The market for auto parts manufacturing is expected to grow at a CAGR of 3.5% during the forecast period of 2023 to 2030.This is due to the rapid advancement of technology.Demand for new technologies in the automobiles industry resulted in the rapid expansion of the automotive sector, which in turn increased the demand fortechnically superior auto components leading to the expansion of the automotive components manufacturing sector. For instance, the introduction of the most recent technology in vehicle engine radiators is anticipated to contribute to an increase in demand for the manufacturing of automobile parts during the next few years. To make components that are much lighter and much more fuel-efficient than their predecessors, leading industries are currently intending to manufacture lightweight automotive parts. These components will be significantly more fuel-efficient than their predecessors. In industrialised countries, the amount of scrap is far larger than in the developing world. This is because more stringent environmental restrictions have led to replacements in motor automobiles and the engines that power them. Also, industrialised countries have a greater propensity than developing countries to make use of cutting-edge technologies and advancements in motors, such as hybrid motors. Increasing government assistance coupled with somewhat stronger emission requirements has led to an increase in the demand for automotive parts, which in turn has led to an increase in the demand for the production of new vehicles that have a lower consumption of fuel. It is anticipated that these factors will lend support to the expansion of the global market for the manufacturing of auto components.
Companies in this sector are manufacturing variety of automobile components, such as motor vehicle seating, transmission and power train components, engines and engine parts, body parts and trim, electronics, braking systems, steering and suspension components, and engine and engine parts. Economic growth in growing economies all over the world is expected to fuel robust growth in the car manufacturing sector over the next several years, which should boost demand for auto components. This growth is projected to take place in both developed and developing countries.
The manufacturing business for automotive parts and accessories has been going through a significant transformation over the course of the past few years, which is ultimately leading to the development of an industry that is extremely competitive. Both the replacement market and new car sales are major drivers of the demand for auto parts.
Increasing Incomes in Asia Leads to A Demand for Vehicles Boosting Auto Parts Manufacturing Market
The increasing discretionary incomes in developing countries, particularly in Asia, as well as the permission of 100 percent foreign direct investment in countries like India, create lucrative growth potential for the automotive sector in the region.It is anticipated that key drivers for the expansion of light duty vehicles in the region would be government incentives, expanding regional demand, and the cheap availability of raw materials. This is anticipated to, in turn, fuel the need for auto parts manufacturing throughout the forecast period.
New Technologies in Automobiles Increasing Production ofAutomobile Components
The business climate of the automotive sector is fast-paced and competitive, with cutting-edge innovations introduced into the market very frequently. Therefore, in order to maintain their competitiveness in an environment that is so dynamic, companies that manufacture car parts are realigning their strategy in accordance with the predominant trends. Introduction of cutting-edge technologies in vehicle engine radiators is one example of how the market for the production of automobile parts is anticipated to experience significant growth in the coming years. Leading firms are into manufacturing lightweight auto part production in order to come out with parts that are significantly lighter than their predecessors while yet being more fuel efficient. This will allow for vehicles to travel further with the same amount of fuel. It is anticipated that developments in technology will continue to be a primary driver of growth in the motor vehicle parts manufacturing market during the course of the projected period. In the past ten years, the worldwide transportation manufacturing business has seen a number of technical advancements, and analysts anticipate that this pattern will continue to accelerate going forward.
Growing Demand for Automobile Parts that Comply with Strict Emission Regulations
Increasing rates of automobile and engine scrapping tend to drive up demand for engines that were originally manufactured by the vehicle's manufacturer. As a result of stringent environmental regulations, scrap rates are higher in industrialised countries; as a result, replacement rates for motor vehicles and their engines are greater as well. This is in comparison to the developing world, where these rates are lower. Developed nations are quick to adopt new technology and improvements in engine design, such as hybrid engines. Rising assistance from government, along with relatively stronger emission requirements, has led to an increase in the demand for auto parts, which in turn has led to an increase in the need for manufacturing of new vehicles that consume less fuel.
Stringent Environment Regulations Require Efficient Automobiles Leading to The Expansion of Auto Parts Manufacturing
In addition, governments all over the world have implemented stringent regulations regarding vehicle emissions, which require product manufacturers to produce environmentally sustainable and highly effective automobile products for both the domestic and international markets. This is likely to increase market demand. There has been significant progress made in the automotive industry in recent years, and it is projected that developing markets such as China, India, and Brazil would contribute to the expansion of the market worldwide.
Popularity Of EVS May Challenge the Market as This Need Lesser Number of Spare Parts
It is anticipated that the value chain in the automotive industry will be shaken up as a result of the fast-growing demand for electric vehicles (EV). Because electric vehicle engines are simpler than their gasoline-powered equivalents, owners of electric vehicles will need less parts replaced over the course of their vehicle's lifetime. When automobiles are electrified, various components, including air-conditioning units, water pumps, braking systems, and steering systems, will need to be redesigned and modified so that they can fulfil the requirements of electric vehicles. Because electric vehicles are assembled using one-third the number of components that are used in the production of internal combustion engine (ICE) cars, less collaboration will be necessary between a carmaker and the parts suppliers. Because of this, vehicle-to-component calibration will be reduced, allowing component suppliers to create products with increased levels of independence. Electric vehicles have fewer moving parts, whereas vehicles equipped with internal combustion engines require large number of spare parts. This disparity may have an impact on the sales of existing auto spare parts, as EVs are simpler to manufacture.
The demand of the people who drive automobiles to improve the performance of their vehicles in a variety of ways, including the sound of their exhaust, their speed, and their appearance, is the primary force that propels the automotive aftermarket business. Regional regulatory authorities like the Japanese Automobile Sports Muffler Association (JASMA) and the United States Environmental Protection Agency monitor the built-up standards and environmental impacts associated with the functioning of automotive componentry. For example, the noise emission levels associated with the modern-day automotive resonators and mufflers in automotive exhaust systems are monitored by these regional regulatory authorities.
Consumers Are Increasingly Gravitating Towards IOT and Digitization in Automobiles
As an increasing number of people gravitate toward trends in digitization and the Internet of Things (IoT), it is anticipated that the subsequent digitalization will have a significant impact on the sector. In addition, developments in propulsion technology have led to the creation of a great deal of new opportunities in the market. On the other hand, concerns over excessive R&D expenditures are likely to act as a barrier to the expansion of the market throughout the course of the projection period. When carrying out their respective manufacturing processes, automobile manufacturers are subject to a variety of restrictions. The cost of production is one of these factors that must be considered. However, many automotive replacement parts, such as aftermarket filters, provide the opportunity to select a component that is tailored to the particular conditions in which a vehicle is used.
The automotive industry is witnessing a rise in consumer interest in hybrid electric vehicles, which may eventually lead to a reduction in demand for exhaust parts and other specialty tools designed for use with highly specialised vehicles. The rise in the price of gasoline and automobiles powered by gasoline engines is likely to be responsible for this slowdown. It is anticipated that the increase in the amount of discretionary income consumers in developing nations have, such as China and Brazil, will have a beneficial impact on the rate of market expansion. It is anticipated that the rising demand for locomotives would cause an increase in the demand for the sales of vehicle components. It is projected that stringent regulatory criterion pertaining to automobile safety will propel market economies over the world. The manufacturing technology of the current age, such as 3D printing of automobile parts, is being actively implemented by major players in the industry to optimise their production costs. This is because 3D printing enables efficient fabrication performance and a reduction in the toxicity of emission.
Aftermarket Automotive Parts to Expand
It is anticipated that the advent of 3D printing in the automotive aftermarket business, as well as the growing demand for hybrid and all-electric vehicles, will further enhance the growth of the market. In addition, the rise in the sales of used automobiles is projected to present various chances for the leading companies that are currently active in the aftermarket automotive parts and components industry.
Increasing Requirements for Spare Components
The spare componentssegment held the dominant position in the market in 2021. Demand for replacement car parts and components is being greatly fuelled by an increase in the number of vehicles being registered across a variety of areas. The development of technologically innovative replacement parts that enhance the fuel efficiency of vehicles will play a significant role in propelling the industry's expansion. The shifting preference of consumers toward the utilisation of refurbished and pre-owned automobiles will showcase positive growth prospects in the overall size of the market. The requirement that refurbished vehicles be customised, repaired, and maintained will provide a positive outlook for the share of the automotive aftermarket.It is anticipated that the market for accessories will experience significant growth as a result of the growing demand for vehicle customization. This is due to the fact that vehicle customization provides an aesthetically pleasing look, as well as lightness.
Asia Pacific Emerges as A Hub for Automobile Manufacturing
Asia Pacific is now an important market for the manufacturing of automobile parts. As a result of the region's solid growth rate, it is projected that it will continue to play a significant role as a global market in the future as well. It is anticipated that the implementation of emerging technologies in the production of automotive parts would lead to an increase in vehicle sales in the region. The APAC market is being propelled forward by a rise in the production and sales of automobiles and passenger vehicles, as well as by the digitization of distribution systems for automotive components. It is anticipated that the implementation of emerging technologies in the production of automobile components would lead to an increase in regional vehicle sales. The regional market is being driven forward by a rise in the production and sales of vehicles and passenger cars, as well as by the digitalization of automotive component distribution systems.
Focus on Innovation to Provide a Competitive Edge
The increased focus on innovation in automotive parts, which is driving up demand for SLI batteries, as well as the rising demand for filters from diesel engine vehicles, continues to have an effect on the attitudes of manufacturers.In terms of the structure of the industry, the manufacturing market for auto parts has been exhibiting a dynamic competitive scenario. In this scenario, the leading players primarily strategize on novel product portfolios in order to maintain their positions as market leaders. Automobile producers are also seen to be focusing on high performance automobiles, which are capable of efficiently sustaining themselves in any environment, regardless of the terrain or the weather conditions.
In the industry of automobile component manufacturing, there has been a discernible rise in the number of mergers and acquisitions, as well as expansions, that have taken place during the course of the last five years. Following a period of overall economic stagnation, sales of automobiles in Asia and the Pacific Rim have begun to show signs of improvement. The ever-increasing demand for automobiles has had a beneficial impact on original equipment manufacturer (OEM) sales of radiators in the global automotive market. This demand has prompted automobile manufacturers to boost production output in order to accommodate growth. Robert Bosch GmbH, Denso Corporation, Valeo SA, Continental AG, Delphi Automotive PLC, ZF Friedrichshafen AG., Magna International Inc., Faurecia SA, Magneti Marelli SpA, Aisin Seiki Co., Ltd., Brembo SpA, Akebono Brake Corporation, Hella KGaAHueck& Co., and ACDelco are among the prominent players operating in this market.
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Auto Parts Manufacturing market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
|---|---|
| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Million |
| Segmentation | |
Auto Parts
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Distribution Channels
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Vehicles
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Region Segment (2022-2032; US$ Million)
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Key questions answered in this report
