Automotive Parts Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 106.55 Billion |
| Market Size (2029) | USD 133.88 Billion |
| CAGR (2024 - 2029) | 4.67 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Automotive Parts Market Analysis
The Automotive Parts Market size is estimated at USD 106.55 billion in 2024, and is expected to reach USD 133.88 billion by 2029, growing at a CAGR of 4.67% during the forecast period (2024-2029).
Over the medium term, As the production of vehicles continues to increase rapidly across the world, the demand for automotive parts is expected to surge in the coming years. This trend can be attributed to the significant growth in the automotive industry, which has been witnessing a steady rise in demand for cars, trucks, and other vehicles.
Consequently, the need for high-quality and reliable automotive parts such as engines, transmissions, brakes, and tires is also on the rise, as these components are a must for ensuring the optimal performance and safety of vehicles on the road.
With the implementation of strict government regulations aimed at reducing automobile emissions and enhancing fuel efficiency, there has been a surge in the requirement for lightweight parts in the automobile industry. This demand has created a need for innovation and advancements in materials science and engineering as manufacturers seek to develop cost-effective, durable, and lightweight components to meet the stringent regulatory requirements and growing consumer demand for eco-friendly vehicles.
Automotive Parts Market Trends
Battery Electric Vehicles are Witnessing Major Growth
The government is making a strong effort to promote the use of electric vehicles, while consumers are increasingly interested in fuel-efficient technology that can help reduce the overall cost of owning a vehicle. These factors are expected to contribute significantly to the growing popularity of electric vehicles in the coming years.
Many governments around the world are promoting the use of electric vehicles as a way to reduce carbon emissions and combat climate change. Some countries have set ambitious goals for entirely phasing out petrol and diesel vehicles. For instance,
- China, India, France, and the United Kingdom have announced plans to eliminate these vehicles from their roads by 2040. This shift toward electric transportation reflects an increasing awareness of the urgent need to transition to more sustainable and environmentally friendly forms of mobility.
With the advancement in hybrid electric technology, various companies operating in the ecosystem are actively engaging in partnerships and launching new models to cater to the increasing demand, which, in turn, is positively impacting the demand for automatic transmission systems.
- In November 2023, KG Mobility, an automaker based out of South Korea, signed strategic agreements with the BYD Group to set up a battery pack factory in Korea and develop next-generation hybrid systems as part of the former's reorganization toward eco-friendly vehicles. The companies had already embarked on joint development of the next-generation hybrid system with plans to expand its lineup, starting with a Torres-based hybrid model in 2025.
Regulatory bodies have laid stringent regulations about reducing fuel emissions and increasing road safety. Furthermore, Consumer inclination toward carbon emission and energy-sustainable transportation will provide potential opportunities for battery-electric vehicle penetration over the forecast period.
With the above-mentioned development across the region, the demand for automotive parts is likely to grow in the coming years.
Asia-Pacific Holds Major Market Share
The Asia-Pacific region remains the leading market for vehicle manufacturing. This is due to high-cost reductions offered by manufacturers in the region, thanks to the availability of low-cost labor and raw materials. Additionally, the region includes China and India, which together account for about 50% of the total vehicle production.
The sales of luxury and premium vehicles are increasing due to the rising popularity of active braking systems. Market growth is expected to be driven by commercial and government investments, as well as FDI involvement during the forecast period, which, in turn, is likely to witness major growth in the market in the coming years.
In emerging economies' manufacturing sectors, such as India, regional players often compromise on product quality due to limited research and development expenditures and smaller capabilities. This problem is further compounded when customers prioritize price over product quality and reliability.
Over the years, the automotive industry has seen remarkable progress with the advent of cutting-edge technologies. One of the most significant developments that have garnered attention nationwide is the integration of lightweight materials in the production of automotive parts. The use of such materials has revolutionized the manufacturing process of auto components, leading to enhanced performance, fuel efficiency, and durability of vehicles.
One significant factor contributing to the widespread adoption of lightweight automotive materials in manufacturing crucial automobile parts is the significant improvement in fuel economy. As a result, vehicles made with such materials consume less fuel, thus reducing their carbon footprint and operating costs while increasing their overall efficiency. This has led to a surge in demand for lightweight components as automakers strive to meet the growing need for eco-friendly, cost-effective vehicles.
The enactment of stringent emission norms has resulted in a rise in demand for electric vehicles in the region. This is expected to create an opportunity for automotive parts manufacturers in the coming years. The market is expected to receive a boost during the forecast period due to the rapid expansion of electric vehicle parts manufacturers across the region.
Automotive Parts Industry Overview
Automotive Parts Market is dominated by several key players such as Robert Bosch GmbH, Denso Corporation, Hyundai Mobis Co. Ltd, Continental AG, and others. As the demand for vehicles continues to grow worldwide, various manufacturing facilities are expanding across multiple regions to cater to the increasing production needs. This trend is expected to create lucrative opportunities for the market in the foreseeable future. For instance,
- April 2024: Kia Motors and Bcomp Ltd collaborated to manufacture high-quality interior parts for their vehicles in Europe. The collaboration between the two companies promises to deliver exceptional results, with Bcomp's expertise in natural fiber composites and Kia's commitment to excellence in automotive design and manufacturing. This partnership is an exciting development in the automotive industry and is expected to raise the bar for sustainable and eco-friendly manufacturing practices.
- August 2023: Robert Bosch, the multinational engineering and technology company, has recently begun the production of innovative powertrain solutions that are based on 800-volt technology. This new technology promises to deliver higher performance, faster charging times, and increased energy efficiency, which will undoubtedly significantly impact the future of the automotive industry.
- June 2023: Denso Corporation invested USD 13 million for the expansion of its manufacturing facility in Mexico. The new facility produces air conditioning systems, radiators, alternators, and windshield wiper systems.
Automotive Parts Market Leaders
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Robert Bosch GmbH
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Continental AG
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ZF Friedrichshafen AG
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Denso Corporation
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Hyundai Mobis Co., Ltd.
*Disclaimer: Major Players sorted in no particular order
Automotive Parts Market News
- April 2024: BorgWarner Inc. invested USD 20.6 million for the expansion of an electric vehicle product manufacturing facility in the United States. With this investment, the company has expanded its development and testing of EV products, including battery modules, battery packs, and DC fast chargers. It has also scaled up its manufacturing operations for DC fast chargers.
- January 2024: ZF Friedrichshafen AG introduced its latest innovation, a highly advanced Parking Electronic Control Unit (ECU), that promises to revolutionize how automated parking systems are implemented in vehicles. This state-of-the-art ECU is designed to offer enhanced accessibility and affordability to a broader range of vehicles, making it easier for drivers to park their cars automatically without breaking the bank.
- November 2023: ZF Friedrichshafen AG, a leading global technology company, unveiled a groundbreaking electro-mechanical brake system in Germany. This innovative system combines cutting-edge electronic technology with advanced mechanical components to provide a reliable and efficient braking solution. By eliminating the need for hydraulic components, this brake system offers a simpler and more sustainable alternative to traditional brake systems.
Automotive Parts Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Deliverables
- 1.2 Study Assumptions
- 1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
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4.1 Market Drivers
- 4.1.1 Rise in Vehicle Production Across the Globe
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4.2 Market Restraints
- 4.2.1 Supply Chain Disruption May Impact the Market Growth
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4.3 Industry Attractiveness - Porter's Five Forces Analysis
- 4.3.1 Threat of New Entrants
- 4.3.2 Bargaining Power of Buyers/Consumers
- 4.3.3 Bargaining Power of Suppliers
- 4.3.4 Threat of Substitute Products
- 4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size in Value - USD)
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5.1 By Type
- 5.1.1 Driveline and Powertrain
- 5.1.2 Interior and Exterior
- 5.1.3 Electrical and Electronics
- 5.1.4 Body and Chassis
- 5.1.5 Wheel and Tires
- 5.1.6 Other types
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5.2 By Propulsion
- 5.2.1 Internal Combustion Engine
- 5.2.2 Battery Electric Vehicles
- 5.2.3 Hybrid Electric Vehicles
- 5.2.4 Plug-in Hybrid Electric Vehicles
- 5.2.5 Fuel Cell Electric Vehicles
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5.3 By Vehicle Type
- 5.3.1 Passenger Car
- 5.3.2 Commercial Vehicles
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5.4 By Sales Channel
- 5.4.1 Original Equipment Manufacturers (OEM)
- 5.4.2 Aftermarket
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5.5 By Geography
- 5.5.1 North America
- 5.5.1.1 United States
- 5.5.1.2 Canada
- 5.5.1.3 Rest of North America
- 5.5.2 Europe
- 5.5.2.1 Germany
- 5.5.2.2 United Kingdom
- 5.5.2.3 France
- 5.5.2.4 Italy
- 5.5.2.5 Spain
- 5.5.2.6 Rest of Europe
- 5.5.3 Asia-Pacific
- 5.5.3.1 China
- 5.5.3.2 India
- 5.5.3.3 Japan
- 5.5.3.4 South Korea
- 5.5.3.5 Rest of Asia-Pacific
- 5.5.4 Rest of the World
- 5.5.4.1 South America
- 5.5.4.2 Middle East and Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Vendor Market Share
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6.2 Company Profiles*
- 6.2.1 Robert Bosch GmbH
- 6.2.2 Continental AG
- 6.2.3 Denso Corporation
- 6.2.4 Valeo SA
- 6.2.5 Hyundai Mobis Co. Ltd
- 6.2.6 ZF Friedrichshafen AG
- 6.2.7 Magna International Inc.
- 6.2.8 Faurecia SE
- 6.2.9 Lear Corporation
- 6.2.10 CATL (Contemporary Amperex Technology Co. Ltd)
- 6.2.11 Aisin Corporation
- 6.2.12 Aptiv Plc
- 6.2.13 BorgWarner Inc.
- 6.2.14 Schaeffler AG
- 6.2.15 Cummins Inc.
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. Key Supplier Information By Type**
** Subject To AvailablityAutomotive Parts Industry Segmentation
Automotive parts are installed in a vehicle to provide the best driving experience. The parts include bodies, chassis, interiors, exteriors, seating, powertrains, electronics, mirrors, closures, roof systems, and modules.
The Automotive Parts Market is segmented into type (powertrain, interior and exterior, electrical and electronics, body and chassis, wheel and tires, and other types), propulsion (internal combustion engine, battery electric vehicles, hybrid electric vehicles, plug-in hybrid electric vehicles, and fuel cell electric vehicles), vehicle type (passenger cars and commercial vehicles), sales channel (original equipment manufacturers and aftermarket), and geography (North America (United States, Canada, and Rest of North America), Europe (Germany, United Kingdom, France, Italy, Spain, and Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, and Rest of Asia-Pacific), and Rest of the World (South America and Middle East and Africa)). The report offers value terms in USD for the above-mentioned segments.
| By Type | Driveline and Powertrain | |
| Interior and Exterior | ||
| Electrical and Electronics | ||
| Body and Chassis | ||
| Wheel and Tires | ||
| Other types | ||
| By Propulsion | Internal Combustion Engine | |
| Battery Electric Vehicles | ||
| Hybrid Electric Vehicles | ||
| Plug-in Hybrid Electric Vehicles | ||
| Fuel Cell Electric Vehicles | ||
| By Vehicle Type | Passenger Car | |
| Commercial Vehicles | ||
| By Sales Channel | Original Equipment Manufacturers (OEM) | |
| Aftermarket | ||
| By Geography | North America | United States |
| Canada | ||
| Rest of North America | ||
| By Geography | Europe | Germany |
| United Kingdom | ||
| France | ||
| Italy | ||
| Spain | ||
| Rest of Europe | ||
| By Geography | Asia-Pacific | China |
| India | ||
| Japan | ||
| South Korea | ||
| Rest of Asia-Pacific | ||
| By Geography | Rest of the World | South America |
| Middle East and Africa |
Automotive Parts Market Research FAQs
How big is the Automotive Parts Market?
The Automotive Parts Market size is expected to reach USD 106.55 billion in 2024 and grow at a CAGR of 4.67% to reach USD 133.88 billion by 2029.
What is the current Automotive Parts Market size?
In 2024, the Automotive Parts Market size is expected to reach USD 106.55 billion.
Who are the key players in Automotive Parts Market?
Robert Bosch GmbH, Continental AG, ZF Friedrichshafen AG, Denso Corporation and Hyundai Mobis Co., Ltd. are the major companies operating in the Automotive Parts Market.
Which is the fastest growing region in Automotive Parts Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Automotive Parts Market?
In 2024, the Asia Pacific accounts for the largest market share in Automotive Parts Market.
What years does this Automotive Parts Market cover, and what was the market size in 2023?
In 2023, the Automotive Parts Market size was estimated at USD 101.57 billion. The report covers the Automotive Parts Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Automotive Parts Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Automotive Parts Industry Report
Statistics for the 2024 Automotive Parts market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Automotive Parts analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
