Automotive Parts and Component Market Synopsis
According to a new report published by Introspective Market Research, titled, “Automotive Parts and Component Market by Type, Application, Distribution Channel and Region: Global Opportunity Analysis and Industry Forecast, 2024–2032,”
Global Automotive Parts and Component Market size was valued at $ 2062.27 million in 2023, and is projected to reach $ 2686.1 million by 2032, registering a CAGR of 2.98% from 2024 to 2032.
Automotive parts and components include important individual elements and assemblies that are necessary for the operation of the vehicle. These include engines, transmissions, brakes, suspension systems and other fixed parts. Their importance is to facilitate the maintenance, repair and production of vehicles, which ensures the efficiency and safety of the cars. Auto parts and components refers to things related to the parts or assemblies used in the design of the facility. The auto parts and components industry have a large number of companies and organizations involved in design, development, production, distribution, sales and repair. Various parts and components such as engine gearbox, battery, alternator, radiator, front axle, steering and suspension, brakes, body and chassis.
The auto parts and components market are much larger and is divided into organized and unorganized sectors. Original Equipment Manufacturers (OEM) provide high-quality parts that ensure perfect fit and optimal functionality and build a reputation for reliability. While OEM parts may be more expensive, consumers appreciate guarantees of quality and precision, especially for safety-critical components.
Consumers prefer advanced features in vehicles, which leads to demand for quality and reliable auto parts. OEMs produce parts that are compatible with modern vehicle technology, especially in electric and hybrid vehicles. Demand includes special components such as batteries, electric motors and advanced control systems. The market is expanding due to population growth, urbanization and economic growth, which directly increases the demand for vehicles. As auto production increases to meet this growing demand, so does the need for versatile and advanced auto parts and components. The complexity of modern vehicles, with their emphasis on safety, performance and technological integration, requires a wide range of specialized components.
The automotive parts and components market are in demand due to the increasing use of vehicles including electric motors, advanced driver assistance systems and connectivity features. Technological development opens up a new space in the market, which requires adaptation of components to modern vehicles. Original equipment manufacturers (OEM) and the aftermarket benefit from the development and integration of new materials, sensors and electronic components. The growing use of electric vehicles requires adaptation to their complex battery systems and power electronics, while the integration of smart technologies and data-driven analytics will increase safety and efficiency.
Global Automotive Parts and Component Market, Segmentation
The Automotive Parts and Component Market is segmented based on type, application, distribution channel and region.
Type:
The type segment is further classified into Engine Parts, Drive transmission, steering parts, Suspension, brake parts, Electrical parts. Among these, the engine parts sub-segment accounted for the highest market share in 2023. Engine parts represent a dominant segment due to their critical role in vehicle performance and longevity. This segment encompasses essential components such as pistons, crankshafts, camshafts, and engine blocks, which are vital for the engine's functionality and efficiency. The demand for high-quality engine parts is driven by the need for durability, fuel efficiency, and adherence to stringent emission standards. With the continuous advancements in automotive technology, including the development of hybrid and electric engines, the engine parts segment is witnessing significant innovation and investment. Manufacturers are focusing on lightweight materials and advanced manufacturing processes to enhance engine performance and reduce environmental impact, solidifying the engine parts segment as a crucial and dominant area within the automotive parts market.
Application:
The application segment is further classified into Original Equipment Manufacturers (OEMs), and Aftermarket Parts. Among these, the Original Equipment Manufacturers (OEMs) sub-segment is anticipated to show the fastest growth by 2032. The OEM segment includes companies responsible for the production of aftermarket parts and equipment that are part of vehicle production. OEMs are at the forefront of technological development and respond to evolving trends in the automotive industry with innovations in safety, efficiency and effectiveness. The OEM segment benefits from strategic collaboration with car manufacturers, securing its position as a key player in providing cutting-edge solutions that meet the strict standards and specifications of vehicle manufacturers. As the automotive industry continues to evolve, the OEM segment is well-positioned to lead the supply of critical components shaping the future of automotive technology.
Region:
The Automotive Parts and Component Market in Asia-Pacific is projected to show the fastest growth by 2032. Asia Pacific is expected to dominate the global auto parts and components market due to its large manufacturing base, availability of raw materials and intensive labor. The Chinese car market has grown exponentially in both production and consumption. The country's large market, with an emphasis on electric vehicles and technological progress, positions it as a driving force for the regional and global auto parts industry.
Some of The Leading/Active Market Players Are-
- Lear Corporation (U.S.)
- Dana Incorporated (U.S.)
- Standard Motor Products, Inc. (U.S.)
- Tenneco (U.S.)
- Wangxiang Qianchao Co., Ltd. (China)
- Weichai Holding Group Co. Ltd. (China)
- Beiwei Mould Industry (China)
- Hyundai Motor Group (South Korea)
- Mando Corporation (South Korea)
- Panasonic Holdings Corporation (Japan), and Other Active Players
Key Industry Developments
- In May 2024, Leapmotor International launched its operations with an ambitious strategy to expand global electric vehicle sales. Starting in September 2024, the company will begin selling its electric vehicles in nine European countries, aiming to establish a significant presence in the European market. This expansion is part of Leapmotor's broader vision to accelerate the adoption of electric vehicles worldwide, leveraging innovative technology and sustainable practices.
- In April 2024, At ChangeNOW, The Future Is Neutral announced the launch of a range of refurbished parts and components dedicated to electric vehicles, adding to the existing range of reconditioned electronic parts and combustion engines. The owner of an electric vehicle now has the option of replacing a faulty part with a second-hand, reconditioned part for around 30% less than the price of a new part.
Key Findings of the Study
- The global Automotive Parts and Component Market was valued at $2062.27 million in 2023.
- Engine parts emerged as the dominant segment in 2023, driven by their crucial role in vehicle performance and efficiency.
- The Asia-Pacific region is forecasted to witness the fastest growth in the Automotive Parts and Component Market by 2032
