Automotive parts remanufacturing involves rebuilding of worn or non-functional automotive parts to restore them to an almost like-new condition. Remanufactured automotive parts are more affordable as compared to new ones offering similar performance. There is a growing demand for cost-effective remanufactured automotive parts such as engines, starters, alternators, transmissions among others from vehicle owners looking to reduce repair and maintenance costs.
The Europe automotive parts remanufacturing market is estimated to be valued at US$ 15.34 Mn in 2023 and is expected to exhibit a CAGR of 38.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
Cost savings offered by automotive parts remanufacturing presents a major market opportunity. Remanufactured parts can reduce costs by 30-50% on average compared to purchasing new parts. This provides significant cost advantages to fleet owners, repair workshops and individual vehicle owners. Additionally, remanufacturing helps in reducing landfill wastes and lowering production costs by recycling existing parts. As vehicle repair and maintenance costs continue to rise, the demand for cost-effective remanufactured parts is expected to grow rapidly providing opportunities for parts remanufacturers in Europe over the forecast period.
Porter's Analysis
Threat of new entrants: The threat of new entrants in the Europe automotive parts remanufacturing market is low as it requires large capital investments and technical expertise to remanufacture vehicle components.
Bargaining power of buyers: The bargaining power of buyers is moderate due to the presence of a large number of established remanufacturers and availability of both genuine and counterfeit parts.
Bargaining power of suppliers: The bargaining power of suppliers is low as the market has a large number of component manufacturers and remanufacturers.
Threat of new substitutes: The threat of new substitutes is moderate as technology advancements have allowed for improvements in repairing and reusing of automotive components.
Competitive rivalry: The competitive rivalry is high among key players to gain more market share through innovations, partnerships, and mergers & acquisitions.
SWOT Analysis
Strengths: Established distribution networks, technology leadership, and focus on research & development leading to new product launches.
Weaknesses: High operating costs, compliance with stringent regulations, and dependency on automotive OEMs for core returns.
Opportunities: Growing demand from emerging nations due to rising vehicle parc, focus on reducing vehicle repair costs, and initiatives to promote remanufacturing.
Threats: Increasing adoption of electric vehicles may reduce demand for conventional ICE parts, and counterfeiting activities posing quality issues.
Key Takeaways
The Europe Automotive Parts Remanufacturing Market Share is expected to witness high growth driven by initiatives to promote circular economy and automotive sustainability. The market size for 2023 is projected to reach US$ 15.34 Mn registering a CAGR of 38%.
Regional analysis: Western Europe dominates the market with UK, Germany, and France among the major revenue generating countries. This is attributed to strong presence of major automakers and initiatives to reduce carbon footprint. Eastern Europe is expected to be the fastest growing region due to increasing vehicle parc, government support for remanufacturing, and shift of low-cost part manufacturing plants.
Key players: AnaSpec, Inc., Boston Scientific Corporation, Abbott Laboratories, Inc., Baxter International, Inc., and Medtronic plc. operate in the Europe automotive parts remanufacturing market. Some key players focus on expanding product portfolio and entering partnerships to gain leadership position.
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