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The passenger car market size is forecast to increase by USD 873.26 million, at a CAGR of 7.96% between 2023 and 2028. The growth of the electric vehicle (EV) market is driven by several crucial factors, including the growing popularity of EVs due to government incentives and initiatives to promote sustainability, the rise of ridesharing platforms integrating EVs into their fleets to reduce carbon footprint and improve operational efficiency, particularly in urban areas, and the increasing incorporation of advanced electronics in passenger cars, such as autonomous driving systems with automotive technologies, infotainment systems, and safety features, enhancing the appeal of EVs and making them more attractive to consumers, as automakers invest in electric mobility and develop innovative technologies to improve the performance and user experience of EVs, collectively contributing to the expansion of the EV market as it addresses consumer preferences for eco-friendly transportation and the need for sustainable solutions in the automotive industry. The market research report provides detailed insights, covering the market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD million for each of the mentioned segments, offering a comprehensive understanding of the market's trajectory and the factors shaping its expansion.
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Our researchers analyzed the data with 2023 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.
One of the key factors driving the market is the growing popularity of EVs. A majority of government bodies globally are taking several initiatives to promote the adoption of EVs. In addition, unlike ICE-based vehicles, EVs significantly reduce air pollution as they do not emit harmful pollutants such as particulates, carbon monoxide, hydrocarbons, and volatile organic compounds.
Moreover, various benefits and rewards provided by governments, an increase in participation from foreign as well as regional players in the development of EVs, and increased buyer intent are becoming crucial drivers for the adoption of EVs. Furthermore, in China, the government provides subsidies to firms engaged in the manufacturing of EVs. Hence, such factors are driving the market growth during the forecast period.
A key factor shaping the market is the growing use of 3D printing in passenger cars. In the passenger vehicle industry, 3D-printed cars provide customization options, lightweight structures, and minimal production time. In addition, while still in its nascent stages, 3D printing holds immense potential to revolutionize the global passenger car market in the coming years. Furthermore, personalized car components like custom dashboards, steering wheels, or even exterior trims can be printed to cater to individual preferences, enhancing the appeal and value proposition.
Moreover, 3D printing allows for rapid prototyping of new car parts and designs, accelerating the development process and reducing costs. In addition, complex geometries and intricate structures, previously difficult to manufacture, become feasible, opening doors for innovative car designs. Furthermore, 3D printing has the potential to enable on-demand manufacturing of spare parts, reducing lead times and inventory costs. Hence, such factors are driving the market growth during the forecast period.
The infrastructure gap for EVs are one of the key challenges hindering the market. While the adoption of electric vehicles is rising, the lack of development of supporting infrastructure, including charging stations, creates barriers that impact consumer confidence and limit the widespread acceptance of electric cars. In addition, the limited availability of charging stations contributes to range anxiety, where potential EV buyers worry about the distance their vehicle can travel before needing a recharge.
Moreover, this concern can deter consumers from transitioning to electric cars. Limited charging options can create bottlenecks during peak hours, leading to long waiting times and further discouraging EV adoption. In addition, urban areas often have more charging infrastructure, making EV ownership more feasible. Furthermore, rural and less populated areas tend to lack the necessary charging infrastructure, deterring potential EV buyers in these regions. Hence, such factors are hindering the market growth during the forecast period.
The market forecasting 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 market analysis and report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies 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.
Aston Martin Lagonda Ltd: The company offers passenger cars such as DBX, DB12, DBS 770 Ultimate, DBS 770 Ultimate Volante, Vantage, and Valour.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The SUV segment is estimated to witness significant growth during the forecast period. SUV segment offer spacious interiors and versatile cargo space, making them ideal for families and individuals who prioritize ample room for passengers and luggage. In addition, the versatile design suits various lifestyle needs. The elevated driving position in SUVs provides better visibility of the road, contributing to a sense of safety and control.
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The SUV segment was the largest segment and was valued at USD 682.56 million in 2018. Moreover, consumers appreciate the commanding view, especially in urban and off-road driving conditions. In addition, many SUVs come equipped with off-road capabilities, making them popular among adventure-seeking consumers. Furthermore, the ability to handle diverse terrains and weather conditions appeals to a wide range of buyers. Passenger cars also increasingly rely on advanced automotive glass to enhance safety, improve visibility, and contribute to the overall driving experience. In addition, SUVs often incorporate advanced safety features, contributing to their appeal to families and safety-conscious consumers. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
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APAC is estimated to contribute 55% to the growth of the global 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 leads the global automotive industry in terms of the manufacturing and sales of automobiles. In addition, this is fuelled by the high demand for automobiles in countries such as China, Japan, South Korea, India, and Thailand. Moreover, China dominates regional automotive production and sales, followed by Japan. In addition, the high production and sales of automobiles in APAC contribute to the growth of the regional market. Furthermore, the growing demand for luxury vehicles in China, Japan, and South Korea is also fueling the growth of the regional market. In addition, emerging markets like India and other Southeast Asian countries are expected to act as key regional market growth contributors. Hence, such factors are driving the market growth in APAC during the forecast period.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest market trends and analysis and growth opportunities from 2018 to 2028.
The global passenger car market continues to evolve with advancements in automotive technology and electrification. Traditional Gasoline vehicles face competition from emerging trends like FCEV (Fuel Cell Electric Vehicles) and electric cars, driven by environmental concerns and technological innovations. Volkswagen Group remains a key player, investing in electric and autonomous vehicle development to meet changing consumer demands. Sports Utility Vehicles (SUVs) retain popularity, catering to diverse lifestyles and preferences.
Moreover, the rise of self-driving cars is reshaping the industry, promising enhanced safety and convenience. This transformation is accompanied by a surge in the automotive electronics market, as vehicles become increasingly connected and autonomous. Automation is driving efficiency gains in manufacturing processes, reflecting the industry's commitment to innovation and sustainability.
Passenger Car Market Scope |
|
Report Coverage |
Details |
Page number |
184 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.96% |
Market Growth 2024-2028 |
USD 873.26 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.34 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 55% |
Key countries |
US, China, India, Japan, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aston Martin Lagonda Ltd., BMW AG, BYD Co. Ltd., Ford Motor Co., Geely Auto International Corp., General Motors Co., Great Wall Motor Co. Ltd., Honda Motor Co. Ltd., Hyundai Motor Co., Mahindra and Mahindra Ltd., Mazda Motor Corp., Mercedes Benz Group AG, Renault SAS, SAIC Motor Corp. Ltd., Stellantis NV, Suzuki Motor Corp., Tata Motors Ltd., Tesla Inc., Toyota Motor Corp., and Volkswagen AG |
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 the 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. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Fuel Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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