The automotive parts remanufacturing market involves rebuilding worn-out or broken automotive components to work like new by utilizing reused or newly manufactured parts. It helps reduce waste and costs associated with the replacement of expensive components such as engines, transmissions, and turbochargers. The increasing average lifespan of vehicles drives the need for remanufactured parts as it allows vehicle owners to reduce maintenance costs. Remanufacturing of automotive components helps make vehicles more environmentally friendly and sustainable by reducing waste.
The Europe automotive parts remanufacturing market is estimated to be valued at US$ 17.68 Bn in 2024 and is expected to exhibit a CAGR of 38.% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in the Europe automotive parts remanufacturing are AnaSpec, Inc., Cayman Chemical Company, Kaneka Corporation, Sigma-Aldrich (part of Merck KGaA), Gold Biotechnology, Inc., Xi'an Lyphar Biotech Co.,, Ltd.,ChemFaces, Henan Senyuan Biological Technology Co., Ltd., Chengdu Biopurify Phytochemicals Ltd., Shenzhen Lvshiyuan Biotechnology Co., Ltd. The key players are focusing on strengthening their product portfolio and geographic presence through strategic partnerships and collaborations.
Increased investment in R&D activities to develop innovative remanufacturing techniques and improve recycling rates of automotive components presents significant growth opportunities for players in the market. Stringent emission regulations mandating alternate powertrain technologies are also expected to drive demand.
With the growing importance of sustainability, key players are increasingly focusing on expanding their presence in untapped international markets to benefit from rising vehicle parc and availability of end-of-life vehicles for recycling. Global expansion will help strengthen their supply chain network and customer base.
Market drivers:
Rising vehicle lifespan: With continuous technological advancements and higher build quality, the average lifespan of vehicles has increased substantially. This is driving the need for cost-effective remanufactured parts.
Stringent emission regulations: Regulations mandating reduced vehicular emissions are encouraging the adoption of alternative powertrain technologies. This is augmenting the demand for remanufactured electric vehicle components.
Market restrain:
Availability of low-cost counterfeit parts: Proliferation of low-cost counterfeit components poses challenges to genuine Europe Automotive Part Remanufacturers Market Demand parts suppliers. It restrains the growth of the legitimate remanufacturing market.
Segment Analysis
The Europe automotive parts remanufacturing market is dominated by the engine & related parts sub segment. This is because engine & related parts such as pistons, oil pumps, alternators etc are commonly replaced and remanufactured. Remanufacturing of these parts helps reduce the overall cost of engine repair and maintenance for fleet owners and individual consumers.
The gears sub segment holds the second largest share in the market. Gears used in gearboxes, differentials etc are subjected to high pressure and wear & tear over time. Remanufacturing helps extend the use of such components for additional miles without compromising on performance.
Regional Analysis
Germany accounts for the largest share in the Europe automotive parts remanufacturing market currently. This is attributed to presence of a large automotive industry and fleet in the country. The fleet owners are ready to adopt remanufactured parts in order to reduce operating expenses.
France is emerging as the second fastest growing market due to increasing mileage of vehicles on road and initiatives by government to promote sustainable automotive repair practices. Initiatives like quotas on use of remanufactured parts by fleet operators are supporting market growth
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