AUTOMOTIVE PARTS REMANUFACTURING MARKET ANALYSIS

Global Automotive Parts Remanufacturing Market is estimated to be valued at US$ 118.2 Bn by 2030.

Global Automotive Parts Remanufacturing Market refers to the business involved in the manufacturing process that includes product dismantling, replacing and restoring components, and testing of whole product and the individual parts to its original design specifications. The performance parameters that are equal or better than the previous component along with lower cost and warranty periods offered by the remanufacturers are among the key factors fueling growth of the automotive parts remanufacturing market.

 Automotive Parts Remanufacturing Market: Regional Insights

With a market size of US$ 60.8 billion in 2022, North America held the largest share of the global market for automotive remanufacturing. The expansion of the regional market will be fueled by the United States' presence of major players and well-established automotive aftermarkets. In addition, lucrative revenue growth opportunities are anticipated to arise in the coming years as electric vehicle adoption grows in North America. For instance, battery electric vehicle sales in the United States increased from 230,000 in 2020 to 470,000 in 2021, according to the IEA. This situation has expanded the interest for remanufacturing answers for EVs, further driving the market development.

Asia Pacific is supposed to enlist the quickest development rate during the gauge time span. One of the major market drivers is China's robust automotive aftermarket industry.

Additionally, expanding interest for savvy remanufactured car parts in India and other non-industrial nations in Asia Pacific is expected to fuel the market development of car remanufacturing. Besides, China has the biggest number of on-street EVs. This has flooded the interest for remanufacturing EV batteries and drivetrains, which may speed up the market development before long.

In 2022, Europe held a significant share of the market. The European automobile industry is moving toward remanufacturing procedures as a result of stringent emission standards and waste management policies. In addition, the well-established automotive industry in Europe and the governments' focus on auto electrification are likely to provide lucrative expansion opportunities.

Figure 1: Global Automotive Parts Remanufacturing Market Share (%), By Region, 2022

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Global Automotive Parts Remanufacturing Market - Impact of Coronavirus (Covid-19) Pandemic

The global automotive industry was significantly affected by the COVID-19 pandemic. Due to asset deficiencies, remanufacturing offices couldn't run at full limit, coming about in their impermanent conclusion and market lull. The pandemic caused a significant shortage of raw materials and disrupted the supply chain network in a number of industries, including the remanufacturing of automobiles. The episode likewise drove organizations to extreme income misfortune and influenced their general deals. Due to insufficient cash flow generation, numerous ongoing product-related R&D programs were halted, resulting in stagnant growth in the remanufacturing industry. However, the market quickly recovered, and it did so by the end of 2021.

The market's recuperation was powered by unwinding in government limitations and the flooding interest for remanufactured items. Due to a disrupted global supply chain and severe shortages of new auto parts and raw materials, demand for these products increased. After the pandemic, more opportunities for automotive remanufacturing emerged as a result of the government's push for environmentally friendly manufacturing methods and product recycling.

Global Automotive Parts Remanufacturing Market - Drivers:

Global Shortage of Raw Materials Required for Manufacturing of Automotive Components to Fuel the Market Growth

The automotive industry's rapid expansion has been hampered by a shortage of raw materials. As automakers increase their production capacity, there has been a significant increase in the demand for raw materials. However, in order to meet the growing demand for auto part replacement, players in the aftermarket are turning to remanufacturing methods due to the limited availability of raw materials in various regions.The global market will grow as a result of this.

Increasing Demand for Low-cost Vehicle Replacement Parts to Drive Market Growth

Whether OEMs or aftermarkets sell new automotive parts, they cost a lot. Furthermore, the expense of assembling new parts builds the general expense of the last item. On the other hand, remanufactured products have the same quality and durability as original equipment and a low production cost, which reduces the overall cost of the product. Because of this, individuals in developing economies would rather install used parts than brand-new ones. Parts for automobiles that have been remanufactured cost 20-50% less than new ones. It is anticipated that this factor will also drive market expansion.

Global Automotive Parts Remanufacturing Market - Opportunities:

Growing demand for remanufactured parts

The increasing demand for remanufactured automotive parts can be attributed to their cost-effectiveness, reduced environmental impact, and similar quality and performance compared to new parts

Increased focus on sustainability

With a greater emphasis on sustainability and environmental responsibility, remanufactured parts offer an eco-friendly alternative to traditional manufacturing processes. As a result, many companies are adopting remanufacturing processes to reduce their carbon footprint and meet their sustainability goals

Research and development activities among market players

Key market players are focusing on research and development activities in order to expand their product portfolio. For instance, in June 2022, Qt, a provider of software technology, had launched a novel HMI software framework for developing next-generation digital cockpits.

Global Automotive Parts Remanufacturing Market was valued at US$ 60.8 Mn in 2022 and is forecast to reach a value of US$ 118.2 Mn by 2030, exhibiting CAGR of 8.7% between 2023 and 2030.

Global Automotive Parts Remanufacturing Market - Trends:

Demand for Remanufactured Parts for Electric Vehicles is an Emerging Market Trend

This market is expanding rapidly as the global megatrend of automotive electrification continues to drive demand for remanufactured auto parts for electric vehicles. Global EV sales experienced a significant increase during the COVID-19 pandemic. For instance, EV sales doubled in 2021 to a new record of 6.6 million units, as reported by the International Energy Agency (IEA). Remanufactured EV parts like batteries, tires, and other parts are expected to be in high demand as a result of this factor.

In order to seize early revenue growth opportunities, manufacturers are concentrating on offering automotive remanufacturing and recycling solutions for electric vehicle parts. For case, in June 2021, ATC Drivetrain presented remanufacturing answers for electric vehicles. Additionally, the company planned to offer remanufacturing solutions for electric drivetrains and Li-Ion and NiMH batteries. These are a couple of patterns forming the worldwide car remanufacturing market development. intelligence panels over traditional HMI systems due to rising need to process information at multiple locations in the manufacturing plant.

Global Automotive Parts Remanufacturing Market - Restraints:

Lack of Awareness Regarding Remanufactured Auto Parts Might Restrain Market Progress

Auto parts that have been remade are just as good as new ones. The capability of the remanufactured parts industry is frequently neglected because of less endeavors by the public authority in advancing and taking on remanufactured items. Customers in developing and underdeveloped economies may be less likely to be aware of the economic and environmental advantages of remanufactured products during the forecast period.

Figure 2: Global Automotive Parts Remanufacturing Market Share (%), By Segment, 2022

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Global Automotive Parts Remanufacturing Market - Segmentation:

Global Automotive Parts Remanufacturing Market report is segmented into Component Type and Vehicle Type.

Based on Vehicle Type, the market is segmented into Engine & Related Parts, Transmission & Related, Electrical & Electronic, Wheels & Brakes Related, A/C Compressors, Steering & Fuel Systems. Out of which, Transmission  and related segment is expected to dominate the global market over the forecast period.

Based on Vehicle Type, the market is segmented into Passenger Cars, LCV, HCV, Off-road Vehicles & All-Terrain Vehicles. Out of which, Passenger Cars segment is expected to dominate the global market over the forecast period

Automotive Parts Remanufacturing Market: Key Developments

In July 2021, Bosch uncovered its 455 auto reseller's exchange parts that would cover in excess of 24 million functional vehicles. Bosch eXchange Alternators are among the new product lines launched by the company. Every one of the units were professed to be plant tried and remanufactured utilizing great materials and most recent advances for most extreme strength.

In February 2021, Cardone Industries reported that it had expanded its creation limit with regards to new window lift engine and controller gathering and other remanufacturing programs. The company wanted to give its customers a wider range of products.

In April 2022, Treharne Automotive Engineering and its group companies were acquired by ATC Drivetrain. It is a company with headquarters in the United Kingdom that focuses on automotive engineering and management, recycling, and diagnostic and test equipment for powertrain systems. The company wanted to expand its product lines in the electrification sector of the automotive industry.

Global Automotive Parts Remanufacturing Market: Key Companies Insights

Global Global Automotive Parts Remanufacturing Market is highly competitive, owing to rising launch of new technologies due to ongoing R&D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the Global Global Automotive Parts Remanufacturing Market are Valeo SA, ZF TRW, Carwood Group, Robert Bosch GmbH, Meritor Inc., Monark Automotive GmbH, Budweg Caliper A/S, Genuine Parts Company, ATC Drivetrain Inc., Maval Manufacturing Inc., Teamec BVBA, Motorcar Parts of America, Inc., and Jasper Engines and Transmissions

*Definition: Global Automotive Parts Remanufacturing Market refers to the rebuilding of products, components, and equipment of an automobile to its original design specifications through utilization of reused, repaired, and new components. These processes require replacement or repair of obsolete and worn out modules and components called the core. Components that can be rebuild include extensive range of engine and related parts, transmission and related, brakes, wheels, compressors, steering, and fuel systems among others.