Automotive Remanufacturing Market Forecasts to 2028 – Global Analysis By Part Type (Transmission Parts, Electrical & Electronics System Parts, Engine & Related Parts and Other Part Types), Vehicle Type (Passenger Cars and Commercial Vehicles), and By Geog

Automotive Remanufacturing Market Forecasts to 2028 – Global Analysis By Part Type (Transmission Parts, Electrical & Electronics System Parts, Engine & Related Parts and Other Part Types), Vehicle Type (Passenger Cars and Commercial Vehicles), and By Geography

According to Stratistics MRC, the Global Automotive Remanufacturing Market is accounted for $60.78 billion in 2022 and is expected to reach $119.33 billion by 2028 growing at a CAGR of 11.9% during the forecast period. Through cleaning, disassembly, repair, and replacement of worn-out or non-functional automobile components, automotive remanufacturing is a standardised industrial process that turns outdated, previously sold, non-functional parts into brand-new ones.

According to the International Energy Agency (IEA), EV sales doubled in 2021 to a new record of 6.6 million units. This factor is expected to generate significant demand for remanufactured EV parts such as EV batteries, tires, and other components.

Market Dynamics:

Driver:

Electric vehicle need for remanufactured parts

This market is expanding quickly as the demand for remanufactured auto components for electric cars is kept high by the worldwide megatrend of automotive electrification. This element is anticipated to significantly increase demand for remanufactured EV parts, including tyres, batteries, and other components. To seize early revenue growth prospects, manufacturers are concentrating on offering automotive remanufacturing and recycling solutions for electric vehicle parts. These are a few of the trends influencing the growth of the global automobile remanufacturing industry.

Restraint:

Lack of knowledge about remanufactured automotive parts

Auto parts that have been remanufactured are just as excellent as new ones. Due to the government's lack of efforts in marketing and implementing remanufactured goods, the potential of the sector for remanufactured components is sometimes underestimated. Customers in undeveloped and developing economies may not be aware of the economic and environmental advantages of remanufactured products, which might impede the market's expansion over the projection period.

Opportunity:

Lack of raw materials needed to make automotive components

Lack of raw materials has been one of the main challenges facing the continuously expanding automobile sector. As automakers increase their manufacturing capacity, the need for raw materials has increased significantly. To meet the rising demand for car part replacement, aftermarket businesses are being encouraged to use remanufacturing processes due to the restricted supply of raw materials in diverse geographic areas. This will boost expansion in the worldwide market.

Threat:

Inadequate customer recognition and unfavourable regulatory practises

A few constraints limiting market growth include fierce competition from suppliers of recycled and repaired vehicle body parts, dwindling pricing disparities between this portfolio and the original goods, and longer warranty on components. Another problem impeding the growth of the automobile parts remanufacturing business is customer ignorance of the distinctions between used and remains items due to erroneous language connotations. In particular in emerging markets, suppliers find it challenging to dispel consumer misunderstandings about the product quality due to the product's availability for 60% of the original equipment price. Along with these requirements, several Asian nations, notably India, have made it illegal to import cores, which are a necessary component for remanufacturers. The expansion of the sector is predicted to be significantly hampered by these factors

Covid-19 Impact

The worldwide automobile sector was significantly impacted by the COVID-19 epidemic. Remanufacturing factories were unable to operate at full capacity because of a lack of resources, which led to a temporary shutdown of those operations and a slowdown in the market. The pandemic caused a severe lack of raw materials and severely damaged the supply chain networks in many different industries, including the remanufacturing of automobiles. Additionally, the epidemic severely reduced income for businesses and had an effect on their entire sales. Due to insufficient cash flow creation, several ongoing product-related R&D programmes had to be placed on hold, which resulted in the remanufacturing industry's growth slowing down.

The engine & related parts segment is expected to be the largest during the forecast period

The engine & related parts segment is estimated to have a lucrative growth, due vehicles using IC engines are currently widely offered globally. Engine and associated parts are more vulnerable to wear and damage. This is why elements like drive belts, oil filters, and air filters need to be changed more regularly than other automobile components. To meet the rising demand from consumers, the majority of the major aftermarket firms are concentrating on remanufacturing engine-related parts.

The passenger cars segment is expected to have the highest CAGR during the forecast period

The passenger cars segment is anticipated to witness the fastest CAGR growth during the forecast period, due to the increasing on-road passenger car production is propelling the segment's growth. Future category development is also predicted to be boosted by rising automobile sales and the use of EVs in the global automotive industry. Remanufactured components that are compatible with a variety of cars are becoming more widely known about, and this is expected to fuel segment expansion in the years to come.

Region with highest share:

Asia Pacific is projected to hold the highest market share during the forecast period owing to the increased vehicle production in nations like China, India, Japan, and South Korea is to blame for this. Additionally, the area is home to a number of Original Equipment Manufacturers (OEMs) for the automobile industry that is heavily invested in R&D for the creation of effective engines.

Region with highest CAGR:

North America is projected to have the highest CAGR over the forecast period, owing to the presence of top companies and well-established automotive aftermarkets in the US. Additionally, North America's growing use of electric cars is in the upcoming years, predicted to produce profitable chances for revenue development. This situation has raised the need for EV remanufacturing solutions, which is further fueling market expansion.

Key players in the market

Some of the key players profiled in the Automotive Remanufacturing Market include Robert Bosch GmbH, BorgWarner Inc, ZF Friedrichshafen AG, Valeo, ATC Drivetrain, CARDONE Industries, Caterpillar, BBB Industries, Carwood Group, Meritor Inc, Monark Automotive GmbH, Genuine Parts Company, Maval Manufacturing Inc, Teamec BVBA and Jasper Engines

Key Developments:

In May 2023, Bosch Engineering and Ligier Automotive establish strategic development partnership for high-performance vehicles with a hydrogen engine, the goal of the project is to build a high-performance vehicle with a hydrogen engine that delivers drive dynamics equivalent to those of conventional gasoline-powered sports cars.

In May 2023, BorgWarner Launches Exclusive Co-Branded Borg-Warner Trophy® Merchandise with Indianapolis Motor Speedway, Merchandise exclusively available through Legends retail operations.

In April 2023, Bosch is expanding its semiconductor business with silicon carbide chips. The technology company plans to acquire assets of the U.S. chipmaker TSI Semiconductors, based in Roseville, California.

Part Types Covered:
• Transmission Parts
• Electrical & Electronics System Parts
• Engine & Related Parts
• Wheel & Suspension System Related Parts
• Braking System Related Parts
• Other Part Types

Vehicle Types Covered:
• Passenger Cars
• Commercial Vehicles

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o 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 2020, 2021, 2022, 2025, and 2028
- 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