The “Europe Automotive Parts Remanufacturing Market, by Vehicle Type (Passenger Cars, LCV, HCV, Off-road Vehicle and All-Terrain Vehicle), by Components (Engine & Related Parts (Turbochargers, EGR Valves, And Carburetors), Transmission & Related Parts (Clutches and Bearings), Electrical & Electronics (Starters, Alternators, and Others), Wheels and Brakes Related Parts(Hub Assemblies, Master Cylinder, Brake Calipers, and Bearings), A/C Compressors, Steering’s, Fuel Systems, and Others) - Europe Forecast to 2027”, is expected to witness a CAGR of 7.4 % during the forecast period (2019-2027), as highlighted in a report published by Coherent Market Insights.
Remanufacturing is a complex and meticulous procedure by which previously old, damaged or non-functional product or component is given pristine condition and warranted in quality and performance level. However, it should be made clear that remanufacturing is entirely different from repairing and recycling process. Automotive parts that are frequently remanufactured cost around 60-70% of the original product providing the same or more guarantee than the original product. Furthermore, remanufactured automotive parts are widely preferred in automotive industry, since it saves a lot of costs and prevents wastage for manufacturing companies.
The Europe automotive parts remanufacturing market was estimated to account for US$ 15,059.1 Mn in terms of value by the end of 2019.
High-profit margins associated with aftermarket is expected to drive growth of the Europe automotive parts remanufacturing market during the forecast period
Aftermarkets offer high-profit margin for remanufactured automotive parts. The minimal input cost of the remanufacturing business due to minimum charge of discarded products makes this business hugely lucrative. Furthermore, consumers are vastly attracted to remanufactured products, since they offer the same warranty at a low cost as compared to the original products. This, in turn, is expected to boost the Europe automotive parts remanufacturing market over the forecast period.
Facility of superior and alternative reuse options in the automotive industry is expected to offer lucrative growth opportunity
Regulations such as ‘End-of-life vehicles (ELV)’ legislation in the European countries is expected to accelerate growth of remanufacturing industry in Europe. In the recent past, the vehicle longevity has been gradually increased, which in turn, offers an opportunity for remanufacturers to gain traction, since more spare parts will be required. From the technical perspective, electronics, being a highly under-estimated sector, demands significant information systems expertise. These factors are expected to provide various opportunities for the remanufacturing market.
Large investment required, in order to meet technological advancements is expected to restrain growth of the Europe automotive parts remanufacturing market over the forecast period
In order to meet increasing demand for remanufactured automotive parts, market players are required to invest heavily in advanced technologies. Such technologies assist in producing remanufactured products with better quality and working life. However, investing heavily in such technologies is a challenging task, especially for small- and mid-sized companies. This, in turn, is expected to hinder the demand for remanufactured and thereby restrain the Europe automotive parts remanufacturing market in the near future.
Remanufactured parts of high quality are expected to witness significant demand across Europe and are expected to offer lucrative growth opportunities for market players in the near future. This is owing to increasing vehicle age and stringent regulatory legislation. Increasing demand from consumers for different product types is expected to offer growth opportunity and undergo high growth of OEM market over the forecast period. Keeping this in mind, many OEMs and suppliers have made strategic plans for expanding their remanufacturing market footprint over the region.
Emergence of novel products for controlling vehicle’s performance such as braking systems, environmental controls, radio, transmission, engine, GPS, driver aids, audiovisual displays, and more have been remarkable in increasing the use of electronics in regular vehicles. Moreover, growing shift of mechanical parts electronic and mechatronic parts such as electronic power assisted steering, electronic throttle bodies, electronic diesel injectors, and turbochargers with electronic waste gates are some of the trends driving the automotive parts remanufacturing market.
Key players operating in the Europe automotive parts remanufacturing market are Borg Automotive A/S, Budweg Caliper A/S, Caterpillar Inc., LuK Unna GmbH & Co. KG, Valeo SA, Schouw & Co., ZF Friedrichshafen AG, Monark Automotive GmbH, Carwood Group, Robert Bosch GmbH, and Meritor, Inc.