The global Automotive Parts Remanufacturing Market is estimated to be valued at US$ 60.8 Mn in 2022 and is expected to exhibit a CAGR of 8.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
A) Market Overview:
Automotive Parts Remanufacturing involves the process of rebuilding, restoring, and reconditioning used automotive parts back to their original specifications. This process helps to reduce waste and environmental impact by extending the life of automotive parts and reducing the need for new parts production. Automotive parts that are commonly remanufactured include engines, transmissions, starters, alternators, and brake calipers. Remanufactured parts offer several advantages such as cost savings, reduced energy consumption, and reduced carbon emissions.
B) Market key trends:
One key trend driving the growth of the Automotive Parts Remanufacturing Market is the increasing demand for environmentally sustainable solutions in the automotive industry. With growing concerns about climate change and the impact of carbon emissions, automotive manufacturers and consumers are seeking more sustainable alternatives. Remanufactured parts help to reduce the carbon footprint of the automotive industry by reusing existing parts rather than producing new ones. Additionally, remanufacturing reduces the need for raw materials and energy consumption, further contributing to environmental sustainability.
For example, Valeo SA, a leading automotive supplier, offers remanufactured alternators and starters that are produced with 100% renewable energy and contribute to a reduction in CO2 emissions by up to 80% compared to new parts.
C) Porter’s Analysis:
The threat of new entrants:
The threat of new entrants in the Automotive Parts Remanufacturing Market is low due to the high capital investment required for setting up remanufacturing facilities and the complex technical knowledge required for the remanufacturing process.
Bargaining power of buyers:
The bargaining power of buyers in the market is moderate as there are several suppliers available for remanufactured parts. Buyers can choose from a wide range of options based on price, quality, and warranty offerings.
Bargaining power of suppliers:
The bargaining power of suppliers is moderate as there are several suppliers of used automotive parts available, but the availability of quality parts and the ability to meet the specific requirements of remanufacturing processes can affect their bargaining power.
The threat of new substitutes:
The threat of new substitutes is low as remanufactured parts offer a cost-effective and environmentally sustainable alternative to new parts. The remanufacturing process ensures that the parts meet or exceed the original equipment specifications.
The competitive rivalry in the market is high as several major players are offering remanufactured automotive parts. These players compete on factors such as price, quality, warranty, and customer service.
D) Key Takeaways:
The global Automotive Parts Remanufacturing Market is expected to witness high growth, exhibiting a CAGR of 8.7% over the forecast period, due to increasing demand for environmentally sustainable solutions in the automotive industry. The remanufacturing process helps reduce waste and carbon emissions, making it an attractive option for automotive manufacturers and consumers.
In terms of regional analysis, North America is expected to dominate the Automotive Parts Remanufacturing Market due to the presence of established remanufacturing facilities and favorable government regulations promoting sustainable practices in the automotive industry.
Key players operating in the global Automotive Parts Remanufacturing Market include Valeo SA, ZF TRW, Carwood Group, Robert Bosch GmbH, Meritor Inc., Monark Automotive GmbH, Budweg Caliper A/S, Genuine Parts Company, ATC Drivetrain Inc., Maval Manufacturing Inc., Teamec BVBA, Motorcar Parts of America, Inc., and Jasper Engines and Transmissions. These players focus on product innovation, strategic partnerships, and acquisitions to gain a competitive edge in the market.
In conclusion, the Automotive Parts Remanufacturing Market is experiencing growth due to the demand for environmentally sustainable solutions in the automotive industry. Remanufactured parts.