Automotive parts that can be remanufactured include engines, transmission, turbochargers, fuel injectors, and others. Remanufacturing helps in reducing waste from end-of-life products and lowering costs of obtaining replacement parts. Remanufacturing allows for reuse of up to 95% of the original part with performance equal to or better than the newly manufactured part.
The global Europe Automotive Parts Remanufacturing Market is estimated to be valued at US$ 15.34 Mn in 2023 and is expected to exhibit a CAGR of 17% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Focus on Reducing Vehicle Downtime – Vehicle downtime is one of the biggest challenges faced by fleet owners and operators. Remanufacturing of automotive parts helps in quick replacement when a part breaks down, thereby minimizing vehicle downtime. Remanufactured parts availability within short delivery timescales allows fleet operators to get vehicles back on the road quickly. As highlighted in the heading, this focus on reducing vehicle downtime is expected to flourish the Europe automotive parts remanufacturing market over the forecast period.
Increasing Adoption of Remanufacturing to Cut Operational Costs – Operational costs associated with vehicles include costs pertaining to maintenance and repairs. Remanufactured parts offer significant cost savings compared to new OEM parts, without compromising on quality and performance. On average, remanufactured parts are priced 30-50% lower than new parts. For commercial vehicle owners, the savings from choosing remanufactured parts can range from 20-30% of the total maintenance budget. This cost benefit is a major driver behind the growth of Europe’s automotive parts remanufacturing market.
Segment Analysis
The Europe automotive parts remanufacturing market is dominated by the engine and engine components segment, which accounted for over 35% of the overall market share in 2023. This is because engine and engine components such as cylinder heads, engine blocks, and turbochargers experience the most wear and tear during usage. Their remanufacturing helps reduce costs for consumers. The transmission and transmission components segment is expected to witness the highest growth during the forecast period, increasing at an estimated CAGR of 19.5% till 2030. This is attributed to the rising demand for automatic transmission systems in passenger and commercial vehicles across Europe.
PEST Analysis
Political: Stricter emission norms introduced by the EU have accelerated the adoption of automotive parts remanufacturing, as it reduces environmental impact.
Economic: The unstable economic environment amid rising inflation has boosted demand for affordable remanufactured parts.
Social: Growing consumer awareness about sustainable transportation and reducing electronic waste is driving the market.
Technological: Advancements in 3D printing and AI are helping optimize the reverse logistics and remanufacturing processes.
Key Takeaways
The Europe Automotive Parts Remanufacturing Market Size was valued at US$ 15.34 Mn in 2023 and is expected to grow significantly at a CAGR of 17% during the forecast period.
Germany accounted for over 25% share of the market in 2023 owing to presence of major automakers and remanufacturers such as Robert Bosch and Continental AG.
Key players operating in the market are Amgen Inc., Biocon Ltd, Dr. Reddy’s Laboratories, reliance life sciences, Teva Pharmaceutical Industries Limited, Merck & Co. Inc., Eli Lilly and Company, Intas Pharmaceutical Ltd and Kashiv Bio Sciences, Pfizer Inc.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it