North America Market Statistics
North America automotive OEM market is poised to dominate revenue share of over 36.2% by 2037. The market is expanding in the region due to a robust manufacturing infrastructure, including advanced facilities, cutting-edge machinery, and a skilled workforce. To boost output, enhance quality assurance, and shorten the time it takes to launch new car models, original equipment manufacturers (OEMs) employ sophisticated production techniques such as automation, robotics, and digitalization.
The U.S. encourages the development of new ideas, technology, and high-performance auto manufacturing. Additionally, it is anticipated that the country will be a major player in the development of automatic vehicles, which will expand the automotive OEM market. Also, the government is implementing several laws for reducing vehicle crashes which has pressurized OEMs to incorporate advanced features in their vehicles. For instance, in April 2024, The National Highway Traffic Safety Administration (NHTSA) of the U.S. Department of Transportation finalized a new Federal Motor Vehicle Safety Standard that would require all passenger automobiles and light trucks to have automated emergency braking (AEB), including pedestrian AEB, by September 2029.
Canada is a hub for emerging technologies and is receiving significant investments in autonomous, electric, and connected vehicle research from global OEMs such as GM and Ford as well as tech giants like Uber, Google, and Nvidia. For instance, in April 2023, Ford invested USD 1.8 billion to turn Oakville (Ont.) Assembly Complex into a Canadian hub for producing electric vehicles, which will include the assembly of battery packs and vehicles.
APAC Market Analysis
The automotive OEM market in Asia Pacific is estimated to hold a significant reenue share during the forecast period. The market growth can be credited to the lower labor costs and attractive business environment for automotive production, allowing OEMs to create automobiles at cheaper costs than other regions.
The automakers in China are highly investing in research & development activities, which has led to consequent advancements in automotive technologies. Also, the country is undergoing rapid industrialization, urbanization, and motorization which is driving the demand for automobiles. According to a report by the International Institute for Environment and Development in April 2024, China's urban population rose by an astonishing 491.1 million over 25 years, despite the one-child policy, which limited natural urban population growth.
The vast consumer base of India is characterized by a rapidly expanding middle class, driven by urbanization and rising incomes, that has increasing purchasing power. The growing number of consumers drives up the cost and demand of cars, especially passenger cars. For instance, in 2020-21, the average yearly household disposable income reached over USD 27,000. By 2047, the population is predicted to have grown to over 1.66 billion.
In South Korea, the automotive OEM market for automotive original equipment manufacturers is anticipated to grow due to the growing environmental consciousness and the advancement of cleaner cars powered by renewable fuels. IEA stated that total number of electric vehicles (EVs) rose to 543,900 in 2023, a 39.5% increase over the previous year. Also, positive government regulations are expected to further curate possibilities for automotive OEM market players.
Author Credits: Saima Khursheed
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