Automotive Remanufacturing Market Size Worth USD 126.42 Billion, Globally, by 2030 at a CAGR of 9.9%
Fortune Business Insights
Updated 7 min read
Fortune Business Insights
According to Fortune Business Insights, the global automotive remanufacturing market size is projected to reach USD 126.42 billion by 2030 from its value USD 60.78 billion in 2022, at CAGR of 9.9% during forecast period.
Pune, India., April 21, 2023 (GLOBE NEWSWIRE) -- The automotive remanufacturing market size reached USD 60.78 billion in 2022 and is projected to be valued at USD 65.49 billion in 2023. The market is estimated to be worth USD 126.42 billion by 2030, recording a CAGR of 9.9% during the forecast period of 2023-2030. Automotive remanufacturing is an industrial process that transforms worn-out, previously sold, non-functional automotive parts into brand-new components by cleaning, disassembly, repair, and replacing obsolete parts.
Automotive parts undergo a lot of wear and tear due to prolonged use. This is why the demand for replacing these worn-out parts has increased in the aftermarket, thereby boosting the market. Leading aftermarket players, such as Bosch, ZF Friedrichshafen AG, and others are also increasing their focus on providing remanufactured automotive parts that are low-cost and as good as new products. This factor is predicted to create lucrative growth opportunities for the market.
Shortage of Raw Materials for Making Automotive Components to Propel Market Growth
Shortage of raw materials can slow the rapid growth of the global automotive industry. The demand for raw materials has increased at a notable pace as vehicle manufacturers are expanding their production capacity. However, this shortage of raw materials in various geographical areas is prompting aftermarkets to use remanufacturing technologies to meet the increasing demand for replacing auto parts. This factor is expected to fuel the global automotive remanufacturing market growth.
The potential of the remanufactured parts industry is often undermined as governments are not making the required efforts in promoting the significance of remanufactured products. This may hamper the market growth during the forecast timeframe
High Demand for Replacing Auto Parts in IC Engine Vehicles May Bolster Market Growth
Based on parts type, the market is divided into engine & related parts, transmission parts, electrical & electronics system parts, braking system-related parts, wheel & suspension system-related parts, and others.
The engine & related parts segment accounted for the largest market share in 2022. At present, IC engine vehicles are recording robust sales across the world. Engine & related parts go through constant wear & tear, and are at a high risk of getting damaged. This is why parts, such as oil filters, air filters, and drive belts need to be replaced more frequently than other automotive components.
Increasing On-road Passenger Cars will Spur Installation of Remanufactured Automotive Parts
In terms of vehicle type, the market is segmented into passenger cars and commercial vehicles.
The passenger cars segment dominated the market share. The number of on-road passenger cars is increasing across the globe, thereby accelerating the segment growth. Automotive sales are growing each year due to the rising disposable income of customers. The global automotive industry is adopting EV technologies on a large scale to create sustainable transportation. These factors are anticipated to boost the segment growth. Also, customers are becoming aware of the wide availability of remanufactured parts that are compatible with many vehicles, which will bolster the usage of these components in passenger cars.
Growing Focus of Key Companies on Sustainable Automotive Remanufacturing Processes to Improve Market Competition
The market has a notable presence of key domestic companies. These market players are trying to develop sustainable remanufacturing processes to refurbish automotive parts efficiently. They are also creating automotive remanufacturing processes for various EV components such as drivetrains and batteries. These organizations are also entering into strategic partnerships and mergers to increase the production capacity of their remanufacturing business unit and improve their presence in the automotive aftermarket space.
Regional Insights-
Presence of Leading Automakers to Boost Market Growth in North America
North America held a dominant position in the global automotive remanufacturing market share in 2022, with the regional market size being valued at USD 18.98 billion. The region has a vast presence of leading players and well-established automotive aftermarkets in the U.S., which might boost the regional market growth. The demand for electric vehicles is rising at a commendable rate across North America. This scenario may generate attractive revenue growth opportunities for the regional market. For example, the IEA revealed that in 2021, the sales of battery electric vehicles in the U.S. grew from 230,000 units in 2020 to 470,000 units. This factor has increased the adoption of remanufacturing solutions for EVs, further driving the market growth.
Report Coverage:
The research report offers an elaborative analysis of the industry and underlines crucial aspects, such as top products/services, leading companies, and key applications of the products. It also provides important insights into the market trends and highlights critical industry developments. Along with these factors, the report also covers several factors that are helping the market grow.
A list of prominent Automotive Remanufacturing manufacturers operating in the global market:
Robert Bosch GmbH (Germany)
ZF Friedrichshafen AG (Germany)
BorgWarner Inc. (U.S.)
Valeo (France)
CARDONE Industries (U.S.)
ATC Drivetrain (U.S.)
Carwood Group (England)
Caterpillar (U.S.)
Borg Automotive (Denmark)
BBB Industries (U.S.)
Notable Industry Development:
May 2022 – Caterpillar announced to expand its remanufacturing business to improve sales and promote sustainable production processes. The company aimed to work on products that had reached the end of their lifecycle and put them back in service by increasing their lifespan.
Global Automotive Remanufacturing Market Analysis, Insights and Forecast, 2019-2030
Key Findings / Definitions
Market Analysis, Insights and Forecast – By Parts Type
Engine Parts
Transmission Parts
Electrical & Electronics System Parts
Braking System
Wheel & Suspension System Parts
Others
Market Analysis, Insights and Forecast – By Vehicle Type
Passenger cars
Commercial cars
Market Analysis, Insights and Forecast – By Region
North America
Europe
Asia pacific
Rest of the World
North America Automotive Remanufacturing Market Analysis, Insights and Forecast, 2019-2030
Market Analysis, Insights and Forecast – By Parts Type
Engine Parts
Transmission Parts
Electrical & Electronics System Parts
Braking System
Wheel & Suspension System Parts
Others
Market Analysis, Insights and Forecast – By Vehicle Type
Passenger cars
Commercial cars
Market Analysis – By Country
The U.S.
Canada
Mexico
Europe Automotive Remanufacturing Market Analysis, Insights and Forecast, 2019-2030
Market Analysis, Insights and Forecast – By Parts Type
Engine Parts
Transmission Parts
Electrical & Electronics System Parts
Braking System
Wheel & Suspension System Parts
Others
Market Analysis, Insights and Forecast – By Vehicle Type
Passenger cars
Commercial cars
Market Analysis – By Country
The U.K
Germany
France
Rest of the Europe
Asia Pacific Automotive Remanufacturing Market Analysis, Insights and Forecast, 2019-2030
Market Analysis, Insights and Forecast – By Parts Type
Engine Parts
Transmission Parts
Electrical & Electronics System Parts
Braking System
Wheel & Suspension System Parts
Others
Market Analysis, Insights and Forecast – By Vehicle Type
Passenger cars
Commercial cars
Market Analysis – By Country
Japan
China
India
Rest of Asia Pacific
Rest of the World Automotive Remanufacturing Market Analysis, Insights and Forecast, 2019-2030
Market Analysis, Insights and Forecast – By Parts Type
Engine Parts
Transmission Parts
Electrical & Electronics System Parts
Braking System
Wheel & Suspension System Parts
Others
Market Analysis, Insights and Forecast – By Vehicle Type
Passenger cars
Commercial cars
Competitive Analysis
Key Industry Developments
Global Market Ranking Analysis (2022)
Competition Dashboard
Comparative Analysis – Major Players
Company Profiles (Overview, Products & services, SWOT analysis, Recent developments, strategies, financials (based on availability))
Robert Bosch GmbH
ZF Friedrichshafen AG
CARDONE Industries
BorgWarner Inc.
Caterpillar
Carwood Group
Borg Automotive
ATC Drivetrain
BBB Industries
Valeo SA
Continued...
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