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The Global Remanufactured Automotive Parts Market size is estimated to grow by USD 11,021.22 million between 2022 and 2027 accelerating at a CAGR of 3.93%.
This remanufactured parts market report extensively covers market segmentation by vehicle type (passenger cars and commercial vehicles), component (electrical and electronic parts, engine, transmission, wheels and breaks, and others), and geography(North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges.
The main driver positively impacting the remanufactured parts market growth includes the average age of vehicles, especially in North America and Europe. Vehicle components are subjected to continuous wear and tear with age. The worn-out components of vehicles are required to be replaced to achieve optimum in-vehicle safety and comfort. Although some automotive parts have long replacement cycles, many automotive parts still get worn out fairly soon. In addition, vendors offer remanufactured automotive parts with a high degree of reliability and performance, which has been attracting a large number of automotive enthusiasts toward them. Furthermore, the increase in vehicle miles driven and the high reliance on IC engines for mechanizing vehicles are also driving the growth of the market.
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The COVID-19 outbreak hit North America hard, especially the United States. As of September 3, 2021, the United States has recorded more than 40 million cases of COVID-19 and more than 662,853 deaths. On the same day, the total number of reported COVID-19 cases in Canada and Mexico exceeded 1,507,053 and 3,387,885 respectively. This has imposed lockdowns in several countries in the region, including the United States, Canada, and Mexico. Due to these lockdowns and strict social distancing norms, the region's refurbished auto parts industry closed in 2020. But after the second wave of the COVID-19 outbreak in the second quarter of 2021, stringent safety standards were followed and large-scale government vaccination campaigns were organized. These factors have resulted in the resumption of production activity in our focus markets. The remanufactured auto parts market is on a recovery track in Q3 2021 and is expected to continue during the forecast period.
Our researchers analyzed the data with 2022 as the base year and the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Sales of gasoline and diesel engine vehicles have been rising since 2017 due to the need for personal mobility, increased household incomes, and growing trade. Many vehicles sold worldwide use internal combustion (IC) engines, especially commercial vehicles that require diesel engines for hauling heavy loads. The preference for road freight transport is increasing demand for commercial vehicles over electric and hybrid vehicles, as rail services for logistics are insufficient in many regions.
IC engine vehicles are popular in emerging countries due to their longstanding presence and reliable aftermarket services, and the lack of infrastructure for alternative fuel vehicles in countries like Indonesia, India, and China is expected to keep the number of IC engine vehicles on the rise. Since new parts are expensive, customers are turning to remanufactured automotive parts, driving the remanufactured parts market industry.
Technological innovations in automation and material science are driving the evolution of the global manufacturing industry. 3D printing, or 3DP, is expected to revolutionize the industry and the automotive sector, with the use of augmented and virtual reality. While 3DP is currently limited to low-volume parts due to high costs, slow printing speeds, and low software optimization, advances in software and printing speed, along with lower machine costs, are expected to transform the industry. Additive manufacturing is increasing, with companies like Carbon, Inc. working with automotive OEMs to make 3DP commercially viable. Benefits of 3DP in the automotive industry include printing in multiple locations, reducing waiting periods, and increasing customization, driving the growth of automotive parts remanufacturing.
Raw material price volatility is a major factor hindering the remanufactured parts market growth. In the last decade, raw material prices for remanufacturing automotive parts were volatile due to high demand, taxes, tariffs, and production outages. Remanufacturers must purchase raw materials ahead of production to control costs, but any unexpected price changes can affect profits. Bulk purchases can increase inventory and production costs, and advance purchases may end up costing more. Raw material price fluctuations remain a major challenge for the industry.
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The market share growth by the passenger cars segment will be significant during the forecast period. The market growth of this segment is due to the increasing disposable income of the middle class. The passenger cars segment was valued at USD 26,206.32 million in 2017 and continue to grow by 2021. 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 forecast period.
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Due to the rising incidence of starter and alternator replacement, the electrical and electronics component segment is leading the market for remanufactured automotive parts. As a result of increased passenger car sales due to urbanization and globalization, the passenger vehicle segment of the vehicle type will experience the largest growth rate over the projected period. Demand for light and heavy vehicles will also rise. Remanufacturing by recoating the worn parts segment is likely to dominate the remanufactured automotive parts market during the forecast period.
North America is estimated to contribute 50% to the growth of the global remanufactured parts 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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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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Vendors 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.
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 vendors, 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; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The remanufactured parts market 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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Remanufactured Automotive Parts Market Customer Landscape
The remanufactured parts market research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Remanufactured Automotive Parts Market Scope |
|
Report Coverage |
Details |
Page number |
170 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.93% |
Market growth 2023-2027 |
USD 11,021.22 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.38 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 50% |
Key countries |
US, China, Germany, 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. |
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 Vehicle Type
7 Market Segmentation by Component
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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