Automotive parts remanufacturing represents one of those few markets which expand in an inverse proportion with the economy. Providing a cheaper alternative to purchasing brand new automotive parts, remanufacturing generally gains a boost when consumer spending drops down. However, in a rapidly growing economy on the other hand, consumers tend to choose new products over remanufactured ones and as a result, the market for remanufactured automotive parts experiences a plunge.
Persistence Market Research, in its recently published outlook, examines the global automotive parts remanufacturing market considering it historic and current scenario, delivering key insights into its growth prospects over the next few years. The forecast period considered is 2016-2024 and the report offers detailed insights into the market over the entire assessment period.
Global Automotive Parts Remanufacturing Market: Drivers and Restraints
Economic benefits will remain the primary factor driving the market for remanufactured automotive parts. Consistently robust demand for remanufactured starters and alternators will also continue to propel the sales in near future. Soaring demand for remanufactured diesel engines will play a key role in boosting the market in near future. Emergence of electric and hybrid vehicles will be a strong driver to remanufactured transmission systems.
The average age of the existing vehicles fleet is increasing, indicating a strong impetus to the demand for remanufactured automotive parts in near future. Since the recent past, the durability and quality of products are consistently improving, eventually making remanufactured automotive parts equally competitive as a substitute to brand new parts on the market. This is identified to propel the sales over the next few years.
Growing concerns regarding carbon footprint and overall environmental impact of newly manufactured automobiles and increased use of remanufactured transmission in advanced technology electric and hybrid vehicles will collectively fuel the demand for remanufactured auto parts. Dumping of worn out mainstream automobile parts has become less a commonplace today, owing to several environmental issues associated with dumping. This will also push the market for remanufactured auto parts further.
Today’s auto mechanics are flexible enough to add or remove any remanufactured auto part, compatible with existing vehicle parts. This can pose a major challenge to new sales of remanufactured parts in near future. Competition from repaired automotive parts is another factor expected to restrain the market growth in near future. Narrowed price gap between mainstream and remanufactured parts is expected to be an important factor challenging market growth. Moreover, extended warranties of original vehicle components will also hamper the market.
Global Automotive Parts Remanufacturing Market: Segmentation
On the basis of type, the global market for automotive parts remanufacturing is segmented into three key segments:
Global Automotive Parts Remanufacturing Market: Regional Analysis
Persistence Market Research’s report on the global automotive parts remanufacturing market analyzes four key geographies in detail and provides key insights into each regional market’s performance, assessed for the aforementioned forecast period.
North America, especially the U.S., currently holds a dominant share in the global market. Developing markets in emerging Asian economies are projected to witness significant growth during the assessment period. Report indicates that APAC will possibly be the fastest growing region for automotive parts remanufacturing market.
Global Automotive Parts Remanufacturing Market: Key Players