North America Automotive Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The North America Automotive Market is segmented by Vehicle Type (Passenger Cars, Commercial Vehicles (Light Commercial Vehicles and Medium and Heavy Commercial Vehicles), and Two-Wheelers) and by Geography (United States, Canada, and Rest of North America). The report offers market size and forecast for North America Automotive Market in value (USD million).

Market Snapshot

north america automotive market
Study Period: 2018-2027
Base Year: 2021
CAGR: >6.63 %

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Market Overview

The North America Automotive market was valued at USD 713.07 billion in 2021, and it is expected to reach USD 970.23 billion by 2027, registering a CAGR of above 6.63% during the forecast period (2022 - 2027).

The COVID-19 pandemic had a negative impact on the market significantly during the first half of 2020, due to lockdowns and shutdowns of manufacturing units. Further, the market faced difficulties across the supply chain as the sources of raw materials and components were located at varied locations. However, as restrictions eased demand started restoring back to pre-pandemic levels with the majority of demand being supported by key players and their active presence in the market in form of new model launches and plant expansions.

Over the medium term, demand in the market is expected to be driven by rising electric mobility across major countries in the North American region. In addition, growing government support in form of favorable initiatives and policies is expected to drive demand in the market. Moreover, the growing consumer inclination towards safety and comfort features in vehicles is accommodated by latest technologies like ADAS, etc.

However, growing adoption of rental and used cars market expected to stand as potential challenge for players operating in the market. The deamd for commercial vehicles is strongly influenced by growing logistics and delivery services which is further coupled by fleet expansion of vehicles by key e-commerce gaints like Amazon, etc. The developments in engine technology are progressing significantly, accompanying the rising emission standards across the globe. These factors are notable patrons to the incremental growth of the automotive market in the region.

United States likely to hold significant market share in the region followed by Canada and Mexico. The country is home to major automotive OEMS and is also influenced positively by large supportive infrastructure and electric vehicle policies of government in the country. Besides these, growing inclination of youth towards luxury and premium vehicles expected to offer lucrative opportunities.

Scope of the Report

The North American automotive industry outlook covers the growing demand for passenger cars, commercial vehicles, and two-wheelers in the region, investments made by OEMs to establish their presence in North America, emission regulations, developments in the electric vehicle market, and market shares of both OEMs and OES.

The scope of the report includes vehicle type (Passenger cars, Commercial vehicles (Light commercial vehicles and Medium and heavy commercial vehicles, and Two-wheelers), and Geography (United States, Canada, and Rest of North America). 

By Vehicle Type, the market is segmented into Passenger Cars, Commercial Vehicles, and Two-wheelers. By Commercial Vehicles, the market is segmented into Light commercial vehicles and Medium and Heavy-duty Commercial Vehicles. For each segment, the market size and forecast have been done on basis of value (USD million). 

By Vehicle Type
Passenger Cars
Commercial Vehicles
Medium and Heavy Commercial Vehicles
Light Commercial Vehicles
Two-Wheelers
By Geography
United States
Canada
Rest of North America

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Key Market Trends

Rising Electric Mobility to Drive Demand in the Market

The increasing focus on reducing vehicular emissions has shifted the focus of the automotive industry toward electric vehicles, which are driving the market. With the growing environmental concerns, governments and environmental agencies are enacting stringent emission norms and laws that may increase the manufacturing cost of electric drive trains and fuel-efficient diesel engines in the coming years. North America has witnessed an unprecedented demand for battery electric vehicles over the last five years. For instance, 

  • In the United States, battery electric vehicle sales jumped from 269,033 in 2019 to 295,742 in 2020, witnessing a jump in sales by as much as 10% in 2020. However, the sales for BEVs came down slightly in 2021, reaching 241,842 during the same year. 
  • Though the 2021 sales proved flat to 2020, the growth rate since 2013 has been impressive. Although the global market plunged in 2020 due to the COVID-19 pandemic, the BEVs segment has witnessed growth, and the long-term forecast of BEVs sales is optimistic.

The role of incentives and mandates is key to the high demand for electric vehicles. Several incentives are being provided by the governments to encourage the sales of electric vehicles, as all these countries are focusing on reducing their vehicle emissions. 

  • Some of them are In the United States, the EPA and NHTSA proposed the implementation of the Safer Affordable Fuel-Efficient (SAFE) vehicles rules (2021 - 2026). The rule may set the standards for corporate average fuel economy and greenhouse gas emissions for passenger and light commercial vehicles.The Zero Emission Vehicles (ZEV) Program requires OEMs to sell specific numbers of clean and zero-emission vehicles (electric, hybrid, and fuel cell-powered commercial and passenger vehicles). The ZEV plan aims at putting 12 million ZEVs on the road by 2030.

Such developments, expected to enhance demand in the automotive market in north America region over coming years. 

North America Automotive Industry _Key Market Trends1

United States Likely to Occupy Significant Share in the Market

The United States is one of the major automotive industries in the world, which contributes at least 3% to the overall gross domestic product (GDP) of the country. The country manufactured close to 8.82 million vehicles in 2020, which is about 19% less than the previous year, 2019. This decline in manufacturing is mainly due to the COVID-19 pandemic and changes in the supply chains of the automobile industry.

  • As of June 2020, approximately 250 million cars, trucks, and buses in the United States were powered by internal combustion engines using gasoline or diesel fuel. With the emergence of electric vehicles, the government has been providing various tax benefits to support the purchase of electric vehicles.
  • The credit for plug-in electric vehicles is a federal tax incentive for electric vehicles, where the credit ranges from USD 2,500 to USD 7,500 per vehicle, depending on the vehicle’s battery capacity. This type of credit is available after the sale of 200,000 qualifying vehicles in the United States.

The government is also supporting the research and development of electric vehicles in the form of annual appropriations to the Office of Energy Efficiency and Renewable Energy (EERE). United States is witnessing enormous demand for electric vehicles, which is majorly catered by the Tier-1 companies. For instance, Tesla accounts a major share of the market. Tesla Model 3, Tesla Model X, and Tesla Model S accounted for 57% of the sales, and Chevy Bolt and Nissan LEAF together accounted for 9% of sales.

Furthermore, the government is supporting electrification through programs and incentives like the FTA’s Low or No-emission Vehicle Program and the California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project that help agencies purchase advanced technology transit buses.

North America Automotive Industry Outlook_Key Market Trend2

Competitive Landscape

The North America Automotive Market is a consolidated market and accommodates several key players such as Ford, Toyota, General Motors, Mazda, Honda, Volkswagen, and Others. Several Tier 1, 2, and 3 companies have seen new opportunities in supplying components to these OEMs and simultaneously reducing overall costs. Key companies in operating in the market are focusing on different growth strategies to stabilize their position in the market. For instance, 

  • In September 2021, General Motors Company announced a supply agreement to map the future requirement with 2016-founded San Jose-based Lidar vendor company Cepton. The General Motors Company will procure lidars from 2023 and is set to integrate these lidars in nine different models.
  • In July 2022, B-ON announced that it has reached an agreement with US-based Creative Bus Sales (CBS) to sell, distribute, and service B-ON's electric light commercial vehicles (eLCVs) in the United States, beginning with a 500-vehicle order to be fulfilled in Q4 2022. CBS will have exclusive rights to sell B-ON's eLCVs through the nation's largest network of dealerships, with over 20 locations across the US.
  • In July 2022, Karma Automotive announced that it has joined the MIH Consortium to create an open ecosystem for the future EV industry. The mission of MIH Open Platform Alliance is to facilitate cooperation in the EV sector, developing next generation e-Mobility technologies, establishing testing and certification standards, and bringing alliance partners together.

Recent Developments

  • In July 2022, Cadillac unveiled the Celestiq show car, a vision of innovation that previews the brand’s future handcrafted and all-electric flagship sedan. The Ultium-based electric show car previews some of the materials, innovative technologies and hand-crafted attention to detail harnessed to express Cadillac’s vision for the future.
  • In July 2022, Amazon has begun deploying its custom electric delivery vehicles from Rivian for package delivery, with the electric vehicles hitting the road in Baltimore, Chicago, Dallas, Kansas City, Nashville, Phoenix, San Diego, Seattle, and St. Louis, among other cities.
  • In January 2022, Tesla Inc. had a supply agreement with Talon Metals Corp., a subsidiary of Talon Nickel LLC, for the supply of nickel. This agreement will lead to the production of battery material from mine to battery cathode in a way to make the electric vehicle battery more environmentally friendly.
  • In July 2022, TuSimple, a global autonomous driving technology company, announced a partnership with Hegelmann Group, a major European transport and logistics provider with a fleet of over 5,000 vehicles, and initial reservation of purpose-built SAE Level 4 (L4) Autonomous International Trucks for operation in North America. The trucks will be equipped with TuSimple's advanced autonomous driving system and will be based on a global vehicle platform developed by Navistar.
  • In October 2021, Daimler AG (Mercedes Benz) announced a USD 8.2 billion battery venture with the European automobile manufacturers Stellantis NV and Total Energies SE to secure the supplies for electric Mercedes Benz cars.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Vehicle Type

      1. 5.1.1 Passenger Cars

      2. 5.1.2 Commercial Vehicles

        1. 5.1.2.1 Medium and Heavy Commercial Vehicles

        2. 5.1.2.2 Light Commercial Vehicles

      3. 5.1.3 Two-Wheelers

    2. 5.2 By Geography

      1. 5.2.1 United States

      2. 5.2.2 Canada

      3. 5.2.3 Rest of North America

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 BMW AG

      2. 6.2.2 Daimler AG

      3. 6.2.3 Tesla Inc.

      4. 6.2.4 Fiat Chrysler Automobiles NV

      5. 6.2.5 Ford Motor Company

      6. 6.2.6 General Motors Company

      7. 6.2.7 Honda Motor Company Ltd

      8. 6.2.8 Hyundai Motor Company

      9. 6.2.9 Nissan Motor Co. Ltd

      10. 6.2.10 Groupe Renault

      11. 6.2.11 Toyota Motor Corporation

      12. 6.2.12 Volkswagen AG

      13. 6.2.13 Harley-Davidson

      14. 6.2.14 Yamaha Motor Co. Ltd

    3. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The North America Automotive Market market is studied from 2018 - 2027.

The North America Automotive Market is growing at a CAGR of >6.63% over the next 5 years.

The North America Automotive Market is valued at 713 Billion USD in 2018.

The North America Automotive Market is valued at 970 Billion USD in 2027.

Tesla, Inc., General Motors, FCA Group, Ford Motor Company, BMW AG are the major companies operating in North America Automotive Market.

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