HYDERABAD, India, Dec. 2, 2025 /PRNewswire/ -- According to Mordor Intelligence, the global automotive market reached USD 2.75 trillion in 2025 and is expected to grow to USD 3.26 trillion by 2030, at a CAGR of 3.46% during the forecast period. Stricter emissions regulations, falling battery costs, and enhanced digital cockpits are driving demand for electric and connected vehicles.
Automakers are consolidating platforms to invest in software and power electronics, while tier-1 suppliers are securing semiconductors and critical minerals. Investor focus is shifting toward battery manufacturing, silicon carbide production, and advanced driver-assistance technologies, reflecting confidence in long-term electrification, even as chip and cathode material shortages limit short-term production but boost pricing for leading suppliers.
Key Drivers Influencing Market Trends
Urban Emissions Control Policies
New emissions standards and zero-emission mandates worldwide are pushing automakers to shift away from traditional internal combustion engines. Cities are rolling out low-emission zones and incentive programs that favor electric vehicles, while regulators link battery recycling with emissions compliance. This evolving policy landscape is prompting the industry to prioritize investments in batteries, power electronics, and charging infrastructure, making clean propulsion a central focus for future vehicle strategies.
Connected Car and In-Vehicle Technology Growth
As advanced features like AI voice assistants, augmented-reality displays, and over-the-air updates become standard, automakers are boosting profits through software subscriptions and digital services. Connected cockpits also provide data for predictive maintenance, reducing costs and improving customer loyalty. This shift toward recurring software revenue strengthens the long-term value of each vehicle and enhances pricing power for tech-focused models.
Segmentation Insights
By Vehicle Type
- Two-Wheeler
- Three-Wheeler
- Passenger Cars
- Commercial Vehicles
- Off-Highway Vehicles
By Propulsion Type
- Internal Combustion Engine (ICE)
- Hybrid Vehicle
- Electric Vehicle (EV)
By Application
- Personal
- Commercial
- Public Transport
- Industrial Use
By Ownership Model
- Individual Ownership
- Fleet Ownership
- Subscription-Based
- Shared Mobility
By Sales Channel
- OEM Dealers
- Independent Dealers
- Online Platforms
- Direct-to-Consumer
Companies Profiled in Automotive Market
- Toyota Motor Corporation
- Volkswagen AG
- Hyundai Motor Company
- General Motors Company
- Stellantis N.V.
- Ford Motor Company
- Honda Motor Co., Ltd.
- BMW AG
- Mercedes-Benz Group AG
- SAIC Motor Corp., Ltd.
- Geely Holding Inc.
- Tata Motors Limited
- Nissan Motor Co., Ltd.
- Kia Corporation
- BYD Auto Co., Ltd.
- Tesla Inc.
- FAW Group
- Changan Automobile Group
- Isuzu Motors Ltd.
- Suzuki Motor Corporation
- AB Volvo
- Hero MotoCorp Limited
- Yamaha Motor Co. Ltd.
Regional Market Overview
Asia-Pacific continues to lead the global automotive landscape, driven by strong EV momentum in China, rising small-car production in India, and rapid urban expansion across Southeast Asia. Policy incentives are boosting investment and jobs, helping make entry-level vehicles more accessible. Meanwhile, Japanese and South Korean automakers support regional export strength, even as slower domestic population growth limits sales in their home markets.
North America saw a solid recovery in light-vehicle demand as supply bottlenecks eased, helped by renewed fleet purchasing and supportive clean-vehicle incentives. Shifting emissions rules in major states and provinces are prompting automakers to refresh their electric lineups, backed by ongoing expansion of public charging networks. Meanwhile, Europe continues to push ahead with its transition to cleaner mobility despite higher energy costs, guided by tighter regulatory standards and urban policies that reward low-emission choices.
Industry Related Reports
Hybrid Vehicle Market: The Hybrid Vehicle Market is estimated to be worth USD 261.51 billion in 2025 and is projected to grow to USD 478.19 billion by 2030, registering a CAGR of approximately 12.83% over this forecast period. This expansion is driven by growing demand for fuel-efficient and low-emission transportation solutions, increasingly stringent environmental regulations, rising government incentives, and the strategic role of hybrids as an interim step toward full electrification.
Automotive Ignition Coil Market: The Automotive Ignition Coil Market is projected to grow from about USD 11.26 billion in 2025 to USD 13.91 billion by 2030, reflecting a CAGR of ~4.32%. This expansion is being driven by sustained demand for efficient ignition systems in internal combustion engines, rising vehicle production (especially in Asia-Pacific), and the growing integration of advanced ignition technologies such as coil-on-plug system
Get More insights: https://www.mordorintelligence.com/industry-reports/automotive-ignition-coil-market?utm_source=prnewswire
Electric Vehicle Powertrain Market: The Electric Vehicle (EV) Powertrain Market is estimated to reach around USD 38.40 billion in 2025 and is projected to grow to approximately USD 94.67 billion by 2032, corresponding to a CAGR of about 13.8%. This rapid expansion is being driven by accelerating global vehicle electrification, increasing adoption of high-voltage architectures, and technological improvements in motors, inverters, and battery systems.
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