Automotive OEM Market - Historic Data (2019-2024), Global Trends 2025, Growth Forecasts 2037
Automotive OEM Market in 2025 is evaluated at USD 40.78 billion. The global Market size crossed USD 39.3 billion in 2024 and is likely to register a CAGR of around 4.7%, exceeding USD 71.4 billion revenue by 2037. North America is expected to accumulate USD 25.85 billion by 2037, driven by a robust manufacturing infrastructure, advanced facilities, and technological innovations such as automation, robotics, and digitalization.
OEMs are embracing a shift in consumer behavior toward the adoption of new automotive technologies in BEVs and PHEVs. In recent years, Jaguar, Mini, Bentley, Volvo, and Ford Europe have announced their aspirations to emerge as BEV-only brands by the end of 2030. Other companies are also striving to make BEVs their key propulsion system in the future. In 2020, there were approximately 370 BEV models on sale and this number is anticipated to reach 800 by 2030. The consumer is set to have a pivotal role in influencing and shaping these lofty OEM ambitions during the forecast timescale.
With the bolstering of BEV manufacturing, the OEM development costs can be spread thing over higher volumes of vehicles, thereby positively reducing the cost per vehicle. In addition, reduced ICE vehicle output, is compounded by the relative BEV powertrain design simplicity that typically has 20 moving parts when compared to ICE powertrains with over 2000 moving parts. Considering tooling, facilities and launch engineering costs (TFLE) in regards to powertrains, the tipping point for cost parity of a passenger vehicle in the EU will be by 2030, and in mainland China will be 2027. Beyond these dates, the BEV sector will further benefit from the vehicle-cost gap. Against this background, automotive OEMs have identified a clear strategy to commit to electrification, meanwhile seeking upfront investments to reach scale by 2037.
