EUROPE AUTOMOTIVE PARTS REMANUFACTURING MARKET ANALYSIS

Europe Automotive Parts Remanufacturing MarketSize and Trends

Europe Automotive Parts Remanufacturing Market

Europe Automotive Parts Remanufacturing Market is estimated to be valued at US$ 25.88 Mn by 2030.

Remanufactured parts are priced significantly lower, ranging from 50 to 75% less than the original products, while maintaining the same quality. This factor remains the primary driver influencing the growth of the market.

Europe Automotive Parts Remanufacturing Market- Trends:

Engines Have Higher Value in Automotive Parts Remanufacturing Market

Automotive Parts have been gaining traction as a better approach to product recovery and uses as compared to recycling or landfilling recovery/disposal processes. At the Tier-1 level, many vehicle manufacturers are operating in the automotive parts business on a large scale, either as part of their own business or through large contracted third parties.

Increase In Demand for Electric Vehicle Surge Automotive Parts Sales

Electric vehicles (EVs) are becoming more popular owing to their technological development, increased focus on renewable energy, and the reduction of transportation's impact on climate change and other environmental issues. This rise in demand for electric vehicles (EVs) is expected to not only transform the future of the vehicles but also the automotive parts industry. Moreover, the government of the U.K. is planning to end the sale of new petrol and diesel cars by 2030, which will boost the demand for electric vehicles. The increasing adoption of electric vehicles is expected to boost the Europe automotive parts remanufacturing market.

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

The COVID-19 has a significant impact on the supply-side as well as the demand side of the Europe automotive parts remanufacturing market. The COVID-19 pandemic inevitably had an impact on car production along with automotive aftermarket companies. According to the Society of Motor Manufacturers and Traders (SMMT), the car production in the U.K. was 1,303,135 units in 2019 reaching 920,928 units in 2020 with a decline of -29.3%. Automotive companies are experiencing disruption in production due to a lack of availability of automotive parts such as engines, suspension, semiconductors, and others. The shortage of components is turning out to be a major hurdle for the production of vehicles during the COVID-19 pandemic. For instance, in October 2020, Chevrolet, a division of General Motors, halted production of C8 Chevrolet Corvette due to the shortage of parts due to the COVID-19 pandemic.

Developing New Business Propositions

A few original equipment manufacturers (OEMs) are providing automotive parts as service-based propositions. With these extra value-added services, OEMs can enhance product design, save capital expenditures, and increase the availability of automotive components by incorporating them into their business model. Using automotive parts will also contribute to the longevity of automotive vehicles.