The global automotive manufacturing equipment market is poised for substantial growth, with the market size estimated to expand from USD 6.7 billion in 2023 to USD 11.4 billion by 2028, at an impressive CAGR of 11.1% during the forecast period from 2023 to 2028. This growth is driven by multiple factors, including the rising demand for automobiles, especially in emerging markets, prompting manufacturers to expand their production capabilities.
Moreover, says ResearchAndMarkets.com, continuous technological advancements in the industry, such as robotics and automation, are leading to more advanced and efficient manufacturing equipment. Additionally, government initiatives focusing on reducing carbon emissions and improving fuel efficiency are driving the demand for specialized manufacturing equipment for electric and hybrid vehicles, presenting lucrative opportunities for innovation and success in the market.
Robot Segment to Lead the Market
The robots segment is expected to hold the largest share of the automotive manufacturing equipment market during the forecast period. This is attributed to several factors, including the significant increase in productivity achieved by robots due to their continuous operation without breaks, reducing downtime and enhancing efficiency. Robots’ precision and consistency in completing tasks lead to higher-quality output and increased customer satisfaction.
Safety is another critical driver for the adoption of robots in automotive manufacturing, as they can handle hazardous or repetitive tasks, minimizing the risk of workplace injuries and improving worker safety. Furthermore, automation of certain processes results in cost savings, improved efficiency, and increased production volumes of high-quality products, leading to higher profitability and market share for companies.
Automatic Segment to Exhibit High CAGR
The automatic segment is expected to grow at a significant CAGR during the forecast period, fueled by technological advancements in automation systems, making them more reliable and efficient compared to semi-automatic and manual systems.
Automatic systems require less human intervention, resulting in faster and streamlined production processes, leading to cost savings and increased profitability for manufacturers. As a result, the automotive manufacturing equipment market in the automatic segment is witnessing rapid growth.
Asia Pacific: A Prominent Growth Region
Asia Pacific is a major region experiencing remarkable economic growth, with countries like China and India investing heavily in infrastructure, including transportation networks and manufacturing facilities. This has led to increased demand for automotive manufacturing equipment, particularly for modernized factories and production lines.
Additionally, the region is witnessing a surge in demand for electric and hybrid vehicles, leading to increased investment in specialized manufacturing equipment for components like batteries. The region’s growing demand for automobiles and related equipment is driving the growth of the automotive manufacturing equipment market.