The Europe Automotive Parts Remanufacturing Market, estimated at USD 17.83 Bn in 2025, is expected to exhibit a CAGR of 7.8% and reach USD 30.16 Bn by 2032.
The market growth is fueled by the increasing demand for intelligent, connected, and sustainable transportation solutions, along with shifting mobility trends and wider adoption across passenger and commercial segments. Innovations in vehicle connectivity, automation, and electrification, supported by strategic investments, are enhancing safety, efficiency, and user experience. Furthermore, favorable government policies, rapid infrastructure upgrades, and the push toward greener mobility are accelerating market expansion and unlocking new growth avenues for industry participants.
The Europe Automotive Parts Remanufacturing Market: Drivers
Environmental Sustainability through Remanufacturing
Remanufacturing promotes environmental sustainability by reducing waste and conserving resources. The process involves reusing or repairing existing components, minimizing the need for new manufacturing and reducing the environmental impact associated with producing new parts. For instance, On June 06, 2025 Stellantis, multinational automotive Manufacturing Corporation, has set a goal to increase the lifespan of its vehicles from the current average of 12 years to 15 years. This initiative aims to reduce the company's overall carbon dioxide (CO2) emissions and minimize the carbon impact associated with the initial production of their vehicles.
Europe Automotive Parts Remanufacturing Market: Opportunities
Collaborations and Partnerships of OEM manufacturers.
Collaborations between original equipment manufacturers (OEMs), remanufacturers, and other industry stakeholders offer opportunities for synergies and knowledge sharing. Partnerships can lead to the development of innovative solutions, expanded market reach, and enhanced customer trust.
Europe Automotive Parts Remanufacturing Market: Restraints
Lack of skilled workers and technical knowledge
For remanufacturing of old automotive parts, technical knowledge of each component is essential, which is not readily available to non-OEMs. Furthermore, lack of skilled engineers and labors to perform specific operation result in major errors. The complex design for fuel system, engines, etc. makes it extremely challenging for engineers and laborers to process technical information and experience to solve problems and redesign the parts. These factors are expected to hinder the market growth over the forecast period.
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Key Takeaways:
The Europe Automotive Parts Remanufacturing Market was valued at US$ 17.83 Bn in 2025 and is forecast to reach a value of US$ 30.16 Bn by 2032 at a CAGR of 7.8% between 2025 and 2032.
Passenger cars segment held dominant position in the Europe Automotive Parts Remanufacturing Market in 2025, accounting for 30% share in terms of value, increasing approval and launch of new products is expected to propel growth of the segment during the forecast period.
Europe Automotive Parts Remanufacturing Market Trends:
Leveraging IoT Connectivity
The Internet of Things (IoT) is playing a significant role in the European automotive parts remanufacturing market. IoT connectivity enables real-time monitoring of remanufactured components, predictive maintenance, and performance optimization. By collecting and analyzing data, remanufacturers can make informed decisions, reduce downtime, and improve the overall reliability of remanufactured parts.
Europe Automotive Parts Remanufacturing Market: Competitive Landscape
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.
Europe Automotive Parts Remanufacturing Market: Recent Developments
For instance, on February 14, 2025, The European Commission had set a 90% carbon emissions reduction target in Europe for the new heavy-duty vehicles by 2040.
For instance, in December 2025, Valeo, an automotive remanufacturing company, was awarded by Frost & Sullivan with the 2025 European Commercial Vehicle Clutches Aftermarket New Product Innovation award for Truck Clutch Kit Finder.
For instance, in November 2025, BORG Automotive A/S, an automotive remanufacturer, expanded its range of alternators and starters. The company had added 45 new starters and 68 new alternators spare parts for many new vehicles such as current Ford Transit, Volkswagen’s T-Roc, and Jeep Renegade.
For instance in July 2025, BORG Automotive, Europe's leading independent, automotive remanufacturer, announced the enhancement of brake calipers for vehicles with electric parking brake (EPB). Thus, the above factor is likely to create more opportunities in the market
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