Automotive parts remanufacturing involves rebuilding worn or non-functional automotive components to original specifications. Remanufactured automotive parts such as engines, transmissions, and turbochargers provide significant cost savings as compared to new parts, while fulfilling the same performance requirements. These parts also help extend the lifespan of vehicles and promote a more sustainable transportation ecosystem. The global Automotive Parts Remanufacturing Market is estimated to be valued at US$2541.81 billion in 2023 and is expected to exhibit a CAGR of 14% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The increasing need for sustainable transportation is one of the key trends driving growth in the automotive parts remanufacturing market. Remanufacturing used automotive components significantly reduces waste generation and lowers emissions associated with manufacturing new parts from virgin materials. It is estimated that remanufacturing one car engine saves approximately 1,100 kg of carbon emissions. Strong legislative support for promoting circular economy practices is also encouraging automotive manufacturers to increasingly rely on remanufactured components. Many countries in Europe have implemented extended producer responsibility regulations targeting automotive waste, boosting demand for remanufactured vehicle parts.
Segment Analysis
The automotive parts remanufacturing market analysis is segmented based on components type into engine components, transmission components, electrical components, drivetrain components and others. Among these, the engine components segment dominates the market and accounted for over 30% share in 2023. Engine components such as pistons, crankshafts, camshafts and flywheels are the most common and critical components used in a vehicle. As their replacement is not economically viable compared to remanufacturing, they experience high demand for remanufacturing.
Key Takeaways
The global automotive parts remanufacturing market is expected to witness high growth driven by rising vehicle parc, stringent emission norms and increasing average age of vehicles. Regional analysis related content comprises North America dominates the automotive parts remanufacturing market currently due to presence of large vehicle parc and established remanufacturing industry in the region. Asia Pacific automotive parts remanufacturing market is projected to grow at fastest pace during the forecast period due to rapid motorization in China and India along with policy support for remanufacturing.
Key players related content comprises Key players operating in the automotive parts remanufacturing market are Borg Automotive Inc., Caterpillar Inc., Detroit Diesel Corporation, Meritor Inc., ZF Friedrichshafen AG, Valeo SA, Robert Bosch GmbH, Carwood Group, AB Volvo, and Monark Automotive.
Get more insights on this topic: https://www.newswirestats.com/automotive-parts-remanufacturing-market-industry-insights-trends-automotive-parts-remanufacturing-market/
Explore more information on this topic, Please visit: https://masstamilan.in/emerging-role-of-biosensors-in-healthcare-advancing-disease-diagnosis-and-treatment-monitoring/
Giving a less expensive option in contrast to buying brand new automotive parts, remanufacturing market in general gain traction when customer expending drops.
On the other hand, in a quickly developing economy then again, purchasers have a tendency to pick novel products over remanufactured ones and thus, the market for remanufactured automotive parts encounters a dive.Monetary advantages will remain the essential aspect boosting the market.
Reliably vigorous requirement for remanufactured alternators and starters will moreover keep on propelling the sales over the approaching years.
Rise of hybrid and electric vehicles will be a remarkable driver to overall market.The normal age of the current vehicles fleet is expanding, demonstrating a sturdy impulse to the requirement.
This is considered to impel the sales throughout the following couple of years.Developing concerns with respect to overall environmental impact and carbon footprint of recently made automobiles and expanded utilization of remanufactured transmission in elevated technology hybrid and electric vehicles will jointly fuel the requirement.
This can represent a noteworthy challenge to new sales in the approaching years.
