Remanufacturing of automotive parts remanufacturing is one of the few segments that develops in inverse proportion to the economy

Automotive Parts Remanufacturing Market

  Growing concerns about the carbon footprint and overall environmental impact of newly manufactured automobiles, as well as the increased use of remanufactured transmission in advanced technology electric and hybrid vehicles, will drive demand for remanufactured auto parts. Dumping of worn-out mainstream automobile parts has become less common in recent years, owing to a number of environmental issues associated with dumping. This will also increase the demand for remanufactured auto parts.

  Auto mechanics today are adaptable enough to add or remove any remanufactured auto part that is compatible with existing vehicle parts. This could pose a significant challenge to new remanufactured part sales in the near future. Another factor that is expected to limit market growth in the near future is competition from repaired automotive parts. The narrowing price gap between mainstream and remanufactured parts is expected to be a major impediment to market growth. Furthermore, extended warranties on original vehicle components will be detrimental to the market. Automotive Parts Remanufacturing Market is one of the few markets that grow in inverse proportion to the economy. Because it is a less expensive alternative to purchasing brand new automotive parts, remanufacturing generally grows when consumer spending falls. However, in a rapidly growing economy, consumers prefer new products over remanufactured ones, resulting in a drop in the market for remanufactured automotive parts.

  Economic benefits will continue to drive the market for remanufactured automotive parts. Consistently strong demand for remanufactured starters and alternators will also drive sales in the near future. Soaring demand for remanufactured diesel engines will play a significant role in driving the market forward in the near future. The rise of electric and hybrid vehicles will be a major driver of demand for remanufactured transmission systems.

  The average age of the existing vehicle fleet is increasing, indicating that demand for remanufactured automotive parts will increase in the near future. Since the recent past, the durability and quality of products have steadily improved, eventually making remanufactured automotive parts on the market as competitive as brand new parts. This is expected to drive sales in the coming years.

  Ander Niermann, BORG Automotive A/S, Caterpillar Inc., Jasper Engines and Transmissions, Standard Motor Products Inc., Cardone Industries Inc., ATC Drivetrain Inc., Genuine Parts Company, Marshall Engines, Maval Manufacturing Inc., Motor Car Parts of America Inc., Teamec BVBA, and Robert Bosch GmbH are among the key players.