Automotive OEM Market Size To Hit USD 46 Billion By 2030
Automotive OEM Market (By Components: Powertrain, Chassis, Electronics and Electrical, External Body, Car Interiors; By Vehicle Type: Commercial vehicles, Passenger cars, Electric cars; By Distribution Channel: Retailers, Wholesalers, Distributors ) – Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2022-2030
The global automotive OEM market size is expected to hit around USD 46 billion by 2030 from USD 33.75 billion in 2022, growing at a CAGR of 4.17% during the forecast period from 2022 to 2030.
OEM is the original manufacturer of the components of a vehicle. When a car is manufactured the parts used are from an original manufacturer and the aftermarket parts are produced by vendors which do not have the same level of quality and are not compatible in the same manner with the vehicle. The OEM products are expensive as compared to the aftermarket parts. The installation and compatibility of the parts will be usually guaranteed by the automaker. The OEM parts are less complicated for the purpose of replacement.
Due to the COVID-19 pandemic, the production of the vehicles had stopped as there were disruptions in the supply chains. Also, the sales of vehicles were low during the pandemic.
The automotive OEM market has good potential and it is expected to grow during the forecast period as there are innovations in technologies and changes in the product offerings in the market. As the nations are adopting stringent regulations for fuel efficiency there shall be an increase in demand for the light weighted fuel-efficient OEM parts. The demand for the light weighted fuel-efficient parts will lead to an increase in the market size. Various initiatives taken by the government in order to use the original products to curb pollution and the increasing disposable income in developing nations are expected to drive the market during the forecast. An increase in the demand for various hybrid and luxury cars in developing nations is also expected to help in the growth of the automotive original equipment manufacturers market.
In the coming years, the automotive original equipment manufacturers market is expected to grow as there are rapid technological advancements with increased demand for filters for diesel engine vehicles, increased demand for batteries, and increased demand for innovation in the automotive parts with the help of qualified and experienced technical staff. There is a need for maintaining motor vehicles periodically, washing, lubrication, battery services, and tire are all the parts that are available with the service providers. The market for automotive original equipment manufacturers will grow due to the deployment of sophisticated connectivity features and the utilization of sensor data for maintenance. The original equipment. The manufacturing market is mostly driven by the increase in the production and sales of automobiles. As there is a rising concern among customers regarding safety, the market is expected to grow during the forecast. As there is increased innovation and research in this field modern cars are introduced into the market.
Report Scope of the Automotive OEM Market
Vehicle Type Insights
The automotive OEM market can be segmented into electric vehicles, passenger cars, and commercial vehicles. The electric vehicles could be batteries, electric vehicles, hybrid electric vehicles, or plug-in hybrid electric vehicles. The automotive OEM market is expected to see growth in the commercial vehicles segment. The demand for the original equipment manufacturing parts shall see a great demand in the commercial vehicles segment during the forecast period. The passenger car segment is also expected to grow during the forecast period as there is an increase in the demand for cars and the use of these vehicles globally.
On the basis of the component, the automotive OEM market is segmented into the powertrain, the chassis the body, the electronics and electrical, the external body, and the interiors of the automobile. The external body and the anterior segment of the automobile are expected to grow during the forecast period. These parts are more prone to damage hence the market shall grow.
Distribution Channel Insights
Retailers, wholesalers, and distributors are the distribution channels for the automotive OEM market. As of 2021, there is an increase in the number of sales of OEM directly to consumers through the various service centers that purchase the OEM in bulk quantities.
Growth in the sales of automobiles and demand for various passenger cars and commercial vehicles which had advanced brake technologies has led to an increase in the market size of the original equipment manufacturer market in the European region. Due to an increased demand for various vehicles in the Asia Pacific market. There shall be significant growth during the forecast period in this region. The North American market for the automobile sector is the most advanced in the world.
The United States is a great source of growth in the North American region. It favors innovation, technology, and the high-performance production of cars. Also, the US is expected to play a very important role in the development of automatic automobiles thereby increasing the OEM market.
Key Market Developments
- The use of technology in order to avoid accidents in cars by using autonomous vehicles, which are equipped with advanced recognition technologies in order to identify the obstacles along the route will help in the growth of the market.
- The high price, poor battery, and inadequate charging infrastructure for electronic vehicles are posing a challenge for the growth but still, the sales of the various electric vehicles are expected to give a boost to the market.
- The recent OEM trend of specialized tires will help the manufacturers in order to customize the product for the specific makes and models of various automobiles. The tire modeling software will help in making the manufacturing process efficient and increase the performance of the car.
- Away which is a German-based company is working with the OEM manufacturers in order to get the human-machine interface in order to revolutionize the way we interact with automobiles in order to make it safe and accessible.
- In order to protect autonomous cars from hackers and malware, various companies are developing blockchain technology in order to have practical applications which would help in monitoring the manufacturing supply chain.
- Two Indian Companies, Mahindra and Mahindra Tata Motors have increased their market share by about 5% in the Indian market, one in every five cars is made by these Indian OEMs, which are sold in India.
Key Market Players
- Toyota Motor Corporation.
- Volkswagen AG.
- Honda Motor Co.
- Magna International Inc.
- Continental AG.
- CIE automotive.
- BMW AG.
- Exide Industries limited.
- Denso Corp.
- Robert Bosch, GMbH.
- Ford Motor Company.
- Mitsubishi Motors Corp.
Segments Covered in the Report
- Electronics and Electrical
- External Body
- Car Interiors
By Vehicle Type
- Commercial vehicles
- Passenger cars
- Electric cars
By Distribution Channel
- North America
- Latin America
- Middle East & Africa (MEA)