June 20, 2024

Europe Automotive Parts Remanufacturing Market Is Driven By Rising Need For Cost Effective And Durable Spare Parts

The automotive parts remanufacturing market involves the repair and rebuilding of damaged and faulty auto parts to ensure they are fit for reuse. Common auto parts that are remanufactured include alternators, starters, gears, and turbochargers. Remanufacturing takes broken or defective auto components and restores them to like-new condition through dissassembly, cleaning, inspection, replacement of worn parts and reassembly. It helps reduce waste and saves substantial costs compared to manufacturing new components from raw materials. The remanufacturing process is also more environmentally sustainable than manufacturing new parts. The need to reduce operating expenses is a major driver for used auto parts remanufacturing in Europe.

The global Europe Automotive Parts Remanufacturing Market is estimated to be valued at US$ 15.34 Mn in 2023 and is expected to exhibit a CAGR of 17% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
As EVs and hybrids utilize complex electronics and precision mechanical components, remanufacturing critical parts can play a big role in extending vehicle life and improving sustainability. Leading automakers are partnering with parts remanufacturers to develop reliable and cost-effective remanufacturing solutions for vehicle batteries, electric motors, and other critical electric drivetrain components. This will help optimize the circular economy potential of EVs and hybrid vehicles over their lifecycle.

Porter’s Analysis

Threat of new entrants: The threat of new entrants in the Europe automotive parts remanufacturing market is moderate as setting up new facilities require high capital investments.

Bargaining power of buyers: The bargaining power of buyers is high as automotive parts remanufacturers face intense competition owing to the presence of a large number of remanufacturers in the region.

Bargaining power of suppliers: The bargaining power of suppliers is moderate as suppliers have limited bargaining power due to availability of substitute parts and materials.

Threat of new substitutes: The threat of substitutes is moderate as hybrid and electric vehicles pose a potential threat, but conventional vehicles still dominate the market.

Competitive rivalry: Competition in the market is high among the top remanufacturers operating in the region.

Key Takeaways

The Europe Automotive Parts Remanufacturing Market Size is expected to witness high growth during the forecast period. The global Europe Automotive Parts Remanufacturing Market is estimated to be valued at US$ 15.34 Mn in 2023 and is expected to exhibit a CAGR of 17% over the forecast period 2023 to 2030.

Germany dominates the Europe automotive parts remanufacturing market owing to the strong presence of automotive OEMs and tier I component suppliers in the country. Western Europe accounts for the largest share in the Europe automotive parts remanufacturing market. Countries such as Germany, UK, France, and Italy display high demand for remanufactured parts due to stringent emission norms and regulations related to recycled content in new vehicles.

Key players: Key players operating in the Europe automotive parts remanufacturing market are Amgen Inc., Biocon Ltd, Dr. Reddy’s Laboratories, reliance life sciences, Teva Pharmaceutical Industries Limited, Merck & Co. Inc., Eli Lilly and Company.

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