Automotive Contract Manufacturing Market by Vehicle Types, Services

Description

List of Tables

[188 Pages Report] The Automotive Contract Manufacturing Market size was estimated at USD 65.58 billion in 2023 and expected to reach USD 71.61 billion in 2024, at a CAGR 9.64% to reach USD 124.96 billion by 2030.

The automotive contract manufacturing market mainly comprises firms that provide comprehensive production and assembly services for the automotive sector. Automotive contract manufacturing companies specialize in various services from product design and development to assembly, testing, and post-manufacturing logistics for vehicles and vehicle components. Increasing outsourcing by OEMs to focus on R&D and branding is responsible for enhanced market growth. Rapid advancements in automotive technologies, including electric vehicles (EVs) and autonomous driving, are increasing vehicle manufacturing activities. Expansion of automotive companies into new markets, necessitating local production capabilities, positively influences market growth. However, managing complex global supply chains amid geopolitical tensions and logistic disruptions limits market expansion. Ensuring product quality while managing costs and efficiencies is a challenging factor in the market. Moreover, increasing demand for EVs opens up new production and assembly opportunities in the market arena. Introducing flexible production systems and tailored manufacturing services is anticipated to drive market growth in upcoming years.

KEY MARKET STATISTICS
Base Year [2023]	USD 65.58 billion
Estimated Year [2024]	USD 71.61 billion
Forecast Year [2030]	USD 124.96 billion
CAGR (%)	9.64%

Vehicle Types: Increasing contract manufacturing activities in passenger vehicles

Passenger cars, constituting a significant segment in the automotive industry, are primarily manufactured for the transportation of passengers and their personal belongings. Given the intense competition and rapid technological evolution within the automotive sector, automotive OEMs (Original Equipment Manufacturers) increasingly rely on contract manufacturers for scalable and efficient production solutions. Commercial vehicles are designed for the transportation of goods and services rather than passengers. This broad category includes light commercial vehicles (LCVs), heavy trucks, buses, coaches, and vans. Contract manufacturers enable OEMs to quickly respond to market demands and regulatory changes without the need for extensive capital investments in production facilities.

Services: Rising significance of contract manufacturing in automotive electronics

The design & development service in automotive contract manufacturing involves the creation and engineering of vehicle designs, focusing on aspects such as aesthetics, functionality, and safety. Working with experienced partners in design & development may significantly reduce time to market while ensuring that the final product meets both regulatory standards and consumer expectations. Contract manufacturers with significant experience in vehicle assembly can provide flexible solutions tailored to custom or large-scale production requirements, ensuring quality control in vehicle assembly steps. The complexity and significance of automotive electronics have surged with the advancement of electric vehicles (EVs) and autonomous driving technologies, making it a crucial area in automotive contract manufacturing. Contract manufacturers in component manufacturing often hold specialized certifications (e.g., ISO/TS 16949) and follow lean manufacturing principles to enhance efficiency and reduce waste, ensuring high-quality components at competitive costs.

Regional Insights

The Americas region shows a significant inclination towards electric vehicles (EVs) and autonomous driving technologies. The U.S. and Canada region is at the forefront of adopting EVs, stimulated by governmental policies and an eco-conscious consumer base. The EMEA region is at the forefront of automotive innovation, particularly in electric vehicles, driven by stringent environmental regulations and consumer demand for greener alternatives. The European Union's commitment to emission reduction targets has led to a surge in EV adoption and the establishment of advanced manufacturing facilities. The Asia Pacific region, led by China, Japan, and India, remains a dynamic landscape for automotive contract manufacturing. China's automotive market is booming with innovation, mainly in electric mobility and battery technology, backed by substantial state-funded research and development projects. Japan excels in automotive engineering and technology, focusing on hybrid and hydrogen fuel cell vehicles. India is emerging as a lucrative market for compact and budget-friendly vehicles, with a growing emphasis on electric mobility solutions. APAC region's growth is significantly fueled by consumer demand for advanced yet affordable automotive technologies.

FPNV Positioning Matrix

The FPNV Positioning Matrix is pivotal in evaluating the Automotive Contract Manufacturing Market. It offers a comprehensive assessment of vendors, examining key metrics related to Business Strategy and Product Satisfaction. This in-depth analysis empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success: Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The Market Share Analysis is a comprehensive tool that provides an insightful and in-depth examination of the current state of vendors in the Automotive Contract Manufacturing Market. By meticulously comparing and analyzing vendor contributions in terms of overall revenue, customer base, and other key metrics, we can offer companies a greater understanding of their performance and the challenges they face when competing for market share. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With this expanded level of detail, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Key Company Profiles

The report delves into recent significant developments in the Automotive Contract Manufacturing Market, highlighting leading vendors and their innovative profiles. These include Alchemy MFG, Astarc Group, Asteelflash Group, Avalon Technologies Limited, AVTEC Limited, Columbus Chemical, Econ Engineering Ltd., HANA Technologies, HYUNDAI TRANSYS Co., Ltd., Jayem Automotives, Lear Corporation, Magna International Inc., Megha Engineering & Infrastructures Limited, MTC Parts, Paragon Rapid Technologies, Providence Enterprise, REV Group Inc, SGK India, SGK India Engineering Pvt. Ltd., Steyr Automotive GmbH, Valmet Automotive Group, Yulon Motor Co., Ltd., and ZF Friedrichshafen AG.

Market Segmentation & Coverage

This research report categorizes the Automotive Contract Manufacturing Market to forecast the revenues and analyze trends in each of the following sub-markets:

Vehicle Types
- Commercial Vehicle
- Passenger Cars

Services
- Automotive Electronics
- Component Manufacturing
- Design & Development
- Vehicle Assembly

Region
- Americas
  - Argentina
  - Brazil
  - Canada
  - Mexico
  - United States
    - California
    - Florida
    - Illinois
    - New York
    - Ohio
    - Pennsylvania
    - Texas
- Asia-Pacific
  - Australia
  - China
  - India
  - Indonesia
  - Japan
  - Malaysia
  - Philippines
  - Singapore
  - South Korea
  - Taiwan
  - Thailand
  - Vietnam

Europe, Middle East & Africa
- Denmark
- Egypt
- Finland
- France
- Germany
- Israel
- Italy
- Netherlands
- Nigeria
- Norway
- Poland
- Qatar
- Russia
- Saudi Arabia
- South Africa
- Spain
- Sweden
- Switzerland
- Turkey
- United Arab Emirates
- United Kingdom

The report offers valuable insights on the following aspects:

1. Market Penetration: It presents comprehensive information on the market provided by key players.

2. Market Development: It delves deep into lucrative emerging markets and analyzes the penetration across mature market segments.

3. Market Diversification: It provides detailed information on new product launches, untapped geographic regions, recent developments, and investments.

4. Competitive Assessment & Intelligence: It conducts an exhaustive assessment of market shares, strategies, products, certifications, regulatory approvals, patent landscape, and manufacturing capabilities of the leading players.

5. Product Development & Innovation: It offers intelligent insights on future technologies, R&D activities, and breakthrough product developments.

The report addresses key questions such as:

1. What is the market size and forecast of the Automotive Contract Manufacturing Market?

2. Which products, segments, applications, and areas should one consider investing in over the forecast period in the Automotive Contract Manufacturing Market?

3. What are the technology trends and regulatory frameworks in the Automotive Contract Manufacturing Market?

4. What is the market share of the leading vendors in the Automotive Contract Manufacturing Market?

5. Which modes and strategic moves are suitable for entering the Automotive Contract Manufacturing Market?

Product Code: MRR-351BAD5034DA

1. Preface

1.1. Objectives of the Study
1.2. Market Segmentation & Coverage
1.3. Years Considered for the Study
1.4. Currency & Pricing
1.5. Language
1.6. Stakeholders

2. Research Methodology

2.1. Define: Research Objective
2.2. Determine: Research Design
2.3. Prepare: Research Instrument
2.4. Collect: Data Source
2.5. Analyze: Data Interpretation
2.6. Formulate: Data Verification
2.7. Publish: Research Report
2.8. Repeat: Report Update

3. Executive Summary

4. Market Overview

5. Market Insights

5.1. Market Dynamics
- 5.1.1. Drivers
  - 5.1.1.1. Increasing complexity of automotive manufacturing
  - 5.1.1.2. Increasing need for cost-effective and flexible production processes
  - 5.1.1.3. Growing focus on lightweight and fuel-efficient vehicles
- 5.1.2. Restraints
  - 5.1.2.1. High cost associated with setting manufacturing facility
- 5.1.3. Opportunities
  - 5.1.3.1. Technological advancements in electric & autonomous vehicles
  - 5.1.3.2. Leveraging Industry 4.0 technologies to enhance productivity and flexibility
- 5.1.4. Challenges
  - 5.1.4.1. Risk associated with ensuring product quality and intellectual property rights
5.2. Market Segmentation Analysis
- 5.2.1. Vehicle Types: Increasing contract manufacturing activities in passenger vehicles
- 5.2.2. Services: Rising significance of contract manufacturing in automotive electronics
5.3. Market Disruption Analysis
5.4. Porter's Five Forces Analysis
- 5.4.1. Threat of New Entrants
- 5.4.2. Threat of Substitutes
- 5.4.3. Bargaining Power of Customers
- 5.4.4. Bargaining Power of Suppliers
- 5.4.5. Industry Rivalry
5.5. Value Chain & Critical Path Analysis
5.6. Pricing Analysis
5.7. Technology Analysis
5.8. Patent Analysis
5.9. Trade Analysis
5.10. Regulatory Framework Analysis

6. Automotive Contract Manufacturing Market, by Vehicle Types

6.1. Introduction
6.2. Commercial Vehicle
6.3. Passenger Cars

7. Automotive Contract Manufacturing Market, by Services

7.1. Introduction
7.2. Automotive Electronics
7.3. Component Manufacturing
7.4. Design & Development
7.5. Vehicle Assembly

8. Americas Automotive Contract Manufacturing Market

8.1. Introduction
8.2. Argentina
8.3. Brazil
8.4. Canada
8.5. Mexico
8.6. United States

9. Asia-Pacific Automotive Contract Manufacturing Market

9.1. Introduction
9.2. Australia
9.3. China
9.4. India
9.5. Indonesia
9.6. Japan
9.7. Malaysia
9.8. Philippines
9.9. Singapore
9.10. South Korea
9.11. Taiwan
9.12. Thailand
9.13. Vietnam

10. Europe, Middle East & Africa Automotive Contract Manufacturing Market

10.1. Introduction
10.2. Denmark
10.3. Egypt
10.4. Finland
10.5. France
10.6. Germany
10.7. Israel
10.8. Italy
10.9. Netherlands
10.10. Nigeria
10.11. Norway
10.12. Poland
10.13. Qatar
10.14. Russia
10.15. Saudi Arabia
10.16. South Africa
10.17. Spain
10.18. Sweden
10.19. Switzerland
10.20. Turkey
10.21. United Arab Emirates
10.22. United Kingdom

11. Competitive Landscape

11.1. Market Share Analysis, 2023
11.2. FPNV Positioning Matrix, 2023
11.3. Competitive Scenario Analysis
- 11.3.1. PIF and Hyundai Motor Company Sign Joint Venture Agreement to Establish New Automotive Manufacturing Plant in Saudi Arabia
- 11.3.2. Magna Adds to its Complete Vehicle Manufacturing Lineup with an All-New Electric Vehicle from INEOS Automotive
- 11.3.3. B-On and Karma Automotive Announce Customized Flexible Manufacturing Partnership To Produce B-On Vehicles In California
11.4. Strategy Analysis & Recommendation

12. Competitive Portfolio

12.1. Key Company Profiles
12.2. Key Product Portfolio