Global Automotive Original Equipment Manufacturer (OEMS) Market - Industry Trends and Forecast to 2031

Global Automotive Original Equipment Manufacturer (OEMS) Market, By Component (Body, Electrical and Electronics, Interior, Power-Train and Chassis, and Others), Vehicle Type (Commercial Vehicles, Passenger Cars, and Electric Vehicles), Distribution Channel (OEM Retailers, Wholesalers, and Distributors) - Industry Trends and Forecast to 2031.

Automotive Original Equipment Manufacturer (OEMS) Market Analysis and Size

In the automotive original equipment manufacturer (OEMs) market, manufacturers supply components directly to vehicle assembly lines. This streamlines production, ensuring quality control and compatibility. OEMs benefit from reduced manufacturing costs and enhanced brand reputation through consistent part quality. Consumers gain access to reliable, standardized parts, resulting in safer and more efficient vehicles.

Data Bridge Market Research analyses that the global automotive original equipment manufacturer (OEMS) market size was valued at USD 35.33 billion in 2023, is projected to reach USD 50.89 billion by 2031, with a CAGR of 4.67% during the forecast period 2024 to 2031. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and pestle analysis.

Report Scope and Market Segmentation

Market Definition

Automotive original equipment manufacturers (OEMs) are companies responsible for designing and producing components or vehicles for the automotive industry. These entities play a crucial role in setting quality, safety, and innovation standards within the sector. They often collaborate with suppliers and assembly plants to ensure the production of reliable and competitive vehicles.

Automotive Original Equipment Manufacturer (OEMS) Market Dynamics

Drivers

• Rising Demand for Passenger Vehicles and Commercial Vehicles

The automotive original equipment manufacturers (OEMs) market is poised for growth, driven by escalating demand for passenger and commercial vehicles The increase in car ownership worldwide emphasizes the essential demand for original equipment manufacturing (OEM) parts, especially in passenger vehicles, suggesting a bright outlook for OEMs in the foreseeable future.

For instance, German-based company Away partners with OEM manufacturers to innovate the human-machine interface, revolutionizing automobile interaction for safety and accessibility. This collaboration represents a substantial advancement in automotive technology, promising enhanced user experiences for drivers and passengers.

• Increasing Demand of High Durability Products

Automotive OEMs prioritize high-quality, durable products to ensure vehicle reliability and longevity, meeting stringent industry standards and customer expectations for performance and safety.

For instance, OEM spare tires assure consumers of the materials' reliability and adherence to industry standards. This guarantees confidence in performance and durability, making OEM choices preferred by discerning customers for reliable automotive purchases.

Opportunities

• Advancement in Technology

Technological advancements in automotive OEMs drive demand for diesel engine vehicle filters and innovative automotive components. Skilled technical staff drive battery advancements. Service providers offer periodic maintenance, including lubrication, battery services, washing, and tire care. These advancements create vast growth opportunities, promising a thriving market trajectory. 

For instance, employing technology to prevent car accidents, autonomous vehicles integrate advanced recognition systems to identify obstacles along the route. This advancement is pivotal for the market's expansion, promising safer and more efficient transportation solutions.

• Rising Support and Maintenance

OEMs demand dependable support services for driver maintenance, including access to updates and patches. These services address issues promptly, ensure compatibility with evolving technologies, and sustain peak performance over the vehicle's lifecycle. Reliable support is essential for uninterrupted operation, customer satisfaction, and meeting stringent industry standards and regulations.

Restraints/Challenges

• Shift in Consumer Preferences

Changing consumer preferences towards sustainable and electric vehicles, alongside the rise of shared mobility services, challenge OEMs entrenched in traditional internal combustion engine vehicles. Adapting to this shift demands significant investment in new technologies and business models to remain relevant and competitive in the evolving automotive landscape.

• Disruption of the Supply Chain

Global supply chain reliance exposes OEMs to risks such as material shortages, geopolitical tensions, natural disasters, and pandemics such as COVID-19. Disruptions in one region can cascade, impacting production globally. To mitigate risks, OEMs must diversify suppliers, enhance resilience, and adopt agile strategies to navigate uncertain environments and ensure continuity of operations.

This  market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

Recent Development

• In July 2021, MasterBeat Corporation announced the launch of its JTEC Autoworld's Amazon retail segment, part of its online automotive parts platform strategy. JTEC aims to leverage Amazon and other e-commerce platforms to boost sales and marketing of automotive OEM products
• In February 2021, CoorsTek Inc. marked expansion of production capacity in Southeast Asia with the commencement of construction on a 400,000 sq. ft. engineered ceramics facility in Thailand. This strategic move aims to enhance manufacturing capabilities for electronics and electrical ceramics
• In May 2021, CeramTec GmbH launched a ceramic power semiconductor module tailored for drive inverters in e-mobility in collaboration with Fraunhofer Institute for Integrated Systems and Device Technology (IISB). Featuring chip-on heatsink technology, this innovation promises enhanced performance and efficiency in electric vehicles

Automotive Original Equipment Manufacturer (OEMS) Market Scope

The market is segmented on the basis of component, vehicle type, and distribution channel. The growth amongst these segments will help you analyse meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Component

• Body
• Electrical and Electronics
• Interior
• Power-Train and Chassis
• Others

Vehicle Type

• Commercial Vehicles
• Passenger Cars
• Electric Vehicles

Distribution Channel

• OEM Retailers
• Wholesalers
• Distributors

Automotive Original Equipment Manufacturer (OEMS) Market Regional Analysis/Insights

The market is analysed and market size insights and trends are provided, component, vehicle type, and distribution channel as referenced above.

The countries covered in the market report are U.S., Canada, Mexico, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific, Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa, Brazil, Argentina and Rest of South America.

Europe is expected to dominate the revenue growth of the automotive original equipment manufacturer (OEMS) market. The surge is propelled by rising automobile OEMs sales and robust demand for commercial and passenger vehicles equipped with advanced brake technologies.

Asia-Pacific is projected to be the fastest developing region in the automotive original equipment manufacturer (OEMs) market. This growth is fueled by rising automotive sales and high demand for vehicles in the region, driving significant expansion during the forecast period.

The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and Automotive Original Equipment Manufacturer (OEMS) Market Share Analysis

The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to market.

Some of the major players operating in the market are:

• TOYOTA MOTOR CORPORATION (Japan)
• Volkswagen AG (Germany)
•  Nissan (Japan)
•  Honda Motor Co., Ltd. (Japan)
•  Magna International Inc. (Canada)
•  Continental AG (Germany)
•  Siemens (Germany)
•  BMW AG  (Germany)
•  EXIDE INDUSTRIES LTD (India)
•  DENSO Corporation (Germany)
•  Robert Bosch, GMbH (Germany)
•  Valeo (France)
•  Ford Motor Company (U.S.)
• MITSUBISHI MOTORS CORPORATION (Japan)
•  ZF Friedrichshafen AG (Germany)
• BorgWarner Inc.(U.S.)