by The automotive parts remanufacturing industry involves rebuilding worn or non-functional automotive components to original factory specifications. By dismantling and reconditioning parts like engines, transmissions, and other core components, automotive parts remanufacturers reduce waste and the need for new raw materials in the manufacturing process. Remanufactured automotive components offer significant cost savings compared to new parts, while providing similar or identical levels of performance, quality control, and warranties. With rising costs of new car production and higher consumer awareness about sustainability, demand is increasing for remanufactured alternatives that extend the useful life of existing vehicles.
The Europe Automotive Parts Remanufacturing Market is estimated to be valued at US$ 15.33994 Mn in 2023 and is expected to exhibit a CAGR of 7.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Increasing vehicle miles traveled and the average age of vehicles on European roads are major factors influencing the growth of the automotive parts remanufacturing market. As cars operate for longer durations with higher mileage, the demand to replace worn components also rises. Additionally, regulatory norms promoting a circular economy and recycling are boosting the collection of used automotive cores and their subsequent remanufacturing. Growing environmental concerns and legislation on sustainable waste management practices are favoring the reuse and remanufacture of automotive components rather than raw material extraction. Technological advancements by key players to deliver products with improved quality, lifespan and competitive costs comparable to new parts will further support Europe automotive parts remanufacturing market expansion over the forecast period.
Porter’s Analysis
Threat of new entrants: The Europe automotive parts remanufacturing market has moderate threat of new entrants due to capital intensity and established brand loyalty towards existing key players.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of alternatives and price sensitivity. However, strict regulations pertaining to genuine parts favor established players.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to availability of substitutes and dominance of few suppliers. However, differentiated nature of parts limits impact.
Threat of new substitutes: Threat of new substitutes is moderate as remanufactured parts provide good value and new parts can still be costly. However, technological advancements could disrupt market dynamics over the long-term.
Competitive rivalry: The market is highly competitive with presence of global as well as regional players. Key players compete based on product quality, brand image, and pricing.
Key Takeaways
The Europe Automotive Parts Remanufacturing Market Size is expected to witness high growth. The Europe automotive parts remanufacturing Market is estimated to be valued at US$ 15.33994 Mn in 2023 and is expected to exhibit a CAGR of 7.8% over the forecast period 2023 to 2030.
The European region currently dominates the automotive parts remanufacturing market owing to stringent emission norms and increasing vehicle fleet. Germany and UK are the fastest growing markets in the region. Additionally, independent workshops complementing OEM service networks are expanding choice for consumers. While Original Equipment suppliers dominate distribution, increasing vehicle parc and independent channel expansion are some factors anticipated to boost market presence of regional and independent players over the forecast period.
Key players operating in the Europe automotive parts remanufacturing market are Borg Automotive A/S, Budweg Caliper A/S, Caterpillar Inc., LuK Unna GmbH & Co. KG, Valeo SA, Schouw & Co., ZF Friedrichshafen AG, Monark Automotive GmbH, Carwood Group, Robert Bosch GmbH, and Meritor, Inc. The key players are focusing on new product launches and enhancing aftermarket service to strengthen their position.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
