Auto Parts Market Expected to Grow at 3.62% CAGR by 2028

The Global Auto Parts Market is projected to expand by USD 393.22 billion at a CAGR of 3.62% from 2022 to 2027. This growth is driven by technological advancements in the industry, increased digitalization in automotive repair and maintenance, and robust demand from the aftermarket.

Leading contributors to this market include the US, Germany, China, the UK, and Japan, with the US holding the largest share, expected to generate an annual revenue of USD 537.21 million. Notable players, such as Goodyear and its subsidiary Cooper Tire and Rubber Company, are prominent in the market. This report also examines historical data from 2017 to 2021 to provide comprehensive insights.

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Distribution Channels: Offline Dominance and Online Emergence

Currently, the offline segment dominates the distribution channels, benefiting from the tactile customer experience and the widespread presence of physical stores. However, the online segment is gaining traction, particularly in countries like the US, Canada, the UK, Germany, and China, where there are numerous auto part stores, garages, and dealerships. The rise of e-commerce is anticipated to challenge the offline market share due to the growing complexity of vehicle components and the convenience of online shopping.

Regional Insights: APAC and North America Leading the Charge

The Asia-Pacific (APAC) region is projected to contribute 34% to the global market growth during the forecast period. Analysts have highlighted significant regional trends and growth factors, including the increasing demand for commercial vehicles in North America, driven by sectors such as oil and gas, agriculture, and industrial manufacturing. The auto parts market in North America, particularly the US, is expected to expand due to the rising demand for commercial vehicle parts.

Market Dynamics: Drivers, Trends, and Challenges

Key Drivers: Technological Advancements Fueling Growth

Technological innovations in braking components, headlamps, and other parts are crucial drivers of market growth. High-performance braking systems, 3D printing technology, and the rising demand for hybrid and electric vehicles are significant factors propelling the market forward.

Emerging Trends: E-commerce and Aftermarket Expansion

The growing presence of auto parts on e-commerce platforms is a notable trend. The shift towards online sales is driven by the advantages of e-shopping platforms, contributing to the rapid growth of the automotive aftermarket.

Major Challenges: Online Retail vs. Traditional Stores

The rise of online retailers presents a significant challenge to traditional brick-and-mortar stores. The evolving automotive industry, with ongoing developments in electronics, digitalization, and connectivity, is leading to increased competition between online and offline retailers.

Key Market Players and Competitive Landscape

Prominent companies in the market, such as 3M Co., AISIN CORP., Akebono Brake Industry Co. Ltd., Autoliv Inc., and BorgWarner Inc., are employing various strategies, including strategic alliances, mergers and acquisitions, and geographical expansion, to strengthen their market presence. Detailed analyses of these companies provide insights into their strengths and weaknesses, helping clients understand the competitive landscape.

Market Insights by Analysts

The market is undergoing a transformation driven by the increasing popularity of electric and hybrid vehicles, leading to the manufacturing of eco-friendly vehicle parts. The demand for specialized EV components, such as batteries, electric motors, and charging infrastructure, is on the rise. Consumer behavior is shifting towards environmentally friendly materials, influencing both new vehicle production and the aftermarket sector.

Future Outlook: Adapting to New Technologies and Sustainability

The auto parts market is rapidly evolving with the growing demand for EV parts, advancements in autonomous vehicles, and smart grid technology. Government incentives and stringent emission regulations are further boosting market growth. The integration of renewable energy sources, expansion of charging station networks, and advancements in battery recycling are essential for supporting the growing EV market.

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Conclusion

The Global Auto Parts Market is set for substantial growth, driven by technological advancements, the increasing popularity of electric vehicles, and the shift towards sustainable practices. The market's future will be shaped by the continued evolution of consumer behavior, regulatory changes, and the integration of new technologies.

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Technavio Research

Jesse Maida

Media & Marketing Executive

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Email: media@technavio.com

Website: www.technavio.com/

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