May 18, 2024
European Automotive Parts Remanufacturing Market

Europe Automotive Parts Remanufacturing Market Poised To Experience Rampant Growth Through 2030

The Europe automotive parts remanufacturing market occupies a sizable share of the automotive repair and maintenance industry. Automotive parts remanufacturing refers to rebuilding worn or non-functional automotive components back to original specifications. It involves disassembling core components, cleaning, inspecting and replacing worn parts with new ones. Remanufacturing helps reduce environmental impact by increasing the service life of components and decreasing demand for raw materials. It also provides substantial cost savings compared to new parts without compromising performance or warranty. With rising vehicular traffic and stricter emission norms in the EU, automotive parts remanufacturing is gaining more significance as a sustainable solution.

The Global Europe automotive parts remanufacturing market is estimated to be valued at US$ 17.68 Bn in 2024 and is expected to exhibit a CAGR of 38% over the forecast period from 2024 to 2030.

Key Takeaways

Key players operating in the Europe automotive parts remanufacturing are AnaSpec, Inc., Cayman Chemical Company, Kaneka Corporation, Sigma-Aldrich (part of Merck KGaA), Gold Biotechnology, Inc., Xi’an Lyphar Biotech Co.,, Ltd.,ChemFaces, Henan Senyuan Biological Technology Co., Ltd., Chengdu Biopurify Phytochemicals Ltd., Shenzhen Lvshiyuan Biotechnology Co., Ltd. These players are focusing on strategic partnerships and new product development to consolidate their market position.

The market presents significant opportunities in engine and transmission parts remanufacturing owing to higher failure rates. Strict regulations regarding CO2 emissions are prompting more fleet owners and repair shops to adopt automotive parts remanufacturing.

Several EU countries like Germany, UK, France are main production and sales hubs for automotive industry. This encourages wider acceptance of parts remanufacturing to meet sustainability goals of automakers and tier 1 suppliers. Global expansion in Middle East and Asia Pacific will further support Europe automotive parts remanufacturing market growth through 2030.

Market drivers

Rising vehicle parc coupled with increasing average age of cars promote demand for affordable remanufactured parts. Europe comprises large pool of used cars driving parts refurbishment needs. Favorable laws and initiatives by European Remanufacturing Council promote remanufacturing as viable business model beneficial to economy and environment. With growing EV adoption, remanufacturing of transmissions, engines, brakes will continue presenting major opportunities through 2030.

PEST Analysis

Political: Europe Automotive Parts Remanufacturing  Market Growth Government regulations on emissions and fuel efficiency standards are driving adoption of remanufactured automotive parts which use recycled materials and are more sustainable. Stricter environmental laws are expected to further boost demand.

Economic: Recovery of the European economy post Covid-19 pandemic and higher disposable incomes are increasing vehicle ownership. This is positively impacting the automotive aftermarket industry including parts remanufacturing sector. Labour costs are rising in Europe making remanufactured parts relatively cheaper.

Social: Growing environmental consciousness among consumers is enhancing acceptance of remanufactured parts which have lower carbon footprint versus new parts. More people are recycling automotive components to address sustainability issues.

Technological: Advanced digitization, robotics, 3D printing and artificial intelligence are allowing remanufacturers to improve quality control procedures, manufacturing techniques and product life cycles. Automatic machinery is optimizing various refurbishing and rebuilding operations raising productivity and competitiveness.

The market in terms of value is concentrated in Western European nations like Germany, France, UK and Italy. Germany accounted for over 25% share of the European remanufacturing market in 2024 driven by strong automotive industry presence and emphasis on environmental protection.

Eastern Europe is the fastest growing region for the automotive parts remanufacturing market due to increasing vehicle parc, rising disposable incomes, lower penetration levels currently compared to Western nations offering headroom for expansion and growing importance placed on sustainability. Nations such as Poland, Hungary and Czech Republic are projected to see robust gains through 2030.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it