by Market Overview:
Automotive parts remanufacturing involves rebuilding worn or non-functional automotive components back to original specifications. Remanufactured parts prove advantageous as they offer significantly lower costs compared to new parts with similar life expectancy and performance. This helps reduce material wastage and lowers environmental impact.
Market key trends:
One of the key drivers for the automotive parts remanufacturing market is the rising demand for sustainable solutions in the automotive industry. Remanufacturing conserves resources and reduces carbon footprint by recovering materials and parts for reuse. It helps lower dependence on raw material mining while offering cost benefits. Furthermore, growth in vehicle fleet size and average age of vehicles globally has increased the supply of used components available for remanufacturing. This in turn has boosted market capacity and availability of remanufactured parts. However, presence of counterfeit parts and complexity of newer vehicle technologies pose challenges to the market.
SWOT Analysis
Strength: The automotive parts remanufacturing market offers significant cost savings compared to new parts. Remanufactured parts cost approximately 30–50% less than new parts.
Weakness: The quality of remanufactured parts depends heavily on the remanufacturing process. Improper rebuilding can compromise quality and reliability.
Opportunity: Stricter emission norms and recycling targets in many countries are driving the adoption of remanufactured automotive parts. The growing vehicle parc also increases opportunities.
Threats: Changes in technology can render obsolete cores non-returnable, affecting core pricing and availability. Counterfeiting of remanufactured parts also poses a threat.
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 vehicle parc and stringent emission regulations mandating lower emissions.
Regional analysis: North America dominates the global market currently due to substantial vehicle age and high demand for cost-effective replacement parts. However, Asia Pacific is expected to grow at the fastest pace, led by China, due to the large and growing vehicle fleet in the region. Countries like India are also expected to offer lucrative opportunities with remanufacturing programs aimed at reducing environmental impact.
Key players operating in the 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. These players are focusing on partnerships, new product development, and mergers & acquisitions to gain market share.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile
