Global Microcars Industry

Global Microcars Industry

  • February 2022 •
  • 197 pages •
  • Report ID: 1518542 •
  • Format: PDF
Abstract:

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Global Microcars Market to Reach US$50.3 Billion by the Year 2026

Microcars are compact fuel-efficient automobiles that are smaller in size than standard cars. Global automotive industry has undergone significant transformation in the past few decades in terms of vehicle design, features, production costs and affordability. The resultant upsurge in vehicle population and the rise in fuel prices have compelled governments to impose strict regulations and manufacturers to seek alternative options which led to the efforts to commercialize electric vehicles and other alternatives, though they have been in use since long. As the number of cost conscious customers rises and vehicular traffic becomes more congested, automotive manufacturers are rethinking business plans focused on smaller and efficient vehicles to address some of these issues. Amidst the scenario, the automotive industry globally has been looking towards microcars, which are beneficial in terms of higher fuel economy and lower carbon footprints. Rapid industrialization, increasing urbanization and expansion of construction industry would also promote market growth, especially for microcars capable of transporting cargo, particularly in countries like Japan, China and the US. Gradually reducing space for parking is also contributing to market growth. The pandemic also led to increased interest among public in owning cars instead of using public transport.

Amid the COVID-19 crisis, the global market for Microcars estimated at US$44.5 Billion in the year 2020, is projected to reach a revised size of US$50.3 Billion by 2026, growing at a CAGR of 2.1% over the analysis period. Electric, one of the segments analyzed in the report, is projected to grow at a 2.6% CAGR to reach US$22.6 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Hybrid segment is readjusted to a revised 1.8% CAGR for the next 7-year period. Hybrid cars would continue to witness popularity in the next few years compared to electrified cars owing to their high fuel efficiency and longer driving range. Though adoption of pure-battery operated electric vehicles is expected to increase in the long run, but for immediate future, hybrid cars are likely to fare better than electric vehicles. As a result, manufacturers are rolling out a combination of electric motor and conventional combustion engine to develop a micro hybrid car. Along with full-electric and hybrid cars of standard size, electric microcars can be seen making their presence felt across the global markets owing to the growing interest of commuters, especially those in Europe and East Asia, in micro mobility. Subsidies and tax incentives offered by government bodies for ramping up production of EVs is also a major contributing factor for growth of the market for microcars, especially electric microcars.

The U.S. Market is Estimated at $3.8 Billion in 2021, While China is Forecast to Reach $5.6 Billion by 2026

The Microcars market in the U.S. is estimated at US$3.8 Billion in the year 2021. The country currently accounts for a 8.5% share in the global market. China, the world`s second largest economy, is forecast to reach an estimated market size of US$5.6 Billion in the year 2026 trailing a CAGR of 2.8% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 1.9% and 1.6% respectively over the analysis period. Developing economies in Asia-Pacific, Latin America and Middle East will continue to be a prominent regional market for automobiles. Asia-Pacific in particular represents a major market for passenger cars. China and India in particular, have been displaying high demand for new cars, primarily due to continued industrialization, growth in GDP, rising employment levels, improving standard of living, increase in discretionary spends, and development of road infrastructure.

Petrol/Diesel Segment to Reach $1.3 Billion by 2026

In the global Petrol/Diesel segment, USA, Canada, Japan, China and Europe will drive the 1.5% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$8.6 Billion in the year 2020 will reach a projected size of US$9.5 Billion by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$882.8 Million by the year 2026, while Latin America will expand at a 1.7% CAGR through the analysis period.

Select Competitors (Total 57 Featured) -
  • BMW AG
  • Daihatsu Motor Co., Ltd.
  • Daimler AG
  • Fiat Automobiles SpA
  • Groupe Renault SA
  • Honda Motor Co. Ltd.
  • Mahindra Electric Mobility Limited
  • Mitsubishi Motors Corp.
  • Piaggio & C. Spa
  • Suzuki Motor Corporation
  • Toyota Motor Corporation