Automotive and Transportation

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The global automotive and transportation industry is characterized by constant innovation leading to integration of various advanced technologies aimed at increasing convenience and safety of consumers and goods. Industry participants range from raw material suppliers, automotive OEMs, distributors, and assemblers to aftermarket players providing wide range of products and technologies for LCV vehicles, HCV vehicles, two wheelers, and cargo ships. The shifting consumer demographics from conventional vehicles to advanced connected alternatives, global automotive brands, increasing discretionary income, and rapidly increasing automotive ownership are among the major factors that are expected to present potential growth opportunities for the industry participants.

Innovation & Technology

The last couple of decades have witnessed a rapid influx of various automotive technologies such as natural gas, electrically fuelled and hybrid engines. Intelligent cars, believed to be precursors to autonomous vehicles, have established a marked presence in the industry. This is mainly attributed to various features such as self-braking, automatic cruise control, parking assistance, accident avoidance systems, electronic throttles and engine controls that significantly enhance user experience. Digitization of the automotive sector is at its infancy, with technologies such as connected car, advanced infotainment systems, and vehicle-to-vehicle communication still to go mainstream. The scenario though, is expected to change in the near future, with these technologies providing major growth traction for the market.

Automotive and transportation market participants have witnessed substantial volatility, intensive competition and low profit margins during the past few years. However, given the economic recovery across the globe, automakers are projected to make substantial investments in R&D to differentiate their offerings and reap rich dividends in the near future. OEMs are increasingly focusing on differentiating their offerings by incorporating advanced technologies, constantly enhancing design elements to improve aesthetic appeal, improving efficiency of manufacturing processes, and upgrading conventional powertrain models.

Regulatory Trends

Automobiles account for a significant share of the global carbon emissions. Various regulatory bodies across the globe have implemented stringent regulations to curb emissions from vehicles, especially in North America and Europe. Moreover, changing regulatory scenario due to amendments in the directives by CAFE and EPA in the U.S. and by EC in Europe is expected to mandate the average mileage of vehicles to meet 60 mpg by 2025. Adoption of continuously variable transmissions (CVTs), light manufacturing materials, aerodynamic developments, and turbo engines, are among the key tactics likely to gain traction to comply with these regulations and sustain strong positions in the automotive and transportation market.

Regional Landscape

U.S. automotive market witnessed considerable growth in sales numbers till 2015, and is expected to witness steady growth over the following two years. Owing to regional economic cycles, increasing auto loan interest rates and increase in accumulation of used cars in the market, the regional sales are projected to witness moderate decline in 2018. However, demand in Mexico has increased over the last few years and automotive sales are projected to surpass 1.5 million by 2021. Rising regional demand in Mexico and in international markets is expected to position Mexico as a major automotive hub in the near future. Our study projects 50% increase in the installed production facilities over the span of the next five years in the country.

Europe automotive and transportation market size have registered significant economic recovery over the last few years. Automakers in some major Europe economies such as France, Italy, Greece, Portugal, and Spain are suffering through considerable industry fragmentation and very low profit margins. Given the low traction for certain vehicle segments in the developed market of Europe, regional players need to ensure optimal utilization of production facilities in line with consumer inclination towards other vehicle segments.

There is exponential growth potential for the automotive and transportation market in emerging economies. China, the world’ largest auto market registered double digit growth in 2013 and 2014, however witnessed only single digit growth in 2015. However, restrictions have been placed in major cities in China such as Beijing, Guangzhou and Shanghai on new vehicle ownerships, which will inhibit market growth. Several global brands have witnessed stiff competition from local players even after establishing joint ventures, and selling vehicles at relatively lower margins. Moreover, relatively flat growth in India in 2016 and exceedingly negative growth trends in Russia and Brazil over the last couple of years have had an adverse impact on growth of the automotive sector. Introduction of cost effective and efficient models of growth by regional players is expected to strengthen their position in the market.

Countries in Middle East and Africa such as Iran, Egypt, Algeria, South Africa and Nigeria are projected to present strong and consistent growth prospects for players operating in the automotive & transportation market, owing to large potential of unmotorized areas, increasing car ownerships and investments from major brands that include Renault and PSA Group. According to Coherent Market Insights research, production output will escalate by 40% in this region by 2020 compared to that in 2016. Unique regional factors such as local trade tariffs for automobiles and parts, domestic assembly quotas, fuel preferences, possibility of dictation by regional authorities for exterior and interior features of the models are expected to be key challenges for automakers, given the presence of key emerging economies in the Middle East and Africa regions combined.

Industry background

Major players are adopting inorganic growth strategies in order to strengthen their foothold in the highly competitive and lucrative sector. 2016 witnessed around 600 deals valued at over US$ 40 billion in the global automotive sector. The acquisition of LeasePlan Corporation N.V. by LP Group B.V. for a deal valued at around US$ 3.7 billion was the largest transaction of the year. The year witnessed as many as 10 deals valued at a billion dollars each. The automotive sector is expected to gain rapid traction in the following few years, with India poised to be a key growth engine. This is mainly attributed to supportive government initiatives to usher in growth of the automotive sector that contributes to 7.1% of the country’ GDP. For instance, as per stats released by India Brand Equity Foundation (IBEF)— a Trust established by the Department of Commerce, Ministry of Commerce and Industry, Government of India—the government’ decision to allow 100% FDI in the industry has led to foreign investment valued at a whopping US$ 15.7 billion between April 2000 and September 2016. Advent of blockchain technology, augmented reality to assist driver safety, 3D printing, autonomous vehicles, machine learning, collaborative monetization, and utilization of predictive analytics is expected to create significant growth potential to players operating in the global automotive and transportation sector.

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Automotive and Transportation Published Insights

Coherent Market Insights

MEA Rough Terrain Cranes Market, By Lifting Capacity (Upto 25 Tonnes, 25 T-50 Tonnes, 50 T-75 Tonnes, 75 T-100 Tonnes, More than 100 Tonnes), By Boom Length (Upto 25 Tonnes, 25 T-35 Tonnes, 35 T-50 Tonnes, More than 50 Tonnes), By Country (GCC, Israel, Turkey, South Africa, Northern Africa, Rest of Middle East and Africa) - Size, Share, Outlook, and Opportunity Analysis, 2021 - 2028

Published Date : Oct 2021

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KSA Tire Market, By Vehicle Type (Two Wheeler, Four Wheeler (Passenger Car, Commercial Car, Others (Industrial & Agricultural)), Aircraft, Others (Three Wheeler)), By Application (On Road, Off Road), By Sales (OEM, Aftermarket), By Region (Western, Central, Eastern, Northern, Southern) - Size, Share, Outlook, and Opportunity Analysis, 2021 - 2028

Published Date : Oct 2021

A tire is a ring-shaped component that encloses the wheel’s rim, in order to transfer a vehicle’s load from the axle through the wheel to the ground. It also provides traction on the surface it travels. A variety of rubbers are used in the production of a ... View more

Coherent Market Insights

Car Electronics Accessories and Communication Market, By Product Type (Communication, Music System, Mobile Chargers, LCDs, Cigarette Lighters), By Vehicle Type (Passenger Cars, Pickup Trucks), By Channel Type (OEM, Aftermarket), By Regions (North America, Latin America, Europe, Asia Pacific, Middle East and Africa) - Size, Share, Outlook, and Opportunity Analysis, 2021 - 2028

Published Date : Oct 2021

Car electronics accessories are devices in cars that improve the overall experience of vehicle owners in regards to connectivity and entertainment. There is a wide range of electronics accessories and communication systems include car audio, chargers, cup holders, mob... View more

Coherent Market Insights

Dual Clutch Transmission Market, By Product Type (Dry, Wet), By Vehicle Channel (Passenger, Commercial), By Regions (North America, Latin America, Western Europe, Eastern Europe, Asia Pacific, Middle East and Africa) - Size, Share, Outlook, and Opportunity Analysis, 2021 - 2028

Published Date : Oct 2021

A dual-clutch transmission (DCT) also referred to as double-clutch transmission is an automated manual transmission in automotive vehicles, which uses two separate clutches for odd and even gear sets. It is closely related to manual transmission and is operated in a f... View more

Coherent Market Insights

Highway Crash Cushions Market, by Type (Non-directive (Water-filled Attenuators and Fitch Barriers), and Redirective Crash Cushions), by Convenience (Remote and Permanent), and by Region (North America, Europe, Asia Pacific, Latin America, Middle East, and Africa) - Global Industry Insights, Trends, Outlook, and Opportunity Analysis, 2022-2028

Published Date : Dec 2022

Crash cushions are the objects placed on roadways to reduce the damage caused to vehicle/motorist resulting from a collision. The crash cushions are also known as a crash attenuator, impact attenuator, or cowboy cushion. The crash cushions are specially designed to re... View more

Coherent Market Insights

E-Bike Charging Station Market, by Vehicle Type (Electric Scooters/ Motorcycles and E-bikes) and by Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) - Size, Share, Outlook, and Opportunity Analysis, 2021 - 2028

Published Date : Aug 2021

An electric bike charging station, also called charging point or electric recharging point supplies electric energy to charge electric bike and electric scooters/ motorcycles. Moreover, the charging station sites can be residential, non-residential, or commercial.... View more

Coherent Market Insights

Autonomous Underwater Vehicle Manufacturers Market, by Category (medium-sized manufacturers and large-sized manufacturers) and by Region (North America, Europe, Asia Pacific, Latin America, Middle East, and Africa) - Global Industry Insights, Trends, Outlook, and Opportunity Analysis, 2022-2028

Published Date : Dec 2022

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Coherent Market Insights

Automotive Collision Repair Market, by Product Type (Parts and Components, and Paints and Coatings), by Vehicle Type (Passenger Vehicles, Light Commercial Vehicles, and Heavy Commercial Vehicles), by Automotive Component Shop Type (Authorized Repair Shops and Independent Garage), and by Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) - Size, Share, Outlook, and Opportunity Analysis, 2021 - 2028

Published Date : Jul 2021

Automotive collision repair includes denting, painting, repairing, and replacement of accidentally damaged vehicles parts. The cost for the collision repair is financed by the insurance companies. These insurance-providing companies have tie-up with the automotive col... View more

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