US Automotive Market Size, Share, Trends, Growth 2032

US Automotive Industry Prospective:

The US automotive market size was worth around USD 4.35 billion in 2023 and is predicted to grow to around USD 10.67 billion by 2032 with a compound annual growth rate (CAGR) of roughly 10.5% between 2024 and 2032.

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US Automotive Market: Overview

Any object about motor vehicles, especially cars, trucks, and other vehicles intended for road travel, is referred to as "automotive". It includes a broad range of parts, industries, and systems that are involved in the creation, production, use, and upkeep of these vehicles. This covers both the manufacturing of automobiles by the automotive industry and the technologies, components, and services that go along with them, like electronics, tires, engines, batteries, and repair services. The US automotive industry is being driven by several factors such as high consumer spending power, technological advancements, supportive government regulations and policies, growing urbanization & infrastructure development, and the presence of major players such as Tesla, GE Motors, and others.

Key Insights

• As per the analysis shared by our research analyst, the US automotive market is estimated to grow annually at a CAGR of around 10.5% over the forecast period (2024-2032).
• In terms of revenue, the US automotive market size was valued at around USD 4.35 billion in 2023 and is projected to reach USD 10.67 billion, by 2032.
• The rising adoption of EVs is expected to propel the US automotive market growth over the projected period.
• Based on the vehicle type, the passenger cars segment is expected to dominate the market over the forecast period.
• Based on the propulsion type, the electric segment is expected to grow at a rapid rate over the projected period.
• Based on the state, California is expected to dominate the market over the projected period.

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US Automotive Market: Growth Drivers

Growing vehicle digitization and electrification drive market growth

The main factor influencing the US automotive market's expansion is the growing electrification and digitization of vehicles. The need for more information for drivers, less fuel consumption, fewer emissions, increased safety, driver assistance, and a simple & enjoyable driving experience is driving the growth of the automotive industry. To keep up with this trend, original equipment manufacturers (OEMs) are getting ready to release new goods. Moreover, automobiles are improving to be more efficient without losing performance, comfort, or reliability. Many automakers are creating plug-in and hybrid vehicles. The aforementioned advancements present opportunities for automotive service providers to provide diverse engineering solutions that facilitate the development and optimization of the product, thereby propelling the US automotive market's growth trajectory over the projected period.

US Automotive Market: Restraints

High production costs and supply chain disruption impede market growth

High production costs drive up car prices, which in turn lower accessibility and reduce buyer demand, thereby hindering the US automotive industry expansion. These costs are determined by several factors, such as labor costs, raw material costs, and regulatory compliance. Supply chain disruptions, like delays in logistics or shortages of necessary parts, can also affect production schedules and car availability, which drives up prices and impacts sales. These challenges not only affect automakers but also auto dealers, suppliers, and customers, clouding the market and preventing expansion. Furthermore, supply chain disruptions have become more severe in the context of global events like the COVID-19 epidemic and the Russia-Ukrainian War, highlighting the vulnerability of the passenger car market.

US Automotive Market: Opportunities

The rising EV Campaign offers an attractive opportunity for market growth

The increasing electric vehicle campaign in the US is expected to offer a potential opportunity for the growth of the US automotive market over the projected period. For instance, in May 2024, Hyundai launched a new marketing campaign to convince people who are thinking about purchasing an electric vehicle to switch to one and creatively showcase the benefits. The commercial will highlight Hyundai's whole lineup of electric cars, which includes the IONIQ 5, IONIQ 5 N, and IONIQ 6 in addition to the Kona Electric. Its eye-catching visuals will set it apart from any prior Hyundai advertising effort. The ad buy bundles will encompass several venues, such as social media and television. Major events such as the Olympics, MLB games, and NBA playoffs will feature the campaign during the summer. Two 30-second and one 60-second broadcast hero spots will make up the segment. Mid-May is when the campaign will launch.

US Automotive Market: Challenges

Environmental and social concerns pose a major challenge to market expansion

Due to supply constraints and environmental concerns, the automotive industry may come under more scrutiny for its practices as environmental concerns and social responsibility demands grow. This could have an impact on consumer demand and perception. The shift to electric vehicles necessitates large quantities of vital minerals like cobalt and lithium. Thus, the environmental and social concerns might be posing a major challenge for the US automotive industry during the forecast period.

US Automotive Market: Segmentation

The US automotive industry is segmented based on vehicle type, propulsion type, and state.

Based on the vehicle type, the US automotive market is bifurcated into passenger cars, commercial vehicles, and two-wheelers. The passenger cars segment is expected to dominate the market over the forecast period. The cost of passenger automobiles is rising as a result of the incorporation of new technologies like entertainment, connected car systems, and autonomous driving capabilities. Due to consumers' willingness to pay more for high-tech features, this trend is helping to increase revenue growth. With many passenger automobiles soon to be equipped as standard, advanced driver-assistance systems (ADAS), and other safety features raise the cost and income of the vehicle. Consumers are also choosing more ecologically friendly and fuel-efficient cars, such as hybrid and electric passenger cars, as a result of increased environmental awareness. Particularly in the EV sector, this trend is predicted to fuel revenue growth of the US automotive industry.

Based on the propulsion type, the US automotive industry is segmented into internal combustion engines, electric and hybrid. The electric segment is expected to grow at a rapid rate over the projected period. The segment growth is attributable to the increasing awareness regarding the environment among consumers and the supportive government initiatives. For instance, according to estimates from Kelley Blue Book, a Cox Automotive business, 1.2 million U.S. car purchasers decided to purchase an electric vehicle last year, setting a record. In particular, the gradual transition to an electrified future proceeded unabatedly with 1,189,051 new electric cars (EVs) being placed into service. Based on predictions from Kelley Blue Book, the percentage of electric vehicles (EVs) in the U.S. automobile market was 7.6% in 2023. It has increased from 5.9% in 2022. Thus, the aforementioned stats drive the US automotive industry over the analysis period.

US Automotive Market: Report Scope

US Automotive Market: State Analysis

California is expected to dominate the market over the forecast period

California is expected to dominate the US automotive market over the forecast period. With the help of various incentives like rebates, tax credits, and investments in charging infrastructure, California State has been actively encouraging the adoption of electric vehicles; the state's ambitious climate goals, which include reducing greenhouse gas emissions, are contributing to the growth of the EV market; the state's EV infrastructure is growing; the transition to electric vehicles is being facilitated by the expansion of EV charging stations, particularly in urban areas; and California City has been making EV infrastructure investments to support this shift. There were 930,811 electric vehicles including BEVs and PHEVs and 34,185 charger ports in 2021 as per the data by the EV Adoption LLC.

US Automotive Market: Competitive Analysis

The US automotive market is dominated by players like:

• Toyota Motor Corporation
• General Motors
• Ford Motor Company
• Honda Motor Co. Ltd.
• Tesla Inc.
• Volkswagen Group of America
• Nissan Motor Corporation
• Fiat Chrysler Automobiles
• BMW Group
• Audi
• Mercedes-Benz USA
• Kia Motors America
• Subaru of America
• Hyundai Motor America
• Porsche
• Rivian Automotive
• Mazda North American Operations
• Jaguar Land Rover North America
• Mitsubishi Motors North America
• Volvo Car USA

The US automotive market is segmented as follows:

By Vehicle Type

• Passenger Cars
• Commercial Vehicle
• Two Wheelers

By Propulsion Type

• Internal Combustion Engine
• Electric
• Hybrid

By State

• California
• Florida
• New York
• Washington
• Texas
• New Jersey
• Georgia
• Oregon
• Arizona
• Colorado
• Others