Automotive and Transportation

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 Premium Interior Trim Market

Published Date : Nov 2023

The term "premium interior trim" describes the high-quality materials, finishes, and parts used to improve the interior design, comfort, and luxury of cars, airplanes, and ships. It includes features like advanced seating options, leather upholstery, wood veneers, met... View more

Coherent Market Insights Flexfuel Cars Market

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Coherent Market Insights Shipbuilding Market

Published Date : Nov 2023

The global shipbuilding market size was valued at US$ 146.68 billion in 2022. Shipbuilding refers to the construction of ships and floating vessels at dedicated facilities known as shipyards. Shipbuilding involves sophisticated engineering and fabrication techniques t... View more

Coherent Market Insights Automotive Wiring Harness Market

Published Date : Sep 2023

Automotive wiring harness is an organized set of component that includes connectors, wires, and terminals that run throughout the vehicle, they transmit signals with regards to speed, internal temperature and power to the respective automotive component and electric p... View more

Coherent Market Insights Bicycle Market

Published Date : Sep 2023

A bicycle or bike is a human-powered or pedal-driven vehicle, with two wheels attached to a frame. Bicycles are used for various purposes including sports, daily commute, and adventure sports. There are different types of bicycles available in the market including mou... View more

Coherent Market Insights Off Highway Vehicle Telematics Market

Published Date : Sep 2023

An off-highway vehicle (OHV) telematics is a highly digitized and connected production facility that depends on smart manufacturing. The concept of the off-highway vehicle (OHV) telematics is considered a crucial outcome of the fourth industrial revolution, i.e. Indus... View more

Coherent Market Insights North America Recreational Vehicle Market

Published Date : Sep 2023

A recreational vehicle or RV is a motor vehicle that includes quarters designed for accommodation. There are different types of RVs including campervans, caravans, truck campers, popup campers, fifth-wheel trailers, and campervans. RVs are typically used for travel, s... View more

Coherent Market Insights Autonomous Vehicle Market

Published Date : Aug 2023

Autonomous cars, also known as driverless cars, are a revolutionary advancement in automation and communication technology. These vehicles can operate without the need for human input, owing to advanced sensor-processing technologies, adaptive algorithms, high-definit... View more

Coherent Market Insights Automotive Lead Acid Battery Market

Published Date : Aug 2023

The global automotive lead-acid battery market refers to the industry that involves the production, distribution, and sales of lead-acid batteries specifically designed for automotive applications. These batteries are widely used as the primary power source for tradit... View more

Coherent Market Insights Train Seat Materials Market

Published Date : Aug 2023

Train seats are one of the most essential components of a train compartment. In order to provide necessary safety and comfort to travelers, the seats as well as the seat covers are made up of different kinds of material. While seat covers are often made of vinyl, cott... View more

Coherent Market Insights Smart Pallet Sensors Market

Published Date : Jul 2023

A pallet is a portable, horizontal, rigid, composite stand, which is majorly getting adopted as a base for assembling, storing, arranging, stacking, handling, and transporting goods. Moreover, pallets are used to stack, store, and transport materials through material ... View more

Coherent Market Insights Automotive Pumps Market

Published Date : Jul 2023

The "Global Automotive Pumps Market Report" provides a comprehensive analysis of the industry, offering valuable insights into market trends, growth drivers, challenges, and opportunities. The report begins with an executive summary, summarizing the key findings and g... View more

Coherent Market Insights Cold Chain Market

Published Date : Jul 2023

A comprehensive global cold chain market report offers an in-depth analysis of the industry's current status and future prospects. The report begins with an overview of the cold chain sector, defining its critical role in the global supply chain and highlighting the i... View more

Coherent Market Insights Asean Automotive Aftermarket

Published Date : Jul 2023

The automotive aftermarket is the automotive industry market which includes equipment, replacement tires, service repair, collision, repair and accessories, etc. Companies operated in automotive aftermarket are manufacturing, remanufacturing, retailing, distribution, ... View more

Coherent Market Insights Commercial Telematics Market

Published Date : Jul 2023

Commercial telematics solutions are used in various industries such as automotive, transportation and logistics, insurance, and fleet management. In the automotive sector, telematics systems will be integrated into vehicles to enable features such as real-time locatio... View more

Coherent Market Insights Vehicle To Everything V2x Test Equipment Market

Published Date : Jul 2023

A communication technology known as vehicle-to-everything (V2X), helps a vehicle to interact with infrastructure, other moving cars, and other road users. Enhancing road safety, energy conservation, and traffic efficiency are the three main goals of V2X technology. Ve... View more

Coherent Market Insights Electric Vehicle Battery Swapping System Market

Published Date : Jul 2023

Electric Vehicle Battery Swapping systems allow drivers to swap their depleted batteries for a fully charged one at a station, essentially recharging their car in a matter of minutes. This eliminates range anxiety, a fear that keeps some people from buying an EV, and ... View more

Coherent Market Insights Second Hand Vehicle Trading Service Market

Published Date : Jul 2023

The global second hand vehicle trading service market refers to the buying and selling of used vehicles through various channels including dealerships, online platforms, classified advertisements, auctions, and private sales. This market encompasses a wide range of ve... View more

Coherent Market Insights Drive By Wire Market

Published Date : Jul 2023

Drive by Wire is a technology that is used in the automobile industry to carry out several functions through electronic inputs. The vehicles equipped with this technology include systems that can perform certain mechanical functions based on the electrical signals. Th... View more

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