Automotive OEM Market Size

Automotive OEM Market size is estimated at USD 39.3 billion in 2024 and is anticipated to exceed USD 69.6 billion by the end of 2037, growing at over 4.5% CAGR during the forecast period i.e., between 2025-2037. In 2025, the industry size of automotive OEM is assessed at USD 41.1 billion.

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.