Rebuilding of auto components benefits business regarding the general cost of manufacture through reduced energy consumption, reduced staple requirements, reduced cost to the market, and increased price flexibility for the consumers. These factors are expected to be among many factors impacting the industry growth over the forecast period.
The performance parameters that are equal or better than the previous component alongside lower cost and warranty periods offered by the re-manufacturers are among the key factors fueling growth of the Automotive Parts Re-manufacturing Market.
Automotive Parts Re-manufacturing Market exhibits at a CAGR of 6.1% till 2025.
- In March 2018, the ecu Commission finalized its Circular Economy Package (COP) proposal that was originally proposed in 2015, for the introduction of the set of directives and laws designed for the resource-efficient way forward for the ecu economies. The proposal details automotive parts re-manufacturing market as an integral part for the reduction of emissions and wastes generated through end of life cycle of an automotive.
- Furthermore, with an estimated global vehicle parts over 1.2 billion, an expected increase of demand at around 3% year-on-year over the forecast period will present considerable requirement of raw materials for the manufacturing processes.
- Inadvertently, lack of staple resources, and therefore, the growing costs of mining metals, high carbon footprint on the environment thanks to high energy consumption, and water requirement for the new equipment manufacturing will increase the demand for re-manufactured automotive parts over the approaching years.
- Growing concerns for environment responsibility, potential opportunities in component costs reduction, reduced resource security challenges, reduced time interval, secure spare parts supply, and increasing consumer confidence are a number of the main factors that enhance the profitability of the participants. These factors are expected to a supply strong growth opportunities for the worldwide automotive parts re-manufacturing (reman) market.
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- High competition from the vendors supplying recycled and repaired automobile body parts, shrinking price differences between these portfolio and therefore, the original products, and extended warranty of components are few factors restraining growth of the market.
- Moreover, lack of consumer recognition of the differences between used and reman products, because the connotation of the terminology is misconstrued, is another factor hindering growth of automotive parts re-manufacturing market.
- In conjunction with these parameters, many Asian economies including India, have banned the import of cores, which forms the essential requirement for a re-manufacturer. These parameters are expected to cause significant roadblock to the industry growth.
- Increasing shortage of natural resources and difficulty find materials for manufacturing processes is among the main factors impacting the expansion of automotive components manufacturing industries across the world.
Europe accounted for the second largest share of worldwide automotive parts re-manufacturing market and is predicted to carry its position over the forecast period. Industry participants have established strong foothold within the region, due to increasing support from legislative authorities, and therefore, the original equipment manufacturers.
Some key players within the global Automotive Parts Remanufacturing Market include Valeo SA, ZF TRW, Carwood Group, Robert Bosch GmbH, Meritor Inc., Monark Automotive GmbH, Budweg Caliper A/S, Genuine Parts Company, ATC Drivetrain Inc., Maval Manufacturing Inc., Teamec BVBA, Motorcar Parts of America, Inc., and Jasper Engines and Transmissions