranking of the world’s largest car brands was topped by Toyota with a market share of around **** percent. The Toyota brand is owned by Japan's Toyota Motor Corporation, the world's largest motor vehicle manufacturer. New trends in the auto industry In light of growing environmental awareness and increasing efforts to connect vehicles, automotive manufacturers are faced with a variety of new challenges. Market trends such as the shift to lighter materials, as well as the trend towards electric and autonomous vehicles are set to revolutionize the industry. Palo Alto-based Tesla Motors is currently among those at the vanguard of the trend towards electrification, along with the Chinese car manufacturer BYD. Tesla delivered nearly **** million vehicles in 2024, meaning that Volkswagen Group's sales tally is over **** times as much. The state of the global auto industry Car sales worldwide have dipped between 2019 and 2020 as a result of the economic downturn generated by the COVID-19 pandemic. 2021 sales recovered, despite remaining below 2019 levels, but supply chain shortages led to a slow recovery of sales in 2022. By the end of 2023, the global car sales volume had grown over pre-pandemic levels. China was the largest automobile market based on new passenger car registrations, recording close to **** million units sold. It was followed by the United States and Europe. China was also the leading passenger car producing country in 2023.

At around **** percent, General Motors held the largest share of the auto market in the United States in 2024. General Motors remained the most successful automotive manufacturer in the United States. Between 2004 and 2021, however, the manufacturer lost market share, while that of Toyota rose as a result of an increased focus on light truck models in the lineup. This shifted in 2022, but 2023 led to another slight drop in market share of the American automaker. Asian manufacturers dominate non-domestic competition Among the non-domestic manufacturers, Asian automakers proved to be the most successful group. Asian car brands selling vehicles to customers in the United States include Toyota, Honda, Nissan, Hyundai, and Subaru. Toyota was also among the most valuable automotive brands worldwide as of June 2024. Both Toyota and Lexus were among the ten brands with the highest consumer satisfaction in the United States that same year. How many brands do auto manufacturers own? General Motors, Ford, and Toyota are the leading automotive manufacturers based on market share in the United States. The Ford Motor Company mainly sells vehicles under its namesake brand, while the Toyota Motor Corporation offers several brands, including Lexus and Toyota. General Motors sells vehicles under various brands, including Chevrolet, Buick, and GMC. In 2017, GM and PSA Group closed a deal in which the French carmaker acquired GM's Opel and Vauxhall brands.

Based on sales volume in 2024, Thaco Group was the leading automobile manufacturer in Vietnam. Thaco Group held **** percent share of the market that year, followed by VinFast with **** percent share of the market. Vietnam’s automobile market Despite having a modest car ownership rate, Vietnamese consumers are highly interested in buying a car. Owning a car is regarded as a major investment, almost as desirable as owning a house in Vietnam. Vietnamese consumers' interest in these vehicles comes from the demand for a safer, more convenient, and comfortable transportation mode, as well as the generally positive perceptions associated with car owners among Vietnamese people. The rising middle-class population and improving living standards have led to an increasing demand for cars in Vietnam, especially in big cities. As a result, the number of cars per 1,000 people in the country is expected to witness a consistent increase in the coming years. Truong Hai Auto Corporation – Thaco Group Founded in 1997, Thaco Group is one of the pioneers of the Vietnamese automobile industry. Through its various partnerships, Thaco has the right to produce and distribute a wide range of car models from other internationally well-known brands, including Kia, Mazda, Peugeot, BMW, and MINI. Thanks to its diverse portfolio, Thaco has surpassed the Japanese automobile giant Toyota as the leading car manufacturer in Vietnam in recent years.

The North America Automotive Industry is Segmented by Vehicle Type (Passenger Cars, Commercial Vehicles (Light Commercial Vehicles and Medium and Heavy Commercial Vehicles), and Two-wheelers) and Geography (United States, Canada, and the Rest of North America). The report offers market size and forecast in value (USD million) for the above segments.

According to Cognitive Market Research, the Global Automative Garage Equipment Market Size will be USD XX Billion in 2023 and is set to achieve a market size of USD XX Billion by the end of 2031 growing at a CAGR of XX% from 2024 to 2031.

The global automotive garage equipment market will expand significantly by XX% CAGR between 2024 and 2031.
Body Shop Equipment dominates the market and is anticipated for a healthy growth over the approaching years.
Compared to independent garages, the automotive OEM dealership segment is expected to grow faster during the forecast period.
The market's largest revenue share belongs to mobile kind. Equipment for garages designed to be easily moved or transported is called a mobile installation.
A significant portion of market share is made up of passenger cars. This is a result of their worldwide scope and is predicted to increase from 86.4 million to 86.8 million in 2023.
North America is the largest global garage equipment market shareholder and is estimated to grow at a CAGR of XX% over the forecast period.

Current Scenario: Automatic Garage Equipment of the Market

Driving Factors of Automatic Garage Equipment Market

The Garage Equipment market is primarily driven by an increase in car production and sales 

The need for garage equipment is directly impacted by the expansion of the worldwide automotive industry. The market for contemporary tools and equipment used in automotive workshops and service facilities is driven by the growing number of vehicles on the road and the resulting demand for maintenance, repairs, and servicing.

According to OICA (International Organization of Motor Vehicle Manufacturers) , global motor vehicle production in 2022 was over 85 million units, up 6% from the previous year. An increase in car manufacturing corresponds directly to increased demand for garage equipment. (Source:https://www.acea.auto/figure/world-motor-vehicle-production/)

Some of the top automotive industry-related statistics include; US car manufacturing market was worth $104.1 billion in the US. Also, The Indian automotive sector contributed 7.1% to the overall GDP and 49% to the manufacturing GDP in 2021. Additionally, 105 billion items related to motor vehicles and parts were exported in 2021 from the US These were the second largest in exports.

According to a recent survey by published by the European Automobile Manufacturer Association the global car sales have increased by around 9% in the first three quarter of 2023.The Europe market witnessed sales growth of 20.4% from January to September in 2023

Rise in use of electric cars and vehicles (EVs) 

The rise of electric cars (EVs) in the automobile business affects demand for specific garage equipment. The growth of EVs has led to the development of specialized equipment for battery servicing, charging infrastructure, and EV-specific diagnostics. In 2023, global electric vehicle (EV) sales climbed by 31% to 13.6 million units. Fully electric vehicles (BEVs) accounted for 9.5 million of total sales, with PHEVs making up the remainder ( predicted by Rho Motion)

Electric vehicles amounted to some 14 percent of global passenger car sales in 2022, which was a rise of around 5.3 percentage points year-over-year. Electric vehicle sales have rapidly increased since 2017, when they rose above one percent of the market, and have particularly accelerated since 2020.

(Source;https://www.statista.com/statistics/1371599/global-ev-market-share/)

The Asia-Pacific region was the leading market for battery-electric vehicles, propelled by the Chinese new energy vehicle market. Automakers worldwide will have to focus on clean fuel sources and sustainable supply chains. In 2020, Volkswagen started delivering its electric ID.4 model and consistently ranked among the best-selling EV brands. By 2022, the Volkswagen Group was the fourth leading EV automaker worldwide.

(Source:https://www.statista.com/topics/1010/electric-mobility/#topicOverview)

Increasing sales of pre-owned vehicles and emergence of autonomous vehicles are anticipated to drive the growth of the automotive garage equipment market

Pre-owned vehicles, commonly known as used cars, are those that have been previously owned and utilized by individuals or businesses before being made available for resale. Automotive garage equipment plays a crucial role in the pre-o...

The Volkswagen Group accounted for over ******* of new car registrations in the European market between January and December 2024. That year, the automaker sold some *** million units, roughly *** million units more than the manufacturer's closest rival. Stellantis becomes Europe's second largest auto manufacturer Second-placed Stellantis comprises 14 brands, including Opel and Vauxhall, two brands previously owned by General Motors, in 2017. Stellantis was formed by the merger of FCA and PSA. Incentives offered by the French government fuelled demand in PSA's domestic market, France. However, the French market crumbled in Autumn 2020 and Germany remained as Europe's leading passenger car market. In May 2021, German manufacturers – Volkswagen and peer automakers Daimler and BMW – held just under ** percent of the European market. European car sales collapsed during the pandemic Between January and December 2020, passenger car sales in Europe decreased by about ** percent to roughly ** million units. Sales began to tank mid-March, amid the coronavirus pandemic in Europe. Year-on-year sales were still down ** percent in May 2020, but car sales began to bounce back as economies reopened. Month-on-month sales more than ******* in May and continued on an upward trajectory in June. Sales were back to normal levels in September and October. Outbreaks of COVID-19 in the Autumn of 2020 prevented a positive end to the year for the automotive industry.

Global car and automobile manufacturers have faced numerous challenges over the past decade, given major exogenous shocks, shifting consumer preferences and supply chain disruptions. In particular, significant technological improvements, particularly regarding hybrid and electric vehicles, internal combustion engine fuel efficiency, infotainment development and autonomous driving capabilities, coupled with rising per capita disposable income, have spurred global demand from the growing global middle class. Additionally, strong economic recoveries in most developed and emerging nations following the pandemic have spurred climbing motorization rates and vehicle registrations. Overall, revenue has climbed at an expected CAGR of 1.0% to $2.9 trillion through the current period, including a 2.5% jump in 2025. Profit will climb to 4.7% at the end of the current period as hybrid and electric models perform better and input costs wane. Aluminum and steel are significant inputs for most automakers. Most input manufacturers cut production amid the pandemic, leaving automakers with supply chain shortages and long lead times, especially as automotive demand rebounded following the pandemic. Semiconductors and other integral electronic component manufacturers also failed to meet automaker's demand, exacerbating supply chain issues. Despite these issues, manufacturers have successfully pushed costs onto consumers, expanding profit. Even so, flourishing demand has enabled most automakers to begin recoveries. Many companies have also expressed greater supply chain oversight following disruptions, leading to more nearshoring, vertical integration and strategic partnerships and alliances. Even so, labor strikes, union demands and lingering economic uncertainty have contributed to volatility. Revenue for automakers will swell at an expected CAGR of 2.2% to $3.2 trillion through the outlook period as the industry rides climbing global per capita income and continued growth in developing economies. Global manufacturers will continue to invest heavily in technology and innovation, making waves with new electric and autonomous driving technologies. Companies will also lean on government support regarding electric and hybrid vehicle technology. Even so, tariff policies may restrict many facets of trade, preventing automakers from purchasing some foreign inputs or seamlessly accessing certain export markets.

Automotive Market Outlook

According to our latest research, the global automotive market size reached USD 3.1 trillion in 2024, with a compound annual growth rate (CAGR) of 4.2% projected through 2033. By the end of this forecast period, the market is expected to attain a value of USD 4.5 trillion. This robust growth is primarily driven by technological advancements, the rapid adoption of electric vehicles, and evolving consumer preferences towards sustainable mobility solutions.

One of the most significant growth factors in the automotive market is the accelerating shift towards electrification. The increasing concerns over environmental sustainability and stringent emission regulations imposed by governments worldwide have compelled automakers to invest heavily in electric vehicle (EV) development. The proliferation of battery technologies, coupled with declining battery costs, has made EVs more accessible to a broader consumer base. This transition is further bolstered by supportive government policies, such as tax incentives and subsidies for EV buyers, as well as the expansion of charging infrastructure. As a result, electric vehicles are not only reshaping product portfolios but are also influencing supply chains and manufacturing processes across the industry.

Another critical driver for the automotive market is the integration of advanced electronics and digital technologies. The rise of connected vehicles, autonomous driving features, and sophisticated infotainment systems has transformed the traditional automobile into a smart mobility platform. Consumers now demand enhanced safety features, real-time navigation, and seamless connectivity, prompting manufacturers to invest in research and development for next-generation automotive electronics. Furthermore, the emergence of artificial intelligence (AI), machine learning, and the Internet of Things (IoT) in vehicle systems is creating new revenue streams and business models, such as mobility-as-a-service (MaaS) and over-the-air (OTA) software updates.

In addition to electrification and digitization, the automotive market is experiencing growth due to the rising demand for personal mobility and the recovery of global supply chains post-pandemic. Urbanization and increasing disposable incomes in emerging economies have spurred the sales of passenger cars and two-wheelers. Meanwhile, the commercial vehicle segment is benefiting from the surge in e-commerce and logistics activities, necessitating efficient transportation solutions. The aftermarket segment is also gaining traction, driven by the growing vehicle parc and consumer inclination towards vehicle customization and maintenance.

Regionally, the Asia Pacific continues to dominate the global automotive market, accounting for the largest share in both production and sales. This dominance is attributed to the presence of major automotive manufacturing hubs in China, Japan, India, and South Korea, as well as a rapidly expanding middle-class population. North America and Europe remain key markets due to their technological leadership and high adoption rates of advanced automotive technologies. However, regions such as Latin America and the Middle East & Africa are emerging as lucrative markets, fueled by infrastructure development and favorable government initiatives aimed at boosting local automotive industries.

Vehicle Type Analysis

The vehicle type segment of the automotive market is highly diversified, encompassing passenger cars, commercial vehicles, electric vehicles, two-wheelers, and other specialized vehicles. Passenger cars continue to represent the largest share of the market, driven by increasing urbanization, rising disposable incomes, and evolving consumer preferences for personal mobility. The global demand for passenger cars is particularly strong in emerging economies, where a growing middle class is seeking affordable and reliable transportation options. Automakers are responding by introducing a

Strong growth in developing economies, like the BRICS and ASEAN member nations, has driven revenue for global car dealers despite slowdowns in established economies, like North America and Europe. Developed economies focus largely on value-added car purchases, while emerging markets focus primarily on volume. The transition to SUVs and crossovers with more safety and entertainment features has driven growth; in particular, these models' surging adoption rates have created numerous growth opportunities in developing economies. Even so, climbing interest rates across most key markets and faltering global consumer sentiment have somewhat constrained post-pandemic growth. Overall, revenue has expanded at an expected CAGR of 0.7% to $4.4 trillion through the current period, including a 2.1% jump in 2024, where profit reached 2.3%. Supply chain disruptions made new cars significantly more expensive, increasing inventory costs. Similarly, semiconductor and electronic component shortages reduced supply, leaving dealers with limited inventories. Even so, dealers were largely able to leverage torrid demand and pass added costs onto buyers, creating opportunities for revenue and profit growth. Volatile oil supply chains amid the Russia-Ukraine conflict also contributed to swelling demand for more fuel-efficient vehicles. Companies have also integrated online services to make the car-buying process simpler and more accessible, enabling them to combat heightened competition and access a wider network of buyers. The penetration of online platforms has transformed the car sales landscape, favoring larger dealership franchises over independent companies. Car dealers will continue to contend with substitutes, even as economic conditions improve and consumer sentiment rebounds through the outlook period. Government incentives and upstream innovations will also spur demand for electric and hybrid vehicles, generating strong per-unit revenue from dealers. Even so, slowing EV adoption rates in North America may dampen this segment's growth potential. Consumer preferences will also continue to trend toward online vehicle shopping, which provides convenience and efficiency to busy consumers, creating greater competition with various online dealers. Overall, revenue will climb at an expected CAGR of 2.5% to $4.9 trillion through the outlook period, where profit will reach 2.3%.

The North American automotive industry, valued at $0.99 million in 2025 (assuming this figure represents a segment of the overall market, not the total), is projected to experience robust growth, driven by several key factors. A Compound Annual Growth Rate (CAGR) of 5.43% from 2025 to 2033 suggests a significant expansion in market size over the forecast period. This growth is fueled by increasing consumer spending on vehicles, particularly in passenger cars and light commercial vehicles, spurred by economic recovery and favorable financing options. The rising adoption of electric and hybrid vehicles, coupled with advancements in autonomous driving technology, represents a significant trend shaping the industry's trajectory. However, challenges remain, including supply chain disruptions which continue to impact production and pricing, rising raw material costs, and evolving consumer preferences that demand greater fuel efficiency and sustainable manufacturing practices. The market segmentation reveals significant variation in growth across vehicle types, with passenger cars and light commercial vehicles potentially outpacing growth in heavier commercial vehicles and two-wheelers due to differing economic sensitivities and technological advancements. Geographic distribution also plays a significant role, with the United States likely dominating the market share given its larger economy and vehicle ownership trends compared to Canada and the rest of North America. Major players like Fiat Chrysler Automobiles, General Motors, Ford, Toyota, and Tesla are strategically positioning themselves to capitalize on these emerging trends, investing heavily in electric vehicle (EV) development, innovative technologies, and sustainable manufacturing. The competitive landscape is fierce, with ongoing mergers, acquisitions, and strategic partnerships shaping the industry's structure. The forecast period will likely witness a consolidation of market share amongst the larger players, potentially leading to some smaller manufacturers exiting the market or being acquired. Furthermore, government regulations promoting clean energy and reducing emissions will significantly impact the industry's product offerings and manufacturing processes in the coming years. The consistent growth projected indicates a positive outlook, but the industry must adapt proactively to the challenges to maintain its momentum. This comprehensive report provides a detailed analysis of the North America automotive industry, encompassing the historical period (2019-2024), base year (2025), and forecast period (2025-2033). The study covers passenger cars, light commercial vehicles (LCVs), medium and heavy commercial vehicles (M&HCVs), and two-wheelers across the United States, Canada, and the Rest of North America. With a focus on market size (in million units), key players, and emerging trends, this report is an essential resource for businesses, investors, and policymakers seeking to understand this dynamic sector. Search terms used include: North America automotive market, automotive industry trends, electric vehicle market, commercial vehicle sales, passenger car sales, US automotive industry, Canadian automotive market. Recent developments include: July 2022: Cadillac unveiled the Celestiq show car, a vision of innovation that previews the brand's future handcrafted and all-electric flagship sedan. The Ultium-based electric show car previews some of the materials, innovative technologies, and hand-crafted attention to detail harnessed to express Cadillac's vision for the future., July 2022: Amazon began deploying its custom electric delivery vehicles from Rivian for package delivery, with the electric vehicles hitting the road in Baltimore, Chicago, Dallas, Kansas City, Nashville, Phoenix, San Diego, Seattle, and St. Louis, among other cities., January 2022: Tesla Inc. had a supply agreement with Talon Metals Corp., a subsidiary of Talon Nickel LLC, for the supply of nickel. This agreement will lead to the production of battery material from mine to battery cathode in order to make the electric vehicle battery more eco-friendly.. Key drivers for this market are: Growing Travel and Tourism Industry is Driving the Car Rental Market. Potential restraints include: Increasing Popularity of Ride-Sharing Services Pose Challenges for the Conventional Car Rental Market. Notable trends are: Rising Electric Mobility to Drive Demand in the Market.

Automotive Manufacturing Equipment Market size was valued at USD 7.38 Billion in 2024 and is projected to reach USD 15.88 Billion by 2031, growing at a CAGR of 11.1% from 2024 to 2031.

Global Automotive Manufacturing Equipment Market Drivers

Technological Developments: The automotive sector is always changing, and this is reflected in the requirement for increasingly complex production equipment due to developments in automation, robotics, and digitalization. Demand for Electric Vehicles (EVs): As manufacturing facilities adapt to the change to electric vehicles, there is a growing need for specialised equipment designed for EV production. Industry 4.0 Integration: By enhancing productivity, efficiency, and flexibility in the automobile manufacturing sector, Industry 4.0 technologies—such as big data analytics, artificial intelligence, and the Internet of Things—also encourage the adoption of cutting-edge machinery. Strict Regulations and Emission Standards: In order to build cleaner and more fuel-efficient automobiles, compliance with strict environmental regulations and emission standards requires the use of modern production technology. Globalisation and Outsourcing: In order to remain competitive and satisfy a range of consumer needs, there is a need to invest in state-of-the-art manufacturing equipment as globalisation and outsourcing of automobile production to emerging markets increase. Resilient Supply Chains: The COVID-19 pandemic brought to light the significance of robust supply chains. To minimise delays and maintain output, automakers are investing in equipment that is versatile and adaptive. Sustainable Manufacturing processes: Automotive manufacturers are being forced to adopt sustainable manufacturing processes due to regulatory demands and rising consumer awareness. This involves implementing eco-friendly procedures and energy-efficient machinery. Growth in Automotive Sales: In order to satisfy production goals and quality requirements, there is an increasing demand for automobiles worldwide, particularly in growing nations. This has led to a need for modernised manufacturing facilities and equipment.

According to Cognitive Market Research, the global Automotive Research And Development Services market size will be USD 19241.6 million in 2024. It will expand at a compound annual growth rate (CAGR) of 25.20% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 7696.64 million in 2024 and will grow at a compound annual growth rate (CAGR) of 23.4% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 5772.48 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 4425.57 million in 2024 and will grow at a compound annual growth rate (CAGR) of 27.2% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 962.08 million in 2024 and will grow at a compound annual growth rate (CAGR) of 24.6% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 384.83 million in 2024 and will grow at a compound annual growth rate (CAGR) of 24.9% from 2024 to 2031.
The Electronics & Electrical segment is the fastest-growing in the Automotive Research and Development Services Market, fueled by the increasing integration of advanced technologies in vehicles

Market Dynamics of Automotive Research And Development Services Market

Key Drivers for Automotive Research And Development Services Market

Growing Demand for Advanced Vehicle Technologies to Boost Market Growth

The automotive industry is witnessing a significant rise in consumer demand for advanced vehicle technologies, including electric powertrains, autonomous driving systems, and in-car connectivity. As consumers become more tech-savvy and environmentally conscious, automakers are prioritizing the development of innovative technologies to meet these expectations. This demand drives the need for automotive research and development services, as companies seek to stay competitive by introducing cutting-edge features. Continuous advancements in AI, machine learning, and sensor technologies also contribute to this growth, fueling R&D efforts for next-generation vehicles. For instance, In November 2022, IAV Automotive Engineering (IAV) launched a project which provides a method to find the emission from ICE vehicles on braking. It allows IAV to precisely evaluate the mass, number, and size of fine, ultra-fine particles generated during the braking process. This project was undertaken under the EU emission reduction project

Government Regulations and Sustainability Initiatives to Drive Market Growth

Governments across the globe are enforcing stricter environmental regulations and sustainability initiatives to reduce carbon emissions and promote energy-efficient vehicles. These regulations, coupled with rising concerns over climate change, are driving automakers to invest heavily in R&D to develop cleaner, more fuel-efficient vehicles. Electric vehicles (EVs), hybrid models, and low-emission technologies are in high demand, prompting the need for extensive research and development services. As regulations continue to evolve, automakers will need to adapt, presenting further opportunities for innovation and advancement in the automotive sector.

Restraint Factor for the Automotive Research And Development Services Market

High Costs of R&D and Infrastructure, will Limit Market Growth

One of the key restraints in the automotive research and development services market is the high cost associated with the research and innovation process. Developing new automotive technologies requires significant investments in infrastructure, equipment, and human resources. Companies must allocate substantial capital to fund R&D activities, including prototyping, testing, and compliance with safety and regulatory standards. Small to medium-sized manufacturers may find it difficult to bear these high costs, limiting their ability to engage in extensive R&D. The financial burden can hinder the pace of innovation, especially for companies looking to enter the competitive automotive market.

Impact of Covid-19 on the Automotive Research And Development Services Market

Covid-19 pandemic significantly impacted the Automotive Research and Development Services Market by causing disrupti...

Canadian car and automobile manufacturers have struggled, particularly as automakers move production abroad. High labour costs in Canada have encouraged foreign automakers to shift production to the United States and Mexico, highlighted by Toyota moving production of all passenger vehicles out of Canada. As a result, output has fallen from Canada's biggest car producers while remaining operations have increasingly focused on SUV and light truck production. Even so, pent-up demand for driving and travel has supported demand for new cars from consumers and commercial markets. This trend has partially offset declines from the pandemic. Overall, revenue has contracted at an expected CAGR of 2.2% to $15.5 billion through the current period, including a 3.0% jump in 2024, where profit will reach 1.4%. Aluminum and steel are significant inputs for most automakers. Most input manufacturers cut production amid the pandemic, leaving automakers with supply chain shortages and long lead times, especially as automotive demand rebounded following the pandemic. Semiconductors and other integral electronic component manufacturers also failed to meet automaker's demand, exacerbating supply chain issues, leading to longer lead times, rising prices and major shortages. Despite these issues, manufacturers have successfully pushed costs onto consumers, contributing to revenue growth in the latter half of the period. Even so, high costs have constrained profit, especially as Canadian manufacturers deal with climbing imports. Car and automobile manufacturers will continue to invest heavily in technology and innovation, creating new opportunities with innovative electric and autonomous driving technologies. Companies will also rely on government support regarding electric and hybrid vehicle technology. Strong economic conditions will also create opportunities for Canadian manufacturers; robust consumer confidence and disposable income growth will translate into steady new car sales. Even so, imports may capture the majority of new vehicle sales, mitigating growth opportunities. Revenue will rebound at an expected CAGR of 2.2% to $17.5 billion through the outlook period, where profit will reach 1.7%.

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Automobile engine and parts manufacturers produce gasoline and diesel-powered engines and parts. The industry primarily consists of vertically integrated automobile manufacturers and large companies providing engines that fill supplementary contracts for automakers and aftermarkets. Manufacturers are highly globalized, benefiting from international supply chains and global demand. Even so, volatile economic conditions, skyrocketing input costs, worker strikes and massive pressure from both foreign manufacturing powers and electric vehicles have slammed revenue and profit growth. However, falling rates, rebounding economic conditions and easing supply chains have created positive tailwinds. Overall, revenue for automobile engine and parts manufacturers has expanded at an expected CAGR of 1.2% to $42.2 billion through the current period, despite a 0.8% decline in 2025, where profit reached 3.1%. Increased environmental consciousness and high fuel prices have pushed consumers to reevaluate owning gasoline-powered cars. The federal government has also provided subsidies to electric vehicle producers and consumers purchasing EVs to facilitate the shift from fossil fuels. Gasoline-powered engine and parts manufacturers have prioritized more efficient engines to combat EV production and meet efficiency standards. Many companies have also automated to cut costs as substitute products squeeze revenue and profit opportunities. On the other hand, higher steel and aluminum prices pressured purchasing costs, though most manufacturers successfully leveraged globalized supply chains or vertical integration to remain profitable. The economy's recovery will also rejuvenate demand; consumers will have more disposable income to purchase new vehicles, get repairs and take road trips. Normalizing input costs will also enable profit growth while improving trade conditions will facilitate export growth and dampen import penetration. Even so, external competitors, namely electric vehicles and improved public transportation infrastructure, will remain major threats to sustained revenue growth. Overall, revenue will rebound at an estimated CAGR of 2.0% to $46.6 billion through the outlook period.

The global coil car market is experiencing robust growth, driven by the increasing demand for efficient material handling in heavy industries, particularly steel mills and automobile manufacturing. The rising production of steel and automobiles, coupled with the need for optimized logistics and reduced transportation costs, is fueling the adoption of coil cars. Technological advancements in coil car design, such as improved load capacity, enhanced safety features, and integration of smart technologies for real-time monitoring, are further contributing to market expansion. The market is segmented by application (heavy industry, automobile industry, steel mills, others) and type (rail car, transfer car, others). While heavy industry and steel mills currently dominate the application segment, the automobile industry is projected to show significant growth in the coming years due to increasing vehicle production globally. The rail car segment holds a larger market share among the types, owing to its suitability for long-distance transportation of large volumes of coils. Geographically, North America and Asia-Pacific are key regions driving market growth, fueled by significant investments in infrastructure development and the presence of major steel and automobile manufacturers. However, stringent environmental regulations and high initial investment costs pose challenges to market expansion. Competition among established players, including FreightCar, Mitsui Rail Capital, and others, is intense, leading to innovation and continuous improvement in coil car technology. The forecast period (2025-2033) anticipates sustained growth, with a projected compound annual growth rate (CAGR) exceeding 5%, largely driven by ongoing industrialization and infrastructural developments in emerging economies. The competitive landscape is characterized by both established global players and regional manufacturers. Larger companies benefit from economies of scale and established distribution networks, while smaller companies often focus on niche applications or specialized designs. Future market growth will likely be influenced by factors such as government policies supporting infrastructure development, technological innovations enhancing coil car efficiency and safety, and the fluctuating demand within the steel and automotive industries. Strategic partnerships and mergers and acquisitions are expected to play a significant role in shaping the market structure and expanding the reach of key players. The market's future trajectory hinges on a delicate balance between satisfying the increasing demand for efficient material handling and navigating the challenges of environmental regulations and fluctuating raw material prices.

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The automotive interior materials market share is expected to increase by USD 26.43 billion from 2020 to 2025, and the market’s growth momentum will accelerate at a CAGR of 4.24%.

This automotive interior materials market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers automotive interior materials market segmentations by material (plastic polymers, leather, textile fabric, and others) and geography (APAC, North America, Europe, South America, and MEA). The automotive interior materials market report also offers information on several market vendors, including Adient Plc, Borealis AG, Covestro AG, Faurecia SE, GRAMMER AG, Grupo Antolin-Irausa SA, Lear Corp., Sage Automotive Interiors Inc., SEIREN Co. Ltd., and Toyota Boshoku Corp. among others.

What will the Automotive Interior Materials Market Size be During the Forecast Period?

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Automotive Interior Materials Market: Key Drivers, Trends, and Challenges

The rise in improved passenger car sales due to financing flexibility is notably driving the automotive interior materials market growth, although factors such as fluctuations in raw material prices may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the automotive interior materials industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Automotive Interior Materials Market Driver

One of the key factors driving the automotive interior materials market growth is the rise in improved passenger car sales due to financing flexibility. Car loans are an integral component of the automotive industry and form the biggest driving factor for car sales. This subsequently leads to an increase in automotive glove box sales. General Motors was the first company in the automotive industry to establish a non-banking institution that would support potential buyers to buy cars and indirectly assist OEMs in improving their car sales. In Europe, OEMs such as Fiat and Renault were offering discounts on new car sales to expand their customer base. This strategy worked well for the automakers. For the first time since the global recession period, new car sales registered growth and marked the beginning of passenger car sales in Europe. Auto industry observers found car loans as the biggest driving factor for the expansion of the compact car segments globally. With the increase in passenger car sales, the market for automotive interior materials is expected to witness steady growth.

Key Automotive Interior Materials Market Trend

Innovations in lightweight materials is the major trend influencing automotive interior materials market growth. The consumer demand for automobiles with improved fuel efficiency has considerably increased over the years, primarily due to the rise in fuel prices. Automobile manufacturers are exploring solutions that can reduce the weight of automobiles to enhance fuel efficiency. The demand for fuel efficiency in vehicles has contributed to the popularity of lighter automobiles. Vendors are introducing innovative and lightweight materials for the interior and exterior parts of vehicles. Huntsman is focusing on the development and introduction of dense PU elastomers with barium sulfate mineral fillers that are lightweight and can contribute to NVH insulation. Another breakthrough in this industry is the development of seats that are thinner and much more comfortable. These seats have achieved a drastic reduction in weight by using composites materials and plastic polymers instead of the currently used metal side plates. Such a reduction in seat weight has resulted in more floor space and overall weight reduction of the vehicle. The use of nanotechnology to develop such thinner and lighter materials is another ongoing trend in this segment. In addition, acrylic powder is increasingly being used in automotive interior materials to enhance durability and provide a sleek, modern finish to vehicle components.

Key Automotive Interior Materials Market Challenge

Fluctuations in raw material prices is one of the key challenges hindering the automotive interior materials market growth. The manufacturing of PU foams and polyethylene foams requires raw materials, such as benzene, toluene, and other chemicals, from the oil and gas industry. Elastomers and other polymer plastics, such as PP, are used in vehicles as they are crude-oil-based materials. The oil and gas industry is one of the principal suppliers of raw materials for the global polymer market and is affected by the price

Get key insights from Market Research Intellect's Automobile Sheet Spring Assembly Market Report, valued at USD 4.5 billion in 2024, and forecast to grow to USD 6.8 billion by 2033, with a CAGR of 5.6% (2026-2033).

In 2024, the Omani passenger car market increased by 0.8% to $2.8B, rising for the seventh consecutive year after two years of decline. Overall, consumption, however, saw a noticeable reduction. Passenger car consumption peaked at $284.8B in 2015; however, from 2016 to 2024, consumption remained at a lower figure.

According to Cognitive Market Research, the Gobal Automotive Contract Manufacturing market size is USD 66584.2 million in 2024 and will expand at a compound annual growth rate (CAGR) of 9.70% from 2024 to 2031.

North America held the major market of more than 40% of the global revenue with a market size of USD 26633.68 million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.90% from 2024 to 2031.
Europe accounted for a share of over 30% of the global market size of USD 19975.26 million.
Asia Pacific held the market of around 23% of the global revenue with a market size of USD 15314.37 million in 2024 and will grow at a compound annual growth rate (CAGR) of 11.70% from 2024 to 2031.
Latin America market of more than 5% of the global revenue with a market size of USD 3329.21 million in 2024 and will grow at a compound annual growth rate (CAGR) of 9.10% from 2024 to 2031.
Middle East and Africa held the major market of around 2% of the global revenue with a market size of USD 1331.68 million in 2024 and will grow at a compound annual growth rate (CAGR) of 9.40% from 2024 to 2031.
The design and development held the highest automotive contract manufacturing market revenue share in 2024.

Market Dynamics of Automotive Contract Manufacturing Market

Key Drivers for Automotive Contract Manufacturing Market

Increasing Demand for Electric Vehicles To Boost The Market Growth

The increasing demand for electric vehicles (EVs) is significantly driving the growth of automotive contract manufacturing. As automakers strive to meet the surge in EV adoption, they are increasingly outsourcing production to specialized contract manufacturers to scale up efficiently and meet market demands. This strategy allows companies to focus on design and innovation while leveraging the expertise and capacity of contract manufacturers. The global shift towards sustainable transportation, coupled with supportive government policies and consumer preference for eco-friendly vehicles, further accelerates this trend. For instance, in April 2025, Stellantis announced plans to introduce electric vehicles in India by the end of the year, leveraging models developed by its Chinese partner, Leapmotor. (Source:https://www.reuters.com/business/autos-transportation/stellantis-targets-india-evs-developed-by-its-china-partner-2025-04-24/?)

Key Restraint for the Automotive Contract Manufacturing Market

Supply Chain Disruptions to Hamper Market Growth 

Supply chain disruptions continue to impede the growth of automotive contract manufacturing, as companies face challenges in securing critical components and materials. The ongoing semiconductor shortage, geopolitical tensions, and natural disasters have led to increased lead times, higher production costs, and delays in vehicle deliveries. These factors strain manufacturers' ability to meet market demand and maintain profitability. To mitigate these issues, companies are reevaluating their supply chain strategies, considering diversification of suppliers, and investing in inventory management systems to enhance resilience. However, the path to stabilization remains uncertain, with external factors continuing to pose significant risks. For instance, in July 2024, Audi India reported a decline in Q2 sales due to supply chain disruptions affecting component availability and production schedules. (Source:https://supplychainreport.org/audi-india-reports-decline-in-q2-2024-sales-due-to-supply-chain-disruptions/?)

Key Trends for the Automotive Contract Manufacturing Market

Rising Demand for Customization To Create Opportunities in the Market

The rising demand for vehicle customization presents significant opportunities in automotive contract manufacturing. Consumers increasingly seek personalized features, from tailored interiors to advanced infotainment systems, driving automakers to offer tailored solutions. Contract manufacturers are adapting by enhancing flexibility in their production lines, enabling quick changeovers and accommodating diverse design specifications. This trend is particularly evident in the luxury and electric vehicle segments, where differentiation is key to attracting discerning customers. Introduction of the Automotive Contract Manufacturing Market

Automotive Contract Manufacturing involves outsourcing vehicle production to specialized firms, enabling...