Nov 1, 2023   SOURCE: BusinessWire

Global Light Vehicle Production Market Accelerates at 10.20% CAGR in 2023, Driven by Rising Demand for SUVs and Technological Advancements - ResearchAndMarkets.com

The "Global Light Vehicle Market with Focus on Premium Segment (by Vehicle Type, Fuel Type, & Region): Insights and Forecast with Potential Impact of COVID-19 (2022-2027)" report has been added to ResearchAndMarkets.com's offering.

The global light vehicle production market is poised for significant growth, with an expected production volume of 91.76 million units in 2023, driven by a Compound Annual Growth Rate (CAGR) of 10.20% during the forecast period. Additionally, the global premium vehicle production market is projected to reach 11.31 million units in 2023, experiencing a CAGR of 8.28% during the same period.

Light Vehicles and Premium Cars

Light vehicles include both passenger automobiles and light commercial vehicles, and their production has witnessed an upsurge due to the growing acceptance of electric vehicles and advancements in modern metal alloys. This trend is a result of the automotive industry's continuous search for cutting-edge materials to reduce vehicle weight, achieve fuel efficiency, and meet carbon emission targets.

Premium cars, on the other hand, offer enhanced comfort, amenities, quality, performance, and prestige at a higher price point than standard cars. The global premium vehicle market has seen substantial growth recently, driven by customer preferences shifting from sedans to SUVs and rising disposable incomes.

Market Segmentation

By Vehicle Type: The global light vehicle production market is segmented into two categories: passenger cars and light commercial vehicles. Passenger cars represent the fastest-growing segment, with a significant CAGR during the forecast period due to their compact size, stylish designs, and affordability.

By Segment: The market is divided into mass and premium segments. Currently, the mass segment holds the majority of the global light vehicle production market, driven by its popularity among the middle-class population due to affordability. Within the premium vehicle market, segments include vehicle types (SUV, Sedan, and Hatchback) and fuel types (Gasoline, Diesel, and Electric). The SUV segment holds nearly half of the global premium light vehicle market production share.

Geographic Coverage

The global market production is categorized into four major regions: Asia Pacific, Europe, North America, and Rest of the World. Asia Pacific leads in the production of light vehicles due to higher labor productivity, a skilled workforce, and cost-effective labor. The region's continued development, commercial investments, and foreign direct investment contribute to its growth. In contrast, Europe dominates the premium light vehicle market, driven by a robust presence of luxury brands such as BMW, Audi, Porsche, and Mercedes-Benz, as well as advancements in safety technology.

Top Impacting Factors

Growth Drivers

  • Rising Number of High Net Worth Individuals (HNWIs): The increasing population of high-net-worth individuals, focused on comfort and security, contributes to the growth of the premium light vehicle market.
  • Shift in Technological Advancements: Ongoing technological advancements in the automotive industry, including electric and lightweight materials, boost market growth.
  • Increasing Use of Solar Automobiles: Solar-powered vehicles represent a growing trend towards sustainable transportation.
  • Rising Demand for SUVs: The global demand for SUVs is on the rise, driving the growth of the light vehicle market.

Challenges

  • Increase in Prices of Materials: The adoption of lightweight materials increases manufacturing costs, impacting the overall cost of vehicles.
  • Difficulty in Maintenance of Lightweight Materials: Maintenance challenges arise with the use of lightweight materials in vehicle construction.

Trends

  • Involvement of Artificial Intelligence: AI is becoming integral to the automotive industry, improving vehicle features and safety.
  • Upsurge in Use of Electric Vehicles: Electric vehicles are gaining popularity worldwide, driven by sustainability concerns and advancements in technology.
  • Increase in Use of Lightweight Materials: Lightweight materials play a crucial role in improving fuel efficiency and reducing emissions.
  • Integration of Big Data and Business Analytics: Data analytics is enhancing decision-making processes in the automobile industry.

Impact of COVID-19

The COVID-19 pandemic has adversely affected the light vehicle industry, with reduced showroom traffic, supply chain disruptions, and global lockdowns. However, the premium car segment may show more resilience, as high-net-worth individuals may delay purchases rather than cancel them.

Analysis of Key Players

Key players in the light vehicle market include leading automobile manufacturers and composite manufacturing firms. Many Original Equipment Manufacturers (OEMs) are expanding their electric vehicle offerings to meet sustainability demands. Some of the prominent players in the premium vehicle market are Tesla, Inc., Mercedes-Benz Group AG, Volkswagen Group, Bayerische Motoren Werke AG, General Motors Co., Toyota Motor Corporation, Ford Motor Company, Aston Martin Lagonda Global Holdings PLC, Exor N.V. (Ferrari N.V.), McLaren Group, Stellantis N.V., and Zhejiang Geely Holding Group Co., Ltd.

For more information about this report visit https://www.researchandmarkets.com/r/sfo2b0

About ResearchAndMarkets.com

ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.