The Automotive Parts Market is to touch $110.2 billion by 2030; rapid advancements in technology, increasing vehicle ownership, and growing demand for electric vehicles are key drivers propelling this growth.

The Automotive Parts Market size is estimated to reach $110.2 billion by 2030, growing at a CAGR of 3% during the forecast period 2024-2030, according to a recent report published by IndustryARC, titled, “Automotive Parts Market – By Vehicle Type (Passenger Vehicles, Light Commercial Vehicles, Heavy Commercial Vehicles and Sports Vehicles), By Product Type (Engine Parts, Electrical Parts, Drive and Transmission Steering parts, Suspension and Braking Parts and Others), By Mode of Sale (Online, Offline), By Sales Channel (OEMs, Aftermarket, Repair/Service Center, Auto Dealership, Retail Store), By Geography - Global Opportunity Analysis & Industry Forecast, 2024-2030”

Increasing globalization and developments in manufacturing technology are the main drivers of market expansion and are fueling the growth of the Automotive Parts industry during the forecast period.

APAC led the global Automotive Parts Market with a dominant 42.1% market share in 2023 and is projected for significant growth in the coming years. The region's automotive sales are set to benefit from new technological applications in part manufacturing. Increased vehicle production and sales, along with the digital transformation of automotive component distribution systems, are key drivers in the APAC market. For example, the Automotive Component Manufacturers Association of India (ACMA) reported a 43% rise in auto component exports to $19.0 billion in 2021-22 and a further 12.6% growth in 2022-23, compared to $13.3 billion in 2020-21. These advancements are fostering the adoption of Automotive Parts across APAC.

 

The automotive industry is experiencing rapid expansion fueled by advanced technologies like Artificial Intelligence (AI) and Machine Learning (ML). AI applications are revolutionizing automotive services and part replacements by predicting future issues related to engine and battery performance. Manufacturers benefit from intelligent AI systems that streamline workflows, detect defects in components, and enhance quality control. Additionally, AI's predictive capabilities leverage data from background noise and vibrations to anticipate maintenance needs, thus minimizing costly equipment breakdowns and production delays. These advancements significantly contribute to the growth of the Automotive Parts market.

The automotive industry is witnessing a surge in demand for original equipment engines due to increasing scrappage rates of motor vehicles and engines, driven by stringent environmental norms. Many countries are experiencing higher vehicle scrappage rates as they enforce stricter regulations, leading to more frequent replacements of vehicles and parts. For instance, India launched its Vehicle Scrappage Policy in 2021, a government initiative aimed at replacing old vehicles with modern ones to reduce pollution and stimulate demand for new vehicles. Similarly, countries like the US, Germany, Canada, and China have implemented vehicle scrappage policies to bolster their automotive sectors and mitigate vehicular emissions, thereby fostering market growth. 

Key companies profiled in the Automotive Parts Market are Denso Corporation, Dana Holding Corporation, Delphi Corporation, Valeo, Magna International Inc, Aisin, Hyundai Mobis, Robert Bosch AG, Continental AG, ZF Friedrichshafen and others.