Light trucks with a gasoline-fueled internal combustion engine (ICE) were the most popular type of light vehicle in the United States. Here, gasoline ICE light trucks had an estimated market share of about 54.24 percent in 2022. The current state of the U.S. market Light trucks represent most of the vehicle sales in the United States, making it the best-selling vehicle type in the country. However, light vehicle retail sales dropped in 2022, down to 13.75 million units. This 7.98 percent drop brought retail sales lower than the volume recorded in 2020, amid the onset of the COVID-19 pandemic. Motor vehicle production in the U.S. had started to recover in 2021, with the country’s output rising by just under four percent between 2020 and 2021. However supply chain shortages led to challenges for the industry. The manufacturing sector's slow recovery was in part due to the global automotive semiconductor shortage, which impacted the industry through 2021 and 2022. The sustainable vehicle market Preliminary figures for vehicles from the model year 2021 single out pickup trucks as the type of vehicle with the highest carbon dioxide emission levels, followed by vans. The overall CO2 emissions of new light-duty vehicles have decreased since 2017, but remain over 270 grams per mile for all vehicle types, with Sedans recording the lowest emission levels. Incentives to switch to alternative fuels with lower emission levels in the U.S. can include the annual fuel cost for light-duty vehicles, with all-electric vehicles recording the lowest fuel costs between 500 and 850 U.S. dollars per year as of 2021. However, the cost of fueling hybrid vehicles could climb higher than the cost of diesel-powered units. That same year, one in fifth states was considered an accessible market for consumers wishing to own an electric vehicle.

The U.S. auto industry sold nearly three million cars in 2024. That year, total car and light truck sales were approximately 15.9 million in the United States. U.S. vehicle sales peaked in 2016 at roughly 17.5 million 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 77 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 40 U.S. dollars per barrel. The decline occurred in tandem with lower gasoline prices, which came to about 2.17 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.

Worldwide car sales grew to around 78 million automobiles in 2024, up from around 75.3 million units in 2023. Throughout 2020 and 2021, the sector experienced a downward trend on the back of a slowing global economy, while COVID-19 and the Russian war on Ukraine contributed to shortages in the automotive semiconductor industry and further supply chain disruptions in 2022. Despite these challenges, 2023 and 2024 sales surpassed pre-pandemic levels and are forecast to keep rising through 2025. Covid-19 hits car demand It had been estimated pre-pandemic that international car sales were on track to reach 80 million. While 2023 sales are still far away from that goal, this was the first year were car sales exceeded pre-pandemic values. The automotive market faced various challenges in 2023, including supply shortages, automotive layoffs, and strikes in North America. However, despite these hurdles, the North American market was among the fastest-growing regions in 2024, along with Eastern Europe and Asia, as auto sales in these regions increased year-on-year. Chinese market recovers After years of double-digit growth, China's economy began to lose steam in 2022, and recovery has been slow through 2023. China was the largest automobile market based on sales with around 25.8 million units in 2023. However, monthly car sales in China were in free-fall in April 2022 partly due to shortages, fears over a looming recession, and the country grappling with the COVID-19 pandemic. By June of that same year, monthly sales in China were closer to those recorded in 2021.

Being one of the largest automotive sectors, India had over 326 million registered vehicles as of financial year 2020. It was the largest producer of two-wheelers across the globe in 2023. The market within the country was also dominated by this segment. In financial year 2024, over 17.97 million units of two-wheelers were sold domestically across the south Asian country. A decline in the sales volume of two-wheelers has been witnessed between 2020 and 2022. Hero MotoCorpHero MotoCorp had the maximum share in the two-wheeler segment in India. The company was the worldwide leader in two-wheeler manufacturing. The company has taken up the initiative of manufacturing electric scooters and bikes. To reduce the high battery costs that create a significant cost difference between the petrol and the battery variants, the Indian government has introduced the National Programme on Advanced Chemistry Cell (ACC) in 2022 to inventivize batery manufacturing. Two-wheeler market outlookThe Indian government has set a target to electrify a major proportion of the two-wheelers within the nation. However, the manufacturers have encouraged the government to adopt more ‘realistic’ expectations, as the former’s scheme would mean the electrification of over two million vehicles. With the two-wheeler industry estimated to grow at over nine percent in the next few years, more investments in the clean energy sector could pave a way for the domestic market.

Automotive Terminal Market size was valued at USD 19.67 Billion in 2023 and is projected to reach USD 40.38 Billion by 2031, growing at a CAGR of 9.41% from 2024 to 2031.

Global Automotive Terminal Market Dynamics

The key market dynamics that are shaping the Automotive Terminal Market include:

Key Market Drivers:

Rising Vehicle Production: The global rise in car production, fueled by rising consumer demand in emerging nations, directly increases the demand for automotive terminals. These terminals are required for electrical connections in vehicles, which contributes to the market’s growth as car sales increase.

Advancements in Automotive Electronics: The automobile industry’s transition to electric and hybrid vehicles, as well as the integration of advanced driver assistance systems (ADAS), entertainment, and onboard diagnostics, necessitates complex electrical systems. This evolution needs increasingly complicated and reliable automobile terminals, which drive market growth.

Stringent Environmental and Safety Regulations: Governments around the world are enforcing higher environmental and safety rules for vehicles. This regulatory pressure drives automakers to implement innovative technology that makes vehicles safer and more environmentally friendly, creating demand for high-quality automobile terminals for secure electrical connections.

Increasing Electrification of Vehicles: The growth of electric vehicles (EVs) and the electrification of vehicle components (such as power steering and brakes) necessitates a more robust and efficient electrical infrastructure. Automotive terminals serve an important function in easing electrical connections, driving market demand.

Key Challenges:

Technological Complexity and Integration Issues: The integration of intricate automobile terminals with current electrical systems presents considerable hurdles as vehicles become more technologically advanced. Ensuring compatibility, dependability, and economy across multiple vehicle models and systems is tough, increasing costs and complicated design processes, and limiting market growth.

Raw Material Price Volatility: The automobile terminal market is vulnerable to variations in raw material prices such as copper, aluminum, and plastics. These variances increase production costs, affecting manufacturers’ profitability and potentially raising end-user prices.

Environmental Concerns and Sustainability Issues: The growing emphasis on environmental sustainability presents issues for the automobile terminal market. There is a rising demand to create environmentally friendly and recyclable terminals without sacrificing functionality. Thus, balancing sustainability, technical needs, and cost-effectiveness proves to be a major market concern.

Key Trends:

Shift Towards Electric Vehicles (EVs): The Automotive Terminal Market is experiencing a substantial trend of electrification, with an increase in electric car production. This transformation necessitates the use of more specialized terminals to manage high-voltage connections, resulting in increased innovation and growth in the field to suit the changing needs of electric vehicles.

Integration of Advanced Driver-Assistance Systems (ADAS): The increasing integration of Advanced Driver-Assistance Systems (ADAS) in modern automobiles necessitates more complex wiring and terminal systems to assure dependability and safety. This trend is driving the market to produce more sophisticated automotive terminals capable of supporting the complex electrical systems of ADAS-equipped automobiles.

Smart Connectivity and IoT Integration: As automobiles become more linked, there is a greater demand for automotive terminals capable of data transmission and IoT (Internet of Things) functionality. This trend towards smart connectivity is driving innovation in terminals that allow for seamless communication between vehicle components and external devices.

Lightweight and Compact Design: With the car industry’s emphasis on increasing fuel efficiency and lowering emissions, there is a trend towards building lightweight and compact automotive terminals. These smaller, more efficient terminals assist in reducing the overall weight of the vehicle, resulting in improved performance and a lower environmental effect.

Battery electric vehicles (BEVs) are projected to incur costs of around 50 euros per 100 km in 2030, the cheapest of all motor vehicles on the road. Vehicles using synthetic fuel that are powered by a mild hybrid electric drivetrain or an internal combustion engine are forecast to be the most expensive.

BEV’s cost advantage Mobility costs refer to the expenditure required for travel; they include costs relating to fuel, tax, insurance, and depreciation. BEVs are expected to be the most cost effective in 2030 due to fewer parts and less exposure to wear and tear. Furthermore, many drivers around the world are already taking advantage of financial incentives offered for switching to electric mobility. In China, the world leader for sales of BEVs, subsidies are available on purchases of new energy vehicles, and in the United States, electric vehicle buyers are eligible for a federal tax credit of up to 7,500 U.S. dollars – a state subsidy that many survey respondents consider to be appropriate. However, policymakers are likely to reduce the subsidies on offer for the purchase of electric vehicles over the next decade.

Hybrid vehicles: the best of both worlds? There are two types of hybrid electric vehicles on the market: mild hybrid electric vehicles (MHEV) and plug-in hybrid electric vehicles (PHEV). Both have an internal combustion engine and an electric engine, but the electric motor within an MHEV is not powerful enough to propel the vehicle on its own; it simply assists the internal combustion engine when fuel consumption is particularly high. The electric engine within a PHEV can be recharged via a charging socket and is capable of powering the car by itself. It is forecast that MHEVs and PHEVs will account for around 21 percent of global car sales in 2030.

In 2024, the auto industry in the United States sold approximately 15.9 million light vehicle units. This figure includes retail sales of about three million passenger cars and just under 12.9 million light trucks. Lower fuel consumption There are many kinds of light vehicles available in the United States. Light-duty vehicles are popular for their utility and improved fuel economy, making them an ideal choice for savvy consumers. As of Model Year 2023, the light vehicle manufacturer with the best overall miles per gallon was Kia, with one gallon of gas allowing for 30.4 miles on the road. Higher brand satisfaction When asked about light vehicle satisfaction, consumers in the United States were most satisfied with Toyota, Subaru, Tesla, and Mercedes-Benz models. Another survey conducted in 2018 and quizzing respondents on their stance regarding the leading car brands indicated that Lexus was among the most dependable brands based on the number of problems reported per 100 vehicles.

In the year 2023, the majority of cars sold in India were petrol variants, with a 65 percent of the market share, despite petrol costs surging that year. That was a visible decrease from the previous year's 68 percent. Meanwhile, electric and hybrid car sales saw a significant increase from 1.8 percent the previous year to 4.3 percent.

In 2023, approximately 26 million passenger cars and four million commercial vehicles had been sold in China. Passenger vehicle sales regained growth in 2021 after three consecutive years of decline. Vehicles sales The automobile industry has been a major driving force in China’s economic momentum and, despite slowing growth, expected to continue fueling the economy. China was the world’s leading car producing country in 2023, producing approximately 26 million passenger cars and claiming a third of total global vehicle production. However, while passenger car sales in China have been skyrocketing since 2008, they have slowed somewhat since 2017. Type of vehicles During the slowdown in the vehicle sales in China, the sale of minivans, multipurpose vehicles (MPV) and sedans have slowed, but the number of SUVs sold has increased in the same year, although all sales for passenger cars started decreasing since 2017. While the gas guzzling SUV is the most popular type of passenger car in China, the production of new energy vehicles is also on the rise since the government has been promoting their use. The export value of electric passenger vehicles from China surged in recent years.

In 2023, some 455,300 new electric cars were registered in the United Kingdom. This was a year-over-year increase of 23.8 percent compared to 2022 and over double the sales recorded in 2020. Overall, electric vehicle sales have steadily grown since 2015. A growing electric vehicle market and fleet Electric vehicles have been gaining market share in the United Kingdom. Since 2021, battery-electric vehicles overtook diesel vehicles and have been the second most popular fuel type in the country through 2022. The South East was the region of England with the largest electric car market, at around 80,600 new registrations in 2022, followed by the North West and South West. This increase in sales translates to a sharp rise in the UK electric vehicle fleet, which surpassed one million units in 2022. Most of the vehicles in the electric car parc were battery-electric. Charging infrastructure and its challenges While the UK electric car fleet is steadily growing, the public charging infrastructure has also been on the rise. By July 2023, there were over 44,000 publicly available charging points in the United Kingdom. However, most of these chargers were alternating current chargers, which were typically slower than their direct current counterparts. Accessibility is also one of the leading hurdles for the UK charging network. Most public charging points were destination charging, typically located at the end of a driver's journey in areas such as retail car parks or education areas, and were not open around the clock, which presents challenges in how electric vehicle owners can recharge their vehicles without turning to private home charging.

In 2024, Toyota was the leading car manufacturer in Japan, selling around 1.36 million vehicles domestically. The overall car sales volume decreased by a few hundred thousand units, compared to the previous year, reaching about 4.42 million exemplars. Which car brands and models are most popular among Japanese customers? All car manufacturers in the upper half of the ranking were Japanese brands. It is noteworthy that the top three foreign brands listed among the country’s major market players were German car manufacturers (Mercedes-Benz, BMW, and Volkswagen). However, none of those three made it in the top ten ranks, indicating that Japanese consumers value German engineering, yet they choose to invest primarily in domestic vehicle technology.Japan’s preference for domestic car brands becomes even more apparent when looking at the country’s bestselling car models. The ranking exclusively listed car models of domestic manufacturers. The two three positions were occupied by Toyota models: the Corolla, was followed by the Yaris, and the Sienta. Besides Toyota, Nissan, and Honda were the only other brands within the top ten passenger car ranks. What are the future car trends in Japan?Japan had been increasingly branching out in electric vehicle technologies. The next-generation vehicle market is divided into battery electric vehicles (BEV), hybrid electric vehicles, plug-in hybrids (PHEV), clean diesel vehicles, and fuel cell electric vehicles (FCEV). Japanese manufacturers seem to favor gasoline-electric hybrids over all-electric vehicles for now. Although Toyota's statement in December 2021 to accelerate the shift towards BEVs attracted much attention, the industry remains prudent towards an all-electric centered lineup. One argument is that many customers worldwide still lack the infrastructure or demand for BEVs despite endeavors in Europe and North America.The Japanese government shares the prudence towards BEVs: the shift to full EVs could damage the domestic automotive parts industry, since EVs require fewer parts than hybrid alternatives. Accordingly, the announced goal is to prohibit by 2035 only the sale of new cars solely propelled by a gasoline engine. In the short and medium run, the sale of Japanese hybrids will likely expand domestically and worldwide, therefore. Eventually, hydrogen FCEV besides BEVs might play into Japanese strategies.

A record 4.7 million passenger cars and commercial vehicles were sold in India in 2022. This figure then increased by close to one million units from the previous year.

Great expectations   

With a population of around 1.4 billion people, the addressable market for vehicle sales is more than twice as big as that of South Korea. It is expected that an increased number of women and young people will join the workforce and drive the demand for mobility.

Bills, bills, bills 

India’s gross domestic product is expected to double in size between 2015 and 2024, but fuel prices continue to weigh heavily on the population: The average worker needs to spend 70 percent of his or her daily income to buy a gallon of gas. This is one of the reasons why the average per capita use of gasoline comes to only 6.4 gallons annually. This compares to almost 432 gallons in the United States per motorist per year.

As of January 2023, the total number of registered vehicles in Australia was more than 21 million. That year, the number of passenger vehicles in Australia amounted to approximately 15.33 million. Light commercial vehicles, which accounted for about 3.95 million, came next. Vehicle industry in Australia In recent times, Australia's automotive sector has experienced notable transformations. Global trends are reflected in the market's increasing popularity of SUVs and electric automobiles. Australia saw 8,688 electric car sales in the first half of 2021, demonstrating an impressive level of resilience in electric vehicle sales in the face of the ongoing worldwide coronavirus pandemic and overall trends in new vehicle sales. Furthermore, environmental concerns have impacted the car industry, resulting in an increased emphasis on emission limits and the integration of cleaner technologies. Projected car emissions in Australia are expected to decrease from approximately 43 million metric tons of carbon dioxide equivalent in 2030 to 38 million in 2035. Overall, transport emissions are also set to slightly decrease from 103 million metric tons in 2030 to 99 million in 2035. Australian electric vehicle sector For several reasons, the switch to electric vehicles has been gaining popularity in Australia. Many people are choosing electric vehicles as they become more aware of their carbon footprint and want to lessen their reliance on fossil fuels and air pollution. The increasing availability of charging infrastructure across the country also makes EVs a practical and viable option for many Australians. Investments in public electric vehicle charging infrastructure persist, and the number of charging stations has experienced substantial growth since 2020.