The automotive parts remanufacturing market involves rebuilding worn or non-functional automotive components and assemblies to bring them to like-new conditions. The process involves disassembling used parts and systematically inspecting, cleaning, repairing and replacing parts. Remanufactured automotive parts can last as long as new parts once inspected and tested. They provide significant cost savings of upto 40-50% compared to new parts while delivering similar performance. Customers are increasingly adopting remanufactured parts as an affordable and sustainable alternative to new ones.

The Global Automotive Parts Remanufacturing Market is estimated to be valued at US$ 118.2 Bn by 2030 and is expected to exhibit a CAGR of 8.7% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the automotive parts remanufacturing are 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.

The growing vehicle parc globally is driving the Automotive Parts Remanufacturing Market Demand for affordable remanufactured components. Technological advancements like digitally enabled reverse engineering and 3D printing are helping improve quality control and drive higher reuse of components.

Market Trends

Growing popularity of rental and leasing models: Emerging trends like vehicle leasing and rental models are increasing volumes of used vehicles returned after lease terms. This is driving higher availability of core return components for remanufacturing.

Focus on reducing carbon footprint: Remanufacturing is significantly more sustainable and environment friendly compared to manufacturing new parts. It helps reuse existing resources and reduce landfill waste. This is prompting more companies to focus on circular business models and adopt remanufacturing.

Market Opportunities

Stricter emission norms: Tighter emission regulations globally are prompting higher adoption of green technologies and business practices like remanufacturing to achieve sustainability goals.

Expanding into new components: Technological enhancements are enabling feasibility of remanufacturing for a wider scope of high-value precision components like transmission pumps and ECUs thereby expanding addressable market scope.

Impact of COVID-19 on Automotive Parts Remanufacturing Market
The COVID-19 pandemic severely impacted the global automotive industry. With lockdowns imposed across countries, automotive production was halted. This led to a sharp decline in demand for components and parts including remanufactured automotive components. With reduced vehicle usage during lockdowns, demand for replacement of worn-out parts decreased. This negatively impacted the automotive parts remanufacturing market.

However, with lifting of lockdowns and restarting of automotive production, the market is recovering gradually. The focus on sustainability is driving more companies and consumers towards opting for remanufactured components. Remanufacturers are witnessing increased customer base as their products offer significant cost savings compared to new components. Technological advancements are enabling digitization of remanufacturing processes, improving productivity. Further impetus on lower carbon emission vehicles will boost demand for remanufactured EV components in future. The market is expected to outpace pre-COVID growth rates over the forecast period backed by investments in expanding product portfolios and capabilities.

Geographical concentration of Automotive Parts Remanufacturing Market
In terms of value, North America accounts for the largest share of the global automotive parts remanufacturing market currently. The region has a well-established core of leading automotive component manufacturers. The presence of major automotive hubs in countries like the US and Canada along with stringent emission regulations boost the market. Asia Pacific is the fastest growing market for automotive parts remanufacturing globally. With countries like China and India witnessing faster automotive production ramp-up supported by their large population, demand for remanufactured parts is increasing rapidly.

Fastest growing region for Automotive Parts Remanufacturing Market
Asia Pacific region is poised to be the fastest growing market for automotive parts remanufacturing during the forecast period. This can be attributed to factors like increasing vehicle parc, low cost of components and burgeoning aftermarket in the region. China and India especially will drive the gains with their huge production capacities. Shift towards electric mobility will augment demand for remanufactured drivetrain components and batteries over time. Investments by global players to establish local facilities will complement market growth. With economic development and emphasis on lowering costs, Asia Pacific offers lucrative prospects for automotive parts remanufacturing companies.

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About Author-

Alice Mutum is a seasoned senior content editor at Coherent Market Insights, leveraging extensive expertise gained from her previous role as a content writer. With seven years in content development, Alice masterfully employs SEO best practices and cutting-edge digital marketing strategies to craft high-ranking, impactful content. As an editor, she meticulously ensures flawless grammar and punctuation, precise data accuracy, and perfect alignment with audience needs in every research report. Alice's dedication to excellence and her strategic approach to content make her an invaluable asset in the world of market insights.

(LinkedIn: www.linkedin.com/in/alice-mutum-3b247b137 )

The automotive parts remanufacturing market involves rebuilding worn or non-functional automotive components and assemblies to bring them to like-new conditions. The process involves disassembling used parts and systematically inspecting, cleaning, repairing and replacing parts. Remanufactured automotive parts can last as long as new parts once inspected and tested. They provide significant cost savings of upto 40-50% compared to new parts while delivering similar performance. Customers are increasingly adopting remanufactured parts as an affordable and sustainable alternative to new ones.

The Global Automotive Parts Remanufacturing Market is estimated to be valued at US$ 118.2 Bn by 2030 and is expected to exhibit a CAGR of 8.7% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the automotive parts remanufacturing are 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.

The growing vehicle parc globally is driving the Automotive Parts Remanufacturing Market Demand for affordable remanufactured components. Technological advancements like digitally enabled reverse engineering and 3D printing are helping improve quality control and drive higher reuse of components.

Market Trends

Growing popularity of rental and leasing models: Emerging trends like vehicle leasing and rental models are increasing volumes of used vehicles returned after lease terms. This is driving higher availability of core return components for remanufacturing.

Focus on reducing carbon footprint: Remanufacturing is significantly more sustainable and environment friendly compared to manufacturing new parts. It helps reuse existing resources and reduce landfill waste. This is prompting more companies to focus on circular business models and adopt remanufacturing.

Market Opportunities

Stricter emission norms: Tighter emission regulations globally are prompting higher adoption of green technologies and business practices like remanufacturing to achieve sustainability goals.

Expanding into new components: Technological enhancements are enabling feasibility of remanufacturing for a wider scope of high-value precision components like transmission pumps and ECUs thereby expanding addressable market scope.

Impact of COVID-19 on Automotive Parts Remanufacturing Market
The COVID-19 pandemic severely impacted the global automotive industry. With lockdowns imposed across countries, automotive production was halted. This led to a sharp decline in demand for components and parts including remanufactured automotive components. With reduced vehicle usage during lockdowns, demand for replacement of worn-out parts decreased. This negatively impacted the automotive parts remanufacturing market.

However, with lifting of lockdowns and restarting of automotive production, the market is recovering gradually. The focus on sustainability is driving more companies and consumers towards opting for remanufactured components. Remanufacturers are witnessing increased customer base as their products offer significant cost savings compared to new components. Technological advancements are enabling digitization of remanufacturing processes, improving productivity. Further impetus on lower carbon emission vehicles will boost demand for remanufactured EV components in future. The market is expected to outpace pre-COVID growth rates over the forecast period backed by investments in expanding product portfolios and capabilities.

Geographical concentration of Automotive Parts Remanufacturing Market
In terms of value, North America accounts for the largest share of the global automotive parts remanufacturing market currently. The region has a well-established core of leading automotive component manufacturers. The presence of major automotive hubs in countries like the US and Canada along with stringent emission regulations boost the market. Asia Pacific is the fastest growing market for automotive parts remanufacturing globally. With countries like China and India witnessing faster automotive production ramp-up supported by their large population, demand for remanufactured parts is increasing rapidly.

Fastest growing region for Automotive Parts Remanufacturing Market
Asia Pacific region is poised to be the fastest growing market for automotive parts remanufacturing during the forecast period. This can be attributed to factors like increasing vehicle parc, low cost of components and burgeoning aftermarket in the region. China and India especially will drive the gains with their huge production capacities. Shift towards electric mobility will augment demand for remanufactured drivetrain components and batteries over time. Investments by global players to establish local facilities will complement market growth. With economic development and emphasis on lowering costs, Asia Pacific offers lucrative prospects for automotive parts remanufacturing companies.

Get this Report in Japanese Language-  自動車部品再製造市場

Get this Report in Korean Language-  자동차 부품 재제조 시장

About Author-

Alice Mutum is a seasoned senior content editor at Coherent Market Insights, leveraging extensive expertise gained from her previous role as a content writer. With seven years in content development, Alice masterfully employs SEO best practices and cutting-edge digital marketing strategies to craft high-ranking, impactful content. As an editor, she meticulously ensures flawless grammar and punctuation, precise data accuracy, and perfect alignment with audience needs in every research report. Alice's dedication to excellence and her strategic approach to content make her an invaluable asset in the world of market insights.

(LinkedIn: www.linkedin.com/in/alice-mutum-3b247b137 )