The global automotive contract manufacturing market is anticipated to grow at a modest CAGR of around 7.2% during the forecast period (2021-2027). Automotive Contract manufacturing companies provide various product and services to the OEMs. Due to services such as design and development, component manufacturing, automotive electronics, and whole vehicle assembly, the major manufacturers are shifting their interest towards the adoption of these companies to produce components instead of their production units. In the automotive sector, contract manufacturing is highly prevalent owing to the ease of manufacturing the final product and increased productivity. The factors augmenting the growth of the market is the high automotive sales globally.
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According to the International Trade Administration (ITA) report, the US in North America is the world’s second-largest market for vehicle sales and production. In addition, in 2018 according to the same report, 1.8 million light vehicles and 131, 200 medium and heavy trucks (valued at over $60 billion) sold by the US to more than 200 markets around the world. On the other hand, the total number of vehicle registration running on the road is also high in the US. For instance, in 2020, there were 276.6 million vehicles registered by the Bureau of Transportation Statistics (BTS).
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Furthermore, the initiative by the government to increase production in their countries are also augmenting the market. As an instance, India is working toward “Make in India” whereas China is enforcing its “make in China” initiative. Some of the restraining factors such as the risk of outsourcing including lack of control over production and their technique, quality concern, added price are hampering the growth of the market. Besides, the adoption of electric vehicles and technologies can be expected to offer lucrative opportunities in the market.
Global Automotive Contract Manufacturing Market Report Segment
By Services
- Design and Development
- Vehicle Assembly
- Automotive Electronics
- Component Manufacturing
By Vehicle Type
- Two Wheelers
- Passenger Cars
- Commercial Vehicle
- Construction and Agricultural Vehicle
(This release has been published on Global Market Post. Global Market Post is not responsible for any content included in this release.)
