The automotive parts remanufacturing is a process of restoring end-of-life vehicle components or assemblies to their original equipment manufacturer's specifications as new parts. The remanufacturing process often results in components that are equal to or better than their original condition. It involves disassembly, cleaning, inspection, replacing or repairing worn components, reassembly and rigorous testing. The automotive parts remanufacturing helps reduce vehicle ownership cost as remanufactured parts are 60-90% cheaper than new parts.
The Europe automotive parts remanufacturing Market is estimated to be valued at US$ 15.33994 Mn in 2023 and is expected to exhibit a CAGR of 7.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity
One of the major opportunities for the Europe automotive parts remanufacturing market is reducing vehicle ownership cost. On an average, around 40% of a vehicle's total lifetime cost comes from new parts replacement. Remanufactured parts can significantly reduce this ownership cost as remanufactured parts are priced 60-90% cheaper than new parts. Further, remanufactured parts have equal or better performance than new parts at much lower costs. This presents a huge opportunity for automotive parts suppliers as well as vehicle owners to reduce overall expenses associated with vehicle maintenance and parts replacement. As consumers are increasingly becoming cost-conscious, the lower cost of remanufactured parts will drive its demand over the forecast period.
Porter's Analysis
Threat of new entrants: The automotive parts remanufacturing market in Europe requires high initial investments and dealing with established brands poses hurdles for new companies.
Bargaining power of buyers: Buyers have moderate bargaining power due to the presence of substitutes and availability of remanufactured parts from multiple brands.
Bargaining power of suppliers: Suppliers have low bargaining power due to the availability of a large number of parts suppliers.
Threat of new substitutes: Remanufactured parts are a cheaper alternative to new OEM parts, minimizing threats from substitutes.
Competitive rivalry: The market is competitive due to the presence of multiple global and regional players offering similar products.
SWOT Analysis
Strength: Presence of an established automotive industry and infrastructure for parts recovery in the region. Remanufacturing helps achieve sustainability goals of reducing waste.
Weakness: Perception of remanufactured parts being of inferior quality compared to new parts. Lack of common standards for certification of quality.
Opportunity: Implementation of stringent emission regulations driving the demand for affordable low-cost vehicular maintenance solutions. Growth of the automotive aftermarket.
Threats: Macroeconomic uncertainties affecting consumer spending. Rising raw material prices increasing production costs.
Key Takeaways
The Europe Automotive Parts Remanufacturing Market Size is expected to witness high growth during the forecast period of 2023 to 2030. The Europe automotive parts remanufacturing Market is estimated to be valued at US$ 15.33994 Mn in 2023 and is expected to exhibit a CAGR of 7.8% over the forecast period 2023 to 2030.
Germany dominates due to the large presence of automotive OEMs and an established parts recovery and remanufacturing ecosystem in the country. Germany accounted for over 25% of the European market in 2023 owing to the strong automotive industry base with major OEMs like Volkswagen, Mercedes, and BMW located in the country. The country also has a reuse and recycling infrastructure to effectively recover core components.
Key players: Key players operating in the Europe automotive parts remanufacturing market are Borg Automotive A/S, Budweg Caliper A/S, Caterpillar Inc., LuK Unna GmbH & Co. KG, Valeo SA, Schouw & Co., ZF Friedrichshafen AG, Monark Automotive GmbH, Carwood Group, Robert Bosch GmbH, and Meritor, Inc. Borg Automotive and Budweg Caliper are leading players based out of Denmark.
For More Insights, Read: https://www.newswirestats.com/europe-automotive-parts-remanufacturing-market-demand-growth-and-regional-outlook-by-2030/
