The global automotive OEM market size was estimated at USD 36 billion in 2022, and it is expected to hit around USD 54.06 billion by 2032 with a CAGR of 4.2% during the forecast period from 2023 to 2032.
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OEM is the original manufacturer of the components of a vehicle. When a car is manufactured the parts used are from an original manufacturer and the aftermarket parts are produced by vendors which do not have the same level of quality and are not compatible in the same manner with the vehicle. The OEM products are expensive as compared to the aftermarket parts. The installation and compatibility of the parts will be usually guaranteed by the automaker. The OEM parts are less complicated for the purpose of replacement.
Due to the COVID-19 pandemic, the production of the vehicles had stopped as there were disruptions in the supply chains. Also, the sales of vehicles were low during the pandemic.
The automotive OEM market has good potential and it is expected to grow during the forecast period as there are innovations in technologies and changes in the product offerings in the market. As the nations are adopting stringent regulations for fuel efficiency there shall be an increase in demand for the light weighted fuel-efficient OEM parts. The demand for the light weighted fuel-efficient parts will lead to an increase in the market size. Various initiatives taken by the government in order to use the original products to curb pollution and the increasing disposable income in developing nations are expected to drive the market during the forecast. An increase in the demand for various hybrid and luxury cars in developing nations is also expected to help in the growth of the automotive original equipment manufacturers market.
In the coming years, the automotive original equipment manufacturers market is expected to grow as there are rapid technological advancements with increased demand for filters for diesel engine vehicles, increased demand for batteries, and increased demand for innovation in the automotive parts with the help of qualified and experienced technical staff. There is a need for maintaining motor vehicles periodically, washing, lubrication, battery services, and tire are all the parts that are available with the service providers. The market for automotive original equipment manufacturers will grow due to the deployment of sophisticated connectivity features and the utilization of sensor data for maintenance. The original equipment. The manufacturing market is mostly driven by the increase in the production and sales of automobiles. As there is a rising concern among customers regarding safety, the market is expected to grow during the forecast. As there is increased innovation and research in this field modern cars are introduced into the market.
Report Scope of the Automotive OEM Market
|Market Size in 2023||USD 37.33 Billion|
|Market Size by 2032||USD 54.06 Billion|
|Growth Rate from 2023 to 2032||CAGR of 4.2%|
|Forecast Period||2023 to 2032|
Vehicle Type Insights
The automotive OEM market can be segmented into electric vehicles, passenger cars, and commercial vehicles. The electric vehicles could be batteries, electric vehicles, hybrid electric vehicles, or plug-in hybrid electric vehicles. The automotive OEM market is expected to see growth in the commercial vehicles segment. The demand for the original equipment manufacturing parts shall see a great demand in the commercial vehicles segment during the forecast period. The passenger car segment is also expected to grow during the forecast period as there is an increase in the demand for cars and the use of these vehicles globally.
On the basis of the component, the automotive OEM market is segmented into the powertrain, the chassis the body, the electronics and electrical, the external body, and the interiors of the automobile. The external body and the anterior segment of the automobile are expected to grow during the forecast period. These parts are more prone to damage hence the market shall grow.
Distribution Channel Insights
Retailers, wholesalers, and distributors are the distribution channels for the automotive OEM market. As of 2022, there is an increase in the number of sales of OEM directly to consumers through the various service centers that purchase the OEM in bulk quantities.
Growth in the sales of automobiles and demand for various passenger cars and commercial vehicles which had advanced brake technologies has led to an increase in the market size of the original equipment manufacturer market in the European region. Due to an increased demand for various vehicles in the Asia Pacific market. There shall be significant growth during the forecast period in this region. The North American market for the automobile sector is the most advanced in the world.
The United States is a great source of growth in the North American region. It favors innovation, technology, and the high-performance production of cars. Also, the US is expected to play a very important role in the development of automatic automobiles thereby increasing the OEM market.
Key Market Developments
Key Market Players
Segments Covered in the Report
By Vehicle Type
By Distribution Channel
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