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.

Motor vehicle sales grew by some 11.9 percent worldwide between 2022 and 2023. Passenger vehicles increased by around 11.3 percent compared to the previous year when some 58.6 million cars were sold worldwide. The current state of the market In 2023, motor vehicle sales reached over 92.7 million units worldwide. China was the largest automobile market worldwide, making up close to 25.8 million of the new car registrations that same year. The United States and Europe ranked second and third, with light vehicle sales reaching approximately 15.5 million units in the U.S. market. The German-based Volkswagen Group and Japanese Toyota Motor were the global leading automakers, with revenues reaching around 348.6 and 311.9 billion U.S. dollars respectively as of May 2024. The path to recovery The automotive chip shortage led to around 11.3 million vehicles being cut from worldwide production in 2021, and forecasts estimate that these disruptions in the automotive supply chain will contribute to the removal of another seven million units from production in 2022. However, despite these challenges, the demand for passenger cars increased in 2021 and 2022, as car sales slowly started to increase. This is partly due to consumers' interest in electric vehicles. Autonomous,electrified, and battery electric vehicles are also forecast to gain popularity in the next decades. Electrified vehicles are projected to make up close to a quarter of car sales worldwide by 2025. By 2040, China is forecast to be one of the largest market for autonomous vehicle sales.

The U.S. auto industry sold nearly ************* cars in 2024. That year, total car and light truck sales were approximately ************ in the United States. U.S. vehicle sales peaked in 2016 at roughly ************ units. Pandemic impact The COVID-19 pandemic deeply impacted the U.S. automotive market, accelerating the global automotive semiconductor shortage and leading to a drop in demand during the first months of 2020. However, as demand rebounded, new vehicle supply could not keep up with the market. U.S. inventory-to-sales ratio dropped to its lowest point in February 2022, as Russia's war on Ukraine lead to gasoline price hikes. During that same period, inflation also impacted new and used car prices, pricing many U.S. consumers out of a market with increasingly lower car stocks. Focus on fuel economy The U.S. auto industry had one of its worst years in 1982 when customers were beginning to feel the effects of the 1973 oil crisis and the energy crisis of 1979. Since light trucks would often be considered less fuel-efficient, cars accounted for about ** percent of light vehicle sales back then. Thanks to improved fuel economy for light trucks and cheaper gas prices, this picture had completely changed in 2020. That year, prices for Brent oil dropped to just over ** U.S. dollars per barrel. The decline occurred in tandem with lower gasoline prices, which came to about **** U.S. dollars per gallon in 2020 - and cars only accounted for less than one-fourth of light vehicle sales that year. Four years on, prices are dropping again, after being the highest on record since 1990 in 2022.

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

The U.S. Automotive Market size was estimated at USD 858.07 Million in 2024 and is projected to grow at a CAGR of 6.6% from 2025 to 2034.

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.

The United States Automotive EPS Market has been segmented By Vehicle Type (Passenger Cars, and Commercial Vehicles), By EPS Type (Colum Assist Type, Pinion Assist Type, Rack Assist Type), and By Component Type (Steering Column, Sensor, Steering Motor and Other Components)

The United States Automotive Logistics Market is segmented by service (transportation, warehousing, distribution, and inventory management, and other services) and type (finished vehicle, auto components, and other types). The market size and forecasts for The United States Automotive Logistics Market are provided in terms of value (USD Billion) for all the above segments.

In 2023, U.S. Automotive AI Market reached a value of USD 1.40 billion, and it is projected to surge to USD 7.75 billion by 2030

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.

Total Vehicle Sales in the United States decreased to 15.30 Million in June from 15.70 Million in May of 2025. This dataset provides the latest reported value for - United States Total Vehicle Sales - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

The Latin America automotive market had a volume of 5.90 Million Units in 2024. The industry is expected to grow at a CAGR of 4.80% during the forecast period of 2025-2034. Rapid urbanization across the region is increasing demand for personal and public vehicles thus putting pressure on cities to grow, while improvements in infrastructure and general accessibility for middle-class consumers allow for ownership of vehicles. In turn, all these factors have resulted in the market attaining a volume of 9.43 Million Units by 2034.

The United States Automotive Sensors Market Report is Segmented by Sensor Type (Temperature Sensors and More), Application (Powertrain and More), Vehicle Type (Motorcycles and More), Sales Channel (OEM and More), Propulsion (Internal Combustion Vehicles and More), and Sensor Technology (MEMS and More). The Market Forecasts are Provided in Terms of Value (USD) and Volume (Units).

The United States Automotive Air Filters Market Report is Segmented by Material Type (Paper, Synthetic, and More), Filter Type (Intake Filters [Cellulose Intake and More] and Cabin Filters [Particulate and More]), Vehicle Type (Passenger Cars, Light Commercial Vehicles, and More), Sales Channel (OEM and Aftermarket), and Distribution Channel (Online Retailers and More). The Market Forecasts are Provided in Terms of Value (USD).

The US automotive smart keys market manufacturers is segmented by Application (Single Function and Multi-function), Technology (Remote Keyless Entry and Passive Keyless Entry), and Installation (OEM and Aftermarket).

North America Automotive Market Size was valued at USD 875.2 Billion in 2024 and is anticipated to reach USD 1,134.5 Billion by 2032, growing at a CAGR of 3.4% from 2026 to 2032.

Key Market Drivers:

Electric Vehicle Adoption: There has been a significant rise in electric vehicle (EV) ownership, with over 9.746 million EVs registered in the US as of July 2023, accounting for more than 10% of all vehicles in the country. This shift is supported by government incentives and policies aimed at promoting sustainable transportation.

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Automotive Software Market Size 2025-2029

The automotive software market size is forecast to increase by USD 41.97 billion at a CAGR of 16.5% between 2024 and 2029.

The market is experiencing significant growth due to the increasing demand for differentiated in-car experiences. This trend is driven by consumers seeking advanced features and connectivity solutions in their vehicles, especially luxury cars. One key development in this area is the adoption of Over-the-Air (OTA) updates for software components. OTA updates enable automakers and suppliers to deliver new features, enhancements, and bug fixes to vehicles remotely, improving the customer experience and reducing the need for costly recalls. However, the rising complexity in automotive software architecture poses a challenge for Original Equipment Manufacturers (OEMs) and suppliers. The integration of multiple software systems and components increases production costs and requires significant resources for testing and validation.
This complexity also increases the risk of cybersecurity vulnerabilities, which can lead to potential safety concerns and reputational damage. These systems serve as instructions enabling user interaction with in-vehicle hardware, facilitating control functions within the vehicle and complement automotive passive safety systems and automotive active safety systems. To capitalize on market opportunities and navigate these challenges effectively, companies must invest in robust software development processes, prioritize cybersecurity, and collaborate with industry partners to share knowledge and resources.

What will be the Size of the Automotive Software Market during the forecast period?

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The market continues to evolve, with safety and security features taking center stage. Automakers integrate various applications, including advanced driver-assistance systems, automatic emergency braking, lane departure warning, blind spot detection, and traffic sign recognition, seamlessly into vehicles. These systems enhance the driving experience, optimize fuel efficiency, and prioritize vehicle cybersecurity. Embedded Software, machine learning, and artificial intelligence are integral components of modern vehicles. Applications such as adaptive cruise control, head-up display, and automated valet parking are becoming standard features. Furthermore, fleet management, vehicle-to-infrastructure communication, and mobility services are transforming the automotive supply chain. Software development and validation, testing, and integration are crucial aspects of the market.
Digital cockpits, internet of things, data analytics, and cloud-based platforms are revolutionizing the industry. Over-the-air updates, API integration, and vehicle data management are essential for maintaining vehicle performance and ensuring optimal functionality. Moreover, the market's continuous dynamism extends to electric vehicles, which require specialized software for battery management and charging infrastructure integration. Ride Sharing services and autonomous driving are also shaping the future of the automotive industry. The integration of vehicle-to-vehicle communication and connected car technologies is further transforming the landscape, offering new opportunities for innovation and growth.

How is this Automotive Software Industry segmented?

The automotive software industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Application

  Safety system
  Infotainment and telematics
  Powertrain
  Chassis


Product

  Application software
  Middleware
  Operating system


Vehicle Type

  Passenger Vehicles
  Commercial Vehicles
  Electric Vehicles (EVs)
  Autonomous Vehicles


Propulsion Type

  ICE
  EV


EV Application

  Battery Management Systems (BMS)
  Charging Management
  Vehicle-to-Grid (V2G)


Software Type

  Autonomous Driving Software
  Infotainment Software
  Vehicle Management Software
  Telematics Software


End-User

  OEMs (Original Equipment Manufacturers)
  Aftermarket
  Tier-1 Suppliers


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  Middle East and Africa

    Egypt
    Oman
    UAE


  APAC

    China
    India
    Japan


  South America

    Argentina
    Brazil


  Rest of World (ROW)

By Application Insights

The safety system segment is estimated to witness significant growth during the forecast period.

The market is witnessing significant growth due to the integration of advanced technologies in vehicles. Safety and security are key focus areas, with regulations such as the National Highway Transportation Safety Authority's (NHTSA) mandate for rear-view cameras and

This statistic illustrates the share of new light vehicles sold in the United States between January and April 2018, broken down by segment. As of April 2018, almost 16 percent of new light vehicles sold in the United States were pickups.

Artificial intelligence (AI) in the automotive market is set to record a robust CAGR of 55% during the forecast period. The market holds a share of US$ 9.3 billion in 2023 while it is anticipated to cross a value of US$ 744.39 billion by 2033.

Category-wise Insights

US Automotive Aftermarket market size earned USD 260 billion in 2024 and is projected to reach USD 348 billion in 2032, exhibiting at a CAGR of 3.7% till 2032