Auto Parts Manufacturing Market

The global Auto Parts Manufacturing Market was valued at USD 680 Billion in 2022 and is projected to reach a value of USD 1185.95 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 7.2% between 2023 and 2030.

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The Auto Parts Manufacturing sector holds a pivotal position within the automotive industry, serving as a vital cornerstone for vehicle production. This dynamic field encompasses the creation of diverse components and systems that are indispensable for the optimal performance and operation of vehicles. Leveraging cutting-edge technologies like computer-aided design and manufacturing, auto parts manufacturers are dedicated to crafting top-tier components that adhere to the exacting standards of the automotive domain. Their specialization spans a wide spectrum of elements, encompassing engines, transmissions, brakes, suspension systems, and electrical components.

The global market is being propelled by a compelling array of factors, with a pronounced emphasis on vehicle safety and regulatory measures taking center stage. This pivotal trend is augmented by the swift strides witnessed in automotive technology, which are significantly bolstering market growth. Concurrently, the surging global appetite for automobiles, coupled with a notable consumer inclination toward more fuel-efficient vehicle options, is wielding a positive impact on market dynamics.

A notable transformation is unfolding as the electric vehicle sector expands its horizons, seamlessly intertwining with the market's evolution. The concurrent surge in the adoption of advanced driver-assistance systems (ADAS) and autonomous technologies is further amplifying this transformative journey. Additionally, the rapid global urbanization and the concurrent proliferation of infrastructure development are exerting a propulsive force on market expansion.

The burgeoning adoption of electric vehicles (EVs) is profoundly invigorating the market landscape. A convergence of factors, underscored by pressing environmental concerns, regulatory mandates, and remarkable strides in battery technology, is orchestrating a steadfast transition toward EVs. This paradigm shift is galvanizing a surge in EV production, consequently fueling a robust demand for precisely engineered auto parts tailored to the intricacies of electric powertrains. This encompassing transformation encompasses a gamut of specialized components, ranging from electric motors, battery packs, and power electronics to charging infrastructure and thermal management systems.

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Key Highlights

The North American Auto Parts Manufacturing market accounted for a revenue share of 28.8% in 2022.

• The Asia Pacific region is expected to be the fastest growing market for Auto Parts Manufacturing by 2030.
• The OEM segment accounted for a revenue share of 55.9% in 2022.
• China is the largest producer of auto parts in the world, followed by Japan and Germany.

Economic Insights

As of 2022, the global Auto Parts Manufacturing market has established itself as a pivotal player in the automotive sector, boasting a remarkable market size of USD 680 Billion.

The Auto Parts Manufacturing sector is a crucial contributor to the global GDP, wielding significant influence across multifaceted dimensions. Its expansive scope spans the entire spectrum of activities, encompassing everything from the initial production of raw materials to the intricate process of component fabrication, meticulous assembly, and the comprehensive distribution network. The economic resonance of this industry reverberates powerfully through its pivotal role in job creation, augmentation of export earnings, and the catalyzation of profound technological breakthroughs.

Undoubtedly, the burgeoning global appetite for automobiles stands as a potent impetus, effectively catapulting the demand for auto parts to unprecedented echelons. This heightened requisition is intrinsically interwoven with the dynamic momentum of the automotive realm, signifying the indispensable role played by auto parts in the realization of vehicular excellence. On a parallel note, governments across the globe have rallied together, devising a harmonious symphony of incentives and visionary initiatives that unfalteringly champion the growth and sustainable progression of the automotive expanse. This harmonious convergence of efforts serves as an unassailable testament to the innate economic significance embedded within the automotive tapestry.

Top Market Trends

• A prominent and transformative trend in the market is the burgeoning availability of automotive aftermarket parts through e-commerce platforms. This pivotal development mirrors the evolving landscape of the global automotive parts aftermarket, intricately shaped by the ascending prominence of digital channels. The burgeoning popularity of online platforms is orchestrating a paradigm shift within the automotive aftermarket domain, instigating a cascade of transformative trends and revolutionary shifts.
• In this dynamic milieu, e-commerce platforms are emerging as the catalysts propelling the exponential expansion of revenue streams within the automotive aftermarket arena. A momentous shift is palpable as the automotive aftermarket realm embraces the digital era, with e-commerce platforms positioned at the vanguard of this profound transformation. This pivotal transition is dramatically altering the contours of the auto parts landscape, rewriting the rules of engagement, and redefining customer experiences.
• Furthermore, the global stage for auto parts aftermarket is undergoing a monumental metamorphosis, pivoting resolutely toward a landscape dominated by the digital realm. This metamorphic journey is vividly illuminated by the year-on-year growth in online auto parts sales, substantiating the surging momentum of e-commerce adoption within this industry.

Market Segmentation

The global Auto Parts Manufacturing market can be categorized on the following: By Type, Vehicle Type, Sales Channel, and Region.

Based on Type, the market is segmented into Engine Components, Electrical Components, Cooling System, Exhaust System, Chassis System, Underbody Components, Body Parts, Lighting Components, and Others. Based on Vehicle Type, Auto Parts Manufacturing market has been segmented into Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicles, and Others. Based on Sales Channel, the market is segmented into OEM and Aftermarket. Moreover, the market is segmented based on Region: North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Based on Vehicle Type

Passenger Cars will dominate the market during Forecast Period

The passenger cars segment accounted for a revenue share of 52.4% in 2022. The passenger car segment embarks on a journey fueled by the surging desire for personalized mobility, where the fusion of convenience, security, and cutting-edge features reign supreme in consumer hearts. Auto parts manufacturers orchestrate this automotive symphony by crafting an ensemble of components, including the pulsating heart of engines, the rhythmic pulse of transmissions, the suspension's graceful ballet, the intricate dance of electrical systems, and the refined eleganza of interior accessories.

The light commercial vehicles unfurl its canvas to encompass a fleet of vans, pickups, and nimble trucks, diligently serving as the wheels of commerce. As e-commerce's crescendo reverberates, and last-mile deliveries sculpt new landscapes, the demand for these LCVs crescendos.

Based on Sales Channel

OEM segment hold the largest share

The OEM segment of the auto parts market accounted for a revenue share of 55.9% in 2022. Original Equipment Manufacturer (OEM) parts epitomize a harmonious marriage between precision and purpose, meticulously crafted to synchronize seamlessly with the exact specifications of a vehicle. This orchestration of engineering finesse ensures an impeccable fit, akin to a bespoke garment tailored exclusively for a specific form. This intrinsic alignment has rendered OEM parts a beacon of preference among automobile manufacturers spanning the tapestry of the globe.

Regional Analysis

APAC is anticipated to contribute 34% to the growth of the global market during the forecast period 2023-2030.

The Asia Pacific region has solidified its position as a pivotal hub for automobile parts manufacturing, etching its mark as a driving force in the global automotive landscape. With a robust growth trajectory that has propelled the region's ascendancy, the Asia Pacific market is poised to perpetuate its substantial influence well into the future. The convergence of this sustained growth momentum with the integration of cutting-edge technologies into automotive parts production is poised to reshape the dynamics of vehicle sales within the region.

The landscape of the Asia Pacific market is adorned with the promise of a transformative era, characterized by the infusion of emerging technologies into the very fabric of automotive component manufacturing. This heralds a profound shift, anticipated to galvanize vehicle sales across the region. At the core of this paradigm shift is the resolute determination to leverage technological advancements to amplify the appeal and allure of automobiles, propelling the Asia Pacific market to new heights of prominence. India is rapidly emerging as a global epicenter for procuring auto parts, with its auto components industry making up around seven percent of the country's Gross Domestic Product (GDP) and providing employment opportunities to approximately 19 million individuals, both directly and indirectly. This sector not only contributes significantly to the manufacturing GDP at 25.6%, but also holds a 3.8% share in the overall national GDP, thereby creating employment opportunities for about 1.5 million people.

Competitive Landscape

In the industry of automobile component manufacturing, a noticeable surge in the tide of mergers, acquisitions, and expansive endeavors has unfurled over the past period. This surge, akin to a dynamic crescendo, has unfolded against the backdrop of a period characterized by economic ebb and flow. As the wheels of progress gather momentum, a heartening resurgence has graced the sales trajectory of automobiles across the expanse of Asia and the Pacific Rim.

Emerging from the shadow of economic stasis, this automotive renaissance has painted a canvas of burgeoning promise. An ascendant demand for automobiles, akin to a symphony's crescendo, has reverberated throughout the global stage. At the epicenter of this harmonious surge lies the original equipment manufacturer (OEM) sales of radiators, poised at the confluence of market dynamics. The resonance of this demand has been a clarion call, beckoning automobile manufacturers to orchestrate a symphony of enhanced production output, a masterful response to the ever-escalating chorus of growth.

The key players in the global Auto Parts Manufacturing market include - Robert Bosch GmbH, Denso Corporation, General Motors Company, Valeo SA, Continental AG, Delphi Automotive PLC, ZF Friedrichshafen AG., Magneti Marelli SpA, Aisin Seiki Co., Ltd., Magna International Inc., Faurecia SA, Brembo SpA, Akebono Brake Corporation, Hella KGaA Hueck & Co., ACDelco among others.

Recent Development

In January 2023: Robert Bosch Invested €3 billion in the development of electric vehicle components, as the automotive landscape undergoes a transformational shift, Bosch has carved a path towards a greener horizon, channeling resources into the heart of electric mobility. Opened a new research and development center for electric vehicle components in September 2022.

In February 2023: Continental AG, announced a partnership with Faurecia to develop hydrogen fuel cell systems for cars in February 2023. This strategic collaboration marks a significant stride towards the future of automotive propulsion – the development of hydrogen fuel cell systems for cars.

In February 2023: Magna International announced a partnership with LG Chem to develop battery packs for electric vehicles. This visionary partnership resonates with the core of electric mobility, as these industry giants join forces to craft cutting-edge battery packs for electric vehicles.

Segmentation of the Global Auto Parts Manufacturing Market