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

Headlight Tester Market, by Product Type (Manual Headlight Tester and Automatic Headlight Tester), by Vehicle Type (Passenger Cars, Light Commercial Vehicles and Heavy Commercial Vehicles), and by Geography (North America, Europe, Asia Pacific, Latin America, Middle East, and Africa) - Size, Share, Trends, and Forecast to 2026

Published Date :Aug 2018

Headlight Tester Market A headlight tester is a testing solution used in the automotive industries for checking the orientation and intensity of headlamps integrated in the vehicles. This tester is used to en... Read more

Coherent Market Insights

Load Haul and Dump Trucks Market - Size, Share, Trends, and Forecast to 2026, By Engine Type (Diesel Engine and Electric Engine), By Mining Type (Underground Mining and Surface Mining) and by Geography

Published Date :Jun 2018

Global Load Haul and Dump Truck Market - Insights A load haul and dump truck (also known as scoop tram) is a loading machine manufactured for application in the mining industry. Global load haul and dump tru... Read more

Coherent Market Insights

Spark Plug Wire Market, by Wire Type (Distributed Resistance Wires, MAG (Magnetic Resistance) Wires, Fixed Resistor Wires, and Others), and by Region - Size, Share, Trends, and Forecast to 2026

Published Date :Jun 2018

Global Spark Plug Wires Market - Insights Global spark plug wires market is expected to witness moderate growth during the forecast period. The market growth is majorly attributed to increasing demand for spa... Read more

Coherent Market Insights

Start-stop Battery Market, By Battery Type (Lead-acid Battery and Lithium-ion Battery), By Lead-acid Battery Type (Absorbent Glass Mat and Enhanced Flooded Battery), By Application (Conventional Vehicle and Electric Vehicle), and by Geography - Global Forecast to 2025

Published Date :Jun 2018

Global Start-stop Battery Market - Insights The global start-stop battery market is projected to exhibit a CAGR of 21.8% over the forecast period (2018-2025). In 2017, the global start-stop battery market gen... Read more

Coherent Market Insights

Electric Scooter Market, by Battery Type  (Lead based, Li-ion, and NiMH), by Product Type (Folding, Maxi, Self-balancing, Standard, and Three-wheeled), by Technology (Battery and Plug In), by Voltage Level (24V, 36V, 48V, and above 48V), and by Region (North America, Europe, Asia Pacific, Latin America, and Middle East and Africa) - Size, Share, Outlook, and Opportunity Analysis, 2020 - 2027

Published Date :Mar 2021

Electric scooters are plug-in electric vehicles that use electric power or combination of electric battery and power from an internal combustion engine to propel the vehicle. Moreover, electric scooters are preferred compared to traditional scooters due to their fuel ... Read more

Coherent Market Insights

Automotive AC Filter Market, by Filter Type (Particulate, Charcoal, and Electrostatic), by Vehicle Type (Passenger Cars and Heavy & light commercial vehicles), by Sales Channel (Original Equipment Manufacturer (OEM) and Aftermarket), and by Region - Global Forecast to 2025

Published Date :May 2018

Automotive AC Filter Market Automotive AC filter is responsible for reducing impurities and pollutants entering into the engine through air condition system, air circulation, and heating. This is an important... Read more

Coherent Market Insights

Powered Catamaran Market, by Application (Cruising, Passenger Transport, Military, and Others), and by Region - Global Industry Insights, and Forecast till 2023

Published Date :Apr 2018

Powered Catamaran Market A recent development in design such as configuration fills in niche powered vessels, where the speed and sea kindliness is favored with bulk capacity, has led to introduction of power... Read more

Coherent Market Insights

Catamarans Market - by Product Type (Sailing Catamarans and Engine-powered catamarans), by Application (Cruising and Sporting), and by Regions - Global Industry Insights, and Forecast till 2023

Published Date :Apr 2018

Global Catamarans Market - Insights Catamarans are multi-hulled boats and are considered as luxury cruising yachts. Catamarans were used for racing or sports purposes, however, over the past few years, these ... Read more

Coherent Market Insights

Automotive Spark and Glow Plugs Market, By Product Type (Hot Spark Plug, Cold Spark Plug, Metal Glow Plug, Ceramic Glow Plug), By Vehicle Type (Passenger Cars, LCV, HCV), By Sales Channel (OEM, Aftermarket), 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 spark plug is a device used for delivering electric current from an ignition system to the combustion chamber. On the basis of product type, the automotive spark & glow plugs market has been segmented into the metal glow plug, cold spark plug, hot spark plug, an... Read more

Coherent Market Insights

Automotive Radiator Market by Material Type (Aluminum, Copper/Brass, and Aluminum/Plastic), by Radiator Type (Down Flow and Cross Flow), by Vehicle Type (Passenger Car, LCV, and HCV), by Sales Channel (OEM, Aftermarket) and by Geography - Global Trends and Forecast to 2025

Published Date :Mar 2018

Global Automotive Radiator Market - Insights Vehicles run on complex engines, which help regulate the speed and safety of the vehicle. These engines consist of automotive components, including radiators. Auto... Read more

Coherent Market Insights

Automotive Pedestrian Protection Systems (PPS) Market Report, by Technology (Active Pedestrian Protection System and Passive Pedestrian Protection System), by Vehicle Type (Passenger Cars (ICE Vehicles), Commercial Vehicles (ICE Vehicles) and Electric & Hybrid Vehicles), and by Region - Global Industry Insights to 2025

Published Date :Mar 2018

Automotive Pedestrian Protection System Market The global automotive pedestrian protection system market was valued at US$ 992.8 Mn in 2016 and is expected to increase to US$ 4,994.0 Mn by 2025, registering a... Read more

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