Automotive Assembly Market

Automotive Assembly Market Exhibits Strong Growth Driven By Increasing Vehicle Production And Rising Automation Adoption

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The 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.

Market Overview:

The automotive assembly market involves assembling the various vehicular components and parts into a fully functional automobile. Vehicle assembling requires manual labor as well as robotic automation to join components including engines, chassis, axles, gearboxes, and other interior and exterior parts to form a vehicle.

Market Dynamics:

The automotive assembly market is expected to witness significant growth owing to increasing vehicle production globally as well as rising automation adoption in vehicle manufacturing. Global automotive production has risen steadily over the past few years and is estimated to continue on an upward trajectory. According to OICA, global vehicle production reached over 92 million units in 2021, a rise of 4% from 2020 levels. Growing vehicle demand from emerging economies coupled with recovery of production post-pandemic is fueling this increase in output. Further, automakers are increasingly automating assembly lines to improve productivity and quality. Robotic automation allows for precise joining of parts with reduced errors and improved ergonomics. Automakers are investing heavily in innovative technologies such as artificial intelligence, augmented reality, and advanced robotics to transform vehicle manufacturing.

SWOT Analysis

Strength: The automotive assembly market has vast potential for growth and profitability due to rising vehicle production. It benefits from economies of scale, sophisticated supply chain networks, and strong brand positioning. Manufacturers focus on production efficiency, quality control and technological innovation.

Weakness: This market is capital intensive in nature which poses challenges for new entrants. Furthermore, shifting regulations regarding vehicle emissions and fuel efficiency standards increase compliance costs for players. Declining demand and trade wars also impact profit margins.

Opportunity: Increasing investments in driverless and electric mobility present lucrative opportunities. Automakers are investing in battery technology, connectivity and autonomous driving to capitalize on trends. Growth of shared mobility services supplements overall industry growth as well.

Threats: Rising raw material costs and stringent environment norms threaten margins. Trade battles among major economies increase supply chain risks. Technology giants intensifying competition through software platforms and connectivity solutions poses threats to traditional automakers.

Key Takeaways

Global Automotive Assembly Market Demand is expected to witness high growth, exhibiting CAGR of 5.80% over the forecast period, due to increasing investments in electric vehicles and connectivity solutions. Rising demand for shared mobility is supplementing overall industry growth.

Regional analysis: The US dominates currently with a market share of over 25% in 2021, benefiting from presence of domestic giants and focus on technology. However, China is forecasted to become the largest market, driven by EV subsidies and manufacturing push. Europe is the second largest region driven by Germany, France and UK.

Key players: Key players operating in the automotive assembly market includes BMW Group, Daimler, Ford Motor, General Motors, Honda Motor, Hyundai Motor, SAIC Motor, Stellantis, Toyota Motor, Volkswagen Group, and others. Japanese and Korean players are investing heavily to leverage the growingAsian markets. Companies are shifting focus to connectivity, autonomous, shared and electric mobility solutions.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it