Auto Parts Manufacturing Market

Market Overview:

The global auto parts manufacturing market size reached US$ 2,197.9 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 2,719.4 Billion by 2032, exhibiting a growth rate (CAGR) of 2.39% during 2024-2032. The increasing global demand for automobiles, the rising governments initiatives and incentives promoting the automotive industry's growth and sustainability, and the growing consumer demand for enhanced comfort, connectivity, and convenience features in vehicles are some of the factors propelling the market.

Auto parts manufacturing is a vital industry that plays a crucial role in the automotive sector. It involves producing various components and systems essential for vehicles' functioning and performance. Auto parts manufacturers employ advanced technologies, such as computer-aided design and manufacturing, to develop high-quality parts that meet the automotive industry's stringent requirements. They specialize in producing a wide range of components, including engines, transmissions, brakes, suspension systems, and electrical systems. These manufacturers work closely with automobile manufacturers to ensure seamless integration of their parts into vehicles. With the increasing demand for vehicles worldwide, auto parts manufacturing continues to thrive, driving innovation, efficiency, and quality to meet the evolving needs of the automotive market.

The global market is primarily driven by the increasing emphasis on vehicle safety and regulations. In line with this, the rapid advancements in automotive technology are significantly contributing to the market. Furthermore, the rising demand for automobiles and the growing consumer preference for more fuel-efficient vehicles are positively influencing the market. Apart from this, the expansion of the electric vehicle market and the escalating adoption of advanced driver-assistance systems (ADAS) and autonomous technologies are catalyzing the market. Moreover, rapid urbanization and infrastructure development worldwide are propelling the market. Besides, the increasing replacement demand for aging vehicles and the expansion of the global automotive aftermarket are fostering the market. Additionally, the rising focus on lightweight materials and energy-efficient components is providing a boost to the market.

Auto Parts Manufacturing Market Trends/Drivers:

Rapid technological innovations in manufacturing processes

Technological innovations in manufacturing processes, such as additive manufacturing and robotics, offer numerous market opportunities. These advancements have revolutionized the production of automotive components, offering numerous benefits to manufacturers. Additive manufacturing, also known as 3D printing, enables the production of complex and customized auto parts with greater speed, precision, and cost-efficiency. It eliminates the need for traditional manufacturing techniques, such as casting or machining, and reduces material waste. Additive manufacturing also optimizes design and produces lightweight, high-performance parts, contributing to fuel efficiency and vehicle performance. Furthermore, robotics technology has transformed assembly lines and manufacturing operations, enhancing productivity, precision, and efficiency. Robots can handle repetitive tasks accurately and quickly, resulting in improved production rates and reduced errors. They also offer flexibility in adapting to changing manufacturing requirements, enabling faster production line reconfigurations for different vehicle models. These technological innovations streamline the manufacturing process and promote innovation and design freedom. Manufacturers can explore new materials, geometries, and functionalities, leading to the development of advanced auto parts that meet evolving industry and consumer demands. Moreover, the adoption of these technologies in auto parts manufacturing enhances overall operational efficiency, reduces costs, and allows manufacturers to stay competitive in a rapidly evolving market. As a result, the continued advancements in additive manufacturing and robotics are catalyzing the growth and transformation of the auto parts manufacturing sector.

Significant growth in the automotive industry worldwide

Significant growth in the automotive industry worldwide is a major driving force behind the market growth of auto parts manufacturing. This can be attributed to the increasing population, rapid urbanization, and inflating disposable incomes in emerging economies. As more individuals aspire to own cars, the need for auto parts to support manufacturing and maintenance grows. Furthermore, the technological advancements in the automotive sector, such as electric vehicles, autonomous driving, and connectivity features, have fueled the demand for specialized auto parts. This includes components related to battery systems, sensors, infotainment systems, and advanced safety features. Moreover, the stringent government regulations and environmental concerns have prompted automakers to develop more fuel-efficient vehicles with lower emissions. This shift necessitates the production of innovative auto parts that contribute to improved fuel economy and reduced environmental impact. Besides, the replacement market plays a significant role in driving the auto parts manufacturing sector. As vehicles age, there is an increasing need for replacement parts, including wear-and-tear components like brakes, filters, and suspension. The overall growth of the automotive industry, coupled with evolving consumer demands and technological advancements, creates a robust market for auto parts manufacturers. To meet the increasing demand, manufacturers must continuously innovate, improve efficiency, and develop cost-effective solutions, catalyzing the market.

Growing adoption of electric vehicles (EVs)

The growing adoption of electric vehicles (EVs) is strengthening the market. Various factors, including environmental concerns, government regulations, and advancements in battery technology, drive the shift toward EVs. The rise in EV production has created a significant demand for specialized auto parts tailored to electric powertrains. This includes electric motors, battery packs, power electronics, charging, and thermal management systems. Auto parts manufacturers are investing in research and development to produce high-performance, efficient, and reliable parts for EVs. The growing EV market presents new opportunities for auto parts manufacturers to develop innovative solutions. They are focusing on lightweight materials, advanced cooling systems, and energy-efficient components to optimize the performance and range of electric vehicles. Additionally, the infrastructure required for EVs, such as charging stations and grid integration, drives the demand for related components and systems. This includes connectors, cables, power management systems, and communication technologies. As governments worldwide introduce incentives and regulations to promote EV adoption, the market for auto parts manufacturing continues to expand. Manufacturers are investing in capacity expansion, collaboration with automakers, and technological advancements to meet the increasing demand and capitalize on the growing market for EV-related auto parts.

Auto Parts Manufacturing Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global auto parts manufacturing market report, along with forecasts at the global, regional and country level from 2024-2032. Our report has categorized the market based on component type, sales channel and vehicle type.

Breakup by Component Type:

• Battery
• Cooling System
  • Compressor
  • Radiator
  • Pump
  • Thermostat
• Underbody Components
  • Brake
  • Exhaust
• Engine Components
  • Starter
  • Pump
  • Engine
  • Alternator
• Automotive Filter
• Lighting Components
• Electrical Components
  • Ignition Coil
  • Ignition Switch
  • Spark and Glow Plug
• Others
   

Engine components dominates the market

The report has provided a detailed breakup and analysis of the market based on the component type. This includes battery, cooling system (compressor, radiator, pump, thermostat), underbody components (brake and exhaust), engine components (starter, pump, engine, and alternator), automotive filter, lighting components, electrical components (ignition coil, ignition switch, and spark and glow plug), and others. According to the report, engine components represented the largest segment.

Engine components, including fuel systems, ignition systems, and engine control modules, contribute to vehicles' overall performance and efficiency. The increasing focus on engine optimization, emission reduction, and powertrain electrification has driven the market for advanced engine components.

On the contrary, the increasing demand for electric vehicles (EVs) has propelled the growth of the battery segment. As the transition towards sustainable transportation accelerates, the need for advanced battery technologies and energy storage solutions has increased. This drives the market for battery components such as cells, modules, and management systems.

Furthermore, the cooling system segment is crucial in maintaining optimal vehicle operating temperatures. The need for advanced cooling systems has grown with the rising demand for more efficient and eco-friendly vehicles. This includes radiators, fans, pumps, and other cooling components.

Moreover, underbody components, such as suspension, exhaust, and chassis, are essential for vehicle performance, stability, and safety. The demand for improved ride quality, fuel efficiency, and safety features has driven the growth of this segment.

Additionally, automotive filters, such as air filters, oil filters, and fuel filters, are critical for maintaining the longevity and efficiency of vehicle systems. The demand for high-quality filtration solutions to enhance engine performance and reduce emissions has boosted the growth of this segment.

Breakup by Sales Channel:

• OEM
• Aftermarket
   

OEM holds the largest share of the market

A detailed breakup and analysis of the market based on the sales channel have also been provided in the report. This includes OEM and aftermarket. According to the report, OEM accounted for the largest market share.

The OEM segment involves supplying auto parts directly to vehicle manufacturers for original installations. As automotive production continues to grow globally, OEMs require a steady supply of high-quality components to meet the demand for new vehicles. Long-term contracts, high-volume orders, and stringent quality standards characterize the OEM sales channel. Manufacturers specializing in OEM parts benefit from partnerships with vehicle manufacturers and the opportunity to integrate their products into new vehicles.

The aftermarket segment, on the other hand, contributes significantly to the market growth by providing auto parts and components for vehicle maintenance, repairs, and upgrades. This segment serves vehicle owners, repair shops, and retailers. The aftermarket sales channel offers a wide range of options, including original equipment parts, certified replacements, and aftermarket alternatives. It caters to customer preferences for cost-effective solutions, customization options, and parts availability for older or discontinued vehicle models. The aftermarket segment expands in vehicle aging, repair and maintenance needs, and consumer demand for individualization and performance enhancements.

Breakup by Vehicle Type:

• Passenger Cars
• Light Commercial Vehicles
• Heavy Commercial Vehicles
• Others
   

Passenger Cars holds the largest share of the market

A detailed breakup and analysis of the market based on the vehicle type have also been provided in the report. This includes passenger cars, light commercial vehicles, heavy commercial vehicles, and others. According to the report, passenger cars accounted for the largest market share.

The passenger car segment is driven by the augmenting demand for personal transportation and increasing consumer preferences for comfort, safety, and advanced features. Auto parts manufacturers cater to this segment by supplying components such as engines, transmissions, suspension systems, electrical systems, and interior accessories.

The light commercial vehicle segment, on the contrary, includes vans, pickups, and small trucks used for commercial purposes. The growth of e-commerce and last-mile delivery services has fueled the demand for LCVs, catalyzing the market for cargo space solutions, braking systems, powertrain components, and vehicle safety features.

Heavy commercial vehicles, including trucks, buses, and trailers, are critical in logistics, construction, and public transportation. This segment requires robust and durable components to ensure reliability, efficiency, and compliance with stringent safety regulations. Manufacturers provide components such as engines, transmissions, braking systems, suspension systems, and exhaust systems for HCVs.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Asia Pacific exhibits a clear dominance, accounting for the largest market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa.

Asia Pacific is witnessing substantial growth due to rapid industrialization, rapid urbanization, and an expanding automotive sector. The region is the largest automotive market globally. Asia Pacific is a manufacturing hub, benefitting from lower production costs, a skilled workforce, and a strong supply chain ecosystem. The region's increasing middle class, rising disposable incomes, and expanding transportation infrastructure contribute to the growth of the auto parts manufacturing market.

On the contrary, the market In North America is fuelled by continual technological advancements and a robust manufacturing infrastructure. The region is home to major automobile manufacturers and has a high demand for auto parts due to a large vehicle fleet. North America is also at the forefront of innovation in electric vehicles, autonomous driving technologies, and advanced safety features, creating opportunities for manufacturers to supply components for these emerging segments.

Competitive Landscape:

Top auto parts manufacturing companies are stimulating the market through their strategic initiatives and capabilities. These companies invest heavily in research and development to innovate and develop advanced auto parts that meet evolving industry needs. They leverage their engineering, design, and manufacturing expertise to produce high-quality components with precision and efficiency. These companies also establish strong partnerships and collaborations with automakers to ensure the seamless integration of their parts into vehicles. By closely collaborating with their customers, they gain insights into industry trends and requirements, allowing them to develop customized solutions. Moreover, they emphasize operational excellence, implementing lean manufacturing practices, and leveraging automation and robotics to enhance productivity and cost-efficiency. They continuously strive to improve their supply chain management to ensure timely delivery and minimize disruptions. These companies expand their market reach through effective marketing and global distribution networks, serving original equipment manufacturers (OEMs) and the aftermarket. They invest in customer support and after-sales services to build long-term client relationships.

The report has provided a comprehensive analysis of the competitive landscape in the auto parts manufacturing market. Detailed profiles of all major companies have also been provided.

• Aisin Corporation
• Akebono Brake Industry Co. Ltd.
• Brembo S.p.A.
• Continental AG
• DENSO Corporation
• Faurecia SE
• General Motors Company
• Magna International Inc.
• Marelli Holdings Co. Ltd.
• Robert Bosch GmbH
• Schaeffler AG
• Valeo

Recent Developments:

• In 2021, Aisin Corporation announced a collaboration with DENSO Corporation and JTEKT Corporation to establish a new company called BluE Nexus Corporation. The joint venture aimed to develop and manufacture integrated electric drive units (eAxles) for electric vehicles.
• In 2020, Akebono Brake Industry Co. Ltd. announced a collaboration with Electric Drivetrain Technologies (EDT) to develop and produce electric vehicle brake systems. The partnership aimed to combine Akebono's brake technology with EDT's expertise in electric drivetrains, creating advanced braking solutions for electric vehicles.
• In 2019, Brembo S.p.A. announced a strategic partnership with Pirelli to develop a joint offering called "Pirelli P Zero World." The collaboration aimed to create a unique retail concept that combines Brembo's high-performance braking systems with Pirelli's premium tires.

Auto Parts Manufacturing Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the auto parts manufacturing market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global auto parts manufacturing market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the auto parts manufacturing industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.