The Global Market for Automotive Parts Remanufacturing is Projected to reach US$198 Billion by 2024

Increasing Vehicle Parc and Average Age of Vehicles Drive the Automotive Parts Remanufacturing Market, According to New Report by Global Industry Analysts, Inc.

GIA launches comprehensive analysis of industry segments, trends, growth drivers, market share, size and demand forecasts on the global Automotive Parts Remanufacturing market. The global market for Automotive Parts Remanufacturing is projected to reach US$198 billion by 2024, driven by sustained demand, large vehicle parc and increasing average age of vehicles around the world.

Defined as the process of restoring worn-out used products to a ‘new’ like condition, remanufacturing not only helps maintain demand and supply balance for various industrial goods but also helps production of the same with little mainstream manufacturing activity that can cause environmental degradation. Unlike elaborate production processes that are typically associated with new product manufacturing, remanufacturing involves disassembly of product at module and component level and recovery of product through only repairs, refurbishments or replacements of obsolete or worn-out modules and components. Since it does not involve actual production of new product, remanufacturing demands very little raw material, energy and other production inputs that can affect environment.

The automotive industry has been one of the early adopters of remanufacturing, where used components like engines, transmissions, starter motors, alternators, clutches, steering racks, turbochargers, cylinder heads, and brake calipers are remanufactured through a series of processes for the purpose of reuse. Auto parts remanufacturing is also regarded as one of the largest remanufacturing segments accounting for about two-thirds of global remanufacturing activity. The auto parts remanufacturing market is inversely proportional to the economic growth in a sense that when there is strong economic growth and high consumer affluence, demand for remanufactured products tend to fall as vehicle owners will be more inclined towards replacements of worn out vehicles rather than extending their useful lives and replacing worn out parts with remanufactured goods. Alternatively, when economic growth is weak and consumer spending low, demand for remanufactured parts typically increases as services and replacement of worn out parts prove to be much cheaper than replacing the entire vehicle.

Apart from economic trends, number of vehicles on roads, average age of vehicle fleet, and number of miles travelled also influence demand for vehicle remanufactured auto parts and components in a given market given that greater the number of vehicles on road and greater the number of miles travelled by vehicles, greater will be the need for replacements and greater will be demand for remanufactured parts and components for replacements. On the other hand, increasing OEM warranties, and quality of new vehicles pose challenges for remanufactured automotive parts. Increasing complexity of present day automotives also poses engineering challenges to remanufacturers. The increasing electronic content of vehicles poses challenges for remanufacturers in developing and updating their technology to match OEMs. Additionally, OEMs are aggressively trying to constrict the availability of cores to protect their market share.

As stated by the new market research report on remanufactured automotive parts, the US dominates the global market, owing to the large number of vehicles in operation, high miles driven on vehicles, and acceptance of remanufactured parts as satisfactory replacements. On the other hand, Asia-Pacific region is forecast to emerge as the fastest growing market with a CAGR of 20.9% over the analysis period, owing to the increasing vehicle parc, and remanufactured automotive parts gaining acceptance among customers, especially in China and India, where vehicles tend to be driven for longer periods leading to higher aftermarket purchases.

Key players in the market include Andre Niermann, ATC Drivetrain Inc., BORG Automotive A/S, Cardone Industries Inc., Caterpillar Inc., Detroit Diesel Remanufacturing LLC, Genuine Parts Company, Jasper Engines and Transmissions, Marshall Engines Inc., Motorcar Parts of America Inc., Remy Power Products, LLC, Robert Bosch GmbH, Standard Motor Products Inc., Teamec BVBA, and ZF Friedrichshafen AG among others.

The research report titled "Remanufactured Automotive Parts: A Global Strategic Business Report" announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, growth drivers, innovations and launches, and strategic industry activities of major companies worldwide. The single segment report provides market estimates and projections in US dollars for all major geographic markets including the US, 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.

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