Europe Automotive Parts Remanufacturing Market Analysis and Review by Product Type (Engine Parts, Transmission Parts, Electrical Parts, Wheel and Brake, AC Compressor, Steering, Fuel System)
Industry: Automotive
Published Date: December-2022
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 254
Report ID: PMRREP14263
In 2023, the Europe Automotive Parts Remanufacturing Market will be worth US$ 20,009.0 Mn. and is projected to expand steadily at a CAGR of 7.2% to reach a market valuation of close to US$ 40,102.7 Mn by 2033.
| Attributes | Key Insights |
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Europe Automotive Parts Remanufacturing Market Size (2022A) |
US$ 18,700.6 Mn |
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Estimated Market Size (2023E) |
US$ 20,009.0 Mn |
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Projected Market Value (2033F) |
US$ 40,102.7 Mn |
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Value CAGR (2023-2033) |
7.2 % |
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Collective Share: Top 3 Countries (2023E) |
47.5% |
Automotive parts are wear out and need to be replaced after a certain time. Automotive parts will thus continue to be in high demand in the European aftermarket, creating several growth prospects for businesses in the automotive parts remanufacturing market. Over the years, the attractive cost savings and favorable margins associated with the automobile parts remanufacturing business have secured a profitable position for automotive part remanufacturers. Remanufactured parts are almost 50–75% less expensive than the original product while maintaining the same quality, which remains the key driver for impacting market growth.
Germany is anticipated to hold a majority of the market share owing to the large number of automotive parts remanufacturing plants. The Europe Automotive Parts Remanufacturing Market accounts for about 22 to 25% of its parent market, the Global Automotive Parts Remanufacturing Market.
From 2017 to 2022, the Europe Automotive Parts Remanufacturing Market expanded at a CAGR of around 7.6%. The development of new items and components for managing a vehicle's performance is the primary driver of market expansion. The growth of hybrid and advanced automobiles in Europe is increasing the use of remanufactured car parts.
Core components are remanufactured and supplemented with cutting-edge technology by remanufacturers. Remanufacturing of engine and transmission components is in high demand throughout Europe and is projected to remain lucrative segment for the duration of the forecast period. Transmission clutch remanufacturing, turbocharger remanufacturing, steering wheel remanufacturing, and brake calliper remanufacturing are all expected to develop rapidly. Persistence Market Research expects the market to expand at a 7.2% CAGR through 2033.
“Increase in Regulation and Vehicle Longitivity Boosting the Market Growth”
Government regulatory programmes are aimed at steadily increasing resource productivity, eventually leading to environmental pricing. For example, the European Council and Parliament's Waste Directive 2008/98/EC provided a legislative framework for waste management in European countries. Furthermore, it established fundamental definitions, ideas, and concepts such as waste hierarchy and the polluter pays principle. In the near future, Europe's countermeasures are expected to include stronger environmental regulations for products as well as new ways to charge for ecosystem services and resources. As a result, these factors are likely to expedite automotive part remanufacturing and thereby drive market expansion throughout the forecast period.
The integration of standard elements such as turbochargers and fuel systems in off-road vehicles is expected to stimulate remanufacturing and encourage companies to establish inventories of remanufactured and used parts. These parts can be used by enterprises in addition to being sold. The technology used to remanufacture these parts, as well as their standards, are expected to stay stable over the next decade, allowing remanufacturers to acquire market traction.
“Advancement in the Remanufacturing Process Impacting the Market Growth”
Increasing OEM and aftermarket demand for low-cost, high-quality products is predicted to drive demand for automobile remanufactured components. The cost of remanufactured parts is 30% to 50% less than that of new components with the same warranty duration and with considerable quality as compared to originals. Furthermore, due to increased awareness about eco-friendly and low-emission cars, off-road vehicle and heavy commercial vehicle manufacturers are working on producing recyclable vehicles. Remanufactured parts use less energy and emit fewer emissions, which leads to cheaper costs and an overall lower cost of ownership.
Additionally, trends projected to drive industry growth include prolonged component life, the introduction of predictive maintenance, and IoT connectivity, which will progressively supplement the recurrent processing of vehicle components and engines. Growing environmental concerns, potential opportunities for component cost reduction, reduced resource security challenges, shorter lead times, secure spare parts supply, and increased consumer confidence in purchasing remanufactured automotive parts are just a few of the primary factors that contribute to participant profitability. These factors are driving the growth of the European automotive parts remanufacturing market.
Which is the most prominent market for Automotive Parts Remanufacturing in Europe?
“Germany is Anticipated to hold the Prominent Market Share in European market”
In 2023, the German automotive parts remanufacturing market is likely to hold around 35% of the market by value share in Europe. Germany is expected to play a vital role in fostering industrial growth due to its vast remanufacturing capabilities. Manufacturers' plans to invest more in transportation and energy infrastructure-related parts are projected to boost automotive remanufactured component sales growth in the coming years.
Why is there a surge in demand for automotive part remanufacturing in U.K.?
“Growing Demand for Automotive Components Driving the Market Growth in U.K.”
Demand in the U.K. is predicted to grow at a 7.2% CAGR from 2022 to 2032. The government strongly supports urban transportation in the country, which is backed up by a well-built infrastructure for remanufacturing parts. As a result, the U.K. has the highest level of expenditure in Europe.
According to Persistence Market Research, the U.K. is the second-leading market for automotive parts remanufacturing after Germany, and demand is expected to remain high in the future. Additionally, growing research on efficient automotive components, the presence of key enterprises, and rising investments in remanufacturing parts pipelines all provide intriguing potential for market participants.
Which Product Holds the Highest Growth Potential for Automotive Parts Remanufacturing?
“Engine Parts hold the Highest Growth Potential for Automotive Parts Remanufacturing”
Engine parts hold around 20.5% of the value share by product type segment in the Europe Automotive Parts Remanufacturing Market. Remanufacturing engine parts manufacturers provide the same quality with the same warranty. Also, remanufacturing engine parts is a more suitable alternative. Additionally, starters and alternators, a sub-segment of electrical parts; are widely used in the EV industry. Remanufactured parts that cost 60–70% of the original product but have the same or greater warranty than the original product, are likely to drive demand over the forecast period.
Which Type of Vehicles is Remanufactured Parts Used Most?
“Passenger Vehicles Hold the Lucrative Share in Vehicle Type Segment”
In 2023, the Passenger Vehicles segment is expected to account for approximately 41% of the market value. This is due to an increase in the use of automobiles for personal transportation. Nowadays, buyers prefer remanufacturing parts to save money while also extending the life of their automobiles. This is likely to increase demand for remanufactured vehicle components throughout Europe.
The European automobile parts remanufacturing market is moderately competitive, with numerous significant businesses active in the field. Key firms are taking initiatives to grow their businesses and market share.
Foreign players are projected to increase their footprint through mergers and acquisitions during the next decade. Improving regional economic conditions and an increasing automotive industry in Eastern European emerging economies are likely to boost market expansion, encouraging companies to launch new products across regions. For Instance,
| Attribute | Details |
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Forecast Period |
2023-2033 |
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Historical Data Available for |
2017-2022 |
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Market Analysis |
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Key Regions Covered |
Europe |
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Key Countries Covered |
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Key Segments Covered |
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Key Companies Profiled |
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Report Coverage |
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Customization & Pricing |
Available upon Request |
By Product Type, the Europe Automotive Parts Remanufacturing Market is segmented as:
By Vehicle Type, the Europe Automotive Parts Remanufacturing Market is segmented as:
By Country, the Europe Automotive Parts Remanufacturing Market is segmented as:
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The Europe Automotive Parts Remanufacturing Market is expected to total US$ 20,009.0 Mn in 2023.
The demand for Automotive Parts Remanufacturing will increase by 7.2% during the forecasted period from 2023 to 2033.
Borg Automotive A/S, Caterpillar Inc., ZF Friedrichshafen AG, Carwood Group,Meritor, Inc., Valeo SA, Robert Bosch GmbH. and others are the leading market players which hold around 22 to 25% of the market share.
The demand in Germany is expected to increase by 5.3% CAGR from 2022 to 2032 on a value basis.
Germany, U.K., and Italy are the leading countries in the Europe Automotive Parts Remanufacturing Market.
