Challenges and Opportunities in the Expanding Automotive Parts Market

Challenges and Opportunities in the Expanding Automotive Parts Market

According to Meticulous Research®, the global automotive parts market is anticipated to reach $824.2 billion by 2031, expanding at a CAGR of 4.3% from 2024 to 2031. This growth is attributed to the increasing production of automobiles in emerging markets, rising vehicle sales, and enhanced governmental initiatives in the automotive sector. However, market expansion is hindered by the volatility of raw material prices, availability concerns, and stringent regulations across various regions.

Additionally, the surge in demand for electric and hybrid vehicles, technological advancements, and the growing adoption of connected devices in the automotive industry are expected to present significant growth opportunities for market players. However, supply chain disruptions remain a notable challenge affecting market growth.

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By Geography

The automotive parts market is divided into:

• North America

• Europe

• Asia-Pacific

• Latin America

• Middle East & Africa

In 2024, Asia-Pacific is expected to hold the largest share of the global market. The growth in this region is driven by increased vehicle production, rising demand for electric vehicles, and the growing preference for SUVs in China and India. In April 2021, MAHLE GmbH (Germany) launched a new Electronics and Mechatronics Development center in Changshu, China, aimed at developing solutions for alternative drives and expanding expertise in electric powertrains, electronics, and mechatronics. This region is also projected to record the highest CAGR (~5.6%) during the forecast period.

Market Segmentation

By Product Type

The global automotive parts market is categorized into:

• Engine parts (pistons and piston rings, engine valves and parts, fuel-injection systems and carburetors, cooling systems and parts, powertrain components, pulleys & belts, oil & other filters)

• Drive transmission & steering parts (gears, wheels, steering systems, axles, clutches)

• Body chassis, suspension & braking parts (brake assemblies, brake linings, shock absorbers, leaf springs)

• Equipment (headlights, halogen bulbs, wiper motors, dashboard instruments, other panel instruments)

• Electrical & electronic parts (starter motors, spark plugs, electric ignition systems, flywheel magnetos, other equipment)

• Other product types

In 2024, the engine parts segment is expected to hold the largest market share (~26%). This is due to the increased vehicle production, rising demand for electric vehicles, and the growing aftermarket demand for engine parts. For example, in May 2023, MAHLE GmbH (Germany) signed an MoU with Clean Air Power (U.K.) to develop zero-carbon internal combustion engine solutions for heavy-duty applications.

The electrical & electronic parts segment is projected to achieve the highest CAGR during the forecast period. The growth in this segment is driven by the increasing demand for electronics over traditional gasoline vehicles, the trend of internet connectivity in vehicles, and the growing electrification, automation, and focus on advanced features in cars. In April 2023, ZF Friedrichshafen AG (Germany) launched the Electronic Brake Booster (EBB), part of the braking system for electric vehicles.

By Distribution Channel

The market is segmented into:

• OEMs

• Aftermarket (online, offline)

In 2024, the OEMs segment is expected to dominate with a ~74% market share. This is attributed to the adoption of advanced technologies in vehicles and the consumer preference for OEM parts, which offer warranties and added protection. In January 2024, Rane Holdings Limited (India) opened a new facility in Aguascalientes, Mexico, for manufacturing steering and suspension parts for passenger vehicles. This segment is also projected to register the highest CAGR during the forecast period.

By Vehicle Type

The market is segmented into:

• Passenger cars

• Light commercial vehicles

• Heavy commercial vehicles

• Two-wheelers

• Three-wheelers

In 2024, the two-wheelers segment is expected to hold the largest market share (~62%). This is due to increasing disposable incomes, urbanization, traffic congestion, and environmental concerns. In September 2023, Qualcomm Technologies, Inc. (U.S.) launched the Snapdragon Digital Chassis solution to enhance safety, infotainment, and cloud-connected digital services for various two-wheelers, including motorcycles, scooters, and e-bikes. This segment is also projected to achieve the highest CAGR during the forecast period.

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Key Players

Leading companies in the global automotive parts market include: Robert Bosch GmbH (Germany), DENSO Corporation (Japan), Continental AG (Germany), ZF Friedrichshafen AG (Germany), Magna International Inc. (Canada), Hyundai Motor Group (South Korea), Aisin Corporation (Japan), Lear Corporation (U.S.), Yazaki Group (Japan), Valeo (France), Sumitomo Electric Industries, Ltd. (Japan), FORVIA Faurecia (France), Marelli Aftermarket Italy S.p.A.(Italy), Schaeffler Technologies AG & Co. KG (Germany), and BorgWarner, Inc. (U.S.).

Meticulous Research® offers a detailed report providing global market size estimates, market share analysis, revenue figures, and coverage of key issues and trends in the automotive parts market.

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