Automotive Components Market Forecasts to 2030 – Global Analysis By Product Type (Body & Chassis, Cooling System, Engine Components and Suspension & Braking), Vehicle Type (Light Commercial Vehicles, Passenger Cars, Three-Wheelers and Two-Wheelers) and By

Automotive Components Market Forecasts to 2030 – Global Analysis By Product Type (Body & Chassis, Cooling System, Engine Components and Suspension & Braking), Vehicle Type (Light Commercial Vehicles, Passenger Cars, Three-Wheelers and Two-Wheelers) and By Geography

According to Stratistics MRC, the Global Automotive Components Market is accounted for $2,111.85 billion in 2024 and is expected to reach $3,259.22 billion by 2030 growing at a CAGR of 7.5% during the forecast period. Automotive components refer to the essential parts that make up a vehicle, ensuring its functionality, safety, and performance. These components encompass a wide range of parts, from the engine and transmission systems to the braking, steering, and suspension systems. Each component plays a crucial role in the overall operation and integrity of the vehicle. Automotive components are integral to the functionality, safety, and performance of vehicles. From the engine and transmission to the smallest electrical sensors, each part plays a crucial role. Engines, typically powered by gasoline or diesel, convert fuel into mechanical energy, propelling the vehicle.

Market Dynamics:

Driver:

Environmental and sustainability trends

Environmental and sustainability trends are significantly influencing the automotive components industry by driving innovation towards more eco-friendly and efficient solutions. Automakers and component manufacturers are increasingly adopting practices that reduce carbon footprints, such as using lightweight materials to improve fuel efficiency, developing electric and hybrid vehicle technologies, and implementing recycling programs for end-of-life vehicles. These trends are reshaping the design and production processes of automotive components

Restraint:

Fluctuations in raw material prices

Fluctuations in raw material prices pose significant challenges for the automotive components industry. As raw materials account for a substantial portion of production costs, sudden price increases can disrupt cost projections and profitability. This volatility affects manufacturers at various stages: from planning and procurement to pricing and inventory management. Automotive components require specific materials that may have limited suppliers, further exacerbating the impact of price fluctuations. To mitigate these risks, companies often resort to hedging strategies or long-term contracts with suppliers, but these measures are not foolproof against sharp price spikes or unexpected supply chain disruptions. Consequently, such instability can hinder investment in innovation and technology, impacting product development and quality.

Opportunity:

Advancement of self-driving technology

The advancement of self-driving technology is profoundly transforming automotive components by demanding higher levels of precision, reliability, and integration. Traditional mechanical systems are being augmented or replaced by sophisticated electronic and sensor-based systems that enable vehicles to perceive and respond to their environment autonomously. Key components such as sensors (like LiDAR, radar, and cameras), actuators, and computing units have become pivotal in enabling vehicles to navigate, make decisions, and communicate with other vehicles and infrastructure in real-time. This evolution is driving innovation across the automotive industry, fostering collaborations between traditional automakers, tech companies, and suppliers specializing in electronics and software.

Threat:

Intellectual property rights

Intellectual property rights (IPR) can pose challenges to the automotive components industry due to their potential to restrict innovation and competition. While IPR protects the creations and inventions of companies, including technologies and designs crucial for automotive components, it can also lead to barriers that stifle smaller manufacturers or startups from entering the market. For instance, patent thickets, where numerous patents cover overlapping technologies, can increase legal complexities and costs for companies seeking to develop new automotive components. However, the lengthy process of obtaining and enforcing patents can delay the introduction of new products to the market, slowing down innovation.

Covid-19 Impact:

The COVID-19 pandemic significantly impacted the automotive components sector. Initially, widespread lockdowns and supply chain disruptions disrupted production schedules across the globe, leading to shortages of essential components such as semiconductors and electronics. This not only slowed down vehicle manufacturing but also resulted in increased costs due to higher demand and limited supply. Fluctuating consumer demand and financial uncertainties forced automotive manufacturers to recalibrate their production plans and inventory management strategies.

The Cooling System segment is expected to be the largest during the forecast period

Cooling System segment is expected to be the largest during the forecast period by regulating engine temperature and ensuring optimal performance and longevity. Comprising various components such as radiators, coolant hoses, water pumps, and thermostats, this system effectively manages heat dissipation from the engine to maintain operational efficiency. Advanced materials and design innovations continuously improve these components, enhancing their durability, efficiency and environmental friendliness.

The Passenger Cars segment is expected to have the highest CAGR during the forecast period

Passenger Cars segment is expected to have the highest CAGR during the forecast period. As consumer demand for efficiency, safety, and comfort increases, manufacturers of automotive components are compelled to innovate. This segment specifically influences the development of cutting-edge technologies such as electric propulsion systems, advanced safety features like autonomous driving capabilities, and enhanced infotainment systems. Engineers and designers focus on integrating lightweight materials, efficient engines, and smart connectivity solutions tailored for passenger vehicles.

Region with largest share:

North America region commanded the largest share of the market during the extrapolated period. Upgraded infrastructure includes modernized manufacturing facilities, efficient logistics networks, and advanced research and development centers across the region. These regional developments enable quicker production cycles, enhanced quality control and the ability to adopt cutting-edge technologies such as automation and AI in manufacturing processes. Moreover, improved infrastructure supports just-in-time supply chains, reducing lead times and costs associated with transportation and inventory management throughout the region. This fosters a competitive edge in the global market by allowing North American manufacturers to respond swiftly to market demands and technological advancements.

Region with highest CAGR:

Europe region is projected to hold profitable growth over the forecast period. Through strategic alliances between manufacturers, suppliers and technology firms, there is a clear trend towards developing cutting-edge technologies such as electric and autonomous vehicles across the region. These collaborations facilitate the sharing of expertise and resources, accelerating the development and deployment of advanced automotive components throughout the region. Partnerships enable companies to access broader markets, leverage each other's distribution networks, and streamline production processes, thereby reducing costs and improving overall product quality across the region

Key players in the market

Some of the key players in Automotive Components market include Bosch Automotive Steering GmbH, Continental AG, Delphi Technologies, Denso Corporation, Infineon Technologies AG, Magna International Inc, Mahle GmbH, Robert Bosch GmbH, Sumitomo Electric Industries, Visteon Corporation and Yazaki Corporation.

Key Developments:

In February 2024, AEQUITA SE & Co. KGaA, a Munich-based industrial conglomerate, has formally agreed to purchase the Brake Components division from Robert Bosch GmbH. This acquisition encompasses Buderus Guss GmbH and Robert Bosch Lollar Guss GmbH, highlighting AEQUITA’s commitment to enhancing its automotive sector capabilities. The Brake Components business, renowned for its coated high-performance brake discs, serves prestigious international OEMs and is supported by approximately 900 employees across three German locations.

In December 2022, Sumitomo Invests MAD 2 Billion in Nine Automotive Projects in Morocco. Rabat - Japanese company Sumitomo Electric Industries has signed an agreement with Morocco’s Ministry of Industry and Trade to invest nearly MAD 2 billion ($190 million) in Morocco’s automotive ecosystem.

Product Types Covered:
• Body & Chassis
• Cooling System
• Engine Components
• Suspension & Braking

Vehicle Types Covered:
• Light Commercial Vehicles
• Passenger Cars
• Three-Wheelers
• Two-Wheelers

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements