The Global Market for Remanufactured Automotive Parts is Projected to Reach US$139.8 Billion by 2020

Era of Eco-Austerity Drives Demand for Remanufactured Automotive Parts, According to a New Report by Global Industry Analysts, Inc.

GIA announces the release of a comprehensive global report on Automotive Parts Remanufacturing.  The global market for Remanufactured Automotive Parts is projected to reach US$139.8 billion by 2020, driven by the era of eco-austerity and growing concerns over the environmental impact of mainstream manufacturing.

Automotive industry is one of the early adopters of remanufacturing, where used auto parts like engines, transmissions, starter motors, alternators, clutches, steering racks, turbochargers, cylinder heads and brake calipers are remanufactured for the purpose of reuse. Auto parts remanufacturing represents the largest market segment accounting for about two-thirds of the global remanufacturing activity. The environmental benefits of remanufacturing are significant in the automotive industry, since vehicle parts and components are subject to significant wear and tear, and require frequent repairs or replacements during the operating life of the vehicle. Remanufacturing, in this regard, offers huge economic benefits as compared to mainstream manufacturing. Energy and raw material conservation offer both environmental and financial benefits.

Automotive parts remanufacturing activity is heavily reliant on the age of vehicles. Rising average vehicle life is therefore poised to benefit growth in the market, since aging vehicles require frequent maintenance and replacement of components. Other factors driving growth in the market include number of vehicles on roads, number of vehicle miles travelled, and growing consumer awareness over the environmental and cost benefits offered by remanufactured parts. Production of remanufactured automotive parts and components is rapidly migrating to low cost countries in Asia-Pacific and Eastern Europe, due to the availability of low cost labor. A key trend in the market is the diversification of OEMs into the remanufacturing business. Remanufacturing enables auto OEMs to compete against low-cost manufacturers and also to adhere to their corporate social and environmental responsibilities.

As stated by the new market research report on Automotive Parts Remanufacturing, the United States represents the largest market worldwide. Asia-Pacific is forecast to emerge as the fastest growing market with a CAGR of 25.2% led by the rapid expansion of auto parts remanufacturing activity in low cost Asian countries.

Major players covered in the report include Andre Niermann, ATC Drivetrain Inc., ATSCO Remanufacturing Inc., BORG Automotive A/S, Cardone Industries Inc., Caterpillar Inc., Detroit Diesel Corporation, Genuine Parts Company, Jasper Engines and Transmissions, Marshall Engines Inc., Maval Manufacturing Inc., Motorcar Parts of America Inc., Remy International Inc., Robert Bosch GmbH, Standard Motor Products Inc., Teamec BVBA, TRW KFZ Ausrüstung GmbH, and ZF Friedrichshafen AG, among others

The research report titled “Automotive Parts Remanufacturing: A Global Strategic Business Report”, announced by Global Industry Analysts, Inc., provides a comprehensive review of industry segments, trends, growth drivers, restraints, market share, size and demand projections and forecasts. Major geographic regions covered include the United States, Japan, Europe (France, Germany, Italy, UK, Spain, Russia and Rest of Europe), Asia-Pacific (China, South Korea and Rest of Asia-Pacific), and Rest of World.