Global Motor Vehicle Market 2023-2027 to Grow at CAGR 6.3%
From 2023 to 2027, the motor vehicles market is estimated to grow by 28721.3 thousand units. As per the forecast for the stated years, the CAGR is pegged at 6.3%. The motor vehicles market is segmented by vehicle (commercial vehicles and passenger cars), propulsion (hybrid, electric, and ICE), as well as geographical landscape (North America, South America, APAC, Middle East, Europe, and Africa). To understand the latest trends, current market scenario, and analysis, you must know the market environment overall.
The key drivers here are the demand for low-emission and fuel-efficient vehicles, the urban population, and the growth in the manufacturing of passenger vehicles. The motor vehicles market research report takes you through the major reasons for the projected growth over the next few years and talks about the technological advances in electric vehicles. It also focuses on shared mobility and increased vehicle connectivity.
Something worth noticing is spring in the demand for electric components in vehicles, and the adoption of it among the common masses and for commercial use. You will also get to review the historic data from 2017 to 2021.
Global Motor Vehicle Market Trends and Innovations:
The growth of the motor vehicle market is significantly influenced by technological developments in EVs. New opportunities for various stakeholders, including vehicle manufacturers, system integrators, component vendors, and engine manufacturers are being created by the increasing usage of EVs. Vendors will need to meet this rising demand and offer better options as awareness among consumer’s means their ability to comprehend the advantages of EVs. The government continues to encourage the trend with incentives.
·The limited range and high price of EVs are the main obstacles to their widespread adoption. Vendors are anticipated to devote more time and effort to R&D and create better EV models to get over the challenges.
·The majority of those involved in the automobile sector believe that 2025 will mark an important turning point for EV prices, after which the infrastructure needed to meet the rising demand for EVs will also be in place.
·By incorporating sustainable materials into their EV designs, automakers hope to have a smaller negative influence on the environment
·Significant progress has also been achieved in creating effective, large-capacity batteries for EVs.
Leading corporations like Nissan, BMW, Tesla, and others have extensively invested in the creation of batteries that can provide quicker charging times and longer ranges. As a result of these technical developments, the EV market is expected to increase over the forecast period by making EVs more effective, economical, and environmentally friendly.
Reasons for Global Motor Vehicles Market Growth in Recent Times:
The rise of the motor vehicle market is particularly driven by the expanding urban population. More people are relocating to cities in quest of better prospects and a higher standard of living, which is hastening the world's fast urbanization. The urban population was 54% in 2015, and the World Bank Group projects that it will increase to 56% in 2021. With their rapid growth in GDP and extensive urbanization, developing nations like India exhibit this trend to a particularly dramatic degree.
The World Bank Group estimates that 33% of Indians lived in urban areas in 2015, and that number is expected to rise to 35% by 2021. The demand for cars is rising in line with the rate of urbanization. The need for transportation infrastructure, such as public transit systems, highways, roads, and bridges is increasing as more people move to urban areas. The usage of autos, a practical and effective mode of transportation inside cities, is frequently supported by this infrastructure.
·Modern vehicles also come with cutting-edge technologies like entertainment systems, satellite navigation, and air conditioning, which appeal to city inhabitants.
·Due to the high population, urban regions are susceptible to traffic congestion, slower public transportation, and longer commute times for inhabitants.
·Owning a car-like vehicle becomes necessary for many people in this situation. The demand for passenger automobiles is being fuelled by the population's increasing disposable income, particularly in emerging nations like India.
·Therefore, it is anticipated that more individuals will be able to buy cars as the urban population and salaries increase. This will boost the market's growth during the forecast period and raise demand.
Fastest Growing Segment in Global Motor Vehicle Market:
During the anticipated timeframe, the ICE segment's market share will increase significantly. A variety of cars are powered by internal combustion engines (ICEs), which burn fuel like petrol or oil to create heat and energy used to move the car they are installed in. Engines powered by diesel and petrol make up the majority of the market. The expansion of this industry is linked to rising consumer disposable income and rising passenger car use, particularly in developing nations like India.
·Technological advancements have improved ICE in terms of fuel efficiency, performance, and emissions. The ICE category has a 2017 market value of 47,956.50 thousand units and will continue to accelerate until 2021.
·The ICE segment's main growth engine is economic growth. The need for transport based on ICE is growing as the world's population expands.
·Buses, cars, trucks, and other commercial vehicles fall under this category. Demand for ICE-based vehicles is set to rise.
·Especially, developing nations like India continue to grow, which is anticipated to fuel the expansion of the ICE segment throughout the forecast period.
Global Motor Vehicles Market Challenges and Threats:
The growth of the motor vehicle sector is being hampered by environmental issues related to vehicle emissions. Environmental concerns are one of the greatest difficulties the market is currently facing. Stakeholders are pressing automakers to provide sustainable, eco-friendly, low-emission automobiles as environmental issues take on increasing importance. Customers are choosing vehicles with a reduced environmental impact as they become more aware of their carbon footprints.
·Nitrogen oxides, particulate matter, and carbon monoxide are all widely released by vehicles. The poisonous substances that cars discharge into the atmosphere have a variety of detrimental consequences on both environment and human health.
·Governments all across the world are also strictly enforcing laws on vehicle emissions and levying fines for noncompliance.
·The environmental impact of a car is mostly caused by its fuel use, air pollution, and greenhouse gas emissions.
·Since ICE-based vehicle adoption is predicted to be hampered by such standards, the market's expansion during the projection period may be constrained.
Global Motor Vehicle Market Regional Analysis:
During the projected period, APAC is anticipated to contribute 53% to the growth of the global motor vehicle market. APAC is a significant and quickly expanding market for automobiles. In 2020, this region will produce 46% of all cars produced worldwide. Expanding export potential, government initiatives supporting sustainable mobility, rising wealth, and urbanization of the population, among other things, are the main drivers of this sector. The key markets in the APAC area, which account for the majority of car sales, are South Korea, India, Japan, and China.
·The biggest proportion of first-time purchasers of commercial vehicles may be found in APAC, which has boosted the market's sales of light and pickup trucks.
·The Asia-Pacific area has had a strong economic expansion, and per capita, income has increased significantly in recent years.
·This has improved consumer spending power and increased sales of automobiles, particularly light commercial vehicles, and passenger cars.
·Furthermore, it is anticipated that technological developments in the automobile sector, particularly the enhancement of powertrain technology, will support market expansion.
Major Vendors in the Global Motor Vehicles Market:
With the report on the global motor vehicles market, you will get an idea of the market forecast, market sizing, and industry analysis. There is a detailed outlook on vendors and their analysis and with that, you can improve the market position of your firm or clients. Some of the leading vendors in the motor vehicle market are:
Guangzhou Automobile Group Co. Ltd.
Dongfeng Motor Group Co. Ltd.
Bayerische Motoren Werke AG
Beijing Automotive Group Co. Ltd.
Zhejiang Geely Holding Group Co. Ltd.
Mahindra and Mahindra Ltd.
Porsche Automobile Holding SE
Along with vendor assessment, you will also get knowledge about the upcoming trends, company strategies, factors that influence the market growth, competition, qualitative and quantitative research, summation of data, challenges, profit, promotions, pricing, and further opportunities in the industry.
The Global Motor Vehicles Market seeks growth in different sectors, especially for passenger cars, EVs, and ICE segments. It also faces environmental challenges and fuel-related issues, pricing, and other setbacks. Given the rise in urban population, we can hope for continued growth in motor vehicle demand around the world.
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