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The global remanufactured automotive parts market size is estimated to grow by USD 9.15 billion between 2023 and 2028 accelerating at a CAGR of 3.2%. The growth of the market depends on several factors, including the aging vehicle fleet, the increase in vehicle miles driven, and the high reliance on internal combustion (IC) engines for vehicle mechanization. These elements collectively drive market expansion by highlighting the need for vehicle maintenance and replacement parts, accommodating increased usage, and supporting the continued demand for traditional engine technology. The aging vehicle fleet necessitates regular upkeep and replacement of components. The increase in vehicle miles driven underscores higher wear and tear, boosting the need for maintenance services. Additionally, the high reliance on IC engines reflects the sustained preference for conventional automotive technology, further propelling market growth.
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The market is gaining momentum driven by the Circular Economy Drive and the Environmental Sustainability Trend. Cost-Effective Repair Solutions and Advanced Technologies are fostering growth, particularly in automotive remanufacturing. Original Equipment Manufacturers are focusing on Extended Product Lifespan through Remanufacturing Awareness Campaigns and E-Commerce Integration. Customized Remanufacturing Services are increasingly tailored for automotive electrification, driven by rising EV sales. According to the International Energy Agency, the demand for EV batteries like Li-Ion and NiMH batteries is surging. Key components include electric drivetrains, crucial in the automotive supply chain amid raw material shortage and stringent emission control norms. Despite these advances, restraining factors persist as an emerging market trend.
The increase in average age or aging fleet is the key factor driving the growth of the market. Average vehicle age continues to increase, especially in North America and Europe. According to the European Automobile Manufacturers Association, the life expectancy of a truck in the EU is 12.4 years. Moreover, the total number of commercial vehicles in use is steadily increasing in all major regions of the world. Such a large number of vehicles with a very high average age presents many opportunities for remanufactured auto parts suppliers.
Furthermore, vehicle components wear out continuously as they age. For optimal vehicle safety and comfort, the worn components of the vehicle should be replaced. Some auto parts have long replacement cycles, but many wear out fairly quickly. This will drive the growth of the global remanufactured automotive parts market during the market growth analysis period.
The growing popularity of 3D printing in the automobile industry is the primary trend in the market. The global manufacturing industry is constantly evolving by integrating advanced materials, processes and resources with the traditional. This manufacturing evolution has been made possible primarily by technological innovations in the areas of automation and materials science. 3D printing, also known as 3DP, is expected to revolutionize the global manufacturing industry during the market forecast period.
Furthermore, the same is expected in the global automotive industry, where production will undergo a paradigm shift through the use of 3D printing and the use of augmented and virtual reality. The current scope of 3D printing is limited to the production of small series parts. This is mainly due to the high cost of 3D printing machines, slow printing speeds, and poor software optimization. However, 3D printing is expected to revolutionize the global automotive industry during the forecast period, owing to advances in software integration, faster printing speeds, and progressively lower prices for 3D printing machines.
The rapid increase in adoption of the EVs will pose a major challenge to the growth of the market. The growing need to control emissions and reduce air pollution is driving OEMs to focus on developing electric vehicles. EV adoption among vehicle users was initially slow, but improvements in battery technology and charging infrastructure, as well as government support through subsidies, have increased EV adoption.
Additionally, the growing awareness of reducing vehicle pollution is accelerating the growth of the EV market. Using renewable energy, such as solar energy, to charge electric vehicles reduces greenhouse gases. In this case, electric vehicles are charged using electricity generated by a solar array instead of the grid. In this way, electric vehicles help reduce the environmental impact of automobiles. Government agencies are, therefore, offering tax breaks and subsidies to encourage customers to buy electric vehicles.
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The market share growth by the passenger cars segment will be significant during the market research and growth period. The market growth of this segment is due to the increasing disposable income of the middle class. Fuel efficiency in crossovers and SUVs and rising preference for 3rd-row seats are driving the growth of the US SUV and crossover vehicle market. Crossovers are made from the frame of a car and are significantly lighter, making them more fuel efficient than SUVs. The increase in the average annual mileage of these vehicles and the focus of owners of such vehicles on regular maintenance and vehicle upgrades create significant growth opportunities for the vendors in the market.
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The passenger cars segment was valued at USD 26.80 billion in 2018. Investments in passenger vehicle R&D, testing, and a focus on standards compliance are increasing each year. All these factors have combined to increase the average life expectancy of passenger vehicles and keep customers in their vehicles for longer. A continued flow of investment in research and development across the passenger vehicle segment is expected to increase life expectancy during the market forecasting period.
North America is estimated to contribute 44% to the growth of the global market during the market growth and forecasting period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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Commercial vehicles are abundant in North America, accounting for about half of all vehicles in use in the region. The LCV segment accounts for the majority of sales in this region. The continued expansion of the oil and gas industry, extensive agricultural sector, extensive mining, and a growing industrial manufacturing sector have increased the demand for commercial vehicles in the region. Heavy vehicles are widely used in the region to transport minerals from mines to refineries, raw materials for manufacturing plants, and finished products from manufacturing plants to distributors.
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Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the Remanufactured Automotive Parts Market. One of the major companies in the market include:
Aer Manufacturing LP: The company offers transmissions, diesel engines, and gas engines. It also offers remanufactured automotive parts that includes oil pumps, rocker arms, connecting rods, water pumps, fuel pumps, air compressors, and EGR valve.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified. Furthermore, it is also quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
US Automotive Parts Aftermarket Market Size and Forecast
Automotive Refurbished Turbochargers Market Analysis APAC, Europe, North America, Middle East and Africa, South America - China, US, Germany, Japan, UK - Size and Forecast
Spare Parts Logistics Market Analysis APAC, Europe, North America, South America, Middle East and Africa - China, US, Germany, Japan, India - Size and Forecast
The remanufacturing sector plays a crucial role in the industrial process, particularly within remanufacturing facilities. As the demand for electric vehicles grows, so does the aftermarket for remanufactured auto parts. Driving factors such as stringent waste management policies and the need for efficient recycling are propelling the market progress of remanufactured products. Key automotive components like tires, engine and related parts, transmission parts, electrical and electronics system, and braking system related parts are being extensively remanufactured. Despite the benefits, a lack of awareness remains a challenge. Parts type analysis and vehicle type analysis shows significant growth potential, indicating a robust future for remanufactured auto parts in supporting sustainable automotive solutions.
Remanufactured Automotive Parts Market Scope |
|
Report Coverage |
Details |
Page number |
177 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.2% |
Market growth 2024-2028 |
USD 9.15 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.06 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 44% |
Key countries |
US, Germany, China, UK, and France |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aer Manufacturing LP, Andre Niermann, ATC Drivetrain, BBB Industries LLC, Borg Automotive AS, Cardone Industries Inc., Caterpillar Inc., Detroit Diesel Corp., Ford Motor Co., Jasper Engines and Transmissions, Marshalls Automotive Machine Inc., Motorcar Parts of America Inc., Renault SAS, Robert Bosch GmbH, Standard Motor Products Inc., Tata Motors Ltd., Teamec BVBA, Toyota Motor Corp., Volkswagen AG, and ZF Friedrichshafen AG |
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 |
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. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Vehicle Type
7 Market Segmentation by Component
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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