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Cars Market Size
Cars Market size was valued at USD 1.55 trillion in 2022 and is anticipated to register a CAGR of 10.3% between 2023 and 2032. The growing global population and urbanization are driving the market growth. As the global population grows and more people move to urban areas, the demand for personal mobility increases. Urbanization often leads to longer commutes and a greater need for convenient transportation, driving car sales. Urban environments require versatile vehicles that can navigate crowded streets and provide comfort, making cars a preferred choice for commuting and meeting transportation needs in the expanding cities worldwide.
The rising disposable incomes significantly influence the cars market as individuals have greater purchasing power for high-cost items such as cars. This fuels the demand for vehicles as consumers are more inclined to invest in personal transportation for convenience, comfort, and status. Higher disposable incomes enable people to consider more car options including luxurious models and advanced features, boosting the growth & diversification of the market.
| Report Attributes | Details |
|---|---|
| Base Year: | 2022 |
| Market Size in 2022: | USD 1.55 Trillion |
| Forecast Period: | 2023 to 2032 |
| Forecast Period 2023 to 2032 CAGR: | 10.3% |
| 2032 Value Projection: | USD 4.06 Trillion |
| Historical Data for: | 2018 - 2022 |
| No. of Pages: | 200 |
| Tables, Charts & Figures: | 646 |
| Segments covered: | Vehicle type, End-use, Propulsion Type, Sales Channel, Region |
| Growth Drivers: |
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| Pitfalls & Challenges: |
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The rising cost concerns refer to the initial purchase price, fuel costs, insurance, maintenance, and potential financing fees. To address these concerns, automakers can focus on producing more fuel-efficient & low-cost models. Governments can provide incentives for battery electric vehicles (BEVs), reduce vehicle taxes, and promote public transportation as an alternative. Ridesharing & car-sharing services can also mitigate individual ownership costs, offering consumers cost-effective transportation. Ultimately, a combination of these measures can help reduce the rising cost concerns
COVID-19 Impact
The COVID-19 pandemic had detrimental impacts on the cars market. Lockdowns and economic uncertainties led to decreased consumer spending and disrupted supply chains, causing a sharp decline in car sales. Manufacturing plants temporarily halted operations, resulting in production delays. The shift to remote work and reduced commuting declined the demand for personal vehicles. The overall economic downturn, coupled with these factors, significantly affected the market with many automakers facing decreased sales and financial challenges.
Cars Market Trends
Autonomous cars are an emerging trend in the cars industry, representing a transformative shift in the way people perceive & use vehicles. These self-driving vehicles use advanced sensors, AI, and connectivity to navigate roads without human intervention, offering convenience, safety, and potentially reduced traffic congestion. Automakers and technology giants are heavily investing in autonomous technology, with companies including Tesla and Waymo leading the way. As the technology matures and gains regulatory approval, autonomous cars are expected to revolutionize the future of transportation, becoming a prominent trend in the market.
Technological advancements are another emerging trend in the cars market, transforming vehicles into sophisticated, connected, and intelligent machines. Features, such as Advanced Driver-assistance Systems (ADAS), electric powertrains, and cellular vehicle-to-everything (C-V2X), are redefining the driving experience. Innovations including autonomous driving, vehicle-to-vehicle communication, and sustainable materials are shaping the future of the automotive industry. These advancements enhance safety, efficiency, and sustainability, making technology a key driver of change & growth in the cars market.
For instance, in September 2023, Saudi Arabia announced its plan to launch the 5.9 gigahertz bandwidth for “vehicle-to-everything” technology. The initiative aims at enhancing Saudi Arabia’s quality of life by bolstering road safety and offering vital real-time information to drivers.
Cars Market Analysis
The individual segment accounted for around 65% of the cars market share in 2022, as personal mobility remains a priority for consumers. With a desire for convenience & safety, individuals seek vehicles tailored to their specific needs & preferences. Customization options, from vehicle type and features to aesthetics, are increasingly available. The growing urbanization and changing work patterns are driving the need for personal transportation, boosting the demand for cars that offer comfort, connectivity & versatility. This trend highlights the significance of catering to individual buyers in the evolving cars market.
For instance, in September 2023, Toyota is set to introduce a new version of its luxury sedan, the Century, in Japan. The launch aims to cater to the individual segment by offering a high-end, bespoke vehicle tailored to specific preferences & needs. The Century's opulent design and advanced features provide a personalized & luxurious driving experience, garnering the attention of discerning buyers seeking exclusivity and comfort in their choice of transportation.
The gasoline segment held over 70% of the cars market share in 2022, owing to its wide availability & efficiency. While electric & hybrid vehicles are gaining popularity, gasoline-powered cars remain appealing, especially in regions with an established refueling infrastructure. Advancements in gasoline engine technology, such as turbocharging and direct injection, are improving fuel efficiency and reducing emissions, making gasoline-powered cars a viable choice. As consumers seek affordable & convenient options, the gasoline segment is expected to maintain its prominence in the market.
Asia Pacific cars market recorded more than 50% of revenue share in 2022. Factors driving this expansion include increasing urbanization, growing middle-class population, and rising disposable incomes in countries including China and India. These factors fuel the demand for personal transportation.
Government initiatives promoting electric & hybrid vehicles, along with improved infrastructure and transportation networks, augment regional automotive market growth. Asia Pacific is becoming a crucial hub for car production & sales, reflecting its pivotal role in the global automotive industry. For instance, in September 2023, Tata Motors announced to launch EV-only dealerships in India. It facilitates a specialized space for consumers to explore & purchase EVs, driving the EV market growth in the country.
Cars Market Share
The major companies operating in the cars market include
- BMW Group
- Ford Motor Company
- Toyota
- Volkswagen
- Suzuki
- Daimler AG
- Hyundai
- Nissan
- Honda Motor Company
These companies are focused on strategic partnerships, new product launches, and commercialization efforts for market expansion. They are also heavily investing in research to introduce innovative products and garner the maximum market revenue.
Cars Industry News
- In September 2023, Honda announced to launch the Elevate SUV model in an electric form in India. This signifies Honda's commitment to expanding its EV lineup and catering to the growing demand for eco-friendly transportation. This move aligns with the global shift toward electric mobility and sustainability, significantly fostering market size.
This cars market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) and volume (units) from 2018 to 2032 for the following segments:
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Market, By Vehicle Type
- Hatchbacks
- Sedan
- SUV
- Others
Market, By End Use
- Commercial
- Ridesharing & Taxi Services
- Rental Car Services
- Corporate Fleet
- Individual
Market, By Propulsion Type
- Gasoline
- Diesel
- Electric
- FCEV
Market, By Sales Channel
- Peer-to-peer
- Franchised Dealer
- Independent Dealer
The above information has been provided for the following regions and countries:
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Nordics
- Russia
- Asia Pacific
- China
- India
- Japan
- South Korea
- Australia
- Southeast Asia
- Latin America
- Brazil
- Mexico
- Argentina
- MEA
- UAE
- Saudi Arabia
- South Africa
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