The Europe automotive parts remanufacturing industry offers a cost-effective and environment-friendly solution by reusing old vehicle components such as engine, transmission, turbochargers, and others. Remanufacturing such components helps reduce landfill waste while offering significant cost savings compared to new components. 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 key trends:
Growing demand for lower-cost vehicle parts
The key trend propelling the growth of the Europe automotive parts remanufacturing market is the growing demand for lower-cost vehicle parts. Remanufactured automotive components are typically 30-50% cheaper than comparable new parts, thereby offering significant cost savings to both consumers and commercial fleet operators. With rising vehicular maintenance and repairing costs, demand is increasing for affordable yet high-quality used components. This growing demand for lower-cost vehicle parts is expected to drive the Europe automotive parts remanufacturing market over the forecast period.
SWOT Analysis
Strength: The strong network of independent remanufacturers in Europe offers a wide range of automotive part options to customers. The established automotive industry in Europe also supports the growth of the remanufacturing market.
Weakness: Large automotive companies have more financial resources to invest in new technology which can impact the demand for remanufactured parts. The complex regulations around waste management and recycling also increase operational costs for remanufacturers.
Opportunity: Rising environmental concerns and push for sustainable solutions from governments and customers present an opportunity to promote automotive part remanufacturing. Growing vehicle parc in Europe also ensures steady supply of used cores for remanufacturing.
Threats: There is a threat of low-cost imports of new parts from Asian markets, particularly for high-volume components. Shift to electric vehicles may also reduce the demand for internal combustion engine parts that are commonly remanufactured.
Key Takeaways
The Europe Automotive Parts Remanufacturing Market Size 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.
Northern Europe dominates the regional automotive parts remanufacturing market with over 35% share in 2023. Germany is anticipated to maintain largest market having major independent remanufacturers as well as captive facilities by OEMs. France and the UK are other major markets owing to huge service networks and independent garages demanding cost-effective remanufactured parts.
Key players – Key players operating in the Europe automotive parts remanufacturing market are focusing on strategic partnerships and acquisitions to expand service networks. Companies like Borg Automotive, Valeo SA and ZF Friedrichshafen have a global footprint through subsidiaries. Independent remanufacturers also collaborate with automakers to gain OEM certifications and assured supply of used cores. Upgradation of production facilities using robotics and digital technologies is another area gaining attention.
*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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