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 Cargo Bike Market

Published Date : May 2023

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Coherent Market Insights Automotive Seat Belt Market

Published Date : May 2023

A seat belt is a safety device for cars that protects the driver and passengers from severe movement in the event of a collision or sudden stop. A seat belt reduces the likelihood of death or serious injury during a collision by reducing the force of secondary impacts... View more

Coherent Market Insights Truck Platooning Market

Published Date : May 2023

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Coherent Market Insights Parking Access Control Market

Published Date : May 2023

Parking Access Control equipment such as swing & sliding gates, garage doors, industrial doors, pay stations, validators and encoding stations, sensors, cameras, and display boards are used to permit access to parking lots and generate revenues.  ... View more

Coherent Market Insights Vehicle To Grid Technology Market

Published Date : Apr 2023

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Coherent Market Insights Vehicle Cameras Market

Published Date : Mar 2023

Global vehicle camera is a device that is used for recording videos, and for capturing images of inside and outside the vehicle. These cameras are attached to the dashboard and windshield of the vehicle, and ... View more

Coherent Market Insights Automotive Fuel Tanks Market

Published Date : Feb 2023

Automotive fuel tanks are used in the production of vehicles for a number of different applications. Some of these tanks are made of HDPE plastic, while others are made of carbon fiber composites. This combination allows manufacturers to reduce the weight of the fuel ... View more

Coherent Market Insights Automotive Assembly Market

Published Date : Jan 2023

Automotive assembly is a process, in which various automotive parts such as chassis, engine, and transmission systems, control system, electrical system, and others are integrated.  Moreover, increasing demand for passenger vehicles and commercial vehicles worldw... View more

Coherent Market Insights India Golf Cart Market

Published Date : Jan 2023

A golf cart or golf car is a small vehicle, which designed to carry two golfers and their golf clubs around a golf course. Golf carts are available in a wide range of formats and are used to convey a small number of passengers at less speed and shorter distances. Acco... View more

Coherent Market Insights Electric Aircraft Market

Published Date : Jan 2023

Electric aircraft is driven by the use of electric motors and are equipped with electrical systems. These aircraft are light in weight with less fuel usage and reduced emissions. The non-propulsive power systems such as mechanical, hydraulic, and pneumatic are replace... View more

Coherent Market Insights Bulk Terminals Market

Published Date : Jan 2023

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Coherent Market Insights Yacht Charter Market

Published Date : Jan 2023

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Coherent Market Insights All Terrain Vehicle Lighting System Market

Published Date : Jan 2023

All-terrain vehicles are off-road vehicles, which are also known as quad bikes. Due to technological advancements, companies such as Rissala Electric Motor Pvt. Ltd started to manufacture electric ATV bikes. Lighting systems are important parts of ATV vehicles. ATVs a... View more

Coherent Market Insights Automotive Brake System Market

Published Date : Jan 2023

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Coherent Market Insights Ride Hailing Market

Published Date : Dec 2022

Using ride hailing services is convenient when a rider is in a hurry or want to go somewhere but do not have a car. With the help of a mobile app, a rider can book a car with a nearby driver. The customer can also see the number plate of the car and the time it will t... View more

Coherent Market Insights Motor Vehicle Sensor Market

Published Date : Dec 2022

Motor vehicle sensor control and monitor the chemical, physical, and process changes of automobiles. Sensors are used to reduce fuel consumption as well as onboard the weight of vehicles and also comply with government norms for passengers’ safety. The demand fo... View more

Coherent Market Insights Apac Automotive Telematics Market

Published Date : Dec 2022

Telematics in automotive is an interdisciplinary field that includes vehicular technologies namely road safety, road transport, sensors, multimedia, and telecommunications. In other words, telematics is a piece of technology of sending, receiving, and storing informat... View more

Coherent Market Insights Next Generation In Vehicle Networking Market

Published Date : Dec 2022

Next generation in-vehicle networking (IVN) connects all the electronic components of car through a single common platform. In-vehicle networking systems use connectivity standards such as CAN, LIN, FlexRay, RF, Ethernet, and MOST. The in-vehicle networking solutions ... View more

Coherent Market Insights Exterior Car Accessories Market

Published Date : Dec 2022

Exterior car accessories are comprised of products related to automotive products that enhance and appearance of the automobile. These parts include rear and front mudguard, spoiler, stainless steel car bumper guard, plastic car door guard, tire inflators, decals and ... View more

Coherent Market Insights Automotive Drive Shaft Market

Published Date : Dec 2022

The drive shaft is a basic piece of the vehicle driveline and is responsible for transmitting the power from the engine to the wheels. Drive shafts are made up of many different parts and are designed to adapt to changing loads. These changes in load occur as a vehicl... View more

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