Auto Parts Market

The global Auto Parts Market is valued at USD 651.9 Billion in 2022 and is projected to reach a value of USD 1103.4 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 6.8% between 2023 and 2030.

Premium Insights

One of the main factors propelling the Auto Parts market is the rising demand for cars worldwide. The automobile sector has been steadily growing, as seen by data from the International Organization of Motorcar Manufacturers (OICA). Global car production has been rising steadily, with over 77 million vehicles produced in 2020. The need for Auto Parts has naturally increased in tandem with this production boom. A number of things influence the dynamics of the market for car parts. First of all, the move to electric and hybrid cars has been greatly aided by technological improvements, requiring the use of specialist roles. Furthermore, the manufacturing of environmentally friendly vehicle parts has increased as a result of the increased focus on sustainability and environmental issues. Additionally, the growth of e-commerce has had a big impact on car parts distribution and sales, opening up more access for customers. The market for Auto Parts is robust and changing as a result of all these variables coming together, indicating that the sector will continue to expand and innovate.

• The transition to electric vehicles (EVs) is a significant driver for the Auto Parts market as it necessitates the development and production of specialized EV components and infrastructure.
• Engine components will continue to assert their dominance by part, capturing the largest market share globally throughout the forecast period 2023 to 2030.
• In 2022, North America exhibited its market prowess, achieving the highest revenue share of over 40%.
• The Asia Pacific region is poised for remarkable growth, displaying a noteworthy Compound Annual Growth Rate (CAGR) between 2023 and 2030.

Top Market Trends

1. An important trend that is still present in the Auto Parts industry is the increase in demand for parts for electric cars (EVs). As a result of automakers' significant investments in electric vehicle (EV) technology and global government campaigns to promote cleaner transportation, the market for EV-specific components, including batteries, electric motors, and charging infrastructure, is expanding quickly. One research by Bloomberg NEF, for example, projects that by 2040, sales of electric vehicles (EVs) will make up 58% of all passenger car sales worldwide.
2. Concern over sustainability is on the rise, and this is also true in the auto components industry. Sustainable production methods and environmentally friendly materials are being used by manufacturers more and more. Automotive World reports that consumer tastes and governmental pressure to lower carbon footprints are driving an increase in the demand for recycled and biodegradable materials in Auto Parts.
3. E-commerce is still changing the way that people buy car parts. A notable change in consumer behaviour has resulted from the accessibility of a large variety of products and the ease of use of online shopping platforms. According to SEMA, the Specialty Equipment Market Association, traditional brick-and-mortar stores will have the opportunity to enhance their digital presence and adapt in order to stay competitive as the online Auto Parts market is predicted to rise significantly.

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Economic Insights

Economic insights have had a major impact on the Auto Parts market, especially in the wake of the COVID-19 pandemic. At first, the pandemic hurt the market by causing supply chain hiccups, plant closings, and a decline in consumer spending on non-essentials like vehicle components. The Automotive Aftermarket Suppliers Association (AASA) reports that the industry's revenues fell noticeably in 2020 as a result of the pandemic's negative effects. Nonetheless, it's important to remember that the auto components sector has shown resilience and flexibility as the world economy progressively improves. This is partially because there is a greater need for private automobiles as people avoid using public transit, which has led to an increase in auto repair and maintenance activities. In addition, the market has received cash injections from government stimulus packages and economic recovery initiatives, which have supported the market's comeback. The car parts industry is predicted to regain its footing as economies steadily grow and consumer confidence rises, providing chances for expansion and innovation despite difficult financial circumstances.

Market Segmentation

The Global Market is categorized into the segments as mentioned below:The globel Auto Parts market can be categorized into Component, Sales Channel, Vehicle Type, Region. The Market can be categorized into Battery, Chassis System, Cooling System, Underbody Components, Engine Components, Automotive Filter, Lighting Components, Electrical Components, Other Components based on Component. The Market can be categorized into OEM, Aftermarket based on Sales Channel. The Market can be categorized into Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicles, Other Vehicle Types based on Vehicle Type. The Market can be categorized into North America, Europe, Asia Pacific, Latin America, Middle East & Africa based on Region.

Based on Component

Engine Components to Account for Largest Market Share Due to Widened Functionality

In 2022, engine components will be the most widely used product in the automotive parts market. First and foremost, the engine is the foundation of every car, and its parts are essential to both general performance and dependability. Second, as automobile technology develops, machines become more specialized and sophisticated, requiring a large number of different parts to perform other tasks, including power generation, emission control, and combustion. Thirdly, the sheer number of engine-related components—such as fuel injection systems, cylinders, camshafts, and pistons, contributes to the high usage of engines. Lastly, engine components are a vital and pivotal product area in the Auto Parts industry due to the ongoing requirement for engine maintenance, repair, and updating.

Based on the Sales Channel

OEM to Sell Most Auto Parts Owing to Better Functionality and Compatibility

In 2022, OEM (Original Equipment Manufacturer) goods are utilized extensively in the automobile components market. The primary reason for this domination is because OEM parts are the original parts that the car manufacturers install during production. These components are made especially to fit the vehicle's specifications, guaranteeing best-in-class functionality, safety, and compatibility. Original Equipment Manufacturers (OEMs) are the preferred option for many consumers since they depend on OEM parts to uphold the quality and reputation of their brands. Furthermore, OEM parts are frequently covered by warranties, which adds to their allure. OEM components continue to be the industry standard for people looking for dependability and confidence that their cars will perform as intended, even while the aftermarket provides a vast array of options.

Based on Vehicle Type

Passenger Cars to Widened their Footprint due to a Huge Consumer Base

In 2022, in the automotive market, passenger cars are the most popular choice among those offered. When compared to other vehicle categories, the sheer number of passenger automobiles on the road is the main cause of this supremacy. The most popular form of personal transportation for single people and families is the passenger vehicle, which greatly contributes to its widespread use. Furthermore, sales of passenger cars generally surpass those of light and heavy commercial vehicles, making them a priority for automakers as well as the aftermarket parts sector. Parts connected to passenger cars are in constant demand, from regular maintenance items to customization possibilities, solidifying their status as the most popular product category in the automotive industry.

Based on Region

Asia Pacific to Lead Global-based Sales Owing to Widened Number of Vehicles on the Road

The market for automobile parts is expanding quickly in the Asia Pacific area. There is a huge increase in demand for both original equipment and aftermarket components in nations like China and India due to the rising middle class, urbanization, and rising car ownership. The region's growing status further fuels the need for car components in Asia Pacific as a hub for automobile manufacturing and the investment it is receiving from international automakers.

In the market for automobile parts, North America is thought to witness considerable growth in the near future. Because of the well-established automotive sector in North America and the enormous number of vehicles on the road, there is a constant need for replacement components. Furthermore, aftermarket sales are driven by a strong culture of vehicle ownership and higher discretionary incomes in this region. Moreover, a strong ecosystem for the production and distribution of automobile parts is created by the presence of several significant automakers in North America.

Competitive Landscape

Global behemoths and niche competitors coexist in the Auto Parts market's fiercely competitive terrain. Large corporations with extensive product portfolios that include electrical systems, engine components, and more, including Bosch, Continental, and Denso, are in the lead. Conversely, specialist competitors like BorgWarner dominate particular markets. Additionally, the market is witnessing the rise of startups that specialize in electric car parts. Online retailers like Amazon and eBay provide different ways for products to be distributed. Eco-friendly solutions are being prioritized by corporations such as Magna International, indicating an increasing trend toward sustainability. In general, this dynamic terrain is shaped by fierce rivalry, technological developments, and environmental concerns.

The key players in the global Auto Parts market include - Robert Bosch GmbH (Germany), DENSO Corporation (Japan), Continental AG (Germany), ZF (Germany), Friedrichshafen AG (Germany), Hyundai Motor Group (South Korea), Aisin Corporation (Japan), Magna International Inc. (Canada), Valeo (France), Lear Corporation (U.S.), Yazaki Group (Japan), Sumitomo Electric Industries Ltd. (Japan), Tenneco Inc. (U.S.), Akebono Brake Industry Co. Ltd. (Japan), Panasonic Holdings Corporation (Japan), Faurecia S.E. (France), Marelli Holdings Co. Ltd. (Japan) among others.

Recent Market Developments

• Lippert Components Inc. announced in April 2022 that it would be purchasing Kaspar Ranch Hand Equipment, LLC. Lippert Components Inc. sought to increase its market share in the aftermarket for automotive parts with this acquisition.
• In February 2020, MotoRad LTD. endorsed the "Your Car. Your Data. Your Choice" campaign in collaboration with the Auto Care Association and the Automotive Aftermarket Suppliers Association (AASA). This program was started to provide car owners with important maintenance and repair information on their vehicles.

Segmentation of the Global Auto Parts Market