The car industry represents a major segment of the modern day economy. In 2016, it was the third largest employer in the world, with almost 1.5 million people working in it. The emergence of the car industry in the early 20th century had a major impact on the world. Today, it is an integral part of the modern economy.
The car industry is made up of a number of key verticals and sub-segments. These can be broadly classified into two categories – automotive components and automotive vehicles. The automotive component includes major cost items such as the engine, transmission, axles, and wheels. While, the automotive vehicles include cars, crossovers, SUVs, vans, and trucks.
The industry has grown at an exponential rate in the last few decades, especially in the field of electric vehicles. In this article, we will be discussing the key players in the global auto industry, with a focus on the key trends and forecasts for the sector.
Automakers are the key manufacturers of cars, and are the largest single exporter in the world. The car industry is highly fragmented, and is dominated by a few major players. Gaining market share and increasing production are key to success in the industry. The top five car manufacturers in the world in 2016 were Toyota, Volkswagen, General Motors, Ford and Hyundai. The top five car companies together produced over 64% of all cars produced in the world.
Auto Parts and Accessories
The auto parts and accessories industry consists of manufacturers of automotive frames, panels, bodywork, interiors, tires and other parts used in the car. These parts come under the category of mechanical components, and include items such as steering systems, brakes, exhaust systems, and suspension systems. The top three manufacturers in the industry in 2016 were Bosch, Continental and Michelin. Bosch and Continental are into the production of brake systems and other parts, while Michelin produces tires.
New Automotive Platforms
New automotive platforms are a key trend in the auto industry, as automakers race to design and bring to market new vehicle models. The most notable trend in the new vehicle platforms is the increasing importance of electrification. The rising popularity of hybrid and electric vehicles, and the increasing demand for SUVs and crossovers have led to an increase in the adoption of new platforms. The top three platforms in 2016 were AMT (Advanced Medium-sized Truck), E-Trot (Electric Motorbike), and C-Cab (Combined Vehicle).
Electric vehicles are expected to become more affordable and accessible to a larger segment of the population in the next few years. The global electric vehicle (EV) market is still dominated by battery-electric vehicles (BEVs). However, there has been a rising trend in the adoption of plug-in hybrid electric vehicles (PHEVs) and fuel cell vehicles (FCVs). In addition to this, the hydrogen-based technology has also seen a major shift in the automotive industry, with almost every major car manufacturer investing in this technology.
The demand for clean energy and mobility, particularly in developed nations, has led to the increased adoption of electric vehicles. The top three manufacturers of electric vehicles in the world in 2016 were Tesla, Volkswagen, and BYD. The Tesla Model S was the most popular car in the world in 2016, followed by the Model X, and the Volkswagen Golf. The BYD company is known for its electric buses and taxis.
Car-Sharing and Ride-Hailing Services
The car-sharing and ride-hailing services industry has grown dramatically in recent years, with major cities in many countries now having such services. The top three players in this space in 2016 were Uber, Lyft, and Didi Chuxing. Uber emerged as the leader in this space in 2016, and became the most valuable startup in the world.
Key Trends and Predictions
The global automotive industry is anticipated to grow at a CAGR of around 3% over the next few years. The growth of the industry is largely dependent on consumer demand and economic growth. The increase in per capita income and consumer spending will result in an increase in demand for automobiles. The emerging adoption of alternative automotive technologies will also be a key trend to lookout for.
The car industry has seen huge growth during the modern era, and is expected to continue to play a major role in the economy in the years to come. Automakers are working to meet rising demand for new vehicle models, and are investing in new technologies to bring about a shift towards electrification and automation. The auto industry will continue to be highly fragmented, with key players pitting against one another in a race for market share. Overall, the industry is set for significant growth in the coming years.
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