Global Automotive Oems Market
Market Size in USD Billion
CAGR :
% 
USD
36.98 Billion
USD
53.28 Billion
2024
2032
 Forecast Period |
2025 –2032 |
 Market Size (Base Year) |
USD 36.98 Billion |
 Market Size (Forecast Year) |
USD 53.28 Billion |
 CAGR |
% |
| Major Markets Players |
|
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 2032.
Automotive Original Equipment Manufacturer (OEMS) Market Size
- The global automotive original equipment manufacturer (OEMS) market size was valued at USD 36.98 billion in 2024 and is expected to reach USD 53.28 billion by 2032, at a CAGR of 4.67% during the forecast period
- The market growth is largely fueled by the increasing demand for advanced features in vehicles, rising vehicle ownership across the globe, and the surge in electric vehicle (EV) innovation
- Growing consumer preference for individualized and high-performance automobiles, coupled with stringent environmental regulations and a global shift toward lower carbon emissions, further drives market expansion
Automotive Original Equipment Manufacturer (OEMS) Market Analysis
- The automotive OEM market is witnessing steady growth as manufacturers prioritize technological advancements and sustainable manufacturing methods to meet evolving customer demands and regulatory mandates
- OEMs are heavily investing in research and development to upgrade products with state-of-the-art electronics, lightweight materials, and networked automotive features to enhance product excellence and competitiveness
- Europe is dominating the revenue the automotive original equipment manufacturer (OEM) market with the largest revenue share of 42% in 2024, driven by rising automobile sales and robust demand for commercial and passenger vehicles equipped with advanced brake technologies
- Asia-Pacific is projected to be the fastest-growing region in the automotive original equipment manufacturer (OEM) market during the forecast period, fueled by rapid urbanization, increasing automotive sales, high demand for vehicles in the region, and the presence of significant players, particularly in countries such as China, India, Japan, and South Korea
- The power-train and chassis segment holds the largest market revenue share of 67.7% in 2024, driven by the essential role of powertrain systems in vehicle performance and significant OEM investments in developing internal powertrain technologies that reflect brand core intelligence
Report Scope and Automotive Original Equipment Manufacturer (OEMS) Market Segmentation
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Attributes |
Automotive Original Equipment Manufacturer (OEMS) Key Market Insights |
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Segments Covered |
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Countries Covered |
North America
Europe
Asia-Pacific
Middle East and Africa
South America
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Key Market Players |
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Market Opportunities |
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Value Added Data Infosets |
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. |
Automotive Original Equipment Manufacturer (OEMS) Market Trends
“Rising Adoption of Advanced Electrical and Electronics Components”
- OEMs are increasingly integrating advanced electrical and electronic systems, such as advanced driver-assistance systems (ADAS), infotainment systems, and connectivity features, to meet consumer demand for smart and connected vehicles
- These components enhance vehicle safety, convenience, and user experience, making them a key differentiator in the competitive automotive market
- In regions with high tech adoption, such as Europe and North America, OEMs such as BMW and Volkswagen are incorporating cutting-edge electronics in their premium models
- Electric vehicles (EVs) are driving demand for specialized electrical components, including high-capacity batteries and efficient power management systems, to optimize range and performance
- For instance, Tesla integrates proprietary electrical systems in its vehicles, setting a benchmark for EV performance and innovation
- Dealerships and OEM retailers are offering upgraded electronics packages as value-added options, particularly for luxury and electric vehicle buyers
Automotive Original Equipment Manufacturer (OEMS) Market Dynamics
Driver
“Growing Demand for Electric Vehicles and Sustainable Mobility
- Rising consumer awareness of environmental concerns and stringent emissions regulations are driving demand for electric vehicles, prompting OEMs to invest heavily in EV production and innovation
- EVs require specialized components, such as high-efficiency power-trains and advanced battery systems, which are boosting the demand for OEMs specializing in these areas
- Governments in regions such as Europe and Asia-Pacific are offering incentives and subsidies for EV adoption, further encouraging OEMs to expand their electric vehicle portfolios
- For instance, Mercedes-Benz has committed to an all-electric lineup by 2030, with models such as the EQS featuring advanced power-train and interior technologies
- The focus on sustainable mobility is also increasing the demand for lightweight materials in vehicle bodies and chassis to improve fuel efficiency and EV range
Restraint/Challenge
“Supply Chain Disruptions and Semiconductor Shortages”
- Global supply chain disruptions, particularly semiconductor shortages, are limiting OEMs' ability to meet production demands, especially for vehicles with advanced electrical and electronic components
- The complexity of sourcing components across different regions, coupled with geopolitical tensions and trade restrictions, creates challenges for manufacturers operating internationally
- Semiconductor shortages have led to production delays for major OEMs such as Ford and General Motors, impacting delivery timelines and market growth
- High dependency on specific suppliers for critical components, such as batteries for EVs, poses risks to scalability and cost management
- In Asia-Pacific, where rapid market growth is expected, supply chain bottlenecks could slow the pace of expansion for OEMs aiming to capitalize on rising demand
Automotive Original Equipment Manufacturer (OEMS) Market Scope
The market is segmented on the basis of component, vehicle type, and distribution channel.
- By Component
On the basis of component, the automotive original equipment manufacturer (OEM) market is segmented into body, electrical and electronics, interior, powertrain and chassis, and others. The power-train and chassis segment holds the largest market revenue share of 67.7% in 2024, driven by the essential role of powertrain systems in vehicle performance and significant OEM investments in developing internal powertrain technologies that reflect brand core intelligence. This reflects the core intelligence and performance capabilities of vehicle brands.
The electrical and electronics segment is expected to witness substantial growth, driven by the increasing integration of advanced driver-assistance systems (ADAS), infotainment systems, connectivity features, and the growing electrification of vehicles. As vehicles become more technologically advanced, the demand for sophisticated electronic components from OEMs rises significantly.
- By Vehicle Type
On the basis of vehicle type, the automotive original equipment manufacturer (OEM) market is segmented into passenger cars, commercial vehicles, and electric vehicles. The passenger cars segment is expected to dominate the market, attributed to the high global production and sales volume of passenger vehicles and the continuous consumer demand for enhanced comfort, safety, and aesthetic features. OEMs are consistently innovating to meet these evolving demands in the passenger car segment.
The electric vehicles segment is projected to witness the fastest growth rate during the forecast period. This rapid growth is driven by increasing global adoption of EVs, supportive government regulations promoting electrification, and significant OEM investments in developing specialized components and platforms for electric mobility.
- By Distribution Channel
On the basis of distribution channel, the automotive original equipment manufacturer (OEM) market is segmented into OEM retailers, wholesalers, and distributors. The OEM retailers segment accounted for the largest revenue share of 48.8% in 2024, supported by direct sales through branded dealerships and the growing trend of OEMs offering customized vehicle packages.
The Distributors segment is expected to witness the fastest growth rate during the forecast period, driven by the increasing demand for aftermarket parts and the expansion of distribution networks in emerging markets to support OEM supply chains.
Automotive Original Equipment Manufacturer (OEMS) Market Regional Analysis
- Europe is dominating the revenue the automotive original equipment manufacturer (OEM) market with the largest revenue share of 42% in 2024, driven by rising automobile sales and robust demand for commercial and passenger vehicles equipped with advanced brake technologies
- Consumers prioritize advanced safety features, fuel efficiency, and connectivity, boosting the adoption of innovative OEM component
- Growth is supported by technological advancements in electric and hybrid powertrains, as well as strong OEM presence in countries such as Germany and France
U.S. Automotive Original Equipment Manufacturer (OEMS) Market Insight
The U.S. holds a significant share in the North American automotive OEMs market in 2024, fueled by robust demand for passenger cars and electric vehicles, coupled with strong domestic manufacturing capabilities. The trend toward vehicle electrification and the integration of advanced electronics, such as ADAS and infotainment systems, drives market expansion. OEMs such as General Motors and Ford are increasingly incorporating sustainable materials and smart technologies, complementing both domestic and export markets.
Europe Automotive Original Equipment Manufacturer (OEMS) Market Insight
Europe dominates the revenue growth of the automotive OEMs market, supported by stringent environmental regulations and a strong focus on vehicle safety and sustainability. Consumers demand high-quality components that enhance fuel efficiency and reduce emissions, driving innovation in power-train and electrical systems. Countries such as Germany and France lead due to their advanced automotive manufacturing ecosystems and significant investments in EV production.
U.K. Automotive Original Equipment Manufacturer (OEMS) Market Insight
The U.K. market is expected to witness rapid growth, driven by increasing demand for electric and hybrid vehicles and the integration of advanced connectivity features. Consumer preference for premium vehicles with enhanced interiors and safety systems boosts OEM component demand. Supportive government policies promoting low-emission vehicles and the presence of major OEMs such as Jaguar Land Rover further accelerate market growth.
Germany Automotive Original Equipment Manufacturer (OEMS) Market Insight
Germany is a key contributor to the European automotive OEMs market, driven by its leadership in automotive manufacturing and innovation. German OEMs, such as Volkswagen and BMW, prioritize advanced power-train and chassis components to meet stringent emission standards and consumer demand for high-performance vehicles. The integration of smart electronics and sustainable materials supports sustained market growth.
Asia-Pacific Automotive Original Equipment Manufacturer (OEMS) Market Insight
The Asia-Pacific region is projected to be the fastest-developing region, driven by rapid urbanization, rising vehicle ownership, and increasing demand for electric vehicles in countries such as China, Japan, and India. Government incentives for EV adoption and investments in smart manufacturing technologies boost OEM component demand. The region’s growing middle class and focus on vehicle safety and connectivity further enhance market growth.
Japan Automotive Original Equipment Manufacturer (OEMS) Market Insigh
Japan’s automotive OEMs market is expected to witness significant growth, driven by its leadership in automotive innovation and strong demand for high-quality components in passenger cars and EVs. Major OEMs such as Toyota and Honda are integrating advanced electrical and power-train systems to enhance vehicle efficiency and performance. The growing trend of vehicle electrification and aftermarket customization supports market expansion.
China Automotive Original Equipment Manufacturer (OEMS) Market Insight
The China holds the largest share of the Asia-Pacific automotive OEMs market, propelled by rapid industrialization, increasing vehicle production, and government policies promoting electric vehicles. The country’s expanding middle class and demand for advanced safety and connectivity features drive the adoption of OEM components. Strong domestic manufacturing capabilities and competitive pricing further enhance market accessibility.
Automotive Original Equipment Manufacturer (OEMS) Market Share
The automotive original equipment manufacturer (OEMS) industry is primarily led by well-established companies, including:
- TOYOTA MOTOR CORPORATION (Japan)
- Volkswagen (Germany)
- Nissan (Japan)
- Honda Motor Co., Ltd. (Japan)
- Magna International Inc. (Canada)
- Continental AG (Germany)
- Siemens (Germany)
- BMW AG (Germany)
- EXIDE INDUSTRIES LTD (India)
- Robert Bosch, GMbH (Germany)
- Valeo (France)
- Ford Motor Company (U.S.)
- MITSUBISHI MOTORS CORPORATION (Japan)
- ZF Friedrichshafen AG (Germany)
- BorgWarner Inc.(U.S.)
Latest Developments in Global Automotive Original Equipment Manufacturer (OEMS) Market
- In March 2025, American Axle & Manufacturing (AAM) acquired Dowlais Group’s GKN Automotive and GKN Powder Metallurgy divisions to expand its expertise in powertrain-agnostic solutions. This acquisition enhances AAM’s capabilities in EV and hybrid vehicle components, aligning with the industry’s shift toward electrification. The deal strengthens AAM’s global supply chain presence, particularly in North America and Europe, to meet rising OEM demand for advanced driveline systems
- In February 2025, Hyundai entered a strategic partnership with CATL, a leading battery manufacturer, to supply high-performance batteries for its future EV models. This collaboration focuses on developing next-generation batteries with enhanced energy density and faster charging capabilities. By ensuring a stable battery supply chain, the partnership strengthens Hyundai’s competitiveness in the global EV market, particularly in North America and Asia-Pacific
- In January 2025, Volkswagen expanded its Modular Electric Drive Matrix (MEB) platform, introducing the ID.7 electric sedan with advanced driver-assistance systems (ADAS) and an improved battery range. This upgrade supports multiple EV models, enhancing production flexibility and cost efficiency. The expansion strengthens Volkswagen’s position in the global EV market, particularly in Europe and Asia-Pacific, where demand for sustainable mobility continues to rise
- In January 2025, General Motors (GM) merged its Cruise robotaxi business with its in-house autonomous and driving assist technology division, responsible for Super Cruise software. This strategic consolidation follows a $9 billion investment in Cruise, aiming to streamline autonomous vehicle development and enhance efficiency in a competitive market. The merger strengthens GM’s capabilities in autonomous driving technology, with expectations of contributing USD 1 billion to 2025 revenues
- In October 2023, Stellantis acquired a 20% stake in Leapmotor, a Chinese EV manufacturer, and expanded the partnership in 2025 to co-develop affordable EV models for global markets. This collaboration leverages Leapmotor’s cost-effective battery technology to enhance Stellantis’ EV portfolio, aiming for 500,000 sales outside China by 2030. The alliance strengthens Stellantis’ presence in Asia-Pacific and supports its electrification goals
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Research Methodology
Data collection and base year analysis are done using data collection modules with large sample sizes. The stage includes obtaining market information or related data through various sources and strategies. It includes examining and planning all the data acquired from the past in advance. It likewise envelops the examination of information inconsistencies seen across different information sources. The market data is analysed and estimated using market statistical and coherent models. Also, market share analysis and key trend analysis are the major success factors in the market report. To know more, please request an analyst call or drop down your inquiry.
The key research methodology used by DBMR research team is data triangulation which involves data mining, analysis of the impact of data variables on the market and primary (industry expert) validation. Data models include Vendor Positioning Grid, Market Time Line Analysis, Market Overview and Guide, Company Positioning Grid, Patent Analysis, Pricing Analysis, Company Market Share Analysis, Standards of Measurement, Global versus Regional and Vendor Share Analysis. To know more about the research methodology, drop in an inquiry to speak to our industry experts.
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