INDUSTRY REPORT
“ The impact of major events like Brexit ; the COVID-19 pandemic ; semiconductor / material supply bottlenecks and the war in Ukraine , with its impact on prices and energy availability , have left their marks on the automotive industry .”
INDUSTRY REPORT
NAVIGATING NEW CHALLENGES
We analyse global automotive market trends and forecasts for manufacturers and highlight growth drivers and challenges .
According to Precedence Research , the global automotive OEM ( original equipment manufacturer ) market size was estimated at US $ 33.75 billion in 2022 . It is projected to be worth around US $ 46 billion by 2030 , growing at a registered CAGR of 4.17 % from 2022 to 2030 .
The analyst expects the European , North American and Asia-Pacific markets to grow , with growth potential across many regions including Brazil , Russia , India and China and other developing nations . The commercial vehicle segment is expected to have the largest market share during the forecast . Digitisation in the industry , via online sales platforms , has also spurred growth .
2022 was dominated by semiconductor chip and raw material supply shortages , along with supply chain disruptions , which negatively affected automotive deliveries and sales . These were exacerbated by further lockdowns in China and Russia ’ s invasion of Ukraine , as well as inflationary pressures . The chip shortage is particularly problematic for electric vehicles ( EVs ), which require around twice as many chips as equivalent conventional vehicles mostly due to additional power electronics components .
“ Overlaid on this has been the worsening macroeconomic position due to the fallout from the Russia-Ukraine conflict , which has had knock-on effects for the industry in terms of demand surety . In turn , this has brought an end to the era of cheap capital , which has served to slow the burgeoning mobility start-up ecosystem . In the broader sense , the sector looks set to be heading to a phase where demand-side considerations replace the current supply-side fixation ,” commented AutoTechInsights .
EU vehicle registrations
Above and below : Images from Shutterstock . com .
Eleven months into 2022 , new passenger car registrations across the European Union were 6.1 % lower compared to the same period in 2021 . Despite the recent strong results , declines generated from January to July were enough to drag down the year-to-date performance . Among the region ’ s four key markets , Italy recorded the weakest result so far ( -11.6 %), followed by France ( -8.7 %), Spain ( -4.4 %) and Germany ( -2.4 %).
From January to November 2022 , new commercial vehicle registrations across the EU were down by 15.5 % to nearly 1.5 million