April 24, 2024
European Automotive Parts Remanufacturing Market

Europe Automotive Parts Remanufacturing Market is Trending Due to Growing Traction Towards Vehicle Sustainability

Market Overview

Automotive parts remanufacturing involves rebuilding worn or non-functional automotive components to work like new. It helps restore core components to original factory specifications and functionality with minimal use of new materials. Key components remanufactured includes engines, transmissions, turbochargers, starters, alternators, and EGR valves. Remanufacturing is a cost-effective and environmentally sustainable solution that extends average component lifespan by 10-15 years. It utilizes existing materials and manufacturing infrastructure to reduce waste and emissions. The process involves complete disassembly, cleaning, inspection, replacement of all worn parts with new ones, reassembly and quality control testing.

The Global 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 remanufactured components market is growing due to increasing demand for lower-cost automotive parts. Strict emission regulations are also driving more vehicle owners towards affordable remanufactured parts with lesser environmental impact. Europe’s automotive parts remanufacturing industry is expanding globally with key players focusing on partnerships, mergers and acquisitions to strengthen their international foothold.

Growing consumer awareness about sustainability and cost-savings is a key factor driving demand in the Europe automotive parts remanufacturing market. Stricter emission norms implemented by governing bodies is also propelling the demand. Rising vehicle fleet and average age are contributing to growth of aftermarket parts. Availability of advanced technologies to restore components life and optimize remanufacturing process is helping reduced turnaround time and improve production.

The Europe automotive parts remanufacturing market is witnessing a major trend of consolidation activities. Key industry participants are actively pursuing mergers and acquisitions to expand geographic footprint. Partnerships with OEMs and independent automotive workshops are also on a rise to strengthen distribution network. Sustainable remanufacturing practices with greater efficiency and minimal carbon footprint will continue to gain traction. Adoption of robotics, big data, and advanced testing equipment will help drive next wave of innovation.

Market Key Trends

One of the major trends witnessed in the Europe Automotive Parts Remanufacturing Market Demand is growing consolidation activities. Leading players in this space are actively pursuing mergers and acquisitions to scale up operations and expand global footprint. For instance, in 2021, Standard Motor Products acquired Pure Power Technologies to broaden reman coverage for import cars including Honda and Toyota. Such consolidation initiatives allows companies to achieve economies of scale, strengthen technical capabilities, and provide comprehensive solutions to worldwide automaker and supplier base.

Porter’s Analysis

Threat of new entrants: The automotive parts remanufacturing market in Europe requires huge capital investments and established distribution channels. Thus threat of new entrants is low.

Bargaining power of buyers: The buyers have moderate bargaining power as there are multiple established players offering a variety of automotive parts for remanufacturing.

Bargaining power of suppliers: The suppliers have low bargaining power due to presence of many component manufacturers and parts suppliers.

Threat of new substitutes: There is low threat of substitution as remanufactured parts offer significant cost benefits compared to new parts.

Competitive rivalry: The market has high competitive rivalry due to presence of many global and regional players offering variety of remanufactured and recycled automotive parts.

Geographical Regions

In terms of value, Western Europe region accounts for the largest share in the Europe automotive parts remanufacturing market. Countries like Germany, UK, Italy, France have established automotive industries and aftermarket segments driving the demand.

The Eastern Europe region is expected to witness fastest growth during the forecast period. Countries like Poland, Czech Republic, Russia are seeing increasing vehicle parc along with growing focus on reducing vehicle maintenance costs. This is expected to boost the sales of remanufactured automotive parts in Eastern Europe.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it