A pioneer in the automotive industry, the USA was the first country in the world to have created a market for vehicle mass production and sales. Riding high on the dawn of manufacturing, the USA successfully established an automotive industry heavily reliant on efficiency and greater use of machine parts. With standardized mechanical tools having interchangeable parts, the American automotive sector allowed and amplified the manufacturing of goods at a faster pace. Owing to this, the manufacturing of automobiles became cheaper, quicker, and more manageable as workers no longer had to learn complex styles. Instead, they just had to operate machines. The outcome of this ground-breaking American manufacturing system was rapid growth in the automotive industry, next to none!
As automobile manufacturing began to take off in Germany, it soon made inroads into the USA, with the Duryea brothers creating the first gasoline-powered automobile in 1893. Followed by this invention, there were around thirty American companies manufacturing 2,500 cars. The defining moment in the US automotive industry was the Ford Motor Company creating the iconic Model T with the motive of bringing affordable vehicles to American families in 1908. Furthermore, Henry Ford’s invention of moving assembly lines allowed the US automotive industry to reach new heights of success, speed, and efficiency. By the end of the 1920s, the BIG THREE, Ford, General Motors, and Chrysler, were defining the contour of the US Automotive Industry. The era from 1960 to 1980 saw the introduction of industrial robots, CAD software, and the use of interchangeable panels in the US automotive industry. In the 21st century, the automotive industry is leveraging the know-how of tech companies to create self-driving cars and connected cars. Let us dive deep to comprehend the prolific US automotive industry driving economic growth in the land of liberty. This Infographic entails some interesting US Automotive industry statistics that will provide a complete overview of the automotive sector and its growth trajectory for businesses.
The US automotive industry is the hallmark of American global leadership. The US automotive industry is driving employment, livelihood, and strengthening communities across 50 states as it spans 17 states, with 55 cutting-edge assembly units.
Owing to the new avenues electric vehicles are creating in the US automotive sector, the scope for service-based employment is projected to grow up to 3%. It is corroborated by the act that the US automotive industry accounts for 5% percent of the private sector employment in the country and contributes 5% to the country’s GDP. With an 11.5:1 multiplier effect, the employment potential of the US automotive industry is remarkable. Directly or indirectly or via induced jobs, the American automotive industry is leading paychecks every year for millions of workers across the land of opportunities. The annual payroll compensation the US automotive industry provides is greater than the defense spending of several countries!
The US automotive industry valued, valued at USD 1567.81 Billion, is expected to grow at CAGR of 3.5% to reach USD 2064.51 Billion by 2032. The staggering growth is a result of a multitude of factors. An extensive road network of 3 million kilometers of motorway acts as a massive incentive toward mass motorization. In addition to this, 75% of the US population in 2023 had access to their own car, with an additional 20% having access to a company or family car, which is giving a major boost to the American automotive industry. Besides these two aspects acting as crucial factors nudging the demand in the US automotive industry upwards, the massive number of vehicles on the road is also driving the replacement demand, which is at 19.6%. The demand for automobiles in the USA never ceases to exist. Despite the high interest rate, approximately modest number of 15.7 million new cars and trucks are projected to be added to the country’s motorways, a slight increase of approximately 2% compared to the previous year.
The US automotive industry’s revenue contribution cannot be undermined. It drives approximately 1.53 trillion USD into the American economy. The US automotive industry has an inherent potential to generate massive revenue. Some of the avenues of revenue generation include in the form of sales taxes during the purchase of vehicles, income taxes collected from employees working in the automotive sector, and corporate taxes collected from companies, to name few. Owing to the depth and breadth, i.e., the vast revenue potential the American automotive industry harbors, it accounts for approximately 7% of each state’s revenue.
The US automotive industry is slowly easing itself out of the pandemic’s grappling hook. Owing to higher deliveries, optimum production, maximum operational efficiencies, and strong dealer incentives, sales in the automotive industry witnessed a sharp hike of 11.6%. As per the latest reports from the automotive industry portal Marklines, the consumers preferred to buy pickup trucks and SUVs, i.e., an increase of 3.9% when compared to previous years. Passenger cars remained their second choice but showed a slight slump when compared to previous years. American consumers showed a greater liking toward their national brands, including GM and Ford.
Exports play a crucial role in improving the economic health of a nation. Besides diversifying revenue sources, it mitigates the domestic market downturn, fortifying profits for the economy. The US automotive industry is making the most of the rampant liking the global consumer has toward their vehicles. In addition to automotive destinations like Alabama and Detroit, the ports in the USA are also buzzing with high activity. The automotive industry pumped a record-high revenue into the American economy. The US exported $179 billion worth of automotive vehicles, parts, and engines, which was 16% higher than the industry exported 15 years ago.
There is no denying that today’s vehicles are an amalgamation of efficient design engineering and technical convergence. The US automotive industry is incorporating AI, IoT, and climate-controlled environments to manufacture superior automobiles that will keep their users safe while riding through traffic.
Some of the top trends creating ripples in the US automotive industry include the following:
Rising customer inclination towards the use of EVs, i.e., vehicles operating on electric motors, and government mandates have nudged the US automotive industry to jump on the electrification bandwagon. Owing to mandates in certain states to eliminate internal combustion passenger cars by 2050 and the environmental mobility solutions taking center stage, EV sales are up by 7.3% compared to 2023. The adoption of EVs is projected to skyrocket to 28.3 million by 2030, i.e., one in every four cars sold will be EVs.
Self-driving cars and trucks are transcending from mere buzzwords to real-world viability. They are breaking through the barriers of controlled testing and entering the real-world autonomous driving scenario in a big way. At present, with 1400+ autonomous cars in a testing phase
As the automotive industry latches on to the trend of self-driving cars, it is expected that there will be 3.5 million self-driving vehicles on US roads by 2025 and 4.5 million by 2030.
Connectivity is permeating into the fabric of our everyday lives, and the US automotive industry is not alienated from it. Even the industry is making it a norm and is manufacturing connected cars. Vehicles equipped with internet access, allowing the sharing of information with devices both inside and outside the vehicle, i.e., connected cars, are taking over the American motorways. With real-time maps, advanced driver-assistance systems (ADAS), maintenance, and traffic alerts, connected vehicles are revolutionizing the automotive landscape. Due to its popularity, two-thirds of licensed drivers in the US cruise in a connected car.
Hybrid vehicles operating on more than one energy source, like gasoline and electric motors, are gaining ground in the US automotive industry. Owing to their cost, fuel efficiency, and sustainable, environmentally friendly solutions hybrid cars provide, American consumers are making a beeline to purchase them, and the sales have gone up by 16%. The US automotive industry is leaving no stone unturned in latching on to this trend as the US hybrid vehicle market, valued at USD 22.2 billion, is poised to grow at a CAGR of 13.7% to reach USD 80.87 by 2034.
Wrapping up the drive into the US automotive industry statistics, these facts and trends will enable businesses functioning in the realm of this sector to stay in the know. The emerging tech trend and the changing consumer needs are making it imperative for the US automotive industry to level up its manufacturing and R&D processes. As the US automotive industry’s lucrative potential is immense, the time is ripe for businesses offering their services and products to auto enterprises can get in touch with the industry stakeholders and explore immense dollar opportunities.
Enterprises today navigate a complex business landscape combined with rapid technological evolution and fierce competition.…
In the ever-evolving B2B ecosystem, staying ahead of the curve is becoming a matter of…
From time immemorial, lawyers have played a crucial role in shaping our social fabric. With…
The global software spectrum is so diverse and versatile that there is never any dearth…
What is the first thing that crosses your mind while visualizing a healthcare facility? The…
Did you know that recruitment agencies provide around 12.7 million employees to companies in the…
