North America Automotive Market Size (2024 - 2029)

North America Automotive Market Analysis

The North America Automotive Market size is estimated at USD 0.99 trillion in 2024, and is expected to reach USD 1.29 trillion by 2029, growing at a CAGR of 5.43% during the forecast period (2024-2029).

The COVID-19 pandemic had a significantly negative impact on the market during the first half of 2020 due to lockdowns and shutdowns of manufacturing units. The market also faced difficulties across the supply chain as the sources of raw materials and components were located at varied locations. However, as restrictions eased, demand started restoring back to pre-pandemic levels, with the majority of it being supported by key players and their active presence in the market in the form of new model launches and plant expansions.

Over the medium term, demand in the market is expected to be driven by rising electric mobility across major countries in the North American region. In addition, growing government support in the form of favorable initiatives and policies is expected to drive demand in the market. The growing consumer inclination toward safety and comfort features in vehicles is accommodated by the latest technologies like ADAS.

However, growing adoption of rental and used cars may hinder the players operating in the market. The demand for commercial vehicles is strongly influenced by growing logistics and delivery services, coupled with the fleet expansion of vehicles by key e-commerce gaints like Amazon. The developments in engine technology are progressing significantly, accompanying the rising emission standards across the world. These factors are likely to boost the growth of the automotive market in the region.

The United States is expected to hold significant market share in the region, followed by Canada and Mexico. The country is home to major automotive OEMS and is influenced positively by large supportive infrastructure and electric vehicle policies of the US government. Growing inclination of youth toward luxury and premium vehicles is also expected to offer lucrative opportunities to the market.

North America Automotive Industry Segmentation

The North American automotive industry outlook covers the growing demand for passenger cars, commercial vehicles, and two-wheelers in the region, investments made by OEMs to establish their presence in North America, emission regulations, developments in the electric vehicle market, and market shares of both OEMs and OES.

The North American automotive market is segmented by vehicle type (passenger cars, commercial vehicles (light commercial vehicles and medium and heavy commercial vehicles), and two-wheelers) and geography (United States, Canada, and the Rest of North America).