Automobile Remanufacturing Market Size, Trends, Share, Growth, And Opportunity Forecast, 2023 - 2030 Global Industry Analysis By Component Type (Engine & Related Parts, Transmission & Related, Electrical & Electronic, Wheels & Brakes Related, A/C Compressors, Steering, Fuel Systems and others.), By Vehicle Type (Passenger Cars, LCV, HCV, Off-road Vehicles, All-Terrain Vehicles & Others), and By Geography (North America, Europe, Asia Pacific, South America, And Middle East & Africa)

The Global Automobile Remanufacturing Market was valued at USD 61,235.3 Million in 2022 and is anticipated to reach a value of USD 125,151.2 Million by 2030 expanding at a CAGR of 9.4% between 2023 and 2030.

Remanufacturing automobile parts is the process of returning old vehicle parts to factory performance, frequently going above and beyond OEM requirements. By reusing and recycling, this method not only increases the lifespan of vehicle parts but also lessens their impact on the environment. Engines and electronics are just a few of the remanufactured automobile parts that are included in the global automobile parts remanufacturing market. The worldwide automotive parts remanufacturing market is setting the standard for environmentally friendly transportation by giving automotive components a second chance at life. Automotive parts remanufacturing includes taking the product apart, swapping out and repairing its parts, and putting both the entire thing and its individual parts through testing to make sure they meet the original design requirements. One of the main factors driving the growth of the automotive parts remanufacturing market is the availability of remanufactured parts with performance criteria that are equivalent to or better than those of the original component, together with reduced costs and longer warranty terms.

Automobile Remanufacturing Market Major Driving Forces

Cost Saving: Remanufacturing car parts include disassembling the product, replacing and mending its components, and evaluating the product as a whole as well as its individual pieces to ensure they adhere to the original design specifications, hence reducing raw material costs.  The high cost of raw materials used in cars is a result of the scarcity of naturally occurring materials such as silicon, iron, and aluminum.

Technological Advancements: The general public has the impression that remanufactured components are of poor quality and durability. Modern technical developments, however, guarantee that the part's quality stays true and occasionally exceeds that of the original.

Resource Conservation: The quantity of many naturally occurring resources is restricted. Therefore, the depletion of such natural resources may result in an increase in their pricing and the element's eventual unavailability. Therefore, waste may be decreased and resources can be preserved by reusing and recycling.

Environmental Sustainability: New component manufacturing involves a number of steps. Mining is necessary for many naturally existing components, such iron and aluminum ores, which has a significant negative impact on the environment. Furthermore, the process of extracting various elements from their respective ores necessitates the use of resources. Therefore, it is vital for resource conservation and environmental sustainability that the parts be remanufactured.

Automobile Remanufacturing Market Key Opportunities

Ecological Sustainability: The increasing demand for products that are produced in a sustainable way, presents an opportunity for the automobile remanufacturing market to develop and promote such options. Manufacturers can capitalize on this trend by using remanufactured materials or offering automobile parts with responsible sourcing and production.

Unavailability of Raw Material: A scarcity of raw resources is causing the automobile sector to see a sharp rise in demand for automobile parts remanufacturing. Due to restricted availability of raw materials in different countries, aftermarket players are remanufacturing parts to suit this demand. It is anticipated that this change in manufacturing capacity would fuel aftermarket market expansion worldwide.

Customization and Personalization: Customers are requesting more and more customisation and modification for their vehicle's parts. Manufacturers that remanufacture automobiles can provide customisation choices so that buyers can select the materials, sizes, and styles that best suit their tastes. This trend opens up new markets for premium and niche products by increasing customer involvement and brand loyalty.

Automobile Remanufacturing Market Key Trends

·         A greater awareness of environmental issues among customers.

·         Since remanufactured vehicle components are sometimes less expensive than new ones, they draw in customers on a tight budget.

·         The efficiency and quality of remanufactured car components have increased because to ongoing technological developments in the remanufacturing process.

·         Remanufacturers now provide a wider variety of vehicle components in their product portfolios.

·         The need for remanufactured components is being driven by the rise in the number of older automobiles worldwide.

·         The emergence of e-commerce in the automobile aftermarket has made it simpler for businesses and customers to get remanufactured components.

·         The market has been positively impacted by government rules and incentives that support remanufacturing processes.

Region-wise Market Insights

Asia-Pacific not only accounted for the largest market share at 31.2% in 2022, Asia Pacific is also expected to register the fastest growth, expanding at a CAGR of 10.2% between 2023 and 2030.

The market for remanufactured automobile components as a whole is dominated by Asia Pacific in both volume and revenue. Low cost has been one of the main drivers of the automobile parts remanufacturing sector in this area. The rise of the automotive aftermarket and the steadily expanding new and used car sectors have both greatly contributed in the growth of the remanufactured parts industry. Over the course of the forecast period, Asia Pacific is anticipated to lead the global market for automotive parts remanufacturing. In terms of volume and revenue, North America lagged behind Asia Pacific in the broader automobile parts remanufacturing business. One of the main things pushing the use of remanufactured car components, besides economic ones, is the environment. The United States Environmental Protection Agency (EPA)'s Comprehensive Procurement Guideline (CPG) for the reduction and recycling of solid waste has increased demand for car parts remanufacturing in this area. It is anticipated that the market would increase positively in the upcoming years due to the ongoing expansion of the automotive industry and the rise in the usage of remanufactured components.

Market Competition Landscape

Manufacturers and retailers abound in the highly competitive global automobile remanufacturing sector. These companies compete in the market using a range of strategies, such as joint ventures, mergers and acquisitions, and product innovation. The significant contracts they obtain for the implementation of their automobile remanufacturing technologies serve as evidence of their market development. These developments show how the industry has changed and how committed the big companies are to advancing the science of automobile remanufacturing.

Several new rivals have joined the automotive remanufacturing industry by employing innovation and development strategies in an attempt to establish a name for themselves. They have expanded the range of products they provide, invested in state-of-the-art car remanufacturing equipment, and focused on improving efficiency and scalability. Nonetheless, the well-established companies have a substantial share of the industry due to their wide range of experience, strong clientele, effective distribution networks, and ongoing R&D investments. By providing a wide range of automobile remanufacturing options together with comprehensive post-purchase assistance and maintenance, they position themselves as the industry's dependable leaders and maintain their supremacy.

Prominent players in the market include:

·         ZF Friedrichshafen AG

·         BorgWarner Inc.

·         Robert Bosch GmbH

·         REMANU-FACTUR GmbH

·         Cardone Industries

·         Garrett Advancing Motion

·         Arnott Industries

·         ATC Drivetrain

·         Jasper Engines and Transmissions

·         Meritor, Inc.

·         WABCO Holdings Inc.

·         Remanufacturing Industries Council (RIC)

·         Delphi Technologies (now part of BorgWarner Inc.)

·         Caterpillar Inc.

·         Detroit Diesel Remanufacturing, LLC