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The motor vehicles market size is estimated to grow at a CAGR of 6.3% between 2022 and 2027. The market size is forecast to increase by 28,721.3 thousand units. The growth of the market depends on several factors, including the growing urban population, increasing demand for fuel-efficient and low-emission vehicles, and growth in the production volume of passenger vehicles.
This motor vehicles market report extensively covers market segmentation by propulsion (ICE, electric, and hybrid), vehicle type (passenger cars and commercial vehicles), and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The growing urban population is notably driving the market growth, although environmental concerns associated with vehicle emissions may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing urban population is notably driving the motor vehicles market growth. The world is rapidly urbanizing, with more people moving to cities in search of better opportunities and a higher quality of life. According to the World Bank Group, the urban population (percentage of the total population) was 54% in 2015 and is trending to 56% in 2021. This trend is particularly pronounced in developing countries such as India with rapid economic growth and large-scale urbanization. According to the World Bank Group, India's urban population (percentage of the total population) was 33% in 2015 and is trending toward 35% in 2021. With increasing urbanization, the demand for automobiles is correspondingly increasing. As people move to cities, there is a growing demand for transportation infrastructure such as roads, highways, bridges, and public transit systems. This infrastructure often supports the use of automobiles, a convenient and efficient means of transportation within cities. In addition, modern automobiles are equipped with advanced features such as air conditioning, entertainment systems, and satellite navigation, making them attractive to city dwellers.
Urban areas are often densely populated, resulting in more traffic congestion, slower public transport, and longer commute times for residents. In this scenario, owning a car-like automobile becomes a necessity for many. Moreover, the rising disposable income of the population, especially in emerging countries such as India, is driving the demand for passenger cars. Therefore, as the urban population grows and incomes rise, more people are expected to be able to afford cars. This will further increase the demand and propel the growth of the market during the forecast period.
Technological advances in EVs are a key trend influencing the motor vehicles market growth. The growing adoption of EVs is increasingly witnessing new opportunities for different stakeholders, such as system integrators, vehicle manufacturers, engine manufacturers, and component providers. As more consumers become aware and start understanding the benefits of EVs, along with the government supporting the trend with incentives, the vendors will have to cater to this increasing demand and provide better options. The major challenges associated with the adoption of EVs are the high cost and limited range of these vehicles. In order to eliminate these, the vendors are expected to invest more time and energy in R and D and come up with better models of EVs. Most of the stakeholders in the automotive industry are expecting the year 2025 to be an inflection point, after which not only the overall prices for EVs are expected to reduce, but the necessary infrastructure will also be in place to fulfill the growing demand for EVs.
Moreover, automobile manufacturers are looking to lessen their environmental impact by using sustainable materials in their EVs. In addition, significant advancements have been made in developing efficient, high-capacity batteries for EVs. Top companies such as Tesla, BMW, and Nissan have invested heavily in developing batteries that can offer longer ranges and faster charging times. Such technological advancements are revolutionizing the EV industry, making EVs more efficient, affordable, and environmentally friendly, contributing to the growth of the market during the forecast period.
The environmental concerns associated with vehicle emissions are challenging the motor vehicles market growth. One of the biggest challenges the market is facing is environmental issues. Environmental concerns are becoming more and more important, with stakeholders demanding that automakers produce sustainable, environmentally friendly, low-emission vehicles. Customers are becoming more conscious of their carbon footprint and choosing vehicles with a lower environmental impact. Governments around the world are also cracking down on vehicle emissions, creating regulations, and imposing penalties for violations.
Vehicles emit large amounts of carbon monoxide, nitrogen oxides, and particulate matter. Cars release toxic compounds into the atmosphere with a range of negative effects on human health and the environment. About 80-90% of a car's environmental impact comes from fuel consumption, air pollution, and greenhouse gas emissions. Governments around the world set stringent fuel economy and emission standards that vehicle manufacturers must meet during vehicle production. Therefore, such standards are expected to hinder the adoption of ICE-based vehicles, which could restrain the growth of the market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Motor Vehicles Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Bayerische Motoren Werke AG: The company offers various motor vehicles such as the BMW Turbo, BMW 7 Series, and other extensive ranges of automobiles, including the premium compact class, the premium mid-size, the luxury class, and the ultra-luxury class.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the ICE segment will be significant during the forecast period. An internal combustion engine (ICE) is a type of power source that powers a variety of automobiles by burning oil or natural gas to produce heat and produce electricity, which is used to propel the vehicle in which it is installed. Most of the market is dominated by diesel and gasoline engines. The growth of this segment is attributed to the increasing disposable income of consumers and the increasing adoption of passenger vehicles, especially in emerging markets such as India. Technological developments have also led to improvements in ICE in terms of emissions, performance, and fuel efficiency. This trend is also expected to drive the growth of this segment of the market during the forecast period.
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The ICE segment was valued at 47,956.50 thousand units in 2017 and continued to grow until 2021. Economic growth is the primary growth driver for the ICE segment. As the world's population continues to grow, the demand for ICE-dependent transport is increasing. This includes cars, trucks, buses, and other commercial vehicles. As emerging countries like India continue to develop, demand for ICE-based vehicles is likely to increase, which is expected to drive the growth of the ICE segment during the forecast period.
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APAC is estimated to contribute 53% to the growth of the global motor vehicles market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
APAC is an important and rapidly growing automotive market. This region alone accounts for 46% of global car production in 2020. This market is driven by factors such as rising wealth and urbanization of the population, expanding export opportunities, and government policies promoting sustainable transportation. China, India, Japan, and South Korea are the main markets in the APAC region and account for the majority of vehicle sales. APAC may have the highest number of first-time commercial vehicle buyers, which has also led to increased sales of pickup and light trucks in the region. With rapid economic growth in the Asia-Pacific region, per capita income has risen dramatically in recent years, increasing consumer purchasing power and resulting in increased sales of automobiles, especially passenger cars and light commercial vehicles. Moreover, technological advancements in the automotive industry, especially the development of powertrain technology, are expected to contribute to the growth of the market.
In 2020, COVID-19 pandemic wreak havoc across the world. To curb the spread of the disease, governments from across the world imposed curfews that adversely affected entire manufacturing processes for up to 90 days. Supply chain management was also affected by movement restrictions and border closures. This negatively impacted the manufacturing processes of many manufacturers, including automobiles, in 2020. However, initiatives such as mass vaccination promotions by governments and restrictions on community gatherings facilitated a rapid recovery from the pandemic, with demand and supply chains gradually recovering to 2019 levels. The containment of the pandemic has also helped automakers to resume manufacturing activities. Therefore, the market is expected to register moderate growth during the forecast period.
The motor vehicles market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the global motor vehicles market as part of the global automotive market under the global automobiles and components industry. The parent market, the global automotive market, includes companies that manufacture vehicles such as passenger cars, commercial vehicles, and SUVs. Technavio calculates the global automotive market size based on the combined revenues of automakers including passenger cars, commercial vehicles, and SUVs.
Motor Vehicles Market Scope |
|
Report Coverage |
Details |
Page number |
178 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.3% |
Market growth 2023-2027 |
28,721.3 thousand units |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.47 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 53% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Bayerische Motoren Werke AG, Beijing Automotive Group Co. Ltd., BYD Co. Ltd., Dongfeng Motor Group Co. Ltd., Ford Motor Co., Guangzhou Automobile Group Co. Ltd., Honda Motor Co. Ltd., Hyundai Motor Co., Mahindra and Mahindra Ltd., Mercedes Benz Group AG, Porsche Automobil Holding SE, Renault SAS, SAIC Motor Corp. Ltd., Stellantis NV, Tata Motors Ltd., Tesla Inc., General Motors Co., Toyota Motor Corp., Zhejiang Geely Holding Group Co. Ltd., and China FAW Group Co. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Propulsion
7 Market Segmentation by Vehicle Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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