Automotive Manufacturing Equipment Market Size, Share, Statistics and Industry Growth Analysis Report by Equipment Type(CNC Machine, Conveyor Belt, Injection Molding Machine, Robot), Mode of Operation(Automatic, Semi-Automatic), Vehicle Type(Passenger Vehicle, Commercial Vehicle), Region - Global Forecast to 2028
Updated on : April 03, 2024
Global automotive manufacturing equipment market size is predicted to grow from USD 6.7 billion in 2023 to USD 11.4 billion by 2028, at a CAGR of 11.1%.
The growth of the automotive manufacturing equipment industry is being driven by a combination of global demand for vehicles, adoption of automation and robotics technology, increasing demand for electric and hybrid vehicles, and a focus on sustainability and energy efficiency. These factors are expected to continue to drive the growth of the market in the coming years and making it an attractive investment for businesses in the automotive industry
Automotive Manufacturing Equipment Market Statistics Forecast to 2028
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Market Dynamics
DRIVERS: Increased sales of electric and hybrid vehicles
The electric vehicle market has experienced significant growth in the past few years. The increase in the electric vehicle market is due to sustained policy support, improved battery technology, better-charging infrastructure, carmakers’ shift towards electrifying their fleets and changing consumer preferences. In 2021, several significant automakers announced their transition to an all-electric future by developing new product lines and transforming current production facilities. For instance, Toyota Motor Corporation (Japan), one of the leading car manufacturers, announced the launch of 30 BEV (Battery electric vehicles) models and set a goal of achieving 3.5 million annual EV sales by 2030. Similarly, Ford Motor Company (US), one of the global car manufacturers, announced that one-third of its sales would be from electric cars by 2026 and 50% by 2030. Similarly, Kia Corporation (South Korea) aims to increase its electric car sales to 1.2 million by 2030.
RESTRAINTS: High initial cost of Installation for SMEs
Automotive manufacturing components are complex and require advanced technology and engineering to design and manufacture them. These components are designed to perform specific tasks in the automotive industry, which drives up the initial installation cost. For instance, a robot used in the automotive industry is equipped with smart cameras, sensors, lenses, and software, and all these components of robots cost a little higher and require large investments. A single collaborative robot system can cost anywhere from USD 3,000 to USD 100,000. The price of an industrial robotic system ranges from USD 20,000 to USD 150,000. The cost of industrial robots, integration costs, and the cost of peripherals, such as end effectors and vision systems, makes automation a costly investment for SMEs, especially when engaged in low-volume production.
OPPORTUNITIES: Increasing demand for machine learning, and artificial intelligence-based systems in the automotive industry
Globally, traditional systems are almost shifted toward smart manufacturing and digitization. They allowed physical equipment or machines to communicate with control systems and act autonomously using machine learning and artificial intelligence. For instance, customers return a defective product with a scratch or a food item past its expiration date. Defects can hurt a brand or retailer’s credibility in an era when maintaining consumer trust is critical. Therefore, many organizations have embraced artificial intelligence (AI) and Automation to speed up supply chains, increase inventory and order accuracy, and improve quality control. Artificial Intelligence (AI) and deep learning have the potential to revolutionize the automotive manufacturing market by offering a range of benefits. For instance, it monitors the production process in real-time, detects defects, and takes corrective action, which reduces the chance of defects, improves product quality, and reduces the cost of production or wastage. Furthermore, AI increases efficiency by performing repetitive and tedious tasks with the help of AI-powered robots and machines. It also reduces the risk of accidents and injuries by performing hazardous tasks such as painting, welding, assembly, and others with the help of robots and machines. Many global automotive industry leaders are now opting AI and other technologies in their production processes for manufacturing automobiles. For instance, BMW Group (Germany) uses computerized image recognition for quality control, inspections, and eliminating of false faults. This results in great levels of production accuracy.
CHALLENGES: Vulnerability of industrial manufacturing systems to Cyberattacks
According to a report by Trend Micro Inc., an American Japanese multinational cybersecurity software company, some major threats, such as data hacking and account hacking, can impact the performance of industrial robots. It will directly impact the adoption of the latest technologies, such as AI machine vision and computer vision. AI-based machine vision systems are subject to cyberattacks, which may compromise accuracy, safety, and integrity, hampering their effectiveness. The importance of machine vision is likely to increase in the manufacturing sector in the coming years as the industry undergoes a gradual transition from product standardization to product customization. Developing a standard machine vision system is difficult as several manufacturing industries use the solution for applications, and specifications differ according to individual customer requirements. As AI chips become increasingly connected, they are more exposed to network and physical attacks.
Robot segment is expected to grow with the highest CAGR during the forecast period.
In automotive manufacturing equipment market, Robots are widely used in the automotive manufacturing equipment market due to their efficiency and versatility in handling various tasks. They can perform repetitive tasks with high precision and consistency, resulting in improved quality and productivity. Robots are programmed to perform a range of tasks, including welding, painting, assembly, and inspection. They are particularly useful in tasks that are dangerous or difficult for humans to perform, such as welding and painting in hazardous environments. In the automotive manufacturing equipment market, the key factors driving the robot market are due to the increasing demand for electric and hybrid vehicles adoption of automation by automotive manufacturing companies to increase productivity & efficiency. Therefore, many robot manufacturing companies are launching various robots for the automotive industry, investing heavily in research & development and acquiring new technologies
Automatic segment is projected to grow at highest CAGR during the forecast period
In automotive manufacturing equipment market, automatic mode of operation is widely used in the automotive manufacturing due to its ability to improve efficiency, productivity, and quality. Automatic manufacturing equipment can perform tasks without the need for human intervention, resulting in reduced labor costs and increased productivity. In addition, automatic manufacturing equipment is used for a range of tasks, including assembly, painting, welding, and inspection. Automated assembly lines can produce vehicles at a much faster rate than traditional assembly lines, resulting in increased production output. Hence, the automatic mode of operation is highly adopted in automotive manufacturing.
Automotive Manufacturing Equipment Market Statistics by Region
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The market in Asia Pacific is projected to grow at the highest CAGR from 2023 to 2028.
Asia Pacific is one of the key future potential markets for automotive manufacturing equipment market. The market size in this region is expected to exhibit the highest CAGR during the forecast period. Asia-Pacific region is experiencing significant growth in the adoption of automotive manufacturing equipment. The region is home to several major automotive manufacturing countries, including China, Japan, and South Korea. The growing middle-class population in these countries has resulted in increased demand for vehicles, leading automotive manufacturers in the region to invest in new production facilities and equipment. The availability of a large pool of skilled labor in the region is another factor driving the adoption of manufacturing equipment. This has led to increased investment in automation and robotics technology to improve efficiency and reduce labor costs.
Top Automotive Manufacturing Equipment Companies - Key Market Players:
ABB (Switzerland), FANUC CORPORATION (Japan), KUKA AG (Germany), Yaskawa Electric Corporation (Japan), and Kawasaki Heavy Industries, Ltd (Japan), AMADA CO., LTD. (Japan), AIDA ENGINEERING, LTD. (Japan), Dürr Group (Germany), Schuler Group (Germany), TRUMPF (Germany), Universal Robots (Denmark), Daifuku Co., Ltd. (Japan), Yamazaki Mazak Corporation (Japan) are among the key players in the automotive manufacturing equipment Companies.
Automotive Manufacturing Equipment Market Report Scope :
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Report Metric |
Details |
| Estimated Market Size | USD 6.7 billion in 2023 |
| Projected Market Size | USD 11.4 billion by 2028 |
| Growth Rate | 11.1% At a CAGR |
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Market Size Available for Years |
2019–2028 |
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Base Year |
2022 |
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Forecast Period |
2023–2028 |
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Units |
Value (USD Million/Billion) |
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Segments Covered |
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Geographic Regions Covered |
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Companies Covered |
Major Players: ABB (Switzerland), FANUC CORPORATION (Japan), KUKA AG (Germany), Yaskawa Electric Corporation (Japan), and Kawasaki Heavy Industries, Ltd (Japan), AMADA CO., LTD. (Japan), AIDA ENGINEERING, LTD. (Japan), Dürr Group (Germany), Schuler Group (Germany), TRUMPF (Germany), Universal Robots (Denmark), Daifuku Co., Ltd. (Japan), Yamazaki Mazak Corporation (Japan) and Others- (Total 30 players have been covered) |
Automotive Manufacturing Equipment Market Highlights
This research report categorizes automotive manufacturing equipment market by equipment type, mode of operation, vehicle type and region.
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Segment |
Subsegment |
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By Equipment Type: |
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By Mode of Operation: |
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By Vehicle Type: |
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By Region |
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Recent Developments in Automotive Manufacturing Equipment Industry
- In January 2023, KUKA AG launched the new KUKA KR FORTEC ultra family, which includes five robot variants designed for specific applications. These robots come with a double link arm that ensures high stiffness and accuracy. The payload of these robots ranges from 480 kg to 800 kg, a new requirement of the electromobility sector.
- In March 2022, ABB launched two new robots IRB 5710 and IRB 5720, to enhance the production of electric vehicles with added speed and flexibility. These two robots come with robust design, speed, and precision, which help with increased productivity and performance with higher uptime.
- In January 2022, FANUC CORPORATION introduced the M-1000iA robot capable of handling heavy products, including automotive components and battery packs for electric vehicles. The robot is capable of giving a wide range of motion in every direction. It can handle 1000 kg of payload, which help the manufacturers to increase their output and maximize production efficiency.
Frequently Asked Questions (FAQ):
What is the total CAGR expected to be recorded for the automotive manufacturing equipment market during 2023-2028?
The global automotive manufacturing equipment market is expected to record a CAGR of 11.1% from 2023–2028.
What are the driving factors for the automotive manufacturing equipment market?
Increased sales of electric and hybrid vehicles and growing adoption of Industry 4.0 in automotive industry are some of the key driving factors for this market.
Which equipment will grow at a fast rate in the future?
Robot is expected to grow at the highest CAGR during the forecast period. the use of robots in the automotive manufacturing industry offers numerous benefits, including improved efficiency, safety, cost savings, quality, flexibility, and data collection.
Which are the significant players operating in the automotive manufacturing equipment market?
ABB (Switzerland), FANUC CORPORATION (Japan), KUKA AG (Germany), Yaskawa Electric Corporation (Japan), and Kawasaki Heavy Industries, Ltd (Japan), AMADA CO., LTD. (Japan), AIDA ENGINEERING, LTD. (Japan), Dürr Group (Germany), Schuler Group (Germany), TRUMPF (Germany), Universal Robots (Denmark), Daifuku Co., Ltd. (Japan), Yamazaki Mazak Corporation (Japan) are among a few key players in the automotive manufacturing equipment market.
Which region will grow at a fast rate in the future?
The automotive manufacturing equipment market in Asia Pacific is expected to grow at the highest CAGR during the forecast period. Countries like India, South Korea and China hold immense potential for the growth of the automotive manufacturing equipment market. This growth is attributed to various factors, such as growing middle-class population in these countries has resulted in increased demand for vehicles, and investment in the region by leading auto manufacturers of the world.
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The study involved four major activities in estimating the current size of the automotive manufacturing equipment market. Exhaustive secondary research has been done to collect information on the market, peer market, and parent market. To validate these findings, assumptions, and sizing with industry experts across the value chain through primary research has been the next step. Both top-down and bottom-up approaches have been employed to estimate the complete market size. After that, market breakdown and data triangulation methods have been used to estimate the market size of segments and subsegments. Two sources of information-secondary and primary-have been used to identify and collect information for an extensive technical and commercial study of the automotive manufacturing equipment market.
Secondary Research
Secondary sources include company websites, magazines, industry news, associations, and databases (Factiva and Bloomberg). These secondary sources include annual reports, press releases, and investor presentations of companies, white papers, certified publications, articles by recognized authors, regulatory bodies, trade directories, and databases.
Various secondary sources include corporate filings such as annual reports, investor presentations, and financial statements, trade, business and professional associations, white papers, manufacturing associations, and more.
Primary Research
Primary sources mainly consist of several experts from the core and related industries, along with preferred automotive manufacturing equipment providers, distributors, alliances, standards, and certification organizations related to various segments of this industry’s value chain.
In the primary research process, various primary sources from both supply and demand sides were interviewed to obtain qualitative and quantitative information on the market. The primary sources from the supply-side included various industry experts such as Chief Experience Officers (CXOs), Vice Presidents (VPs), and Directors from business development, marketing, product development/innovation teams, and related key executives from automotive manufacturing equipment providers, such as KUKA AG (Germany), ABB (Switzerland), FANUC CORPORATION (Japan), research organizations, distributors, industry associations, and key opinion leaders. Following is the breakdown of primary respondents.
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Market Size Estimation
Top-down and bottom-up approaches have been used to estimate and validate the size of the automotive manufacturing equipment market and other dependent submarkets. The leading players in the market have been identified through secondary research, and their market shares in the key regions have been determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of top players and extensive interviews with industry experts such as chief executive officers, vice presidents, directors, and marketing executives.
All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources. All possible parameters affecting the markets covered in this study have been accounted for, viewed in detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. This data has been consolidated and supplemented with detailed inputs and analysis from MarketsandMarkets and presented in this report.
Data Triangulation
After arriving at the overall size of the automotive manufacturing equipment market from the market size estimation processes explained above, the total market has been split into several segments and sub-segments. The data triangulation procedure has been employed, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics for all segments and sub-segments. The data has been triangulated by studying various factors and trends. Along with this, the market size has been validated using top-down and bottom-up approaches.
Market Definition
Automotive manufacturing equipment is a tool, machinery, and system used in the manufacturing process of automotive vehicles such as passenger vehicles and commercial vehicles. This equipment can encompass a diverse range of machines and tools, such as CNC machine, conveyor belt, injection molding machine, robot, stamping machine, and welding machine. The automotive manufacturing equipment plays an important role in ensuring that vehicles are produced efficiently and fosters flexibility in manufacturing processes, provides cost-effectiveness and agility.
The automotive manufacturing equipment market comprises players that offer solutions based on different automotive manufacturing technologies. The market is diversified, with many companies competing across the value chain to sustain their position in the market and increase their market shares. The automotive manufacturing equipment market is likely to witness significant growth in near future, primarily due to the increasing use of industrial automation and adoption of new technologies in manufacturing processes in the automotive sector.
Key Stakeholders
- Raw Material Suppliers
- Component Designers, Manufacturers, and Suppliers
- Original Equipment Manufacturers (OEMs)
- System Integrators
- Technology, Service, and Solution Providers
- Testing, Inspection, and Certification Companies
- Suppliers and Distributors
- Government and Other Regulatory Bodies
- Industry Forums, Alliances, and Associations
- Research Institutes and Organizations
- Market Research and Consulting Firms
- End Users
Report Objectives
- To define, describe, and forecast the size of the automotive manufacturing equipment market based on equipment type, mode of operation, and vehicle type.
- To describe and forecast the size of the automotive manufacturing equipment market based on four regions: North America, Europe, Asia Pacific, and the Rest of the World (RoW), along with their respective countries.
- To provide detailed information on drivers, restraints, opportunities, and challenges influencing the market growth.
- To provide ecosystem analysis, case study analysis, patent analysis, technology analysis, pricing analysis, Porter’s five forces analysis, key stakeholders and buying criteria, key conferences and events, regulatory bodies, government agencies, and regulations pertaining to the market under study.
- To strategically analyze micromarkets1 with respect to individual growth trends, prospects, and contributions to the overall market size.
- To study the complete value chain of the automotive manufacturing equipment market
- To strategically profile the key players and comprehensively analyze their market positions in terms of their ranking and core competencies2, along with a detailed market competitive landscape.
- To analyze competitive developments, such as product launches, acquisitions, agreements, and partnerships, in the market.
Available Customizations:
Based on the given market data, MarketsandMarkets offers customizations in the reports according to the client’s specific requirements. The available customization options are as follows:
Company Information
- Detailed analysis and profiling of additional market players (up to 5)
Generating Response ...
Growth opportunities and latent adjacency in Automotive Manufacturing Equipment Market