Automotive Manufacturing Equipment Market Size, Share

Updated on : October 22, 2024

Automotive Manufacturing Equipment Market Size & Share

Global automotive manufacturing equipment market size is predicted to grow from USD 6.7 billion in 2023 to USD 11.4 billion by 2028, growing at a CAGR of 11.1% from 2023 to 2028

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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Automotive Manufacturing Equipment Market Trends

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.

Automotive Manufacturing Equipment Market Segmentation

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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Automotive Manufacturing Equipment Market Regional Analysis

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 :

Automotive Manufacturing Equipment Market size Highlights

This research report categorizes automotive manufacturing equipment market by equipment type, mode of operation, vehicle type and region.

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.

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