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 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.
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.
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
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.
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- 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: Competitive Landscape
Key players operating in the 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.
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https://www.coherentmarketinsights.com/market-insight/automotive-parts-remanufacturing-market-1498
Key Takeaways:
Global market was valued at US$ 60.8 Bn in 2022 and is forecast to reach a value of US$ 118.2 Bn by 2030 exhibiting CAGR of 8.7% between 2023 and 2030.
Global Automotive Parts Remanufacturing Market: Recent Developments
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.
