by 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:
The automotive parts remanufacturing market involves rebuilding worn or outdated automotive components to work like new. This includes remanufacturing of starters, alternators, turbochargers, engine oils and more. Remanufactured parts offer a cost-effective solution while reducing environmental impact as it involves reuse of existing components rather than production of new parts from scratch.
Market key trends:
One of the major trends driving the Europe automotive parts remanufacturing market is the growing environmental concerns related to vehicle emissions and waste generated from discarded automotive components. Remanufacturing helps decrease environmental impact by reducing the need for resource-intensive new component manufacturing. It is estimated to save around 85-95% of the energy required to produce new parts. Moreover, strict emission regulations in Europe are compelling automakers to provide sustainable and eco-friendly solutions, thereby supporting the demand for remanufactured parts. Growing vehicle parc along with higher failure rates of older vehicles is another factor providing a fillip to the automotive parts remanufacturing industry in the region.
Porter’s Analysis
Threat of new entrants: High capital requirements and need for established suppliers and distribution channels pose entry barriers to new players. However, availability of scrap makes entry easier.
Bargaining power of buyers: Large automotive OEMs enjoy higher buyer power due to their sizable demand. However, established remanufacturers offer variety and competitive pricing.
Bargaining power of suppliers: Suppliers of core components and scrap enjoy less power due to availability of alternatives and concentration of buyers. Established suppliers have technical know-how.
Threat of new substitutes: New substitute parts face difficulty replacing remanufactured parts due to customer reluctance in changing proven products and environmental preferences.
Competitive rivalry: Intense competition exists among key players to gain market share through quality, technology and expansion.
SWOT Analysis
Strengths: Environment-friendly and cost-effective solution. Strong distribution network and brand loyalty.
Weaknesses: Perceived lower quality than new parts. Remanufacturing is labour intensive.
Opportunities: Growth in vehicle scrappage and parts recovery. Entering new product segments and geographic regions.
Threats: Stricter emission norms increase preference for new parts. Macroeconomic slowdowns impact automotive sales.
Key Takeaways
Europe Automotive Parts Remanufacturing Market Size is expected to witness high growth at a CAGR of 7.8% over the forecast period due to stringent emission regulations mandating usage of quality and affordable components. The market size is projected to reach US$ 26.43 Bn by 2030 from US$ 15.33994 Mn in 2023.
Germany dominates the Europe market owing to large vehicle fleet and presence of leading players. The UK and France also offer sizable growth opportunities led by widespread aftermarket channels and remanufacturing hubs.
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. Players are focusing on digital technologies to improve refurbishing, expanding supply chains and offering comprehensive service portfolios.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
