Automotive Market Size, Share, Trends, Industry Analysis Report By Vehicle Type (Passenger Car, Commercial Vehicle), By Propulsion Type (ICE Vehicle, Electric Vehicle), By Region - Market Forecast, 2025-2034
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Honda Motor Co., Ltd
Hyundai Motor Company
Mercedes-Benz Group AG
Nissan Motor Co., Ltd
SAIC Motor Corporation Limited
Stellantis NV
Suzuki Motor Corporation
Tesla
TOYOTA MOTOR CORPORATION
Volkswagen Group
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The automotive market size is expected to reach USD 7.59 billion by 2034, according to a new study by Polaris Market Research. The report "Automotive Market Share, Size, Trends, Industry Analysis Report By Vehicle Type (Passenger Car, Commercial Vehicle), By Propulsion Type (ICE Vehicle, Electric Vehicle), and By Region; Market Forecast, 2025-2034" gives a detailed insight into current market dynamics and provides analysis on future market growth.
The automotive market involves the development, manufacturing, and distribution of vehicles, focusing on innovation in mobility solutions, sustainability, and advanced technologies to meet evolving consumer and regulatory demands. The market is undergoing a substantial transformation driven by electrification and sustainable mobility. Automakers are accelerating the development of electric vehicles (EVs) and hybrid technologies as the industry shifts toward cleaner energy solutions. Stricter emission regulations and growing environmental concerns are pushing manufacturers to invest in battery advancements, charging infrastructure, and alternative fuel options. Additionally, consumers are increasingly prioritizing eco-friendly transportation, prompting companies to expand their sustainable vehicle portfolios. This transition is reshaping vehicle design, supply chains, and production strategies, reinforcing the industry's long-term commitment to sustainability and market demand.
The automotive market size is growing due to the integration of connected and autonomous technologies, revolutionizing the driving experience and vehicle functionality. Automakers are incorporating artificial intelligence (AI), the Internet of Things (IoT), and advanced driver assistance systems (ADAS) to improve safety, efficiency, and user convenience. Real-time data analytics, over-the-air (OTA) software updates, and vehicle-to-everything (V2X) communication are becoming standard features, allowing seamless connectivity. The push for autonomous mobility is further driving advancements in sensor technology, machine learning, and computing power. Therefore, as the industry adopts digital transformation, the convergence of connectivity and automation is shaping the next generation of intelligent transportation solutions.
Automotive Market Report Highlights
In terms of vehicle type, the commercial vehicle segment held a larger revenue share at USD 2.07 billion in 2024, fueled by e-commerce and logistics sector expansion. Rising demand for light commercial vehicles (LCVs) in last-mile and intra-city delivery services significantly contributed to this growth.
Based on propulsion type, the electric vehicle segment is anticipated to register the fastest growth, with a projected CAGR of 12.4%, driven by heightened environmental consciousness and government initiatives incentivizing clean energy adoption in transportation.
Asia Pacific led the automotive market with USD 1.86 billion in revenue share in 2024, supported by rapid urbanization, an expanding middle class, and proactive government policies fostering industrial and automotive sector development.
The North America automotive market is expected to register a CAGR of 6.4%, bolstered by high vehicle ownership rates, robust consumer demand, and a diverse vehicle portfolio spanning pickup trucks, SUVs, and electric/hybrid models.
A few global key market players include BYD; General Motors; Honda Motor Company; Hyundai Motor Company; Mercedes-Benz; Nissan Motor Co., Ltd.; Stellantis N.V.; Suzuki Motor Corporation; Tesla; and Toyota Motor Corporation; and Volkswagen.
Polaris Market Research has segmented the market report on the basis of vehicle type, propulsion type, and region:
By Vehicle Type Outlook (Revenue, USD Billion, 2020-2034)
Passenger Car
Hatchback
Sedan
SUV
MUV
Commercial Vehicle
LCVs
Heavy Trucks
Buses & Coaches
By Propulsion Type Outlook (Revenue, USD Billion, 2020-2034)
ICE Vehicle
Electric Vehicle
By Regional Outlook (Revenue, USD Billion, 2020-2034)
North America
U.S.
Canada
Europe
Germany
UK
France
Italy
Spain
Russia
Netherlands
Rest of Europe
Asia Pacific
China
India
Japan
South Korea
Indonesia
Malaysia
Vietnam
Australia
Rest of Asia Pacific
Latin America
Argentina
Brazil
Mexico
Rest of Latin America
Middle East & Africa
UAE
Saudi Arabia
Israel
South Africa
Rest of Middle East & Africa
Table of Contents
Chapter 1. Introduction
1.1 Report Description
1.1.1 Objective of the Study
1.1.2 Market Scope
1.1.3 Assumptions
1.2 Stakeholders
Chapter 2. Research Methodology
2.1 Research Methodology
2.2 Research Scope and Assumptions
2.3 Information Procurement
2.3.1 Purchased Database
2.3.2 Internal Database
2.3.3 Secondary Sources
2.3.4 Third Party Perspective
2.3.5 Primary Research
2.4 Information Analysis
2.4.1 Data Analysis Models
2.5 Market Formulation and Data Visualization
2.6 Data Validation and Publishing (Secondary Sources)
Chapter 3. Executive Summary
Chapter 4. Market Insights
4.1 Automotive - Industry Snapshot
4.2 Automotive Market - Value Chain Analysis
4.3 Automotive Market Dynamics
4.3.1 Drivers and Opportunities
4.3.1.1 Rising Demand for Electric Vehicles (EVs)
4.3.1.2 Urbanization and Infrastructure Development
4.3.2 Restraints and Challenges
4.3.2.1 High Production Cost
4.4 Automotive Market - Porter's Five Forces
4.4.1 Threat of Substitutes: (Moderate)
4.4.2 Threat of New Entrants: (Moderate to Low)
4.4.3 Bargaining Power of Buyers:(High)
4.4.4 Bargaining Power of Suppliers: (Moderate)
4.4.5 Competitive Rivalry: (High)
4.5 Automotive Market - PESTLE Analysis
Chapter 5. Automotive Market Assessment, By Vehicle Type
5.1 Introduction
5.2 Commercial Vehicle
5.3 Passenger Cars
Chapter 6. Automotive Market Assessment, By Propulsion
6.1 Introduction
6.2 ICE Vehicles
6.3 Electric Vehicles
Chapter 7. Automotive Market Assessment, By Region
7.1 Introduction
7.2 North America Automotive Market
7.2.1 North America Automotive Market, By Vehicle Type
7.2.2 North America Automotive Market, By Propulsion
7.2.3 US Automotive Market
7.2.3.1 US Automotive Market, By Vehicle Type
7.2.3.2 US Automotive Market, By Propulsion
7.2.4 Canada Automotive Market
7.2.4.1 Canada Automotive Market, By Vehicle Type
7.2.4.2 Canada Automotive Market, By Propulsion
7.2.5 Mexico Automotive Market
7.2.5.1 Mexico Automotive Market, By Vehicle Type
7.2.5.2 Mexico Automotive Market, By Propulsion
7.3 Europe Automotive Market
7.3.1 Europe Automotive Market, By Vehicle Type
7.3.2 Europe Automotive Market, By Propulsion
7.3.3 UK Automotive Market
7.3.3.1 UK Automotive Market, By Vehicle Type
7.3.3.2 UK Automotive Market, By Propulsion
7.3.4 France Automotive Market
7.3.4.1 France Automotive Market, By Vehicle Type
7.3.4.2 France Automotive Market, By Propulsion
7.3.5 Germany Automotive Market
7.3.5.1 Germany Automotive Market, By Vehicle Type
7.3.5.2 Germany Automotive Market, By Propulsion
7.3.6 Italy Automotive Market
7.3.6.1 Italy Automotive Market, By Vehicle Type
7.3.6.2 Italy Automotive Market, By Propulsion
7.3.7 Spain Automotive Market
7.3.7.1 Spain Automotive Market, By Vehicle Type
7.3.7.2 Spain Automotive Market, By Propulsion
7.3.8 Netherlands Automotive Market
7.3.8.1 Netherlands Automotive Market, By Vehicle Type
7.3.8.2 Netherlands Automotive Market, By Propulsion
7.3.9 Switzerland Automotive Market
7.3.9.1 Switzerland Automotive Market, By Vehicle Type
7.3.9.2 Switzerland Automotive Market, By Propulsion
7.3.10 Rest of Europe Automotive Market
7.3.10.1 Rest of Europe Automotive Market, By Vehicle Type
7.3.10.2 Rest of Europe Automotive Market, By Propulsion
7.4 Asia Pacific Automotive Market
7.4.1 Asia Pacific Automotive Market, By Vehicle Type
7.4.2 Asia Pacific Automotive Market, By Propulsion
7.4.3 China Automotive Market
7.4.3.1 China Automotive Market, By Vehicle Type
7.4.3.2 China Automotive Market, By Propulsion
7.4.4 Japan Automotive Market
7.4.4.1 Japan Automotive Market, By Vehicle Type
7.4.4.2 Japan Automotive Market, By Propulsion
7.4.5 South Korea Automotive Market
7.4.5.1 South Korea Automotive Market, By Vehicle Type
7.4.5.2 South Korea Automotive Market, By Propulsion
7.4.6 India Automotive Market
7.4.6.1 India Automotive Market, By Vehicle Type
7.4.6.2 India Automotive Market, By Propulsion
7.4.7 Australia Automotive Market
7.4.7.1 Australia Automotive Market, By Vehicle Type
7.4.7.2 Australia Automotive Market, By Propulsion
7.4.8 Malaysia Automotive Market
7.4.8.1 Malaysia Automotive Market, By Vehicle Type
7.4.8.2 Malaysia Automotive Market, By Propulsion
7.4.9 Indonesia Automotive Market
7.4.9.1 Indonesia Automotive Market, By Vehicle Type
7.4.9.2 Indonesia Automotive Market, By Propulsion
7.4.10 Rest of Asia Pacific Automotive Market
7.4.10.1 Rest of Asia Pacific Automotive Market, By Vehicle Type
7.4.10.2 Rest of Asia Pacific Automotive Market, By Propulsion
7.5 Latin America Automotive Market
7.5.1 Latin America Automotive Market, By Vehicle Type
7.5.2 Latin America Automotive Market, By Propulsion
7.5.3 Brazil Automotive Market
7.5.3.1 Brazil Automotive Market, By Vehicle Type
7.5.3.2 Brazil Automotive Market, By Propulsion
7.5.4 Argentina Automotive Market
7.5.4.1 Argentina Automotive Market, By Vehicle Type
7.5.4.2 Argentina Automotive Market, By Propulsion
7.5.5 Rest of Latin America Automotive Market
7.5.5.1 Rest of Latin America Automotive Market, By Vehicle Type
7.5.5.2 Rest of Latin America Automotive Market, By Propulsion
7.6 Middle East and Africa Automotive Market
7.6.1 Middle East and Africa Automotive Market, By Vehicle Type
7.6.2 Middle East and Africa Automotive Market, By Propulsion
7.6.3 UAE Automotive Market
7.6.3.1 UAE Automotive Market, By Vehicle Type
7.6.3.2 UAE Automotive Market, By Propulsion
7.6.4 Saudi Arabia Automotive Market
7.6.4.1 Saudi Arabia Automotive Market, By Vehicle Type
7.6.4.2 Saudi Arabia Automotive Market, By Propulsion
7.6.5 South Africa Automotive Market
7.6.5.1 South Africa Automotive Market, By Vehicle Type
7.6.5.2 South Africa Automotive Market, By Propulsion
7.6.6 Rest of Middle East & Africa Automotive Market
7.6.6.1 Rest of Middle East & Africa Automotive Market, By Vehicle Type
7.6.6.2 Rest of Middle East & Africa Automotive Market, By Propulsion