Auto Parts Market to grow by USD 354.9 Billion from 2024-2028, driven by technological advancements, Report on how AI is transforming the market - Technavio

NEW YORK, Dec. 9, 2024 /PRNewswire/ -- Report with the AI impact on market trends  - The global auto parts market  size is estimated to grow by USD 354.9 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  3.2%  during the forecast period. Increased usage of technological advancement in the global auto parts market is driving market growth, with a trend towards increasing M and A, and partnership. However, sharp decline in automobile production and sales  poses a challenge. Key market 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.

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Key Market Trends Fueling Growth

Vendors in the auto parts market are implementing strategies like mergers and acquisitions and partnerships to gain a competitive edge. For instance, in September 2022, Hyundai expanded its strategic alliance with Korea's leading telecom provider, KT Corporation (KT). Hyundai and KT collaborated extensively in the areas of Information and Communication Technology (ICT) and next-generation communication infrastructure. Their cooperation included joint research on 6G autonomous driving technologies and the Advanced Air Mobility (AAM) satellite-based communication network. These initiatives are significantly boosting market growth during the forecast period. 

The Auto Parts Market is experiencing significant trends in 2023. Safety standards are a top priority, with demand for parts related to brake systems, fuel systems, and cooling components. Fuel efficiency is another trend, driving interest in EV-specific auto parts and 3D printing technology. Economic uncertainty impacts vehicle sales, leading to increased demand for aftermarket parts. Tires, sensors, radar systems, and LIDAR technology are in high demand for both OEM and aftermarket applications. Vehicle production for electric vehicles, autonomous vehicles, three-wheelers, and two-wheelers is on the rise. Auto parts manufacturers are investing in cutting-edge technology like autonomous vehicle technology and sensors to meet this demand. Online platforms and e-commerce are transforming the way auto parts are bought and sold. Fuel system parts, headlamps, and braking components remain essential for traditional vehicles. Overall, the Auto Parts Market is dynamic and evolving to meet the needs of the modern automotive industry. 

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•         The global auto parts market faces challenges due to decreased vehicle production and sales. Key components like steering and brakes are essential for both passenger cars and commercial vehicles. However, the slowdown in automobile manufacturing and sales in regions such as North America and Europe, coupled with increasing tariffs on imported vehicles in the US and China, may negatively impact market growth. Consequently, several vehicle manufacturers have halted production, leading to reduced demand for auto parts and hindering market expansion during the forecast period.

•         The Auto Parts Market faces several challenges in the rapidly evolving automotive industry. Electric vehicles (EVs) are gaining popularity, requiring new parts for batteries, motors, and charging systems. Cutting-edge technologies like 3D printing, autonomous vehicle technology, sensors, radar systems, and LIDAR technology demand continuous innovation from OEM suppliers and aftermarket manufacturers. Braking components, headlamps, engines, electronics, lighting, safety equipment, navigation systems, and more must adapt to these advancements. Three-wheelers, two-wheelers, quadricycles, boats, yachts, and watercraft also need parts. Commercial fishermen and maritime professionals rely on engine parts, electrical parts, and more. Passenger, commercial, light commercial vehicles, sports vehicles, driveline and powertrain, interiors and exteriors, auto accessories, and more must meet evolving consumer demands, connectivity features, and vehicle emissions regulations.

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This auto parts market report extensively covers market segmentation by

1. End-user 
• 1.1 OEM
• 1.2 Aftermarket
2. Distribution Channel
• 2.1 Offline
• 2.2 Online
3. Geography 
• 3.1 North America
• 3.2 Europe
• 3.3 APAC
• 3.4 South America
• 3.5 Middle East and Africa

1.1 OEM-  The Original Equipment Manufacturer (OEM) segment is projected to experience substantial growth in market share compared to the aftermarket during the forecast period. OEMs produce auto parts, such as brakes, steering, and others, specifically designed for newly built vehicles. These parts are engineered to match the exact specifications of the vehicle, ensuring a perfect fit. This alignment with vehicle specifications makes OEM parts the preferred choice for automobile manufacturers worldwide. Buyers value OEM parts because they are identical to the original parts installed during manufacturing, providing peace of mind regarding performance and quality. Consequently, the expanding OEM segment will fuel the expansion of the global auto parts market throughout the forecast period.

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The Auto Parts Market is experiencing significant growth due to advancements in technology and the increasing demand for vehicles, including electric vehicles. New technologies such as 3D printing, autonomous vehicle technology, sensors, radar systems, and LIDAR technology are revolutionizing the industry. Cutting-edge technology is being integrated into various components, including braking systems, headlamps, engines, electronics, lighting, safety equipment, and navigation systems. The market caters to various industries, including boats, yachts, and watercraft, as well as OEM suppliers and aftermarket manufacturers. Commercial fishermen also rely on auto parts for their vessels. The market offers a wide range of products, including engine parts, brake system parts, electrical parts, and fuel system parts. Stay tuned for more updates on the latest trends and developments in the Auto Parts Market.

The Auto Parts Market is a dynamic and diverse industry that caters to various modes of transportation, including electric vehicles, three-wheelers, two-wheelers, quadricycles, boats, yachts, and watercraft. Cutting-edge technology continues to shape the market, with innovations such as Electric Vehicles (EVs), Autonomous vehicle technology, 3D printing, and advanced sensors like Radar systems and LIDAR technology leading the charge. The market includes OEM suppliers and aftermarket manufacturers, serving both passenger and commercial vehicles, light commercial vehicles, sports vehicles, and even commercial fishermen and maritime professionals. The market encompasses a wide range of parts, including engines, electronics, lighting, safety equipment, navigation systems, and auto accessories. The industry also includes driveline and powertrain components, interiors and exteriors, seating, and chassis parts. Fuel efficiency, safety standards, and vehicle ownership trends continue to influence market growth. Economic uncertainty and the shift towards online platforms and e-commerce are also significant factors shaping the industry. EV-specific auto parts and autonomous vehicles are emerging segments, with connectivity features and vehicle emissions becoming key considerations. The market is vast and complex, serving various vehicle types and industries, from automotive to maritime.

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• End-user
• OEM
• Aftermarket
• Distribution Channel
• Offline
• Online
• Geography
• North America
• Europe
• APAC
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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SOURCE Technavio