February 28, 2024

Projected Increased Vehicle Miles Traveled To Boost The Growth Of Automotive Parts Remanufacturing Market

The global Automotive Parts Remanufacturing Market is estimated to be valued at US$ 2541.81 Bn in 2023 and is expected to exhibit a CAGR of 8.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

The automotive parts remanufacturing market involves rebuilding worn out or outdated automotive parts and components to work like new parts. The remanufactured parts are compatible with original equipment and offer significant cost savings of 30-70% compared to new parts. Common automotive parts that are remanufactured include engines, transmissions, starters, alternators, turbochargers and steering parts. Remanufacturing these parts allows to extend the lifespan of the parts while lowering maintenance costs for fleet owners and individual consumers.

Market key trends:

This is due to growing preference for cost-effective engine and transmission solutions among individual consumers and fleet owners. Additionally, stringent emission regulations are driving demand for fuel-efficient remanufactured engines. Another major trend is the increasing demand for remanufactured heavy-duty diesel components, led by growth in the commercial vehicle industry. Original equipment manufacturers are also promoting remanufactured parts through their distribution networks, which is contributing to market growth.

Porter’s Analysis
Threat of new entrants: The threat of new entrants in the automotive parts remanufacturing market is low due to the presence of established players and high capital requirement for setting up remanufacturing facilities.
Bargaining power of buyers: The bargaining power of buyers is high given the presence of a large number of remanufacturers and distribution channels for buyers to choose from.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as suppliers depend on remanufacturers for demand. However, established suppliers can dictate prices to an extent.
Threat of new substitutes: The threat of new substitutes is low as remanufactured parts provide comparable quality and performance at lower costs than new parts.
Competitive rivalry: Competition in the automotive parts remanufacturing market is high amongst the major players.

Key Takeaways

The Global Automotive Parts Remanufacturing Market Size is expected to witness high growth, exhibiting CAGR of 8.7% over the forecast period, due to increasing demand for cost-effective and eco-friendly alternatives to new parts.

Regional analysis: North America dominated the global automotive parts remanufacturing market in 2023 and is expected to continue its dominance over the forecast period. This can be attributed to stringent vehicle emission regulations in the region promoting the adoption of remanufactured parts. Asia Pacific is expected to register the fastest growth rate during the forecast period owing to rising vehicle parc and awareness about remanufactured parts in developing countries such as India and China.

Key players: Key players operating in the 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.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it