The automotive parts remanufacturing process involves rebuilding, repairing, and testing used engine, transmission, and other vehicular components to stringent standards which rival those of new parts. Remanufactured automotive components provide significant maintenance cost savings to consumers while also helping to reduce environmental impact through reuse. The global Automotive Parts Remanufacturing Market is estimated to be valued at US$ 2541.81 Bn in 2023 and is expected to exhibit a CAGR of 14.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Growing demand for remanufactured parts: One of the key trends propelling the automotive parts remanufacturing market growth is the growing demand for remanufactured engine, transmission, and other core automotive components from both individual consumers and fleet operators/ vehicle owners seeking to lower vehicle operating and maintenance costs. Remanufactured components provide an affordable alternative to new parts while being guaranteed to the same performance standards as new components. Consumers are increasingly opting for remanufactured parts to gain cost savings of 20-30% compared to new replacement parts. This is expected to significantly drive market revenues over the forecast period.
Strength: The automotive parts remanufacturing market offers significant cost savings compared to new parts. Remanufactured parts costs between 30-50% less than new parts.
Weakness: Low customer awareness about remanufactured parts quality can hamper demand. Strict regulations pertaining to emissions standards pose a challenge.
Opportunity: Growth in vehicle parc and average vehicle age provides an opportunity to capture the rising aftermarket demand. Partnerships with independent garages can help expand market reach.
Threats: Stricter environmental policies favor electric vehicles over internal combustion engines posing a threat in the long run. Intense price competition from low-cost countries exerts pricing pressure.
The global automotive parts remanufacturing market demand is expected to witness high growth.
Regional analysis comprises:
North America dominates currently due to the large vehicle parc in the US and Canada. High average vehicle age along with stringent emission regulations drive the market. Asia Pacific is poised to be the fastest growing region supported by rapidly growing automotive production hubs in China, India, and Southeast Asian countries.
Key players related content comprises:
Key players operating in the automotive parts remanufacturing market are BorgWarner Inc., Caterpillar Inc., Fiat Chrysler Automobiles, GM, Robert Bosch GmbH, and ZF Friedrichshafen AG.They focus on strengthening their service networks and collaborating with independent garages to boost market presence
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it