The automotive industry, encompassing Passenger Vehicles (PV), Light Commercial Vehicles (LCV), and Medium and Heavy Commercial Vehicles (MHCV), is anticipated to see a substantial growth from 88 million units in 2024 to a remarkable 104 million units by 2030, demonstrating a Compound Annual Growth Rate (CAGR) of 2.4%. This exceptional expansion is influenced by a multitude of factors, including the increased adoption of electric vehicles, the advancement and production of long-range batteries, the installation of rapid and ultra-rapid charging points, the introduction of autonomous vehicles, the deployment of 5G connectivity, and various trends related to shared mobility.
Due to the expanding urban population and economy, countries like China, Brazil, South Korea, and India have significantly heightened their investments in the development of the automotive industry. Consequently, the demand for the automotive market is expected to surge during the forecast period.
The introduction of autonomous vehicles with enhanced safety features and a higher level of automation is revolutionising the automotive market. Several Original Equipment Manufacturers (OEMs) are now rolling out Level 2 (L2) and Level 3 (L3) autonomous vehicles, including prominent players such as Nissan, Honda, Audi, BMW, and Mercedes-Benz. With OEMs such as BMW and Mercedes receiving approval for L3 autonomous vehicles, and companies like BMW testing its L3 vehicles in Shanghai, China, the industry is poised for significant growth. The number of Level 3 (L3) autonomous vehicles is projected to grow at an impressive CAGR of 86.5% from 2023 to 2030.
Additionally, the market for Level 4 (L4) autonomous vehicles is also expected to experience limited but significant commercial growth in select markets.
The total addressable market (TAM) for connected vehicle technologies is another key area poised for exponential growth, anticipated to soar from USD 0.8 billion in 2023 to a staggering USD 568 billion by 2035. This remarkable growth is driven by enhanced features and services, with an expected per car annual earnings of USD 1,600. This connectivity in vehicles not only enhances consumer experience but also paves the way for efficient data-driven services and innovative business models. With vehicles of the future expected to offer over 300 connected features, the automotive industry is headed towards a fundamental transformation in mobility with more connected, autonomous, shared, and electric vehicles.
Additionally, Asia-Pacific is predicted to emerge as the largest market during the forecast period, holding the major share in the sales volume of PV and CV combined, largely due to the intensive manufacturing and export of cars in China.
Leading automobile OEMs in the market, such as Toyota Motors Corporation, Tesla, Volkswagen AG, Ford, BYD, and Hyundai Motor Corporation, are making significant strides in the industry. These companies are supported by technology development companies like ABB, Siemens, Nvidia, Waymo, and Bosch, all of which have adopted various key strategies to gain traction in the automotive market, such as new product launches, acquisitions, partnerships, and collaborations.
In conclusion, the automotive industry is on the cusp of a remarkable transformation, driven by advancements in electric and autonomous vehicles, as well as the burgeoning market for connected vehicle technologies. With these developments, the industry is all set to meet the projected 104 million unit mark by 2030, reflecting an incredibly exciting future ahead.