Automotive Parts Remanufacturing Market

Automotive Parts Remanufacturing Market Outlook (2024 to 2034)

The global automotive parts remanufacturing market size is set to reach US$ 70.12 billion in 2024. The market has been projected to advance at a CAGR of 9.3% to reach US$ 171.27 billion by 2034-end. North America and East Asia are key markets for automotive parts remanufacturing and collectively account for over 50% share of the global market.

Automotive parts remanufacturing is a standardized manufacturing method in which worn-out or non-functional automotive parts are cleaned, disassembled, repaired, and replaced with new components. Automotive components experience wear and tear after a considerable amount of use. The adoption of circular economy principles and the need to reduce carbon emissions are fueling market expansion.

Key Market Growth Drivers

• Automotive parts remanufacturing market trends are being influenced by an increasing push to remanufacture complicated components of engines to increase vehicle life expectancy.
• OEMs and remanufacturers are working together more often to promote innovation and make sure that remanufactured parts are compatible with contemporary automobiles.
• Increasing integration of smart features in vehicles and technological advancements are driving the adoption of remanufactured electrical and electronic components.
• Automotive parts remanufacturing market growth is primarily driven by support from the government for the adoption of sustainable practices and circular economy initiatives.
• Fleets of commercial vehicles are beginning to accept remanufactured parts, which lowers costs and reduces the environmental effects of the transportation industry.
• Widespread use of the principles of the circular economy, along with a focus on lowering carbon emissions and preserving resources are contributing to the expansion of the automotive parts remanufacturing market size.
• Increasing use of remanufactured parts in both passenger and commercial vehicles, motivated by cost savings and environmental concerns, is another factor fueling the expansion of the market.
• Rising number of cars on the road and the improving standard of living are boosting the demand for automotive parts, which is in turn driving the global market for automotive parts remanufacturing.

Report Attributes	Details
Automotive Parts Remanufacturing Market Size (2024E)	US$ 70.12 Billion
Forecasted Market Value (2034F)	US$ 171.27 Billion
Global Market Growth Rate (2024 to 2034)	9.3% CAGR
East Asia Market Share (2024E)	24.7%
North America Market Share (2024E)	27.8%
Sales of Wheels and Brakes (2024E)	US$ 20.75 Billion
Key Companies Profiled	Robert Bosch GmnH ZF Friedrichshafen AG Caterpillar Inc. Carwood Group Meritor Inc. Budweg Caliper A/S Monark Automotive GmbH BBB Industries E&E Group IM Group Andre Niermann

Why Do Remanufactured Automotive Parts Find Extensive Adoption?

“Cost-effectiveness and Ease of Maintenance Associated with Remanufactured Parts”

Automotive remanufacturing is the process of repairing automobile parts that have been sold but are no longer functional. By disassembling, cleaning, repairing, and replacing outdated parts, these worn-out components are made into brand-new ones. The aging of automobiles is causing wear and tear on their parts, giving rise to the need for aftermarket replacements for these damaged parts.

Remanufactured components are less expensive to buy and maintain than original parts. This financial benefit is drawing customers and companies looking for low-cost options without sacrificing quality. The automotive sector is benefiting from developments in artificial intelligence (AI), better sensors, and environmentally friendly production techniques. These developments are improving the repaired parts' quality and performance to par with new products.

“Environmental Consequences of Manufacturing Fresh Parts”

The push for sustainability and recycling is resulting in lucrative opportunities for automotive remanufacturers. Governments and organizations are supporting the use of remanufactured auto parts because they understand the environmental impact of manufacturing new ones. Raw materials and new car parts are becoming scarce as a result of the COVID-19 pandemic's disruption of international supply chains. This void is being filled by remanufactured goods, which is raising more demand for these parts.

Emphasis on sustainable practices is contributing to market expansion. Remanufactured EV-specific parts are also in demand as electric vehicles (EVs) are gaining popularity. These elements are supporting environmentally friendly transportation and promoting sustainable mobility.

What Difficulties Do Automotive Parts Remanufacturers Face?

“Pricing Complexity and Lack of Regulations Governing Reuse and Recycling”

It can be difficult to determine the cost of remanufactured parts. Remanufacturers encounter difficulties concerning the perceived value of components and pricing models, in contrast to new parts, which have well-defined pricing structures.

Recycling and reusing old parts are key components of remanufacturing, but tax laws and regulations might not sufficiently address these activities. It is critical to strike a balance between the advantages of the environment and taxation requirements.

The remanufacturing industry depends on skilled labor. Maintaining quality standards and keeping up with technological advancements require ongoing training and certification.

Country-wise Insights

North America occupies a significant automotive parts remanufacturing market share in 2024. The market in the region is projected to expand at a significant CAGR of 8.8% through 2034.

Which Factors are Conducive for Market Growth in the United States?

“Well-Established Auto Aftermarkets and Increasing EV Production”

Attribute	United States
Market Value (2024E)	US$ 14.48 Billion
Growth Rate (2024 to 2034)	8.5% CAGR
Projected Value (2034F)	US$ 32.78 Billion

The market in the United States is estimated to reach US$ 14.48 billion in 2024. The country occupies 75% share of the North American market in 2024. The growth of the market in the United States is being propelled by sustainability regulations and firmly established automotive aftermarkets in the United States. Consumers in the nation value sustainability and cost-effectiveness, which contributes to the demand for remanufactured parts that offer both environmental benefits and cost savings.

• For example, the IEA reports that sales of battery electric vehicles in the United States increased from 230,000 units in 2020 to 470,000 units in 2021. This situation is raising the need for EV parts remanufacturing solutions, thus contributing to the market's expansion.

How is the Market for Remanufactured Automotive Parts Progressing in China?

“Remanufacturing of Electric Vehicle Batteries and Drivetrains Gaining Traction”

Attribute	China
Market Value (2024E)	US$ 10.17 Billion
Growth Rate (2024 to 2034)	10.8% CAGR
Projected Value (2034F)	US$ 28.37 Billion

The Chinese market is projected to exhibit a significant growth rate over the forecasted period. One of the main factors for growing the market in China is the robust automobile aftermarket sector. Rising demand for reasonably priced remanufactured auto parts in developing nations, such as India, supports the growth of the market in China.

This is because of the reliance of these countries on China for quality and cost-effective auto parts. China is the country with the highest number of EVs on the road. Remanufacturing of EV batteries and drivetrains is gaining traction as a result, thus contributing to market expansion.

Category-wise Insights

The market is divided into categories based on the type of component: engine and related parts, transmission parts, electrical and electronic system parts, wheel and suspension system parts, brake system parts, and others. The electrical and electronic system parts segment is projected to expand at a significant pace through 2034.

Growing trend of vehicle electrification and manufacturers' emphasis on providing innovative EV remanufacturing solutions are driving market expansion. A vehicle's suspension and transmission systems degrade over time and break under different loading scenarios and terrains. Therefore, the need for routine checks and replacement of these components is contributing to the growth of the segment.

Why are Companies Focusing on Remanufacturing Engines and Related Parts for Vehicles?

“Increased Susceptibility of Wear and Damage Necessitating Frequent Replacements”

Attribute	Engine & Related Parts
Segment Value (2024E)	US$ 12.69 Billion
Growth Rate (2024 to 2034)	9.2% CAGR
Projected Value (2034F)	US$ 30.67 Billion

Remanufacturing of engines and associated parts solves the challenges concerning discontinued or hard-to-find components. There is increased wear and damage to the engine and its related parts. For this reason, compared to other automotive parts, components like drive belts, oil filters, and air filters require more frequent replacements. To meet the growing demand from customers, the majority of the top aftermarket companies are focusing on remanufacturing engine-related parts.

Why Do Passenger Cars Account for a Leading Share of the Market?

“Rising Expenditure on Testing, Research, and Development for Passenger Cars”

Attribute	Passenger Cars
Segment Value (2024E)	US$ 44.66 Billion
Growth Rate (2024 to 2034)	10.2% CAGR
Projected Value (2034F)	US$ 117.69 Billion

The passenger vehicle market is growing due to increasing urbanization around the world. Each year, more money is spent on testing, research and development for passenger cars, and regulatory compliance. The average life expectancy of passenger cars has increased as a result of all these factors, leading to cost-efficiency for vehicle owners. Ongoing research and development investments by passenger car manufacturers are projected to lead to enhanced performance.

Competitive Landscape

Key players in the automotive parts remanufacturing market are projected to exhibit significant growth during the forecast period due to the increasing emphasis of major aftermarket players on providing remanufactured automotive parts that are affordable and on par with new products. These key players include Bosch, ZF Friedrichshafen AG, Caterpillar Inc., Carwood Group, Meritor Inc., Budweg Caliper A/S, Monark Automotive GmbH, BBB Industries, E&E Group, and IM Group.

• In January 2024, Rolls-Royce Power Systems Division announced the opening of a remanufacturing and overhaul center on the MTU Aiken campus in South Carolina in the United States. The new facility, which incurred costs in the low double digits of millions of dollars, is seamlessly integrated with existing manufacturing operations. It aligns with the business's sustainability strategy and service initiatives.

Segmentation of Automotive Parts Remanufacturing Market Research

• By Component :

  • Engine & Related Parts
  • Transmission & Others
  • Electrical & Electronics
  • Wheels & Brakes
  • A/C Compressors, Steering, Fuel Systems

• By Vehicle Type :

  • Passenger Cars
  • LCVs
  • HCVs
  • Off-Road Vehicles
  • All-Terrain Vehicles

• By Region :

  • North America
  • Europe
  • Latin America
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa