South Korea Auto Parts Manufacturing Market Report and Forecast 2025-2034

South Korea Auto Parts Manufacturing Market Size

The South Korea auto parts manufacturing market reached approximately USD 120.5 billion in 2023. The market is projected to grow at a CAGR of 3.30% between 2024 and 2032, reaching a value of around USD 162.96 billion by 2032.

South Korea Auto Parts Manufacturing Market Outlook

• As per the industry report, the overall automotive sales in South Korea grew by 5 per cent in 2023.

• Hyundai Mobis, a South Korean auto parts provider, announced that it has produced an in-vehicle lighting system which can be aligned with the driver’s mood and can autonomously adjust the colour and intensity of lights.

• The city of Ulsan is responsible for 23 per cent of the car production in South Korea.

South Korea Auto Parts Manufacturing Market Growth

The growth of the automotive sector, the presence of a broad range of vehicles, and the rising export opportunities are some of the major factors fuelling the market growth. The country’s automotive sector consists of global brand names such as Hyundai and Kia which are also involved in the production of auto parts for various types of vehicles such as sedans, SUVs, and electric vehicles, among others. Meanwhile, several multinational vehicle manufacturers are relying on South Korean auto suppliers for the purchase of their auto parts. In April 2024, BMW announced that it purchased automotive parts worth USD 4.6 billion from South Korean manufacturers.

Favourable government incentives to boost the sales of electric vehicles are also propelling the auto parts manufacturing market expansion. For instance, in September 2023, the South Korean government announced that it aims to offer temporary subsidies to customers purchasing EVs , which aids the demand for EV components such as batteries, electric motors, power electronics, and charging systems, among others.

South Korea Auto Parts Manufacturing Industry Segmentation

“South Korea 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
  • Engine
  • Pump
  • 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 Vehicle Type

• Passenger Cars

• Light Commercial Vehicles

• Heavy Commercial Vehicles

Market Breakup by Sales Channel

• OEM

• Aftermarket

South Korea Auto Parts Manufacturing Market Share

The OEM sector accounts for a major market share as the customers are more willing to purchase the auto parts from the original manufacturers as they align with the specifications of that particular vehicle. Some automotive manufacturers may also offer warranties which can enhance their appeal among customers. On the other hand, the aftermarket sector is anticipated to grow at a steady rate as it offers buyers several options on auto parts as well as economical pricing compared to OEMs.

Leading Companies in South Korea Auto Parts Manufacturing Market

The market players are offering innovative products to gain a competitive edge in the market.

• Robert Bosch GmbH

• Denso Corp.

• Continental AG

• ZF Friedrichshafen AG

• Marelli Holdings Co., Ltd.

• Hyundai Motor Co.

• Sumitomo Electric Industries, Ltd.

• Magna International Inc.

• Valeo S.A.

• Aisin Corporation

• Others

Key Highlights of the Report