The automotive parts remanufacturing market was valued at US$ 89,115.4 million in 2016 and is projected to reach US$ 157,192.1 million by 2025 exhibiting a CAGR of 6.1% over the forecast period, according to Global Automotive Parts Remanufacturing Market Report, by Component Type (Engine & Related Parts, Transmission & Related, Electrical & Electronics, Wheels & Brakes Related, A/C Compressors, Steering, Fuel Systems, and Others), by Vehicle Type (Passenger Cars, LCV, HCV, Off-road vehicles, and All-terrain Vehicles). Global automotive parts remanufacturing market is expected to exhibit significant growth with the increasing manufacturing costs of the original equipment manufacturing, and their increasing carbon footprint over the environment through increased energy requirements, emission, and resource availability. Considerable price reduction of the equipment with specifications similar to the original components will be among the major factors that is expected to drive the industry growth.
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Browse 60 market data tables* and 40 figures* on "Global Automotive Parts Remanufacturing Market” - Global forecast to 2025.
Key Trends and Analysis of the Global Automotive Parts Remanufacturing Market:
- On the basis of component types, steering segment is expected to witness CAGR of over 7.3% over the forecast period. Conventional products that include hydraulic pumps, electric power hydraulic pumps, and steering gears have been in use since many years, and are expected to find consistent demands over the forecast period. Moreover, capability of these steering systems also feature long service life, recalibrated controls, and enhanced warranties at affordable costs. These factors are expected to provide strong growth prospects for the segment, providing highest growth over the next decade.
- On the basis of vehicle type, passenger cars segment is expected to continue their dominance in the global automotive parts remanufacturing market share over the forecast period. According to the International Organization of Motor Vehicle Manufacturers, among passenger cars and commercial vehicles, passenger cars accounted for around 74% of the global vehicles in parc. Moreover, increasing consumer affordability in the emerging economies that include automotive manufacturing and selling hubs such as China, India, Brazil, Mexico, and ASEAN countries have led to significant increase in the motorization rates. The requirement of equipment availability at low prices for car repair and optimum durability will present strong potential growth landscape over the forecast period.
Key Takeaways of the Market:
- According to ’ analysis, North America automotive parts remanufacturing market region accounted for the largest share across the globe, with the U.S. contributing to 91% share in the region. Furthermore, with company presence of around 3000 companies operating in the remanufactured automobiles components sector and over 180 light vehicle engine manufacturers, North America has witnessed highest industry presence. Moreover, these participants are mostly owned or have collaborations with Original Equipment Manufacturers (OEM). OEMs in the region offer increased warranty periods to their consumers, with few ranging over 7 years. Therefore, the consumers are increasingly inclined towards OEMs for repair and maintenance, influencing the increased adoption of remanufactured products for replacement to cover the warranty and provide efficient vehicle performance.
- Key players in the global automotive parts remanufacturing market include 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. In December 2015, Daimler-Benz entered into an agreement with Shanghai Lingang Remanufacturing Industry Demonstration Zone (SLRIDZ) for reman facility of 66,000 sq. m spread across 100 acres and is scheduled to be completed in 2018. Potential growth opportunities in the Asia Pacific automotive parts remanufacturing market region is expected to be among the key focus of expansion strategies of the OEMs over the coming years.