Automotive - Industry - North America Market, Share and Trends 2023-2028

Summary of Automotive

The global automotive market refers to the vast ecosystem encompassing the manufacturing, distribution, sales and consumption of vehicles designed for transporting people and goods. Traditionally centered around internal combustion engine (ICE) vehicles, the industry is undergoing profound transformation driven by electrification, connectivity, autonomous capabilities and new mobility solutions. With the global Automotive market projected to reach USD 5807.7 Bn by 2029, growing at a CAGR of 7.05%, understanding the nuances of this industry is crucial for businesses, investors and policymakers.

The automotive industry in North America remains a vital contributor to the region’s economy, despite significant challenges in recent years. From production to sales, the industry has changed dramatically in the last decade: lower sales and rising prices – as well as changing consumer preferences and new technologies – have pushed the industry into a period of historical change.

North America’s automotive sector now generates over $500 billion in annual sales and employs over 1.7 million people – according to recent insights from multiple resources.

This comprehensive research report delves into the dynamic landscape of the automotive market, investigating its key players, segmentation, trend and growth opportunities. Based on our estimates, we can say that the North America’s regional Automotive industry is forecasted to be a $1392.41 billion industry in 2029 from $1037.78 billion in 2023 with a CAGR of 5.07%.

Recent Trends and Insights

Electric vehicle sales in the US grew 75% in 2021 – with Tesla leading the market. Major automakers like Ford and GM are investing billions to electrify their lineups. The Biden administration aims to make half of all new vehicles sold in 2030 zero-emissions.

Ride-hailing services like Uber and Lyft continue expanding in major cities across North America. However– profitability remains elusive due to high driver incentives and subsidies. Autonomous vehicle testing is ramping up with Argo AI, Cruise, Waymo and others conducting driverless operations in limited areas. Fully autonomous vehicles are expected to become commercially available before 2030.

Digital cockpits with advanced connectivity and over-the-air update capabilities are now standard features in most new vehicles. In-car infotainment and navigation systems are becoming more integrated. Car subscription services are gaining traction as an alternative to ownership, particularly among younger consumers. Companies like Flexdrive and Fair offer all-inclusive monthly plans.

Ride-hailing platforms like Uber and Lyft have significantly expanded urban transportation options across major cities. According to recent reports– ride-hailing trips have surpassed taxi trips in many markets. Profitability remains challenging for these companies due to heavy spending on driver incentives and subsidies.

Micro-mobility solutions involving electric bikes, scooters and mopeds have also expanded rapidly, especially in dense urban areas. Companies like Lime and Bird dropped thousands of shared e-scooters on city streets in just a few years. However– regulation varies significantly by municipality.

Product Insights

Popular models include Tesla Model 3/Y, Ford Mustang Mach-E, GM Bolt/Bolt EUV. Several new EVs are launching in 2022 from brands like Rivian, Lucid, Nissan and more.

Companies like GM’s Cruise, Ford’s Argo AI and Waymo are developing self-driving systems ranging from highway autonomy to fully driverless capabilities. Advanced infotainment systems with built-in navigation, over-the-air updates, e-commerce platforms and active safety features are becoming standard.

Ride-hailing platforms Uber and Lyft dominate but face competition from hybrid ownership/rental models like Turo and Getaround. Mobility-as-a-Service (MaaS) integrates various modes of transport including public transit, ride-hailing, car-sharing, and bikesharing into a single platform. MaaS aims to offer users comprehensive trip planning and payment through a single app. This could help reduce individual car ownership and promote multimodal transportation patterns.

Hydrogen fuel cell vehicles from Toyota, Hyundai and Honda have launched with more models planned this decade. Hybrids remain popular but are transitioning to plug-in hybrid electric vehicles (PHEVs).

Key Companies

Some major players within this vast domain of industry are

• Ford
• Toyota
• General Motors
• Mazda
• Honda
• Volkswagen
• General Motors
• Ford Motor Company
• BMW AG
• Tesla Inc.
• Stellantis NV

Regional Analysis

As the largest market – the US accounts for over 80% of North America’s vehicle production and sales. California and other coastal states are leading the shift to EVs. Ride-hailing platforms like Uber and Lyft have significantly expanded urban transportation options across major cities. According to recent reports, ride-hailing trips have surpassed taxi trips in many markets. However, profitability remains challenging for these companies due to heavy spending on driver incentives and subsidies.

While a smaller market, Canada has ambitious EV adoption targets. Ontario is home to several auto assembly plants and is seeing job growth in battery manufacturing. Canada saw a 121% increase in EV sales last year. The government recently proposed requiring all new light-duty cars and passenger trucks be zero-emission by 2035.

The country’s low production costs have made it a top exporter and led many automakers to operate assembly plants there. Mexico City suffers from high smog levels spurring interest in cleaner vehicles. As a trading bloc – North American automakers benefit from tariff-free commerce under the USMCA agreement. This helps competitive advantages versus importing from other regions.

Market Segmentation

By Type:

• Connected vehicle technologies (telematics, infotainment, OTA updates)
• Advanced driver assistance systems (ADAS)
• Electric powertrain components
• Vehicle safety systems
• Automotive manufacturing equipment
• Industrial automation solutions

By End User:

• Original Equipment Manufacturers (OEMs)
• Automotive suppliers
• Mobility service providers
• Infrastructure providers
• Automotive dealerships

By Enterprise Size:

• Large automakers
• Mid-size vehicle manufacturers
• Component and parts suppliers
• Startups in mobility, EV, and self-driving technologies

By Country:

• The U.S.
• Canada
• Mexico

Our Methodology

We have offered a well-founded review of the North America’s regional Automotive market along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any future prospects, challenges, competitors, or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.