Global Automotive Market: Predictions for 2024

The automotive industry, after weathering a rollercoaster 2023, stands poised for significant change in 2024. While growth may slow, advancements in connectivity, electrification, and sustainability promise a transformative year. Here are the key trends shaping the global automotive landscape:

The thrum of excitement is electric (pun intended) as we head into 2024! Brandessence Market Research is thrilled to share our insights on the transformative changes gripping the automotive world. Join us as we explore the trends shaping this defining year for connectivity, electrification, and sustainability.

Electric Vehicles: A Shift, Not a Stall

EV sales will see a slowdown, with growth projections in the US (16.10%) and China (11.12%) significantly lower than 2023. Reduced incentives, limited charging infrastructure, and market saturation play a role. However, industry giants like Tesla's price cuts and major players' strategic adjustments indicate a healthy shift towards mass adoption.

China's Global EV Dominance

China, boasting 60.2% of global EV sales, continues its reign with a controlled supply chain, relentless innovation, and a growing global presence. It's expected to capture 12.1% of the European EV market by 2025, solidifying its leadership both at home and abroad.

Surging Online Vehicle Sales

Global online car purchases, encompassing both new and used vehicles, are projected to hit 7.2-7.4 million units, driven by convenience, transparency, and tech-savvy consumers. North America leads the charge, but APAC is catching up rapidly. This trend signifies a major shift in the automotive buying experience.

Luxury Redefined: A New Class Emerges

Traditional luxury players are redefining the "ultra-luxury" segment, while others strategically position top-end models as luxury offerings. SUVs are becoming the ultimate uber-luxury choice, influencing brands like Aston Martin and Lamborghini. Meanwhile, EVs are carving their niche, expected to account for 15-17% of luxury sales by 2024, fueled by China's affluent population.

Plugging In for the Future: The EV Charging Revolution

Expect a significant uptick in charging stations, reaching around 2.1 million globally. Governments and OEMs are heavily investing in infrastructure, with DC fast-charging and ultra-fast charging leading the way. China again plays a key role, with its fast-charging technologies expected to triple by 2024. Depot charging solutions for electric commercial vehicles will also see major growth.

The Used Car Market Takes Center Stage

The global used car market, particularly in APAC, continues its rise. Projected to grow by 5-6% in 2024, it sees the B2C segment becoming increasingly dominant, exceeding 50% market share in key regions. Online players like Droom in India are disrupting the industry, pointing towards a future of innovation and convenience.

5G Takes the Wheel: The Connected Car & Living Revolution

5G is not just faster internet; it's an automotive revolution. Major players are adopting it in smart factories and vehicles, enhancing automation, safety, efficiency, and in-car experiences. The automotive sector is expected to see a 30-35% annual growth rate in 5G adoption over the next few years. 5G will also pave the way for "car as a connected living solution", integrating seamlessly with connected homes, workplaces, cities, and more.

Generative AI: Shaping the Future of Cars

Generative AI is transforming the automotive landscape, impacting design, navigation, predictive maintenance, voice assistants, and manufacturing. It will enhance safety, efficiency, and personalization. Toyota, BMW, Tesla, Continental, and Mercedes Benz are among the major players adopting this technology, marking a shift towards more intelligent and responsive vehicles.

Gearing Up for the Future: Other Trends to Watch

Smart manufacturing, gigacasting, digital twins, and the impending impact of Euro-7 norms are poised to shape the industry in 2024, bringing about efficiencies and redefining operational strategies.

Conclusion:

While growth may be slower than previous years, 2024 promises a pivotal year for the automotive industry. With breakthrough technologies and transformative experiences on the horizon, the industry is on track to hit a landmark 100.1 million units in sales by 2026. Buckle up, the ride is about to get exciting!