The global car market, currently valued at USD 1.61 trillion, is projected to surge to nearly USD 4.8 trillion by 2035, growing at a robust 11.5% CAGR, according to new data from Future Market Insights Inc. Industry growth will be fueled by SUV demand, expanding electric vehicle (EV) offerings, and evolving ownership models that are reshaping manufacturing priorities worldwide.
From 2025 to 2028, growth will be driven by hybrid adoption in ASEAN markets and gradual ICE phase-outs in select OECD countries. By 2031–2035, the market’s CAGR is expected to peak at 12.2%, boosted by software-defined vehicles, premium EV sedans, and performance utility models.
SUVs Lead the Pack
SUVs hold a commanding 38% share in 2025, favored for spacious designs, higher visibility, and multi-terrain capability. Models like the Toyota RAV4, Hyundai Tucson, and Ford Bronco are outperforming hatchbacks in resale value by an average of 18% over three years.
Dual-Track Propulsion Market
Gasoline vehicles still lead propulsion share at 49% in 2025, supported by widespread fueling infrastructure and lower maintenance costs. EVs account for 26%, bolstered by government incentives, urban charging expansion, and diversified product lines from Tesla, BYD, and Volkswagen.
Ownership Models in Transition
Individual ownership remains dominant at 69% of global sales, while franchised dealers maintain a 62% distribution share. Subscription-based and pay-per-mile models are gaining traction in urban hubs, offering flexible access for younger buyers.
Regional Growth Hotspots
China (14.8% CAGR) leads global growth, driven by affordable EV adoption and vertically integrated battery supply chains. India (13.2%) benefits from sub-$10,000 compact EVs and battery-swapping pilots, while Germany (12.3%) focuses on premium EVs and hydrogen tech.
Manufacturer Strategies
Market leaders are investing in regionalized production, hybrid portfolios, and connected services. Toyota, Volkswagen, Ford, GM, BMW, Tesla, Hyundai, and emerging players like Tata Motors and Suzuki are tailoring offerings for both developed and emerging markets.
The next decade will test OEMs’ ability to balance innovation, sustainability, and profitability amid fluctuating supply chains and evolving consumer expectations.
