What Factors Propelled The Growth Of The Automobile Remanufacturing Market In The Past?
The automobile remanufacturing market has seen considerable growth due to a variety of factors.
•In recent times, there has been significant expansion in the automobile remanufacturing market. The market that was valued at $67.54 billion in 2024, is set to increase to $74.18 billion in 2025, exhibiting a compound annual growth rate (CAGR) of 9.8%.
Environmental consciousness, cost-efficiency, preservation of resources, supportive regulations, and the embrace of a circular economy are factors that facilitated growth during the historic period.
What Is The Projected Growth And Market Size For The Automobile Remanufacturing Sector?
The automobile remanufacturing market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, we can anticipate a swift expansion in the size of the automobile remanufacturing market. It's projected to escalate to $109.31 billion by the year 2029, with a Compound Annual Growth Rate (CAGR) of 10.2%.
This predicted surge over the forecast period can be linked to the rise of electric vehicles (EVs), advancements in vehicle complexity, the shift towards autonomous vehicles, an increase in sustainable practices, and legislation related to the circular economy. Furthermore, the era will be characterized by refinements in remanufacturing technology, a heightened attention on battery remanufacturing, an escalation in remanufacturing automation, modularity, designs specifically for remanufacturing, and cooperative supply chain models.
What Factors Are Driving Growth In The Automobile Remanufacturing Market?
The rise in vehicle demand is set to boost the expansion of the automobile remanufacturing industry moving forward. Essentially, a vehicle is a piece of machinery typically fitted with wheels and an engine that's used for terrestrial transportation of individuals or goods. The automobile remanufacturing sector addresses this growing vehicle demand by restoring and recycling old, used, or damaged vehicles. Auto remanufacturers provide a broad range of reconditioned components like transmissions, clutches, steering systems, and axle systems for motor vehicles and trucks. For example, MarkLines Co., Ltd., a Japanese automotive industry portal, reported in June 2023 that new vehicle sales in the US had surged to 1,374,910 units in May 2023, a rise of 22.8% from May 2022. Hence, the escalating demand for vehicles is fueling the expansion of the automobile remanufacturing industry.
What Are The Main Segments Of The Global Automobile Remanufacturing Market?
The automobile remanufacturing market covered in this report is segmented –
1) By Type: Engine, Transmission, Starter, Generator, Other Types
2) By Manufacturer: Original Equipment Manufacturer (OEM) Remanufacturers, Independent Remanufacturers, Subcontracted Remanufacturers
3) By Application: Passenger Vehicles, Commercial Vehicles
Subsegments:
1) By Engine: Gasoline Engine, Diesel Engine, Hybrid Engine
2) By Transmission: Manual Transmission, Automatic Transmission, CVT (Continuously Variable Transmission)
3) By Starter: Electric Starter, Hydraulic Starter
4) By Generator: Alternator, Starter Generator
5) By Other Types: Fuel Injectors, Turbochargers, Power Steering Pumps, Brake Calipers
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What Emerging Trends Are Influencing The Growth Of The Automobile Remanufacturing Market?
One notable trend emerging in the automobile remanufacturing market is the emphasis on product innovations. To maintain their prominence in this market, key companies are developing new remanufactured products. For example, Blue Streak Electronics, an automotive remanufactured electronics company based in Canada, unveiled a new range of remanufactured automotive driveline power inverters in June 2023. These inverters are subjected to an extensive remanufacturing process involving meticulous testing, refurbishment, and the replacement of vital components to assure superior performance, reliability, and longevity. They transform the vehicle's battery's DC power into AC power for driveline systems while simultaneously charging the battery. Hence, customers can expect a product that performs as well as brand-new power inverters while curbing waste and carbon emissions.
Who Are the Key Players in the Automobile Remanufacturing Market?
Major companies operating in the automobile remanufacturing market include:
• Toyota Motor Corporation
• Robert Bosch GmbH
• Caterpillar Inc.
• Denso Corporation
• ZF Friedrichshafen AG
• Continental AG
• Volvo Car Corporation
• Cummins Inc.
• Valeo SA
• Eaton Corporation plc.
• Tenneco Inc.
• Schaeffler Group
• TRW Automotive Holdings Corp.
• BorgWarner Inc.
• LKQ Corporation
• Marelli Europe S.p.A
• Knorr-Bremse AG
• Navistar Inc.
• GKN Automotive Limited
• Garrett Motion Inc.
• Standard Motor Products Inc.
• Remy International Inc.
• BBB Industries
• Jasper Engines and Transmissions
• Cardone Industries Inc.
• Detroit Diesel Corporation
• BORG Automotive AS
• Maval Industries LLC.
• AMS Automotive LLC.
• WABCO Holdings Inc.
What Is The Most Dominant Region In The Automobile Remanufacturing Market?
North America was the largest region in the automobile remanufacturing market in 2024. Asia-Pacific is expected to be the fastest-growing region in the automobile remanufacturing market report during the forecast period. The regions covered in the automobile remanufacturing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
