Dublin, Oct. 03, 2024 (GLOBE NEWSWIRE) -- The "Automotive Parts Remanufacturing Market Outlook to 2031 by Product, Technology, Grade, Application, End-user and Region" report has been added to ResearchAndMarkets.com's offering.
The aftermarket for automotive parts is a critical area, offering substantial growth opportunities for companies involved in remanufacturing automotive components.
As the demand for remanufactured parts continues to grow, it is becoming a lucrative sector within the automotive industry. The cost-effectiveness and profitability associated with remanufactured automotive parts have consistently provided a favorable environment for businesses in this space. Automotive remanufacturers benefit from the fact that remanufactured parts cost a fraction of what new parts do, while still delivering comparable quality, thus fueling steady demand.
The automotive parts remanufacturing market has been on a growth trajectory, driven by the increasing need for cost-effective solutions for automotive repairs. The growing awareness among consumers about the benefits of remanufactured parts, coupled with rising environmental concerns, has bolstered the demand for remanufactured automotive parts. These parts, which are refurbished to meet the same standards as new parts, offer an economical and sustainable solution to vehicle maintenance and repair.
Automotive Parts Remanufacturing Market Analysis by Component
When analyzed by component, the market for automotive parts remanufacturing is segmented into several key categories. Electrical and electronics components, such as alternators and starters, are leading the charge in this market. The frequent need to replace these components, owing to their wear and tear, is one of the primary reasons behind their market dominance. Additionally, the engine and related parts category also represents a significant portion of the overall market share. This includes turbochargers, engines, carburetors, and other associated components, all of which require periodic replacement as vehicles age.
In particular, the electrical and electronics components segment has seen a sharp rise in demand due to the rapid advancements in automotive technology. Vehicles are increasingly relying on complex electrical systems, making the replacement of these parts critical for the proper functioning of modern vehicles. Remanufactured electrical and electronics parts offer a cost-efficient alternative for vehicle owners, thereby driving demand in this segment.
Engine and related components, such as turbochargers and carburetors, also contribute significantly to the market. These components are essential for the smooth operation of a vehicle's powertrain and often need replacement as vehicles accumulate mileage. The availability of remanufactured engine parts offers consumers a budget-friendly alternative without compromising on performance.
Automotive Parts Remanufacturing Market Analysis by Application
In terms of application, the passenger car segment is expected to lead the automotive parts remanufacturing market. The growing preference for personal transportation and the increasing purchasing power of consumers are key drivers of this trend. As more individuals opt for personal vehicles, the demand for automotive parts, including remanufactured components, continues to rise. This segment's dominance is further supported by the fact that passenger cars often require more frequent maintenance and repairs compared to commercial vehicles.
The light commercial vehicle (LCV) segment also holds a significant share in the market. LCVs are frequently used in industries such as logistics, transportation, and delivery services, which results in a high rate of wear and tear. Consequently, the need for replacement parts, including remanufactured components, is substantial in this segment.
Heavy commercial vehicles (HCVs) and off-road vehicles, including all-terrain vehicles, are other notable contributors to the market. These vehicles operate in demanding environments, often leading to more frequent breakdowns and a greater need for replacement parts. Remanufactured components provide a cost-effective solution for maintaining the performance of these vehicles, making them an attractive option for owners of commercial fleets.
Automotive Parts Remanufacturing Market Analysis by Region
From a regional perspective, North America is projected to maintain its leadership position in the global automotive parts remanufacturing market. The region's mature automotive industry, coupled with a strong focus on sustainability and cost reduction, drives the demand for remanufactured parts. Moreover, the presence of a large number of aging vehicles in North America fuels the need for replacement components, which in turn supports the growth of the remanufacturing market.
Europe follows closely behind, with significant demand for remanufactured automotive parts. European consumers are increasingly aware of the environmental benefits of using remanufactured components, which helps boost the market in this region. Additionally, stringent regulations regarding waste reduction and recycling in Europe make remanufactured parts a preferred choice for many consumers.
In terms of growth rate, China is anticipated to be a leading player in the automotive parts remanufacturing market. The country's expanding automotive industry, coupled with rising vehicle ownership, is creating a surge in demand for replacement parts. Similarly, regions like Latin America and Southeast Asia Pacific are also expected to witness notable growth, as these areas experience an increase in vehicle sales and, consequently, a higher demand for automotive parts.
Increasing Average Vehicular Age to Drive Demand
The rise in the average operational age of vehicles is one of the key factors driving the demand for automotive parts remanufacturing. As vehicles remain in use for longer periods, the need for replacement parts becomes inevitable. Advances in automotive technology and materials have extended the lifespan of vehicles, which means that older vehicles are staying on the road longer than before. This has created a substantial aftermarket for remanufactured components, as vehicle owners seek affordable and reliable parts to keep their cars in good working condition.
Older vehicles, particularly those over 12 years of age, represent a significant portion of the vehicles on the road today. Many of these vehicles require frequent maintenance and part replacements, which presents a lucrative opportunity for companies involved in the remanufacturing of automotive parts. Additionally, consumers are increasingly choosing to hold on to their older vehicles rather than sell them, further fueling the demand for remanufactured components.
The growing number of vehicles aged between 16 and 24 years is another contributing factor to the increasing demand for automotive parts remanufacturing. As these vehicles continue to age, they will require more frequent repairs and replacements, which will, in turn, drive demand for remanufactured parts.
Automotive Parts Remanufacturing Market Structure Analysis
The global automotive parts remanufacturing market is characterized by a fragmented competitive landscape. Several large multinational corporations hold a significant share of the market, but there is also a notable presence of domestic players. The market is divided into three tiers, with tier-I players accounting for a substantial portion of the market. These top-tier players are typically multinational corporations with extensive operations across various regions.
Tier-II players, which include smaller regional companies, also play a significant role in the market. These companies often cater to specific geographic areas or focus on particular components, allowing them to capture a notable share of the market.
Tier-III players, which are typically smaller, local businesses, make up a significant portion of the market as well. These companies often serve niche markets or specialize in remanufacturing certain types of automotive parts.
Key Topics Covered
1. Executive Summary
1.1. Global Automotive Parts Remanufacturing Market Snapshot
1.2. Future Projections
1.3. Key Market Trends
1.4. Regional Snapshot, by Value, 2023
1.5. Analyst Recommendations
2. Market Overview
2.1. Market Definitions and Segmentations
2.2. Market Dynamics
2.2.1. Drivers
2.2.2. Restraints
2.2.3. Market Opportunities
2.3. Value Chain Analysis
2.4. Porter's Five Forces Analysis
2.5. COVID-19 Impact Analysis
2.5.1. Supply
2.5.2. Demand
2.6. Economic Overview
2.6.1. World Economic Projections
2.7. PESTLE Analysis
3. Global Automotive Parts Remanufacturing Market Outlook, 2019 - 2031
3.1. Global Automotive Parts Remanufacturing Market Outlook, by Component, Value (US$ Bn), 2019 - 2031
3.1.1. Key Highlights
3.1.1.1. Engine & Related Parts
3.1.1.1.1. Turbocharger
3.1.1.1.2. Engine
3.1.1.1.3. Carburettors & Others
3.1.1.2. Transmission & Others
3.1.1.2.1. Gearbox
3.1.1.2.2. Clutches
3.1.1.2.3. Other transmission components
3.1.1.3. Electrical & Electronics
3.1.1.3.1. Starters
3.1.1.3.2. Alternators
3.1.1.3.3. Others
3.1.1.4. Wheels & Brakes
3.1.1.4.1. Hub Assemblies
3.1.1.4.2. Master Cylinders
3.1.1.4.3. Brake Calipers
3.1.1.4.4. Bearings
3.1.1.5. A/C Compressors
3.1.1.6. Steering
3.1.1.7. Fuel systems
3.1.1.8. Others
3.2. Global Automotive Parts Remanufacturing Market Outlook, by Vehicle Type, Value (US$ Bn), 2019 - 2031
3.2.1. Key Highlights
3.2.1.1. Passenger Cars
3.2.1.2. LCVs
3.2.1.3. HCVs
3.2.1.4. Off Road Vehicles
3.2.1.5. All-Terrain Vehicle
3.3. Global Automotive Parts Remanufacturing Market Outlook, by Region, Value (US$ Bn), 2019 - 2031
3.3.1. Key Highlights
3.3.1.1. North America
3.3.1.2. Europe
3.3.1.3. Asia Pacific
3.3.1.4. Latin America
3.3.1.5. Middle East & Africa
4. North America Automotive Parts Remanufacturing Market Outlook, 2019 - 2031
5. Europe Automotive Parts Remanufacturing Market Outlook, 2019 - 2031
6. Asia Pacific Automotive Parts Remanufacturing Market Outlook, 2019 - 2031
7. Latin America Automotive Parts Remanufacturing Market Outlook, 2019 - 2031
8. Middle East & Africa Automotive Parts Remanufacturing Market Outlook, 2019 - 2031
9. Competitive Landscape
9.1. Company Market Share Analysis, 2023
9.2. Competitive Dashboard
9.3. Company Profiles
9.3.1. Robert Bosch GmbH
9.3.2. Valeo SA
9.3.3. ZF Friedrichshafen AG
9.3.4. Denso Corporation
9.3.5. Meritor Inc.
9.3.6. BBB Industries
9.3.7. Carwood Group
9.3.8. Remy Power Products LLC
9.3.9. Cardone Industries
9.3.10. Others
For more information about this report visit https://www.researchandmarkets.com/r/xtai9w
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