The global Automotive Assembly Market is estimated to be valued at US$ 41,490 Mn in 2022 and is expected to exhibit a CAGR of 5.80% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Automotive assembly market refers to the process of manufacturing automobiles through the integration of various auto components. Automotive assembly involves the systematic installation of engines, transmissions, axles, frames and body panels to form a complete automobile ready for sale. This process requires high levels of quality control and precision to ensure safety, reliability and performance of the finished vehicles.
Market key trends:
One of the major trends witnessed in the automotive assembly market is the rising popularity of contract manufacturing. Owing to growing complexities in automobile manufacturing, major automakers are opting for contract manufacturing to reduce manufacturing costs and minimize risks. Contract manufacturers provide economies of scale by allocating resources efficiently across different automotive platforms and brands. They also reduce capital expenditure requirements for individual automakers.
The global automotive assembly market is segmented by vehicle type into passenger cars and commercial vehicles. The passenger cars segment dominates the market and accounted for around 65% share of the global market in 2021 owing to increasing demand for personal mobility solutions. Within passenger cars, compact passenger cars form the largest and fastest growing sub-segment due to their cost effectiveness and fuel efficiency.
Global Automotive Assembly Market Demand is expected to witness high growth, exhibiting CAGR of 5.80% over the forecast period, due to increasing demand for personal mobility solutions especially in developing nations of Asia Pacific and Latin America.
North America dominated the market with around 30% share in 2021 owing to strong presence of major OEMs in US and Canada. However, Asia Pacific is expected to witness fastest growth owing to large population, increasing investments in automotive industry by China, India and other developing nations.
Key players operating in the automotive assembly market are BMW Group, Daimler, Ford Motor, General Motors, Honda Motor, Hyundai Motor, SAIC Motor, Stellantis, Toyota Motor, Volkswagen Group, and others. Volkswagen Group has the largest market share of around 12% globally owing to strong brand presence and vast product portfolio across different vehicle segments.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it