Remanufactured Automotive Parts Market Size to grow by USD 9147.8 million between 2024-2028
According to a research report “ Remanufactured Automotive Parts Market” by Vehicle Type (Passenger cars, Commercial vehicles) Component (Electrical and electronic parts, Engine, Transmission, Wheels and breaks, Others) Geography (North America, Europe, APAC, South America, Middle East and Africa)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 9147.8 million, at a CAGR of 3.2% during the forecast period. In the automotive industry, the increasing average age of vehicles, particularly in North America and Europe, presents a significant business opportunity for remanufactured parts vendors. According to the European Automobile Manufacturers Association, the average life of trucks in the EU is 12.4 years, and the total number of in-use commercial vehicles is on the rise globally. As components age, they inevitably require replacement to ensure optimal vehicle safety and performance. While some parts have extended replacement cycles, others wear out more rapidly. This continuous demand for replacement parts creates a robust market for remanufactured automotive components..
Browse market data tables, figures, and in-depth TOC on “Remanufactured Automotive Parts Market” by Vehicle Type (Passenger cars, Commercial vehicles) Component (Electrical and electronic parts, Engine, Transmission, Wheels and breaks, Others) Geography (North America, Europe, APAC, South America, Middle East and Africa) Global Forecast to 2028. Download Free Sample
By Vehicle Type, the Passenger cars segment is projected to dominate the market size in 2024
The remanufactured automotive parts market is experiencing significant growth due to the expanding SUV and crossover vehicles sector in the US. Middle-class consumers' increasing disposable income is a key factor fueling this expansion. Preference for fuel efficiency and three-row seating in crossovers and SUVs is driving market growth. Crossovers, lighter in weight and more fuel-efficient than SUVs, are gaining popularity due to their improved fuel economy. Moreover, the rising average annual miles traveled and the high priority placed by owners on routine maintenance and vehicle upgrades present substantial opportunities for market participants.
By Component, Electrical and electronic parts segment is expected to hold the largest market size for the year 2024
The electrical and electronics component segment, specifically for starter and alternator parts, is experiencing significant growth in the remanufactured automotive parts market due to increasing replacement demands. Factors such as urbanization and globalization have led to an increase in passenger car sales, resulting in the passenger vehicle segment exhibiting the largest growth rate during the forecast period. Additionally, the recoating of worn parts in the remanufacturing process is projected to dominate the market, with both light and heavy vehicles requiring an increasing demand for cost-effective and sustainable solutions.
North America is forecasted to hold the largest market size by region in 2024
In North America, the commercial vehicle sector holds significant market share, representing approximately half of the total in-service vehicles. The Light Commercial Vehicles (LCVs) segment dominates sales in this region. The expansion of industries such as oil and gas, agriculture, mining, and manufacturing has fueled the demand for commercial vehicles. Heavy-duty vehicles are extensively utilized for transporting minerals from mines to refineries, raw materials to manufacturing facilities, and finished products from distribution centers. Additionally, the consumer preference for off-road capabilities has resulted in a consistent increase in sales of SUVs and pickup trucks in the US.
The Remanufactured Automotive Parts Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:
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Research Analysis Overview
The Remanufactured Automotive Parts Market is witnessing significant growth due to various factors, including the trend towards automotive electrification and the need for emission control. However, there are also some restraining factors, such as raw material shortages and the complexity of remanufacturing electric drivetrains, EV batteries, and tires. The market is segmented based on vehicle type, with commercial vehicles and passenger cars being the major segments. The aftermarket is a significant contributor to the market, with Original Equipment Manufacturers (OEMs) also increasing their focus on automotive remanufacturing. Customized Remanufacturing Services, E-Commerce Integration, and Remanufacturing Awareness Campaigns are emerging market trends. Advanced technologies, such as ATC Drivetrain and components, are also driving the market. The International Energy Agency reports that EV sales are increasing, leading to a greater demand for remanufactured parts for electric vehicles. The circular economy drive and the focus on environmental sustainability are also significant factors. Despite these opportunities, the market faces challenges, such as the high cost of remanufacturing certain components and the need for specialized skills. The shortage of raw materials, particularly for electric drivetrains and batteries, is also a concern. In conclusion, the Remanufactured Automotive Parts Market is poised for growth, driven by the trend towards automotive electrification, emission control, and the circular economy. However, challenges such as raw material shortages, complex remanufacturing processes, and the high cost of certain components must be addressed to fully realize the potential of this market.
Market Research Overview
The Remanufactured Automotive Parts Market is witnessing significant growth due to several driving factors, including the increasing trend towards automotive electrification and the circular economy. The emergence of electric vehicles (EVs) and the growing sales of EVs, as per the International Energy Agency, are creating a demand for remanufactured components such as EV batteries and electric drivetrains, like those offered by ATC Drivetrain. However, the market progress is being restrained by factors such as raw material shortage and stringent emission control regulations. The automotive supply chain is also undergoing a shift towards commercial vehicles and passenger cars, leading to segmentation in the market based on vehicle type and parts type analysis. Transmission parts, tires, and automotive components are some of the popular remanufactured products. Despite the driving factors, the market faces challenges such as a lack of awareness and waste management policies. The remanufacturing sector is addressing these challenges through advanced technologies, cost-effective repair solutions, and remanufacturing facilities. Customized remanufacturing services, e-commerce integration, and remanufacturing awareness campaigns are also being employed to promote extended product lifespan and environmental sustainability trends in the automotive industry. Original Equipment Manufacturers (OEMs) are also recognizing the importance of remanufacturing in the circular economy drive.
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