Global Auto Parts Manufacturing Market Size Analysis - Market Share, Forecast Trends and Outlook Report (2024-2032)

Auto Parts Manufacturing Market Growth

Auto parts are the components or systems which are manufactured by various entities and then used in the production of automobiles. Some of the common auto parts include chassis, transmission and power train parts, motors and engine components, body parts and trimmers, electronics, and braking systems, steering and suspension components, fuel tank, seat, tailpipe, and wheel/tyre, among others.

The introduction of innovative techniques in the automotive sector is one of the major factors bolstering the growth of the auto parts manufacturing market. This has encouraged key players to align their strategies to the prevalent trends in order to maintain competitiveness in such a dynamic environment. For example, the demand for auto parts manufacturing is expected to expand in the coming years with the introduction of the latest technology in the automotive engine radiators. Furthermore, leading market players are planning to manufacture lightweight car parts to produce components that are significantly lightweight and much more fuel-efficient than their predecessors.

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Key Trends and Recent Developments

Surge in the production of hybrid vehicle parts; growth of 3D printing; growing demand for autonomous vehicle parts; and favourable government initiatives supporting sustainable auto parts manufacturing are the major trends impacting the market.

January 20th 2024

As part of Compolive project, Ford announced to use olive tree waste such as branches, twigs, and leaves for the manufacture of sustainable auto parts to reduce plastic usage and promote sustainability.

January 22nd 2024

Gestamp, a Spain-based auto part company, is funded by the European Union to leverage 5G and IoT technology for the automotive plant.

January 18th 2024

LKQ Euro Car Parts, a car parts and accessories provider in the auto parts manufacturing market, announced to establish a partnership with Protyre Autocare, as an aftermarket auto parts supplier for a 5-year duration.

January 11th 2024

Blue Point Capital Partners, a private equity firm, announced the acquisition of Arch Auto Parts, an independent auto parts manufacturer, to expand its market presence.

The surge in the production of hybrid vehicle parts

Manufacturers in auto parts manufacturing market in developing countries are increasingly focused on the development of hybrid vehicles, which combine features of gasoline engines and electric motors.

3D printing to emerge as a prominent trend

Auto parts manufacturers are readily deploying 3D printing technology for the fast and efficient production of complex and customised parts in the automotive.

Growing demand for autonomous vehicle parts

With the rising popularity of self-driving cars, there is a surge in demand for autonomous automotive components like cameras, sensors, LIDAR, RADAR, advanced positioning systems, and others.

Government initiatives favouring sustainable production of auto body parts

Several government bodies are implementing stringent vehicle emission regulations for product manufacturers to develop sustainable automobile products for both the domestic and international markets.

Auto Parts Manufacturing Market Trends

One crucial trend of auto parts manufacturing market is the growing utilisation of 3D printing for the production of economical and customisable auto parts. This technology allows manufacturers and automotive owners to create custom vehicle parts depending on their unique specifications. For example, General Motors is utilising 3D printing for rapid prototyping and automotive parts production of lightweight vehicles to improve overall fuel efficiency. Moreover, it can be used to restore vintage car models with its customisation feature as the vintage car parts are no longer in sales.

Spanish-based manufacturer, Gestamp, is harnessing the capabilities of LTE and 5G networks as well as IoT-based devices for the development of a smart factory that relies on data analytics and processing for the real-time control and processing of the auto parts. This initiative, funded by the European Union, is aimed at promoting digitalisation in the automotive sector of the country and is expected to serve as a stepping stone for this technology in other sectors.

Industry Outlook

Rising Battery Production and Trends in the Exports of Auto Parts

In 2022, Germany led global automotive parts exports with USD 60.7 billion, accounting for 14.5% of the market. China followed with USD 49.7 billion (11.9%), and the United States ranked third with USD 40.7 billion (9.7%). As per the auto parts manufacturing industry analysis, Mexico exported USD 37.9 billion (9.1%), making it a significant player in the market. Japan's exports were USD 29.1 billion (6.9%), while South Korea exported USD 19.9 billion (4.8%). Poland contributed 3.6% of the market with exports valued at USD 15.1 billion. The Czech Republic exported USD 14.4 billion (3.4%), and France exported USD 13.1 billion (3.1%). Spain's exports were USD 10.2 billion (2.4%), followed by Thailand with USD 8.4 billion (2%), Hungary with USD 7.8 billion (1.9%), and Belgium with USD 7.5 billion (1.8%). These figures indicate robust activity in the auto parts manufacturing sector, driven by strong demand from major automotive-producing countries.

In 2022, China dominated global battery cell manufacturing with 893 GWh capacity, accounting for 77% of the total. Poland and the United States each contributed 6%, with capacities of 73 GWh and 70 GWh, respectively, which also boosted the auto parts manufacturing industry revenue. Hungary and Germany each held 3% of the market with 38 GWh and 31 GWh. Other notable producers included Sweden (16 GWh), South Korea (15 GWh), and Japan (12 GWh), each accounting for 1% of the total. India had a minimal presence with 3 GWh, representing just 0.2%. Other countries globally contributed 1% of the global battery production.

By 2027, China is projected to maintain its lead, especially in lithium-ion battery production with an anticipated production capacity of 6,197 GWh, and a market share of 69%, contributing to the growth of the auto parts manufacturing industry. The United States is expected to follow with 908 GWh (10%), and Germany with 503 GWh (6%). Hungary and Sweden will each have 2% of the market, with capacities of 194 GWh and 135 GWh, respectively. Poland, Canada, Spain, France, and Mexico will each contribute around 1%, reflecting a broader distribution of production capabilities.

Advancement in Production Processes and Rising Adoption of Automobiles Strengthen the Market Growth

• Established global supply chains ensure steady availability of raw materials and components for auto parts manufacturing.
• Continuous innovations in auto parts manufacturing processes enhance efficiency and product quality.
• Rising sales of automobiles, including traditional and electric vehicles, aid the auto parts manufacturing demand.
• Established partnerships with original equipment manufacturers (OEMs) provide stable demand and long-term contracts.

The Market faces Several Challenges, Including Economic Downturns, Raw Material Price Fluctuations, and A High Cost of Producing Auto Parts.

• Global economic instability can reduce consumer spending on new vehicles, impacting parts demand.
• Rapid technological advancements in automotive technology may render certain components obsolete.
• Changes in trade policies and tariffs can affect import/export dynamics, increasing costs.
• Volatile raw material prices can impact production costs, profitability and auto parts manufacturing demand forecast.
• Significant investment needed for advanced manufacturing technology and infrastructure.
• Intense competition from both established players and new entrants can erode profit margins.

A Growing Fleet of Ageing Vehicles, Digital Transformation of Manufacturing Facilities, Adoption of Electric Vehicles and Sustainable Production Processes Provide Opportunities for the Market

• As the average age of vehicles on the road increases, demand for automotive aftermarket parts and maintenance services rises.
• Adopting Industry 4.0 technologies, such as IoT, AI, and robotics, can enhance production efficiency and product quality.
• Using recycled materials and renewable resources in production can reduce costs and appeal to green markets, affecting auto parts manufacturing demand growth.
• With the rapid growth of the EV market, there is a significant opportunity to supply specialized components such as batteries, electric motors, and advanced electronics.

Competitive Factors in the Global Auto Parts Manufacturing Market

• Consistently producing high-quality and reliable parts builds trust and loyalty among OEMs and end consumers.
• Utilising technologies such as automation, robotics, and 3D printing can enhance efficiency and reduce costs.
• Continuous investment in research and development fosters innovation, enabling manufacturers to offer cutting-edge products.
• Large-scale production can lower per-unit costs, allowing competitive pricing.
• Strong relationships with auto parts suppliers ensure a stable supply of raw materials and components.
• Efficient logistics and distribution networks reduce lead times and costs, enhancing overall competitiveness as well as demand of auto parts manufacturing market.
• Long-term contracts and partnerships with major automotive manufacturers provide stable demand and collaboration opportunities.
• Strong presence in the aftermarket segment ensures continued revenue from parts replacement and vehicle maintenance.
• A highly skilled workforce is crucial for maintaining high production standards and fostering innovation.
• Continuous training and development programs ensure employees are up-to-date with the latest manufacturing technologies and practices.

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Auto Parts Manufacturing Industry Segmentation

“Auto Parts Manufacturing Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Component

• Battery
• Cooling System
  • Compressor
  • Radiator
  • Pump
  • Thermostat
• Underbody Components
  • Brake Components
  • Exhaust Components
• Engine Components
  • Starter
  • Pump
  • Engine
  • Alternator

• Automotive Filter
• Lighting Components
• Electrical Components
  • Ignition Coil
  • Ignition Switch
  • Spark and Glow Plug
• Chassis System
• Transmission and Steering System
• Others

Market Breakup by Sales Channel

• OEM
• Aftermarket

Market Segmentation by Vehicle Type

• Passenger Cars
• Light Commercial Vehicles
• Heavy Commercial Vehicles
• Others

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Auto Parts Manufacturing Market Share

OEMs are likely to maintain their dominance in the market due to the reliability of OEM parts and their increased demand

OEM sales channel occupies a significant portion of the auto parts manufacturing market share, owing to the rising demand for OEM auto parts that are manufactured by the original manufacturer. These parts usually fit the exact description of the specific vehicle and offer a longer lifespan compared to the aftermarket parts. The aftermarket sales channel is also expected to witness steady growth in the coming years as it offers a cost-effective solution for automobile spare parts to buyers.

Increasing production of passenger cars owing to their growing global demand is expected to add to the auto parts manufacturing market revenue

The auto parts manufacturing market revenue is also increased by the high usage of passenger cars as they offer the convenience of personal transportation. Auto parts such as engines, transmissions, components, and interior accessories are some of the highest in-demand auto parts for passenger cars. Meanwhile, light commercial vehicles such as vans and small pickup trucks are also expected to fuel the demand for auto parts, owing to their growing usage in last-mile delivery.

Competitive Landscape

The auto parts manufacturing companies are leveraging advanced technologies to improve their production capabilities as well as promote sustainable development, lowering their carbon footprints to gain a competitive edge in the market.

Robert Bosch GmbH

Robert Bosch is a multinational engineering technology company in automotive parts industry, based in Gerlingen, Germany. Founded in 1886, the company offers smart building solutions, carbon neutrality solutions, and hydrogen technology, among others.

DENSO CORPORATION

DENSO is an automotive component provider, headquartered in Aichi, Japan. Some of its specialities include electric/hybrid components, human-machine interfaces, wireless charging, and robotics, among others.

Continental AG

Continental AG is an automotive parts manufacturer in the automotive sector, based in Hanover, Germany. Incorporated in 1871, the company offers efficient and cutting-edge solutions for the mobility and transport sectors.

Valeo

Valeo, a French-based auto parts company, announced that it is expanding its operations in Tamil Nadu, India, to strengthen its position in the Indian subcontinent.

The market players are steadily incorporating green auto parts, which are manufactured from the tree waste to reduce their dependency on plastics and biocomposites. These sustainable auto parts reduce waste generation and contribute to the circular economy by reusing waste tree parts which are discarded. Furthermore, tests have shown that these auto parts are durable and robust and can be incorporated into vehicles for mass production, opening new avenues and creating opportunities for the auto parts manufacturing market development.

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Auto Parts Manufacturing Market Regional Analysis

The Asia Pacific emerged as a significant market for auto parts manufacturing in 2023. The region is anticipated to be a major global market in the forecast period as well, witnessing a robust growth rate as automotive sales in the region grow and new technology applications for producing automotive parts are explored. The auto parts manufacturing market opportunities are supported by an increase in the production and sales of passenger cars and the digitisation of distribution systems for automotive components.

North America is also anticipated to gain a sizeable share in the forecast period, owing to the presence of some of the leading global automotive companies in the region. The auto parts manufacturing market in North America is supported by the rising usage of advanced technologies by vehicle manufacturers owing to the region’s superior production capabilities, state of the art infrastructure, and technological know-how.

Key Price Indicators of the Global Auto Parts Manufacturing Market

Raw Material Costs:

Fluctuations in the prices of steel, aluminum, rubber, and other raw materials directly impact production costs and pricing strategies.

Labour Costs:

Variations in labour costs due to wage changes, productivity levels, and labour availability influence overall manufacturing expenses and auto parts manufacturing market value.

Energy Costs:

Changes in energy prices, including electricity and fuel, affect the cost of running manufacturing facilities and can impact pricing.

Supply Chain Logistics:

Transportation and logistics costs, influenced by fuel prices and infrastructure efficiency, play a significant role in determining final product prices.

Technological Investments:

Investments in new technologies and automation in the auto parts manufacturing market can increase short-term costs but may reduce long-term expenses, affecting pricing strategies.

Exchange Rates:

Currency exchange rate fluctuations can impact the cost of imported raw materials and parts, influencing pricing for international sales.

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Auto Parts Manufacturing Market Size

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