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 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

Coherent Market Insights Automotive Tire Pressure Monitoring System Market

Published Date : Jul 2023

A tire pressure monitoring system (tpms) is an electronic system that plays a vital role in vehicle safety by providing real-time information on tire pressure. By continuously monitoring tire pressure, tpms ensures that drivers have accurate and up-to-date data on tir... View more

Coherent Market Insights Commercial Vehicles Market

Published Date : Jul 2023

A commercial vehicle is any motorized vehicle used for transporting goods or paying passengers, whether the vehicle is privately owned and operated or a business-owned and maintained fleet. The vehicle must be commercially licensed and plated (the plates have a prefix... View more

Coherent Market Insights Automotive Infotainment Market

Published Date : Jul 2023

Auto infotainment or in-vehicle infotainment is a combination of software and hardware in automobiles that provide audio or video entertainment to occupants. Originally, the in-car infotainment system was only comprised of car audio system with radio, cassettes, or CD... View more

Coherent Market Insights Automotive Embedded Systems Market

Published Date : Jul 2023

The automotive embedded system consists of an electronic or computer system capable of controlling and accessing the data in electronics-based systems. A single-chip microcontroller like the cortex or ARM is part of this system, as are microprocessors, FPGAs, DSPs, an... View more

Coherent Market Insights Automotive Emission Analyzer Market

Published Date : Jul 2023

An automotive emission analyzer is a device that monitors gas emissions from automobiles that run on both diesel and gasoline. For gasoline-fueled automobiles, an emission analyzer monitors and shows the level of air pollutants such as carbon monoxide (CO), hydrocarbo... View more

Coherent Market Insights Electric Powertrain Market

Published Date : Jul 2023

Electric powertrain systems include the main components that generate and deliver power to the road surface for fully electric, hybrid electric and plug-in hybrid electric vehicle applications. The engine and transmission are the most important parts of the powertrain... View more

Coherent Market Insights Electric Truck Market

Published Date : Jul 2023

Electric trucks can be used in various applications and are more efficient than trucks with combustion engines. In fact, they only consume 64-75% of the energy that combustion engines use when driving and idling. This is great news for companies looking to decrease op... View more

Coherent Market Insights Electric Vehicle Battery Recycling Market

Published Date : Jul 2023

Electric vehicle batteries can last a long time, however, eventually all battery packs reach their end-of-life. At that point, the battery’s components will either be recycled or sent to a landfill where they can leach chemicals into groundwater and pollute the ... View more

Coherent Market Insights Automotive Hydroformed Parts Market

Published Date : Jul 2023

The hydroforming is a component manufacturing process, where fluid pressure is applied to ductile material such as brass, aluminium, low alloy steel, and stainless steel to form into desired component shapes. This process helps to create complex parts with a high stre... View more

Coherent Market Insights Europe Automotive Parts Remanufacturing Market

Published Date : Jul 2023

The automotive parts remanufacturing market is the industry involved in rebuilding and refurbishing automotive components to restore them to their original specifications and functionality. It encompasses the process of disassembling, cleaning, repairing, and reassemb... View more

Coherent Market Insights Car Security System Market

Published Date : Jul 2023

The car security market is an industry dedicated to providing solutions and technologies that enhance the safety and protection of vehicles against theft, unauthorized access, and various risks. It encompasses a broad range of products and services aimed at ensuring t... View more

Coherent Market Insights India Automotive Stamping Market

Published Date : Jul 2023

The India automotive stamping industry refers to the sector involved in the production of automotive stampings within India. Automotive stamping is the process of shaping and molding metal sheets or coils to create various parts and components for automobiles. These p... View more

Coherent Market Insights Automotive Wire And Cable Materials Market

Published Date : Jun 2023

Wires and cables play a crucial role in virtually all applications within a vehicle. They are manufactured using various materials, with aluminum and copper being the most popular choices for automotive wire materials. Aluminum offers lightweight properties, while cop... View more

Coherent Market Insights Offshore Support Vessel On Board Fuel Monitoring System Market

Published Date : Jun 2023

Due to the fact that fuel costs account for between 50% and 70% of the vessel's operating costs, it is essential to achieve high fuel efficiency. As a result, demand for fuel monitoring systems increased. Installing mass flow meters that show both the current consumpt... View more

Coherent Market Insights Backhoe Loaders Market

Published Date : Jun 2023

Backhoe loaders are heavy equipment that comprises a tractor-resembling unit equipped with loader-like bucket/shovel on the front, and a small backhoe on the back. It is also known as a “loader backhoe”, “digger” in layman's terms, or just &ldq... View more

Coherent Market Insights Transporation Predictive Analytics And Simulation Market

Published Date : Jun 2023

Predictive analytics is the practice of obtaining crucial information from existing data sets in order to ascertain certain patterns and predict future outcomes and trends. In transportation sector, predictive analytics and simulation software are used to determine tr... View more

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