The Europe automotive parts remanufacturing market is estimated to be valued at US$ 15.33994 Mn in 2023 and is expected to exhibit a CAGR of 7.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Automotive parts remanufacturing involves rebuilding worn out automotive components or assemblies to original specifications. Key components that undergo remanufacturing include engine & transmission, electric auto parts, suspension & braking components, and other auto parts. Remanufactured automotive parts help reduce production costs for OEMs and improve sustainability by reducing waste and virgin material consumption.
Market Dynamics:
Strict emission regulations implemented by governments across Europe are driving the adoption of remanufactured automotive parts. Majority of the remanufactured components exhibit near-new performance with significantly lower carbon and environmental footprint compared to new components. This is encouraging both automotive manufacturers as well as auto part retailers to increase supply of remanufactured components. Additionally, remanufactured auto parts offer affordable repair and maintenance solution for fleet owners and individual consumers in the region. Prolonging service life of existing auto components through remanufacturing helps improve the sustainability credentials of automotive industry players.
SWOT Analysis
Strengths: The Europe automotive parts remanufacturing market has strong growth potential due to increasing vehicle repair and maintenance needs. Established distribution networks of key players ensure widespread availability of remanufactured parts. Remanufacturing reduces environmental impact and lowers costs for customers compared to new parts.
Weaknesses: Lack of standardized procedures for quality checks and certification processes hampers growth of the remanufacturing industry. Higher initial investment and retooling costs compared to new part manufacturing deters some companies from entering the market.
Opportunities: Strict emission regulations provide impetus for adoption of reused components. Growth of electric vehicles segment presents opportunities for reuse and remanufacturing of EV components.
Threats: Technological advancements in vehicles result in shorter life cycles of components, reducing feasibility of remanufacturing. Pricing pressures from low-cost alternatives like cheap used parts from export markets.
Key Takeaways:
Europe Automotive Parts Remanufacturing Market Size is expected to witness high growth, exhibiting CAGR of 7.8% over the forecast period, due to increasing vehicle age and repair needs. Growing preference for low-cost and environment-friendly alternatives to new parts will propel the market expansion.
Regional analysis: Germany dominates the European market with over 30% market share due to presence of leading automakers and component manufacturers. Strong demand for high-quality and technologically advanced remanufactured parts drives the Germany market. The UK and France are other major markets favored by initiatives to promote circular economy and reduce vehicular emissions.
Key players operating in the Europe automotive parts remanufacturing market are Borg Automotive A/S, Budweg Caliper A/S, Caterpillar Inc., LuK Unna GmbH & Co. KG, Valeo SA, Schouw & Co., ZF Friedrichshafen AG, Monark Automotive GmbH, Carwood Group, Robert Bosch GmbH, and Meritor, Inc. Major players are focusing on strategic partnerships to strengthen distribution networks and improve aftermarket services across Europe.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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