Automotive Remanufacturing Market Forecasts to 2028 – Global Analysis By Type (Transmission Parts, Engine & Related Parts, Wheel & Suspension System Related Parts, Braking System Related Parts, Electrical & Electronics System Parts and Other Types), Appli

Automotive Remanufacturing Market Forecasts to 2028 – Global Analysis By Type (Transmission Parts, Engine & Related Parts, Wheel & Suspension System Related Parts, Braking System Related Parts, Electrical & Electronics System Parts and Other Types), Application and By Geography

According to Stratistics MRC, the Global Automotive Remanufacturing Market is accounted for $60.7 billion in 2022 and is expected to reach $119.1 billion by 2028 growing at a CAGR of 11.8% during the forecast period. Through cleaning, disassembly, repair, and the replacement of worn-out or outdated components, automotive remanufacturing is a standardised industrial process whereby worn-out, previously sold, non-functional automotive parts are repaired, rebuilt, and transformed into brand-new parts. The business engaged in the manufacturing process that entails product disassembly, replacing and restoring components, and testing of the entire product and the individual parts to its original design requirements is referred to as the automotive parts remanufacturing market.

According to the IEA, in 2021, battery electric vehicle sales in the U.S. jumped from 230,000 units in 2020 to 470,000 units. According to the U.S. Environmental Protection Agency, remanufacturing is a solution that offers substantial benefits economically, environmentally, and systematically.

Market Dynamics:

Driver:

Increasing need for low-cost vehicle replacement parts

The cost of new vehicle parts is high. The price of producing new parts also raises the overall cost of the finished good. Products that have been remanufactured have durability and quality that are comparable to those of original equipment and have lower production costs, which lower the overall cost of the product. Individuals in developing economies prefer to install refurbished parts instead of new ones. This aspect is also projected to fuel market expansion.

Restraint:

Lack of awareness

Auto parts that have been remanufactured are just as good as new ones. Because the government makes less of an effort to promote and use refurbished products, the potential of the industry for remanufactured parts is sometimes neglected. Customers in undeveloped and developing economies may not be aware of the economic and environmental advantages of remanufactured products, which could impede the market expansion.

Opportunity:

Stringent emission control

The primary cause of the manufacturer's shift in attention to remanufacturing techniques is the government's emphasis on minimising industrial emissions and waste. These methods generate fewer greenhouse gases and contaminants. However, the shortage of raw materials is encouraging players to use remanufacturing methods. Therefore, increasing demand in the automotive industry is driving the market growth.

Threat:

Lack of adequate recognition by consumers

High competition from vendors selling recycled and repaired vehicle body parts, reducing pricing disparities between these portfolio and original products, and longer warranty of components are a few reasons limiting market growth. Furthermore, a lack of customer identification of the differences between used and factory refurbished items, since the connotation of the terminology is misconstrued, is an obstacle impeding market growth.

Covid-19 Impact

The COVID-19 epidemic had a huge effect on the car sector. Remanufacturing plants could not operate at full capacity due to resource constraints, which led to their temporary closure and a slowdown in the market. The pandemic caused a severe lack of raw materials and severely impacted the supply chain networks in several industries, including automotive remanufacturing. Due to insufficient cash flow generation, numerous ongoing product-related R&D programmes were suspended, which resulted in sluggish growth in the remanufacturing industry.

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 to increasing demand for IC engine vehicles. These experience more wear and damage. This is the reason why parts 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, owing to the rising number of on-road passenger cars. Along with this, the segment is expected to benefit from rising auto sales and the industry's adoption of electric vehicles. The increasing knowledge and availability of remanufactured components compatible with a wide range of automobiles is expected to boost industry expansion.

Region with Largest share:

Asia Pacific is projected to hold the largest market share during the forecast period due to the growing sale of vehicles. The market will be primarily driven by rising consumer demand for affordable remanufactured auto parts, rising economic standards, and rising living standards of individuals. Furthermore, greater environmental awareness and increased awareness of waste management systems increase demand in this region.

Region with highest CAGR:

North America is projected to have the highest CAGR over the forecast period, owing to the presence of leading players and well-established automotive aftermarkets. The industry is being driven by an expanding number of automakers, rising OEM and governmental support for remanufactured parts, as well as quick-moving technology breakthroughs. Furthermore, it is anticipated that the growing use of electric vehicles would create profitable growth potential.

Key players in the market

Some of the key players profiled in the Automotive Remanufacturing Market include Caterpillar Inc., ATC Drivetrain, Robert Bosch GmbH, BBB Industries, Valeo, CARDONE Industries, Carwood Group, Borg Automotive, ZF Friedrichshafen AG, Monark Automotive GmbH, Standard Motor Products Inc., ATSCO Remanufacturing Inc., Teamec BVBA, Remy Power Products, LLC and Denso Corporation.

Key Developments:

In November 2022, Denso Corporation announced its remanufacturing program in Europe to further increase its adoption and boost awareness of the benefits of the remanufacturing process.

In July 2021, Bosch revealed its 455 automotive aftermarket parts that would cover more than 24 million operational vehicles. The company introduced a variety of product lines including Bosch eXchange Alternators. All the units were claimed to be factory-tested and remanufactured using high-quality materials and latest technologies for maximum durability.

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

Applications Covered:
• Commercial Vehicles
• Passenger Cars
• Other Applications

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 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