The global automotive parts remanufacturing market mainly produces remanufactured automotive parts that are restored to same like-new performance specifications of original equipment parts. Remanufactured automotive parts are in high demand owing to their significant cost savings of 30-70% compared to new parts while providing similar functionality and quality.
Remanufactured parts are sourced from used components which are disassembled, cleaned, inspected, replaced or repaired as needed and then tested before being reassembled to the same specifications as new parts. Common remanufactured automotive parts include engines, transmissions, fuel injection systems, turbochargers and other engine components, electrical components, starters, alternators and drive train components. The growing vehicle fleet and rising cost of new parts are creating a strong need for cost-effective remanufactured alternatives.
The Global Automotive Parts Remanufacturing Market is estimated to be valued at US$ 118.2 Bn by 2030 and is expected to exhibit a CAGR of 8.7% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the automotive parts remanufacturing are Valeo SA, ZF TRW, Carwood Group, Robert Bosch GmbH, Meritor Inc., Monark Automotive GmbH, Budweg Caliper A/S, Genuine Parts Company, ATC Drivetrain Inc., Maval Manufacturing Inc., Teamec BVBA, Motorcar Parts of America, Inc., and Jasper Engines and Transmissions. These players are focusing on capacity expansion plans, mergers & acquisitions and new product development strategies to strengthen their market presence.
The global Automotive Parts Remanufacturing Market Demand provides considerable opportunities such as untapped potential in emerging countries and expanding product portfolio. Asia Pacific region in particular holds strong growth opportunities attributed to increasing vehicle usage and rapidly growing automotive sector in developing nations. Key players are expanding their global footprint through greenfield investments and acquisitions to cater to increasing demand from international markets outside of their domestic regions. Valeo SA, Motorcar Parts of America and Mahle GmbH are some of the leading players actively pursuing global expansion strategies.
Market drivers and restrain
The key drivers for automotive parts remanufacturing market include growing vehicle fleet worldwide, stringent emission regulations on new vehicles pushing demand for cost-effective alternatives and environmental benefits associated with reuse of parts. For instance, remanufacturing one automobile part can save around 1,380 kg of carbon dioxide emissions. However, lack of standardization in remanufacturing processes and quality certification of parts act as a major restrain. Another challenge is availability of used cores required for remanufacturing which can fluctuate based on vehicle lifecycles in different regions of the world.
Segment Analysis
The automotive parts remanufacturing market can be segmented based on vehicle type into passenger cars and commercial vehicles. The passenger cars sub-segment currently dominates the market due to the availability of a wide variety of vehicles and the requirement of frequent repairs and maintenance activities. However, the commercial vehicles sub-segment is expected to witness faster growth during the forecast period due to the increasing demand for bus and truck transportation globally.
Global Analysis
Regionally, North America presently accounts for the largest share in the global automotive parts remanufacturing market. This is attributed to the presence of major OEMs and favorable government regulations regarding emissions and fuel efficiency in the region. Asia Pacific is poised to exhibit the fastest growth over the next few years led by large-scale automobile production in China, Japan, and India along with the availability of low-cost labor. The growth of the market in Europe is driven by stringent emission norms and OEMs pushing for vehicle repairs and remanufacturing over replacements. Moreover, the adoption of green manufacturing practices makes remanufacturing an attractive option in the region.
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About Author-
Alice Mutum is a seasoned senior content editor at Coherent Market Insights, leveraging extensive expertise gained from her previous role as a content writer. With seven years in content development, Alice masterfully employs SEO best practices and cutting-edge digital marketing strategies to craft high-ranking, impactful content. As an editor, she meticulously ensures flawless grammar and punctuation, precise data accuracy, and perfect alignment with audience needs in every research report. Alice's dedication to excellence and her strategic approach to content make her an invaluable asset in the world of market insights.
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On the other hand, in a quickly developing economy then again, purchasers have a tendency to pick novel products over remanufactured ones and thus, the market for remanufactured automotive parts encounters a dive.Monetary advantages will remain the essential aspect boosting the market.
Reliably vigorous requirement for remanufactured alternators and starters will moreover keep on propelling the sales over the approaching years.
Rise of hybrid and electric vehicles will be a remarkable driver to overall market.The normal age of the current vehicles fleet is expanding, demonstrating a sturdy impulse to the requirement.
This is considered to impel the sales throughout the following couple of years.Developing concerns with respect to overall environmental impact and carbon footprint of recently made automobiles and expanded utilization of remanufactured transmission in elevated technology hybrid and electric vehicles will jointly fuel the requirement.
This can represent a noteworthy challenge to new sales in the approaching years.
