Automotive & Mobility

Industry: Automotive & Mobility

The global automotive and mobility sector is in the midst of its most consequential transformation since the introduction of the assembly line — driven simultaneously by electrification, software-defined vehicle architectures, autonomous driving development, and a structural shift in aftermarket dynamics as fleets age and EV penetration reshapes parts demand.

Market scale and the electrification curve

The global electric vehicle battery market reached approximately USD 132.4 billion in 2024 and is forecast to expand at an 18.4% CAGR through 2032, driven by falling cell costs (now approaching USD 80/kWh for LFP chemistries at the pack level in China), accelerating EV adoption across all major markets, and the build-out of gigafactory capacity in North America under IRA-driven incentives. China continues to dominate battery cell production, with CATL and BYD together commanding more than half of global capacity, while LG Energy Solution, Samsung SDI, and Panasonic compete for non-Chinese OEM supply contracts.

Beyond batteries, the broader EV value chain — power electronics, e-axles, thermal management systems, and charging infrastructure — represents a multi-hundred-billion-dollar opportunity. Charging infrastructure in particular remains a critical bottleneck: despite NACS standardization following Tesla's Supercharger network opening to other OEMs, public charging density in most markets outside China and parts of Europe remains insufficient for mass-market EV confidence.

The tire market: a structural bellwether

The global tire market, valued at approximately USD 222 billion in 2025, is forecast to grow at a 4.4% CAGR through 2031 to reach USD 288 billion — a trajectory shaped by three forces: rising vehicle parc globally (particularly in India and Southeast Asia), the shift toward larger-format tires for SUVs and EVs (which require specialized low-rolling-resistance compounds to offset battery weight), and replacement cycle acceleration in mature markets. Chinese tire manufacturers — led by Sailun, Linglong, and Zhongce — continue to gain share in both OEM and replacement channels globally, pressuring incumbents Michelin, Bridgestone, Goodyear, and Continental to differentiate on premium EV-specific and run-flat segments.

Autonomous driving: from L2+ to commercial L4

Advanced driver-assistance systems (ADAS) have become standard equipment across most new vehicle segments, with L2+ "hands-off, eyes-on" systems (Tesla FSD, GM Super Cruise, Mercedes Drive Pilot) now operating on an expanding network of approved roads. Commercial robotaxi deployment — led by Waymo's expansion across multiple US metros and Baidu's Apollo Go in China — is transitioning from pilot to revenue-generating scale in select cities, though regulatory approval remains the binding constraint in most jurisdictions. The sensor stack debate (camera-only vs. LiDAR-inclusive) continues to bifurcate the industry, with cost reduction in solid-state LiDAR (now sub-USD 500 per unit from Hesai, Innovusion, and others) narrowing the economic gap.

Software-defined vehicles and the OEM-supplier realignment

The shift toward centralized vehicle compute architectures — replacing dozens of distributed ECUs with a handful of high-performance domain controllers — is fundamentally restructuring the automotive supply chain. NVIDIA, Qualcomm, and Mobileye are positioning as the "Intel Inside" of next-generation vehicle platforms, while traditional Tier-1 suppliers (Bosch, Continental, ZF, Denso) are repositioning around software and systems integration rather than discrete hardware components. OEMs are increasingly insourcing software development, with varying degrees of success — Volkswagen's Cariad unit and Stellantis' software platform both illustrate the organizational complexity of this transition.

Commercial vehicles and construction equipment

The global construction equipment market, growing at a more modest 2.7% CAGR toward USD 117 billion by 2031, reflects infrastructure spending cycles in the US (driven by IIJA-funded projects), India (national infrastructure pipeline), and a gradual recovery in China's property-linked construction activity. Electrification is progressing more slowly in heavy construction equipment than in light commercial vehicles, with hydrogen fuel cells emerging as a complementary pathway for high-utilization applications where battery weight and charging downtime are prohibitive — particularly in mining and large-scale earthmoving.

Regional dynamics

China remains the largest single automotive market by volume and the fastest-moving on EV adoption (exceeding 50% NEV penetration in monthly new vehicle sales as of 2026), while simultaneously becoming a major exporter — BYD, Chery, and SAIC's MG brand are reshaping competitive dynamics in Europe, Southeast Asia, and Latin America. India's automotive market is experiencing a structural premiumization trend alongside continued two-wheeler electrification, with Ola Electric, TVS, and Bajaj competing for a rapidly growing EV two-wheeler segment. Europe's combustion-engine phase-out timeline (2035 under current EU rules) continues to face political pressure for revision, creating planning uncertainty for OEMs with long capital-investment horizons.

Research intelligence sought by automotive enterprise buyers

Buyers of automotive and mobility market research typically require: EV battery chemistry cost curves and supply-chain mapping by region; tire replacement-cycle forecasting by vehicle segment; autonomous vehicle regulatory landscape tracking across jurisdictions; software-defined vehicle architecture competitive benchmarking; and construction/commercial vehicle electrification adoption timelines by application and geography.

All automotive and mobility market research reports on this platform are produced by human analysts drawing on primary data from OEM production schedules, battery supply agreements, regulatory filings, and company financial disclosures.