Automotive Contract Manufacturing Market by Vehicle Types (Commercial Vehicle, Passenger Cars), Services (Automotive Electronics, Component Manufacturing, Design & Development) - Global Forecast 2024-2030

Automotive Contract Manufacturing Market by Vehicle Types (Commercial Vehicle, Passenger Cars), Services (Automotive Electronics, Component Manufacturing, Design & Development) - Global Forecast 2024-2030

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.

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.

Market Insights

Market Dynamics

The market dynamics represent an ever-changing landscape of the Automotive Contract Manufacturing Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.

Market Drivers

• Increasing complexity of automotive manufacturing
• Increasing need for cost-effective and flexible production processes
• Growing focus on lightweight and fuel-efficient vehicles

Market Restraints

• High cost associated with setting manufacturing facility

Market Opportunities

• Technological advancements in electric & autonomous vehicles
• Leveraging Industry 4.0 technologies to enhance productivity and flexibility

Market Challenges

• Risk associated with ensuring product quality and intellectual property rights

Market Segmentation Analysis

• Vehicle Types: Increasing contract manufacturing activities in passenger vehicles
• Services: Rising significance of contract manufacturing in automotive electronics

Market Disruption Analysis

• Porter’s Five Forces Analysis
• Value Chain & Critical Path Analysis
• Pricing Analysis
• Technology Analysis
• Patent Analysis
• Trade Analysis
• Regulatory Framework Analysis

FPNV Positioning Matrix

The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Automotive Contract Manufacturing Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment 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, namely 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 assessment of the current state of vendors in the Automotive Contract Manufacturing Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. 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 these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Recent Developments

PIF and Hyundai Motor Company Sign Joint Venture Agreement to Establish New Automotive Manufacturing Plant in Saudi Arabia

In a landmark move to bolster Saudi Arabia's position within the global automotive industry, the Public Investment Fund (PIF) and Hyundai Motor Company have forged a strategic joint venture to construct a state-of-the-art automotive manufacturing facility in Saudi Arabia. With an investment surpassing USD 500 million, this initiative was unveiled at the Saudi-Korean Business Forum, underscoring a shared commitment to produce 50,000 vehicles annually, embracing both internal combustion and electric variants.

Magna Adds to its Complete Vehicle Manufacturing Lineup with an All-New Electric Vehicle from INEOS Automotive

Magna is expanding its partnership with INEOS Automotive by securing a contract to engineer and manufacture the all-new electric off-road vehicle by INEOS, with production set to commence in Graz, Austria. This partnership leverages Magna's established expertise in complete vehicle manufacturing and engineering, highlighting a significant step in the automotive industry's shift towards electrification.

B-On and Karma Automotive Announce Customized Flexible Manufacturing Partnership To Produce B-On Vehicles In California

B–ON, an innovator in electric vehicle (EV) solutions, has announced a strategic collaboration with the renowned luxury EV manufacturer, Karma Automotive, to manufacture B–ON's cutting-edge fully electric light commercial vehicles (eLCVs) at Karma's state-of-the-art facility in California starting this year. This expansion is set to significantly enhance B–ON's capabilities to meet the growing demand in the US, Canada, and Latin American markets, benefitting from Karma's exceptional workforce and technical prowess.

Strategy Analysis & Recommendation

The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Automotive Contract Manufacturing Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.

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

Please Note: PDF & Excel + Online Access - 1 Year