Automotive Manufacturing Equipment Market

Global Automotive Manufacturing Equipment Market (2024 to 2029)

The global automotive manufacturing equipment market size is expected to reach USD 8.26 billion in 2024 and reach USD 13.99 billion by 2029 to grow at a CAGR of 11.1% from 2024 to 2029.

The growth of the global automotive industry is contributing to the increasing demand for automotive manufacturing equipment worldwide. Automakers are expanding their manufacturing capacity due to the rising demand for cars in developed and emerging regions. Technological developments are favoring the global market expansion and this has caused advancements in sophisticated and effective manufacturing systems such as automation and robots. In addition, the government policies and benefits to lower carbon emissions and boost fuel economy are propelling the automotive manufacturing market. It has increased awareness of electric and hybrid vehicles, which require specialized manufacturing equipment.

Global Automotive Manufacturing Equipment Drivers:

The growing popularity of electric vehicles and autonomous driving technologies is expanding the market growth of the automotive manufacturing equipment market. This makes the production systems and tools even more important. Rapid technical breakthroughs have revolutionized production processes. This surged the demand for creative factories in the auto sector. Increasing industry 4.0 acceptance has accelerated the market growth rate. Technologies such as IoT, additive manufacturing, big data analysis, and smart equipment are part of Industry 4.0. All these are improving the efficiency, traceability, and safety of the automotive supply chain.

The automotive manufacturing equipment market is experiencing a growing need for artificial intelligence and machine learning-based technologies. Autonomous vehicles powered by AI and ML algorithms can drive autonomously without the need for human involvement. These algorithms can recognize and predict environmental objects and this makes informed decisions about safe navigation. Moreover, predictive maintenance is another benefit these technologies provide. It can forecast the time or period for vehicle maintenance. This is done by analyzing information collected by sensors and other sources.

The rise in automobile production in developing nations is boosting the market size. India is a developing nation with a strong domestic auto industry. In 2023, India became the world's third-largest automaker. More than 4.5 million automobiles will be produced by Indian manufacturing lines by the end of 2024. Stricter rules and growing environmental issues are providing opportunities for companies to develop energy-efficient equipment by using sustainable raw materials and producing lower waste.

Global Automotive Manufacturing Equipment Market Restraints:

High installation costs restrict the automotive manufacturing equipment market growth rate. The company's biggest operating costs are largely on automated equipment. The price range can range from thousands to millions of dollars. This depends on the kind and degree of automation. Many unexpected expenses and overhead costs often surpass the costs reduced by automation. The cost of factory robots, installation fees, and accessories such as cameras and end effectors are additional expenses. So, the expansion of the market is hampered by the high cost of manufacturing equipment, which is particularly expensive for small and medium-sized enterprises engaged in low-volume production.

Industrial robot performance can be affected by serious threats, including account and data hacking. This is a major challenge for the automotive manufacturing equipment market. It will directly affect the rate at which new technologies are adopted. For instance, AI-powered computing vision and machine vision. In addition, cyberattacks can affect the accuracy, safety, and integrity of these systems. Hence reducing their efficiency. In the upcoming years, machine vision will likely become more important, with the automotive manufacturing sector shifting from product standardization to product customization. Also, building a universal machine vision system is challenging. This is due to the varied applications used in different manufacturing industries and the various specifications based on individual customer needs. Hence, the increased connectivity of AI chips has raised their weakness in network and physical attacks.

Impact of COVID-19 on the global automotive manufacturing equipment market:

COVID-19, the Russia-Ukraine Conflict, and High Inflation significantly impact the automotive manufacturing equipment market. It caused supply chain interruptions, consumer behavior changes, and government actions. Similarly, the Russia-Ukraine conflict's effects on political and economic instability in Eastern Europe also have an impact on trade, import and export, pricing variations, and demand-supply balances.

REPORT COVERAGE:

This research report on the global automotive manufacturing equipment market is segmented and sub-segmented into the following categories.  

Global Automotive Manufacturing Equipment Market - By Equipment Type:

• CNC Machine
• Conveyor Belt
• Injection Molding Machine
• Robot

The Robot segment is propelling at a faster growth rate and will continue to expand even further during the forecast period. The rise in the global automotive manufacturing equipment market is largely due to multiple factors. This includes increased automobile demand, rising labor costs, technological advances, etc. Likewise, robots can greatly boost productivity by decreasing downtime, enhancing efficiency, and operating continuously without the need for breaks. Furthermore, it can also execute activities consistently and precisely, which improves output quality and boosts customer satisfaction. Another important aspect is safety. They can carry out monotonous or dangerous jobs. It lowers the accident numbers at work and enhances worker security. In addition, it helps in saving extra funds by delivering bigger volumes of high-quality products in a cost-effective manner. This ultimately results in increased profitability and market share.

Global Automotive Manufacturing Equipment Market - By Mode of Operation:

• Automatic
• Semi-Automatic

The automatic segment's market growth is anticipated to increase at a considerable CAGR. Technology developments in automation systems have increased their efficiency. These factors contributed to the rise of the automatic segment in the car manufacturing business. Also, the use of these systems reduces the need for human involvement. It leads to a simpler and faster manufacturing process. This produces lower costs and more profitability for producers. Therefore, the automotive manufacturing equipment market share will expand quickly due to the growing automatic segment.

Global Automotive Manufacturing Equipment Market - By Vehicle Type:

• Passenger Vehicle
• Commercial Vehicle

The passenger segment is predicted to account for a noticeable share of the automotive manufacturing equipment market throughout the forecast period. The increasing per capita income of consumers, the usage of new powertrain technologies, and sophisticated features are boosting the demand for these passenger cars worldwide. The market growth rate will only rise further in the coming years. Moreover, according to the International Organization of Motor Car Manufacturers 2022 report, 69 percent of all passenger cars sold globally were made in Asia and Oceania. Furthermore, developing countries like China, Mexico, Brazil, and India are seeing massive growth in their market share in the automobile sector. With supportive policies and initiatives, inexpensive labor, a growing middle class, a sizable youth population, and sustainable infrastructure, manufacturers are making investments in these developing countries. Therefore, the growth in this segment will further augment the automobile manufacturing equipment market share.

Global Automotive Manufacturing Equipment Market – By Region:

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa

Asia Pacific accounts for more than fifty percent of the global automotive manufacturing equipment market share. India and China are leading the regional market growth. They are making significant investments in infrastructure facilities and transportation networks. APAC is witnessing excellent economic growth. As a result, there is more demand for manufacturing equipment in the automotive industry. This is even higher for updated facilities and production lines. Furthermore, the market share of hybrid and electric cars is also rising in the region. It is driving up investment in specialized machinery used to make battery components. Therefore, the market size is expanding due to the increasing demand for cars and related equipment.

North America is expected to register a moderate market growth rate during the forecast period. November 2023 saw a slowdown in the US manufacturing. This is due to falling factory jobs. Moreover, hiring decreased, and layoffs escalated in the region. Machinery was part of the 14 industries which reported a decline. However, the Canadian government is investing 34 billion dollars in the vehicle supply chain and battery. It has also set an ambitious electric vehicle target for a smooth transition. Moreover, the production of zero-emission cars and their parts offers huge potential. This has already started benefiting the Canadian economy. Furthermore, car makers in the region are looking to take advantage of low-cost production in Mexico.

Europe's automotive manufacturing market is anticipated to move forward at a steady growth rate in the coming years. This can be due to the area's fast-increasing demand for electric automobiles. Companies are forced to create a new production line for EVs. This is because their engines and parts are different and lighter than those of fuel-consuming automobiles. Thus, the region's need for automotive manufacturing devices will greatly increase due to the growing number of production lines.

Middle East and Africa is expected to grow during the forecast period. The market is expanding all over the Middle East and Africa. South Africa, Saudi Arabia, and the United Arab Emirates were all concentrating on growing their automobile sectors. Market expansion is supported by the government to diversify economies and reduce dependence on oil. Opportunities for suppliers of manufacturing equipment were created by the rising demand for automobiles, particularly electric and commercial cars.

KEY MARKET PLAYERS:

ABB (Switzerland), Fanuc Corporation (Japan), KUKA AG (Germany), Yaskawa Electric Corporation (Japan), Kawasaki Heavy Industries, Ltd (US), Amanda CO., LTD. (Japan), AIDA Engineering, LTD. (Japan), Durr Group (Germany), Schuler Group (Germany), TRUMPF (Germany), Universal Robots (Denmark), Daifuku Co., Ltd. (Japan), and Yamazaki Mazak Corporation (Japan). Some of the market players dominate the global automotive manufacturing equipment market.

RECENT HAPPENINGS IN THE MARKET:

• In November 2023, Robot System Products (RSP) announced that it would establish a subsidiary in India to take advantage of the country's growing robotics and industrial automation market.
• In September 2023, Toyota Motor revealed a gigacasting equipment prototype for electric vehicle manufacturing. It can produce one-third of the car body in three minutes. The company wants to modernize and organize its EV manufacturing. It also plans to decrease factory investment and production lead time to achieve a 3.5 million EV sales target by 2030.
• In August 2023, Genuine Parts Company acquired Recambios y Accesorios Gaudi. This purchase was executed for its wholly owned company in London (UK) called Alliance Automotive Group (AAG). The objective was to increase their presence in the European automotive market by adding Gaudi.