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Auto Parts and Accessories Market Overview
The Global Auto Parts and Accessories Market size is forecast to reach US$110.2 billion by 2030, growing at a CAGR of 3% from 2024 to 2030. Factors such as the investments on electric vehicles, and rapidly growing due to the introduction of new innovations, which is bolstering the growth of the Auto Parts and Accessories manufacturing industry. Therefore, the key players are aligning their strategies to the prevalent trends in order to maintain competitiveness in such a dynamic environment. Manufacturers are adopting lightweight car parts to produce components, which are significantly lightweight and much more fuel-efficient than their predecessors. Owing to stricter environmental regulations leading to the replacements in motor cars and their engines, the amount of scrap is higher in developed countries compared to the developing world. These aforementioned factors will positively influence the Auto Parts and Accessories industry outlook during the forecast period.
The Auto Parts and Accessories market is undergoing significant transformation driven by several major trends. The shift towards electric vehicles (EVs) is reshaping the industry, with a surge in demand for specialized components like batteries, electric drivetrains, and charging infrastructure. Advances in autonomous driving technology are spurring the development of sophisticated sensors, cameras, and LiDAR systems. The rise of connected cars is boosting the need for high-tech parts that facilitate vehicle-to-everything (V2X) communication, enhancing safety and efficiency on the roads. Sustainability is becoming a crucial focus, with increased investment in recyclable materials and eco-friendly manufacturing processes to reduce the environmental impact. The growth of e-commerce is revolutionizing the distribution of Auto Parts and Accessories, enabling consumers and businesses to source components quickly and efficiently online. The aftermarket segment is also expanding as vehicles on the road are kept longer, increasing the demand for maintenance and replacement parts. Additionally, 3D printing technology is gaining traction, allowing for rapid prototyping and on-demand production of custom parts, reducing lead times and inventory costs. These trends are driving innovation and efficiency in the Auto Parts and Accessories market, ensuring it adapts to the evolving demands of the automotive industry.
Market Snapshot:
Report Coverage
The report: “Auto Parts and Accessories Industry Outlook – Forecast (2024-2030)”, by IndustryARC covers an in-depth analysis of the following segments of the Auto Parts and Accessories industry.
By Vehicle Type: Passenger Vehicles, Light Commercial Vehicles, Heavy Commercial Vehicles and Sports Vehicles
By Product Type: Engine Parts (Carburettor, Catalytic Converter, Exhaust System, Fuel Injection System, Ignition System and others); Electrical Parts (Alternators, Ignition Switches, Battery, Starter, Spark & Glow Plugs, and others); Drive and Transmission Steering parts (Drive Train, Driveshaft, Automatic Transmission, Chassis, Clutch, Differential Gears, Gearset and others); Suspension and Braking Parts (Anti-Lock
Braking System: Active Suspension, Alloy Wheels, Brake Callipers, Disc brakes, Drum brakes, others); Others (Lighting Component, Electronic Control Unit, Sensors, Displays, Others)
By Mode of Sale: Online, Offline
By Sales Channel: OEMs, Aftermarket, Repair/Service Center, Auto Dealership, Retail Store
By Geography: North America (U.S, Canada, Mexico), Europe (Germany, France, U.K., Italy, Spain, Russia, Netherlands, Belgium, Others), APAC (China, Japan, South Korea, India, Australia, Taiwan, Malaysia, Others), South America (Brazil, Argentina, Chile, Others), and RoW (Middle East, Africa)
Key Takeaways
- In Auto Parts and Accessories market vehicle type, the passenger vehicles segment is expected to grow at a significant rate with a CAGR of 3.1% owing to factors such as high investments on electric vehicles and production and sale of passenger vehicles.
- The Online mode of sale segment is expected to grow at a significant rate with a CAGR of 5.9% owing to its ease of use.
- APAC had the largest share with the market share of 42.1% in the global Auto Parts and Accessories Market size, owing to high production and sale of passenger and commercial vehicles.
Auto Parts and Accessories Market Segment Analysis- By Mode of Sale
Based on Mode of Sale, online segment in Auto Parts and Accessories Market report had the highest share and it is analysed to grow with a significant CAGR of 5.9% during the forecast period 2024-2030. With growing production and sales of passenger cars across the globe, there has high been high adoption of new Auto Parts and Accessories for replacement of old parts in the vehicles. For this, Auto Parts and Accessories consumers are using online mode of sales as, it is convenient mode of sales, can get offers through online mode. This has been attracting users to prefer online mode of sales and thereby driving the Auto Parts and Accessories market in online mode of sales. For instance, eBay is one of the online mode of sales for Auto Parts and Accessories, especially for selling rare Auto Parts and Accessories. It is one of the popular platforms for Auto Parts and Accessories. According to eBay Motors, there are about 110 million active Auto Parts and Accessories listings, and three parts or accessories are sold each second. eBay provides a number of tools to facilitate automotive sellers, including tools to help simplify adding fitment to your listings. This kind of online platforms provide opportunities for the market growth.
Auto Parts and Accessories Market Segment Analysis- By Vehicle Type
Based on Vehicle Type, passenger vehicle segment in Auto Parts and Accessories Market report is analysed to grow with the highest CAGR of 3.2% during the forecast period 2024-2030. According to International Organization of Motor Vehicle Manufacturers (OICA), there has been increase in production of passenger cars from 55.90 million vehicles to 57.05 million vehicles with 2% growth during the year 2020-2021 at global level. With the growing presence of international automobile manufacturers and brands across the globe, and the consumers’ ability to purchase new cars and maintain those, the consumers have been willing to buy more than one passenger car to suit their daily needs and travel purposes. These features drive the Auto Parts and Accessories for passenger vehicles market.
Auto Parts and Accessories Market Segment Analysis- By Geography
APAC dominated the global market for Auto Parts and Accessories Market with a market share of 42.1% in 2023 and also analysed to have a significant growth over the forecasting period. New technology applications in the field of producing Auto Parts and Accessories are expected to boost the automotive sales in the region. The regional market is being driven by an increase in the production and sales of vehicles and passenger cars and the digitisation of distribution systems for automotive components. For instance, according to the Automotive Component Manufacturers Association of India (ACMA), exports of auto components in India had witnessed a 43% growth to $19.0 billion in 2021-22 and 12.6% growth in 2022-23, compared to $13.3 billion during 2020-21. Such developments are boosting the implementation of Auto Parts and Accessories in the APAC region.
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Auto Parts and Accessories Market Drivers
Technologies such as Artificial Intelligence and Machine Learning are driving the market growth.
The automotive industry is rapidly growing due to the introduction of new technologies such as Artificial Intelligence (AI) and Machine Learning (ML). AI is playing a significant role in automotive service and part replacement. Currently, many AI applications predict the problems related to engine performance, battery performance, etc. that may occur in the future. AI in automotive empowers manufacturers with intelligent systems that allow streamlining workflows, identifying defects in-car components, and improving quality control. Moreover, AI can also help in preventing costly equipment breakdowns that stall production by using data from background noise, vibrations, and more to predict when machinery will need maintenance. These factors and developments increase the Auto Parts and Accessories market size.
Growing Demand for Innovative Auto Parts and Accessories to Comply with Stringent Norms
Increasing scrapping rates of motor vehicles and engines tend to propel the demand for original equipment engines. Scrap rates are higher across various countries, owing to more stringent environmental regulations and replacement of motor vehicles and their parts is more frequent in highly regulated countries. In 2021, India has launched the Vehicle Scrappage Policy, a government-funded program to replace old vehicles with modern & new vehicles on Indian roads. The policy is expected to reduce pollution and boost demand for new vehicles. Several countries including the US, Germany, Canada and China have introduced vehicle scrappage policies to boost their respective automotive industries and curtail vehicular pollution and this is poised to increase the market growth.
Auto Parts and Accessories Market Challenges
Chip Shortage impact on Auto Parts and Accessories Industry
Motor vehicle manufacturers and suppliers are facing a dramatic shortage of microchips globally. This shortage was caused by a massive increase in demand for computers, mobile phones and other consumer electronics during the COVID-19 pandemic that surpassed the current supply of semiconductors. On the other hand, the impact of the semiconductor chip shortages led auto manufacturers to shut down plants globally. GM suspended production in three of its US, Canada, and Mexico plants. Due to the non-availability of components, GM suggested to build vehicles without certain components, and then add them in at a later date. Ford cancelled its production schedules at its Kansas City plant. Similarly, Volkswagen and several Japanese manufacturers like Honda and Nissan had to adjust production at their factories in Japan and North America. Furthermore, in 2022, auto component manufacturer, Rane group stated that the global shortage of chip will impact Auto Parts and Accessories sales by 5%-7% in India. Hence shortage of chip will negatively affect the sales of automotive vehicles Auto Parts and Accessories in near future. The global shortage of semiconductors, or chips, which had rattled automobile production and sales through fiscals 2021 and 2022 and a large part of fiscal 2023, is easing, with supply-chain glitches being addressed and improved predictive demand forecast enabling better production schedules.
Auto Parts and Accessories Industry Outlook
Product launches, collaborations, and R&D activities are key strategies adopted by players in the Auto Parts and Accessories Market. Auto Parts and Accessories top 10 companies include
- Denso Corporation
- Dana Holding Corporation
- Delphi Corporation
- Valeo
- Magna International Inc
- Aisin
- Hyundai Mobis
- Robert Bosch AG
- Continental AG
- ZF Friedrichshafen
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