India Auto Component Market Size 2025-2029
The India auto component market size is forecast to increase by USD 259.03 billion, at a CAGR of 37% between 2024 and 2029.
- The market is experiencing significant growth, driven by various factors. The increasing middle-class population in key regions is a major growth catalyst, as more individuals can now afford to purchase automobiles. Furthermore, the continuous launch of innovative components is fueling market expansion. However, the automotive industry's supply chain disruptions pose a significant challenge to market growth. These disruptions, caused by various factors such as raw material shortages and logistical issues, can impact the production and delivery of auto components. Despite these challenges, the market is expected to continue its upward trajectory, driven by the increasing demand for advanced and efficient automotive components.
What will be the Size of the Market During the Forecast Period?
- The market is witnessing significant advancements driven by the integration of innovative technologies and the shift towards electric vehicles (EVs). Battery technology is a key focus area, with research and development efforts aimed at creating high-capacity batteries that offer longer driving ranges and faster charging periods. Power electronics play a crucial role in managing and optimizing the performance of these batteries and other vehicle components. Lightweight materials, such as aluminum, are increasingly being used to reduce the overall weight of vehicles, leading to improved fuel economy and reduced emissions. The electrification of vehicle parts, including electric motors and battery management systems, is another significant trend. The integration of advanced computer systems and processors into vehicle components is transforming the automotive industry. From vehicle exteriors and exhaust systems to interiors and braking systems, electronics are becoming an integral part of automotive technology.
- Autonomous vehicles are set to revolutionize the industry, with sensors such as lidar and radars playing a crucial role in enabling self-driving capabilities. The development of hydraulic systems, driveline components, and gearbox parts is also advancing to support the integration of these technologies. Industry 4.0 is driving the digitalization of the automotive component industry, with a focus on optimizing manufacturing processes and improving supply chain efficiency. Policies and regulations are also evolving to support the adoption of these technologies and promote sustainability in the sector. The automotive component market is a dynamic and evolving landscape, with ongoing innovation and advancements shaping the future of the industry. From engine parts and wheels to steering and braking systems, the integration of technology is transforming every aspect of the automotive component market.
How is this market segmented and which is the largest segment?
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.
- Channel
- OEM
- Aftermarket
- Component
- Engine and suspension and breaking
- Drive transmission and steering
- Electricals and electronics
- Body and chassis
- Others
- Vehicle Type
- Passenger vehicles
- 2 wheelers
- Light commercial vehicles
- Medium and heavy commercial vehicles
- Others
- Geography
- India
By Channel Insights
- The OEM segment is estimated to witness significant growth during the forecast period.
The market has experienced notable growth in 2024, particularly within the Original Equipment Manufacturer (OEM) segment. OEMs produce vehicle components, such as brakes and steering, specifically designed to fit the exact specifications of newly constructed vehicles. These components are favored by automobile manufacturers worldwide due to their perfect fit and consistent performance. By utilizing OEM parts, buyers can trust that the components will function optimally and maintain the original vehicle quality. The auto component market continues to evolve, offering innovative solutions in areas such as automotive design, fuel efficiency, smart mobility, and vehicle comfort. OEMs play a pivotal role in providing these advanced auto parts and components, ensuring the future of the automotive industry remains competitive and technologically advanced.
Get a glance at the market report of share of various segments Request Free Sample
Market Dynamics
Our market researchers analyzed the data with 2024 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.
What are the key market drivers leading to the rise in the adoption of the market?
The growing middle-class population is the key driver of the market.
- The market is witnessing significant growth due to the increasing adoption of electric vehicles (EVs) and the focus on sustainable transportation. Electric vehicle regulations and emission regulations are driving the automotive industry towards vehicle electrification and the use of lightweight materials. The EV market trends indicate a shift towards advanced manufacturing, digital transformation, and powertrain innovation. The future of mobility is leaning towards connected car technology, autonomous driving solutions, and smart mobility solutions. The focus on sustainability in automotive is leading to the development of next-generation vehicles, including EVs and hybrid vehicles. The automotive industry is also investing in battery recycling to reduce the environmental impact of EVs.
- The future of automotive is eco-friendly, with a focus on vehicle safety features, performance optimization, and user experience. The demand for electric vehicle charging infrastructure is increasing, and cybersecurity is becoming a significant concern. The automotive industry is also focusing on supply chain management, ergonomics, and artificial intelligence to improve vehicle comfort and efficiency. The aftermarket parts industry is adapting to the changing landscape, offering solutions for EV performance optimization and vehicle customization. The automotive future is about autonomous driving, machine learning, and data analytics. Automotive solutions are becoming smarter, with advanced features like smart car features and vehicle comfort.
- The automotive design is evolving, with a focus on vehicle safety, lightweight materials, and suspension and braking systems. Automotive repair and maintenance are also becoming more advanced, with the use of digital tools and advanced diagnostics. The automotive industry is undergoing a significant transformation, with a focus on sustainability, performance optimization, and user experience. The automotive component industry is responding to these trends, offering innovative solutions for the future of transportation. Auto component suppliers are investing in research and development to meet the evolving needs of the automotive market. The automotive standards are also changing, with a focus on safety, efficiency, and connectivity.
What are the market trends shaping the market?
Increasing product launches is the upcoming trend in the market.
- The market is experiencing significant growth as companies introduce innovative solutions to support the electric vehicle (EV) revolution. Electric vehicle regulations and the push towards green transportation are driving the demand for automotive materials science advancements. The EV market trends indicate a focus on battery recycling, connected car technology, and electric car technology. The future of automotive is eco-friendly, with a focus on vehicle electrification, smart mobility solutions, and autonomous driving solutions. The automotive industry is undergoing a digital transformation, with performance optimization, data analytics, and user experience at the forefront. Ergonomics, artificial intelligence, and emission regulations are essential aspects of sustainability in automotive.
- Lightweight vehicle design, next-generation vehicles, and advanced manufacturing are key areas of innovation. The future of mobility includes vehicle safety features, lightweight materials, and supply chain management. Smart car features, such as EV charging infrastructure, cybersecurity, and vehicle customization, are becoming increasingly important. The automotive repair industry is adapting to the changing landscape, with a focus on automotive sustainability, automotive parts, and automotive performance. Automotive suppliers are responding to these trends by offering automotive solutions, auto parts, and vehicle parts. The automotive aftermarket is evolving, with a focus on automotive electronics, automotive technology, and automotive design. The automotive industry is also embracing fuel efficiency and motorcycle parts, as part of the overall shift towards sustainable transportation.
What challenges does the market face during the growth?
Supply chain disruption in the automotive industry is a key challenge affecting market growth.
- The market is experiencing challenges due to various factors, including the shortage of raw materials, logistics issues, and geopolitical tensions. The global semiconductor shortage and high logistics and inventory costs caused by the COVID-19 pandemic have significantly impacted the production of auto components, negatively affecting the market's growth. Furthermore, the Russian-Ukraine conflict has added to the woes of the automotive industry in India, as Russia is a significant supplier of metals such as palladium, and Ukraine provides essential gases like Neon and Helium used in chip making. These supply chain disruptions and geopolitical tensions are expected to hinder the growth of the market during the forecast period.
- Moreover, the shift towards electric vehicles (EVs) and green transportation is driving innovation in the automotive industry. EV market trends include advancements in electric car technology, battery recycling, and the development of next-generation vehicles. The future of mobility is focused on sustainability, connectivity, and autonomous driving solutions. Lightweight vehicle design, vehicle electrification, and performance optimization are key areas of research and development. The automotive industry is also embracing digital transformation, including data analytics, user experience, and smart mobility solutions. The future of the automotive industry is characterized by eco-friendly, sustainable transportation, with a focus on electric vehicle adoption, vehicle safety features, and smart car features.
- Auto component suppliers are investing in advanced manufacturing, powertrain innovation, and machine learning to optimize performance and improve vehicle comfort. The auto parts industry is evolving to meet the demands of the future, with a focus on aftermarket parts, automotive customization, and automotive recycling. The auto component industry is also adapting to new regulations, such as emission regulations, and implementing cybersecurity measures to ensure safety and security. In conclusion, the market is facing challenges due to supply chain disruptions and geopolitical tensions. However, the industry is also experiencing significant innovation and growth, driven by the shift towards electric vehicles and the digital transformation of the automotive industry.
Exclusive Customer Landscape
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Key Companies & Market Insights
Companies are implementing various strategies, such as strategic alliances, market forecasts, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
3M Co. - The company offers auto components such as Adflo powered air purifying respirator battery, Pin 14 with 3M Acrylic Foam Tape 5392, 3M Wheel Weight TN6020, Rain Sensor Brackets with 3M Die Cuttable Tape DC2008 and others.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
- 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
- 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.
Research Analyst Overview
The market is a dynamic and intricate ecosystem that plays a pivotal role in shaping the future of transportation. This sector encompasses a vast array of products, from electric vehicle (EV) batteries and charging infrastructure to connected car technology and advanced materials science. One of the most significant trends driving the market is the shift towards electric and hybrid vehicles. The increasing demand for green transportation solutions has led to extensive research and development in EV battery technology, aiming to enhance battery life, improve safety, and reduce environmental impact. Moreover, the focus on recycling EV batteries is gaining traction as a sustainable solution for the circular economy. Another critical area of innovation is vehicle electrification, with a growing emphasis on powertrain innovation and performance optimization. Lightweight materials, such as carbon fiber and aluminum alloys, are increasingly being adopted to reduce vehicle weight and improve fuel efficiency.
Additionally, the integration of artificial intelligence (AI) and machine learning algorithms in-vehicle systems is revolutionizing the driving experience, offering features like predictive maintenance, personalized user experiences, and advanced safety systems. The future of automotive is not only about electric vehicles but also about smart mobility solutions, digital transformation, and autonomous driving. The rise of connected car technology is enabling real-time data analytics, enhancing vehicle performance and safety, and providing users with a more personalized driving experience. Furthermore, cybersecurity is becoming a crucial aspect of the market, as vehicles become increasingly connected and reliant on digital systems. Sustainability is another essential factor shaping the market. Automotive manufacturers and suppliers are focusing on reducing emissions, improving fuel efficiency, and implementing eco-friendly practices in their operations.
|
Market Scope |
|
|
Report Coverage |
Details |
|
Page number |
181 |
|
Base year |
2024 |
|
Historic period |
2019-2023 |
|
Forecast period |
2025-2029 |
|
Growth momentum & CAGR |
Accelerate at a CAGR of 37% |
|
Market Growth 2025-2029 |
USD 259.03 billion |
|
Market structure |
Fragmented |
|
YoY growth 2024-2025(%) |
27.9 |
|
Key countries |
India |
|
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
What are the Key Data Covered in this Market Research and Growth Report?
- CAGR of the market during the market forecast period
- Detailed information on factors that will drive the market growth and forecasting between 2025 and 2029
- Precise estimation of the size of the market and its contribution of the market in focus to the parent market
- Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
- Growth of the market across India
- Thorough analysis of the market's competitive landscape and detailed information about companies
- Comprehensive analysis of factors that will challenge the growth of market companies
We can help! Our analysts can customize this market research report to meet your requirements.