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Table Of Content
May 2025
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The global passenger vehicles market size is calculated at USD 2.14 trillion in 2025 and is forecasted to reach around USD 3.98 trillion by 2034, accelerating at a CAGR of 7.12% from 2025 to 2034. The Asia Pacific passenger vehicles market size surpassed USD 900 billion in 2025 and is expanding at a CAGR of 7.24% during the forecast period. The market sizing and forecasts are revenue-based (USD Million/Billion), with 2024 as the base year.
The global passenger vehicles market size was accounted for USD 2 trillion in 2024, and is expected to reach around USD 3.98 trillion by 2034, expanding at a CAGR of 7.12% from 2025 to 2034.
The Asia Pacific passenger vehicles market size was estimated at USD 840 billion in 2024 and is predicted to be worth around USD 1690 billion by 2034, at a CAGR of 7.24% from 2025 to 2034.
The passenger vehicle industry is divided into four geographic segments: North America, Europe, Asia Pacific, and the rest of the globe. The region with the largest market share worldwide is anticipated to grow further as a result of the automotive industry's quick adoption of cutting-edge technologies.
Asia Pacific held the largest market share of 42% in 2024. The major contributors to the global automobile market are both developing and developed nations including India, China, Japan, and South Korea. Additionally, the demand for and sales of passenger automobiles have been rising as a result of the rapid urbanisation of cities in nations like India, China, and the ASEAN nations. Demand for passenger automobiles is rising as consumers' disposable income rises. The second-largest share was registered by the European region. The expansion of electric vehicle charging infrastructure is assisting in maintaining the second-largest market share. The passenger automobile market in this region is growing as a result of the presence of significant key players there and the increasing use of cutting-edge technologies. The passenger automobile market is expected to develop moderately in North America.
North America is expected to grow significantly in the passenger vehicles market during the forecast period. The growing demand for the use of comfortable vehicles is increasing the use of passenger vehicles in North America. At the same time, the industries are developing new models, which are attracting the population, increasing their demand. Thus, this promotes the market growth.
U.S.
The industries in the U.S. are developing new passenger vehicles to meet the rising demand of the population. Additionally, the increasing use of electric vehicles is also driving their demand to launch new affordable models. These developments are further supported by various policies by the regulatory bodies as well.
Canada
Due to the growing demand for comfortable, safe passenger vehicles with internet connectivity features in Canada is increasing their development by various companies. At the same time, their development is also supported by the investment provided by different companies, enhancing their manufacturing and production.
In developed nations, passenger vehicles are the most used mode of transportation. A lot of cutting-edge technologies, such as the advanced driver assistance system (ADAS), have been adopted recently. The demand for passenger cars is being fueled by the adoption of electric vehicles. The number of passenger cars is rising in developing nations in tandem with the rise in per capita income. Because a nation's passenger automobile market heavily depends on its present economic situation, the sector suffered during the recession in the US and Europe. In order to keep up production in a weak economy, many passenger car manufacturers, notably General Motors, Ford, and Chrysler have had to apply for sizable loans. One of the major worries in the passenger automobile sector is the increase in raw material prices. Recently, the cost of steel and plastic has increased significantly, which has raised the price of passenger automobiles for consumers. The passenger automobile market heavily relies on R&D, and in order for it to compete, its goods must satisfy real-time consumer demands.
| Report Coverage | Details |
| Market Size in 2025 | USD 2.14 Trillion |
| Market Size by 2034 | USD 3.98 Trillion |
| Growth Rate from 2025 to 2034 | CAGR of 7.12% |
| Largest Market | North America |
| Base Year | 2024 |
| Forecast Period | 2025 to 2034 |
| Segments Covered | Type, Body, Application, Fuel Type, and Region |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
High demand for passenger vehicles
The primary factors propelling the market's expansion are the rise in demand for passenger vehicles brought on by the surge in the population of middle-income groups and the rising quality of living in emerging nations. The availability of affordable alternatives in these vehicles is another factor influencing consumer preference for them. The market's demand for passenger vehicles is anticipated to increase as a result of the growing logistics and passenger transportation sectors.
The development of the passenger car sector is significantly influenced by government policies and regulations. In the future years, it is anticipated that these initiatives and norms will both expand and stay the same. Market expansion would be aided by the availability of better prices and more options, as well as by the booming urban population. Additionally, it is projected that increasing disposable income and an increase in population growth will benefit the passenger vehicle industry in the next years. Due to the expanding global popularity of leisure and travel-related activities, there has been a surge in the demand for Special Utility Vehicles (SUVs).
Insufficient EV charging station
Over the past ten years, scientific improvements and the mass manufacture of electric vehicle batteries have led to a decrease in the price of EV batteries. As EV batteries are one of the most expensive parts of the car, this has resulted in a fall in the price of EVs. A typical EV battery cost about USD 1,100 per kWh in 2010. However, by 2020, the cost had decreased to around USD 137 per kWh, and by 2021, it had fallen all the way to USD 120. In China's electric vehicle business, these batteries can be purchased for as little as $100 per kWh. This is brought on by the declining costs of making these batteries, the lower cost of cathode materials, increased production, etc. By 2030, the cost of EV batteries is anticipated to drop to around USD 60 per kWh, which would result in a huge decrease in the cost of EVs, making them more affordable than traditional ICE vehicles.
Technological advancements
Market expansion is accelerated by the rise in technological developments, such as the incorporation of all-EV charging station systems with Internet of Things (IoT) and real-time information solutions. The technologies find nearby charging stations and offer real-time data on the number of open places. The market's expansion is accelerated by the rise in demand for heavy and upscale vehicles as well as an increase in cars powered by diesel engines. Additionally, a rise in passenger car sales brought on by consumer desire for affordable vehicles aids in market expansion. Moreover, the market for passenger automobiles benefits from the expansion of the automotive industry, a rise in investments, and rising disposable income.
the global passenger car market is segmented into petrol, diesel, hybrid, and electric. The electric segment is estimated to dominate the market during the study period. In integration with the private sector and in cooperation with related government agencies, Saudi Arabia’s Ministry of Energy disclosed the regulations for the rollout of electric vehicle charging stations in the country in August 2022. The development of charging infrastructure in numerous countries is fuelling the demand for passenger electric vehicles. As of July 2022, 40% of all new passenger vehicles registered in the European Union (EU) were running on petrol, while diesel accounted for 19.6% of total registrations. By July 2022, 18% of new passenger vehicles in the European Union were electrically-chargeable (9.1% battery electric and 8.9% plug-in hybrids), while hybrids accounted for 19.6% of total vehicle sales. Petrol and diesel-powered vehicles are anticipated to be replaced with hybrid and electric vehicles in the coming years.
The passenger market is segmented into hatchbacks, sedan, compact SUV, and SUVs. The compact-SUV segment is anticipated to dominate the market during the forecast period. Powerful engines and high ground clearance are the crucial factors that are supporting the compact-SUV segment over the forecast period. According to International Energy Agency (IEA), global SUV sales grew considerably by over 10% between 2020 and 2021, accounting for over 45% of all new vehicle sales globally. The demand for electric SUVs is growing significantly in Canada. The Hyundai Kona electric, Canada's first subcompact electric SUV was launched in 2021. Owing to an outstanding all-electric range of up to 415 km, this compact SUV is proposed to be a preferred choice for both longer adventures as well as daily commutes.
(Source: https://www.msn.com)
(Source: https://www.msn.com)
By Type
By Body
By Application
By Fuel Type
By Region
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Shivani Zoting is one of our standout authors, known for her diverse knowledge base and innovative approach to market analysis. With a B.Sc. in Biotechnology and an MBA in Pharmabiotechnology, Shivani blends scientific expertise with business strategy, making her uniquely qualified to analyze and decode complex industry trends. Over the past 3+ years in the market research industry, she has become
Learn more about Shivani ZotingWith over 14 years of experience, Aditi is the powerhouse responsible for reviewing every piece of data and content that passes through our research pipeline. She is not just an expert—she’s the linchpin that ensures the accuracy, relevance, and clarity of the insights we deliver. Aditi’s broad expertise spans multiple sectors, with a keen focus on ICT, automotive, and various other cross-domain industries.
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