Automotive Industry Drives New Investments in Components

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Researched by Industrial Info Resources (Sugar Land, Texas)--Auto components are the backbone of the ever-expanding global automobile industry and encompasses a wide array of parts that contribute to vehicle functionality, safety and performance. Driven by several factors, the industry is adapting to changing market dynamics and evolving consumer trends, while navigating high vehicle prices and lending challenges due to economic slowdowns.

With new vehicle sales anticipated to reach 88.3 million globally in 2024 (as projected by S&P Global Mobility), rising vehicle ownership along with a growth in global production and sales of automobiles plays an integral part in influencing the auto components market. Consumer preferences for customization of cars have also been propelling the market for auto parts. Technological advancements including the integration of Self-Monitoring, Analysis and Reporting Technologies (SMART) like advanced driver assistance systems (ADAS) and regulatory measures in regard to braking systems and airbags play a significant role in the development of modern automotive components.

Along with these factors, the rising fleet of electric vehicles (EVs) is changing the landscape of the automotive industry worldwide. With electric car sales reaching 2.3 million (up from about 25% since 2022) in the first quarter of 2023 as reported by the International Energy Agency's Global EV Outlook, electrification of the automotive industry is expected to pose both challenges and opportunities for traditional auto component manufacturers.

Owing to this surge in demand, several industries are ramping up production and establishing new manufacturing facilities to meet pent-up consumer demand and mitigate supply-chain disruptions.

Industrial Info is tracking 9,167 auto component manufacturing plants globally, the majority of which are operating in China, India and the U.S. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Plant Database can click here for a list of plant profiles.

Industrial Info is also tracking 1,296 active capital spending projects worth nearly US$140 billion that are geared toward auto component manufacturing. Subscribers can click here for a list of detailed project reports.

Asia is the biggest driver of investment, owning about 45% of the market with an investment value of about US$63 billion across 820 projects. It is followed by South America, with an investment of about US$54 billion, and North America with US$17 billion. There is also a substantial investment of more than US$5 billion being tracked in Europe.

By country, China leads the way with a total spend pipeline of about US$57 billion across 568 projects, followed by Brazil with spending of US$54 billion and the U.S. with US$11 billion across 156 projects. Other countries with substantial investments include Mexico, South Korea, Hungry and Canada.

With combined project spending of US$65 billion, SAIC Motor Group Company Ltd (Shanghai, China), Tongliao Lida Construction Investment Company Limited (Tongliao, China) and Hyundai Motor Group (Seoul, South Korea) are the top players in the market and own a cumulative market share of about 46%.

With 60% of the investment in the planning stages, 21% in the engineering stages and 19% already under construction, most of these projects are anticipated to be completed by March 2025, while the rest will reach fruition by December 2029.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).