Increasing technological adoption, rising M&A activities, and promising opportunities in key regions, fuel substantial growth in the auto parts market to reach $ 393.22 billion from 2022 to 2027. According to the latest report from Technavio Research the market is expected to grow at a CAGR of 3.62% during the period.
The auto parts market exhibits fragmentation with the presence of numerous global and regional companies. Key players include 3M Co., AISIN CORP., Akebono Brake Industry Co. Ltd., Autoliv Inc., BorgWarner Inc., Brembo Spa, General Motors Co., HELLA GmbH and Co. KGaA, Hyundai Motor Co., Lear Corp., Magna International Inc., Marelli Holdings Co. Ltd., Robert Bosch GmbH, Schaeffler AG, Stellantis NV, Tenneco Inc., The Goodyear Tire and Rubber Co., Toyota Motor Corp., Valeo SA, and ZF Friedrichshafen AG.
- 3M Co: Notable offerings include Pin 14 with 3M Acrylic Foam Tape 5392, 3M Wheel Weight TN6020, and Rain Sensor Brackets with 3M Die Cuttable Tape DC2008.
- AISIN CORP.: Provides auto parts like water pump covers, cam housing, crankcases, oil filter brackets, and oil pans.
- Akebono Brake Industry Co. Ltd.: Specializes in disc brakes, master cylinders, and disc brake pads for motorcycles and scooters.
APAC Contribution: Estimated to contribute 34% to global market growth, APAC emerges as a significant region. The demand for passenger cars in North America is also projected to rise, driven by growth in oil and gas, agriculture, mining, and manufacturing sectors.
Driving Factors, Trends, and Challenges
While the impactful driver is the increased usage of technological advancement in the global auto parts market, the key trend remains increasing M&A, and partnership. However, the Major Challenges include online retailers challenging traditional aftermarket retailers.
By End-user, the market is classified into OEM and aftermarket. The OEM segment is estimated to witness significant growth during the forecast period. OEMs are defined as those that produce the original automotive components such as brakes, steering, and other parts for new vehicles. For compatibility with the exact specification of the vehicle, OEM components are produced by a particular manufacturer in such a condition that they fit perfectly into this space. As a result, they are preferred by automobile manufacturers around the world.
In summary, the global auto parts market navigates towards significant growth, driven by technological advancements, strategic partnerships, and the dynamic automotive landscape, the report added.
Courtesy: Technavio Research.