Sunday, July 14, 2024
BusinessGlobal Automotive Market: COVID-19, Growth & Forecast 2020-2030

Global Automotive Market: COVID-19, Growth & Forecast 2020-2030

The Global Automotive Market consisted of 85.32 million units in 2020, and is expected to reach 122.83 million units by 2030. The industry is expected to grow at a CAGR of 3.71% from 2020-2030.

The automotive industry, an essential economic criterion, is on the verge of new technologies and innovations. Moreover, customers’ demand for unique and costly features is leading the automotive industry in the modern era. Globally the automobile industry is supported by various factors such as the availability of skilled labour at low cost, robust R&D centres, and low-cost steel production.

Globally, today’s consumers use all-purpose vehicles, whether they are commuting alone to work or taking the whole family to the beach. The industry’s principal categories include EV, HEV, PHEV, MHEV, NGV, FCEV, Diesel and Petrol. The MHEVs represent a technological leap in the automotive market – vehicles solely based on a combustion engine. From today’s viewpoint, combustion engine-based powertrains will remain dominant, at least for the coming decade.

Furthermore, MHEVs are also bringing higher efficiency and lower running costs to combustion engines and could therefore provide promising opportunities for OEMs, suppliers, and customers until electric powertrains become ubiquitous. Also, consumers’ new habit of using tailored solutions for each purpose will lead to specialized vehicles designed for particular necessities. For instance, the market for a car mainly built for e-hailing services – that is, a car designed for high utilization, robustness, additional mileage, and passenger comfort – would already be millions of units today, and this is just the beginning.

The Asia Pacific is the largest market due to the growing demand for passenger cars and fuel-efficient vehicles. The developments in engine technology are progressing significantly, accompanying the rising emission standards across the globe. These factors are notable patrons to the incremental growth of the automotive market in the region. Moreover, the rising adoption of MHEVs in the Asia Pacific is expected to drive automotive production. In Asia Pacific countries, winning government incentives to simplify electro mobility and increased investments by automakers are expected to drive the market.

For instance, some of the recent initiatives taken by the Government of India are:

  • In Union Budget 2021-22, the government introduced the voluntary vehicle scrappage policy, expected to advance the market for new vehicles after lifting old unfit vehicles currently plying on the Indian roads.
  • In February 2021, the Delhi government started setting up 100 vehicle battery charging spots across the state to expedite the adoption of electric vehicles.

The global automotive market is dominated by major players such as Volkswagen, Toyota Motor Corporation, Daimler AG, Ford Motor Company and Honda Motor Company. These companies offer an extensive variety of automotive, fulfilling all significant functions in a vehicle. The key strategies adopted by these companies to sustain their market position are new product developments, acquisitions, and partnerships & expansions.

COVID-19’s Devastating Effect on the Global Automotive Market

The coronavirus (COVID-19) pandemic has induced a decade of expansion in the global automotive industry to an abrupt standstill, with sales plummeting in most markets. As a result, there have been more job cuts beyond the sector, with plants and suppliers shutting down in countries where the markets are slowest to recover.

After a disastrous 2020 for the global automotive sector, an upturn is expected in 2021, but carmakers worldwide will demand to seek out growth pockets while pushing through extensive cost-cutting programmes. The rivalry among the US and China will continue in 2021. Sanctions and investment restrictions may even force third-party countries to choose between the two rivals.

Research and Markets
Research and Markets was founded in 2002 with one simple aim; to connect businesses with the market insights and analysis they need to enable intelligent decision-making. Since then we have grown into the world’s largest market research store with clients all over the world, including 450+ of the Fortune 500 Clients, choosing to buy their research from us.