The global medium cars market size was valued at USD 222.79 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 6.4% from 2021 to 2028. Medium cars or compact cars are gaining popularity as consumers are highly inclined towards having cost-effective, convenient, and environmentally-friendly choices, which will drive the market globally. In addition, compact cars provide better fuel effectiveness and are simple to drive and stop in streets comprising heavy traffic. The majority of automakers are introducing automatic transmissions in medium cars to enhance the entire driving experience with the help of continuously advancing technology, which will further propel the market growth globally. Furthermore, innovative designs and competitive pricing of compact cars from manufacturers to appeal to the consumers of this segment will further boost the market growth in the near future.
New product developments with technological advancements and innovative designs with eye-catching color combinations are attracting consumers and fueling the growth of the compact car market. Rising disposable income, increasing spending on personal mobility, and continuously falling technology prices will benefit the compact car market for years to come. The insertion of battery-electric cars and hybrid electric cars from automakers and rising demand for the same from customers further propel the market growth.
Growing environmental concerns and surging fuel prices are driving consumers to prefer lightweight and economical cars, which is anticipated to drive the market in the coming years. Customization facilities offered by several automakers, such as the selection of colors, wheel rims, and digital screens, to attract consumers will accelerate the compact cars market growth. The growing middle-class population all across the globe and their increased inclination towards personal vehicles will create a rising demand for medium cars in the near future.
Due to the Covid-19 pandemic, the passenger car market is having a negative effect on global sales. To control the spread of the coronavirus, many countries have imposed strict and judicious blocking and the disruption of international trade on the country during the period. This results in restrictions on leaving home without previous employment, which reduces the sale of medium-sized cars in the global market. However, as things get back to normal, compact cars are expected to witness increasing consumer demand in the near future.
Petrol-based medium cars held the largest revenue share of over 45.0% in 2020 and are expected to register a substantial growth rate from 2021 to 2028. Petrol-based medium cars are gaining popularity over diesel-based cars due to better functionality and a smoother driving experience. In addition, petrol-based cars require much less maintenance than their counterparts, which, in turn, is anticipated to propel the petrol-based cars market growth. However, increased inclination towards green fuel will hamper the expansion of the petrol-powered car market in the future.
The electric segment is expected to expand at the fastest CAGR of 14.3% from 2021 to 2028. Consumers’ growing demand for electric vehicles with new product developments and the latest technological advancements will drive the market. In addition, growing environmental concerns related to the air pollution caused by petrol and diesel-based vehicles are increasing around the world. In order to tackle the issue, many governments are taking initiatives and encouraging consumers to adopt electric vehicles. Battery-based electric vehicles and hybrid plug-in electric vehicles are anticipated to witness significant demand in the future.
Asia Pacific held the largest revenue share of over 45.0% in 2020 and will continue to grow at a substantial rate over the forecast period. Compact cars are highly popular as this region has a large working population. China, India, and Japan are significantly contributing to the compact cars market growth in this region. The presence of global top brands as well as local big players and the growing disposable income of rising middle-class families will fuel the regional market growth. Growing establishments in electric-based cars, especially in China, will further boost the market growth in this region in the near future.
Europe is expected to expand at the fastest CAGR of 7.1% from 2021 to 2028. An increase in disposable income, the presence of top brands, increased spending on luxury, and consumers’ increased inclination towards having personal mobility options will boost the regional market growth. The growing trend of electric-based compact cars and new product developments will further propel the regional market growth in the coming years.
The market has been characterized by intense competition owing to the presence of a large number of regional and global players. Manufacturers are involved in new product developments and technological advancements to gain a presence in the market. Top western automakers shifted their production facilities to developing nations to tap into the market and gain benefits from low production facilities. Some prominent players in the global medium cars market include:
|
Report Attribute |
Details |
|
Market size value in 2021 |
USD 235.72 billion |
|
Revenue forecast in 2028 |
USD 363.13 billion |
|
Growth Rate |
CAGR of 6.4% from 2021 to 2028 |
|
Base year for estimation |
2020 |
|
Historical data |
2017 - 2019 |
|
Forecast period |
2021 - 2028 |
|
Quantitative units |
Revenue in USD million/billion and CAGR from 2021 to 2028 |
|
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
|
Segments covered |
Fuel type, region |
|
Regional scope |
North America; Europe; Asia Pacific; Central & South America; Middle East & Africa |
|
Country scope |
U.S.; Canada; Germany; U.K.; France; Russia; Italy; China; Japan; India; Brazil; Argentina; South Africa; Saudi Arabia |
|
Key companies profiled |
Stellantis NV; Toyota Motor; Renault; Volkswagen ; Hyundai Motor Company; Kia Corporation; Suzuki Motor Corporation; General Motors (Chevrolet); Ford Motor Company; BMW Group; Honda Motor Company, Ltd. |
|
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2028. For the purpose of this study, Million Insights has segmented the global medium cars market report on the basis of fuel type and region:
Sign up today.
Call us at +1-408-610-2300 to speak with a
representative.
All Reports
