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The auto parts market size is estimated to grow at a CAGR of 3.62% between 2022 and 2027. The market size is forecast to increase by USD 393.22 billion. The market's growth depends on several factors, such as the increased USAge of technological advancement in the global auto parts market, the digitalization of automotive repair and maintenance services, and the high demand from the aftermarket. US, Germany, China, UK, Japan are the top five countries contributing to the market growth. US holds the largest market share projecting an annual revenue of USD 537.21 million.
Goodyear is one of the top-performing market players offering auto parts through its subsidiary Cooper Tire and Rubber Company such as Cooper Endeavor Plus, Discoverer EnduraMax. Besides analyzing the current market scenario, our report examines historic data from 2017 to 2021.
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This auto parts market report extensively covers market segmentation by end-user (OEM and aftermarket), distribution channel (offline and online), and geography (North America, Europe, APAC, South America, and the Middle East and Africa).
The OEM segment is estimated to witness significant growth during the forecast period. The OEM segment is expected to grow significantly in terms of market share when compared with the aftermarket. OEM is referred to describe companies that make original automotive components such as brakes, steering, and other parts for new vehicles.
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The OEM segment was the largest segment and was valued at USD 1,441.61 billion in 2017. OEM parts are made by a specific manufacturer to align with the exact specification of the vehicle so that they fit perfectly into that space. Therefore, they are preferred by automobile manufacturers around the globe. The buyers prefer OEM parts because they offer the same parts as those originally installed during the manufacturing process.
Based on the distribution channel, the offline segment holds the largest market share. The auto parts market benefits from numerous physical stores, driving its growth. Offline stores offer tactile experiences, boosting progress. However, offline's share might decrease due to rising e-commerce. Key countries like the US, Canada, UK, Germany, and China host multiple auto part stores, garages, and dealerships. Franchise repair businesses gain traction for profitability.
Consumers buy components like vehicle lighting, brakes, and filters offline. Major players like Toyota and Bosch expand to online channels alongside offline presence. Consumers prefer brick-and-mortar for complex installations, as vehicles and parts grow intricate. Online complexities fuel offline growth in the global auto parts market.
APAC is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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Another region offering significant growth opportunities is North America. Commercial vehicles account for about half of the total in-use vehicles in North America, whereas light commercial vehicles account for most sales across the region. The continued growth of the oil and gas sector, a broad range of agriculture sectors, an intensive mining industry, and the growth of the industrial manufacturing sector across the region are expected to propel the demand for commercial vehicles in North America, which, in turn, is expected to increase the demand for auto parts in North America during the forecast period. Such factors are expected to propel the demand for auto parts manufacturing during the forecast period.
In 2020, the automotive industry in North America was negatively impacted, owing to the spread of COVID-19. However, in 2021, the initiation of vaccination drives in the region and the increase in investment inflows into the auto sector resulted in the reopening of automotive vehicles and auto parts manufacturing plants. Imports of high-end automotive vehicles into this region have been restarted, as a result. The recovery of operations in the regional automotive industry has had significant growth since 2022 and is expected to propel the growth of the auto parts market in North America during the forecast period.
Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increased USAge of technological advancement in the global auto parts market is driving growth in the market. Technological innovation in braking components, headlamps, and other parts is driving the global auto parts market on a constant basis. High-performance braking systems are integrated with electronic features, such as regenerative braking, brake-by-wire, electronic brake force distribution, antilock braking, traction control, and electronic stability control system.
Moreover, 3D printing technology is being used to fabricate the production of auto parts. Also, there is a broad range of additive-manufactured parts which are used in the production of vehicles today, many of them being made from synthetic materials. The emergence of 3D printing in the automotive industry and the growing demand for hybrid and all-electric vehicles are likely to boost the market growth during the forecast period. Hence, such factors are expected to drive the growth of the market during the forecast period.
The growing availability of automotive aftermarket parts on e-commerce platforms is a key trend in the market. With the increasing popularity of online channels, the global automotive parts aftermarket is experiencing changing trends and developments. E-commerce platforms are playing an important role in the rapid growth of revenues generated by the automotive aftermarket.
Moreover, the global auto parts aftermarket is witnessing a paradigm shift toward online platforms that are witnessed with auto parts sales online growing year on year. Revenue from online sales is driven by advantages and benefits linked with the application of eShopping Platforms for Aftermarkets in cars. Such factors will fuel the growth in the auto parts aftermarket through online sales in the auto parts market during the forecast period.
Online retailers challenging traditional aftermarket retailers is a major challenge in the auto parts market. The growth of existing traditional aftermarket players, who do not have an online presence, will be greatly hampered by the increase in the number of e-commerce shop players in the global auto parts manufacturing market. The automotive industry is continuously evolving and growing with the ongoing developments and innovations taking place in the field of electronics, digitalization, and connectivity.
However, the availability of various products/systems and their varieties in the aftermarket is increasing year after year. Online retailers are giving tough competition to traditional brick-and-mortar stores operating in the global auto parts market. Sales in traditional automotive accessories stores have been negatively affected by the benefits of online shopping. Though online retailing in the global auto parts market is growing, at the same time, this will have a negative effect on traditional retailers' growth. Factors such as the availability of auto parts through the online medium will fuel the growth of the auto parts market during the forecast period.
Companies are implementing various strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.
3M Co. - The company offers auto parts such as Pin 14 with 3M Acrylic Foam Tape 5392, 3M Wheel Weight TN6020, and Rain Sensor Brackets with 3M Die Cuttable Tape DC2008.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
3M Co., AISIN CORP., Akebono Brake Industry Co. Ltd., Autoliv Inc., BorgWarner Inc., Brembo Spa, General Motors Co., HELLA GmbH and Co. KGaA, Hyundai Motor Co., Lear Corp., Magna International Inc., Marelli Holdings Co. Ltd., Robert Bosch GmbH, Schaeffler AG, Stellantis NV, Tenneco Inc., The Goodyear Tire and Rubber Co., Toyota Motor Corp., Valeo SA, and ZF Friedrichshafen AG
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
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Auto Parts Market Scope |
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Report Coverage |
Details |
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Page number |
176 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 3.62% |
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Market growth 2023-2027 |
USD 393.22 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
2.98 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 34% |
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Key countries |
US, China, Japan, Germany, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
3M Co., AISIN CORP., Akebono Brake Industry Co. Ltd., Autoliv Inc., BorgWarner Inc., Brembo Spa, General Motors Co., HELLA GmbH and Co. KGaA, Hyundai Motor Co., Lear Corp., Magna International Inc., Marelli Holdings Co. Ltd., Robert Bosch GmbH, Schaeffler AG, Stellantis NV, Tenneco Inc., The Goodyear Tire and Rubber Co., Toyota Motor Corp., Valeo SA, and ZF Friedrichshafen AG |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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