AUTOMOTIVE PARTS REMANUFACTURING MARKET ANALYSIS

Market Challenges And Opportunities

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 - 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.

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.