Stringent regulations set by the European Council is expected to favor the region’s market for automotive parts remanufacturing. The governments in many of the European nations are encouraging the reuse of automotive parts, which is propelling the demand for their remanufacturing. Besides, purchasing of new parts is often more expensive in the region due to price volatility of raw materials and fragmented market structure of OEMs.
Therefore, testing and reprocessing of core components of cars is gaining traction in the European market. This, in turn, is solidifying the market growth. According to a report published by Persistence Market Research, the market presently values US$ 12,152 Million and is likely to surpass US$ 21,433 Million over 2024, expanding at over healthy CAGR of 6.4% between 2016 and 2024.
In terms of sale, the market reached nearly 35 million units in 2016 in the region and the number is expected to expand at over 7% CAGR to cross a figure of 56 million by the end of forecast period. Moreover, growing environmental concerns related wearing out of automobile component will continue to fuel the demand for remanufacturing of automotive parts in the region.
The arrival of new components and products for enhancing vehicle performance act as an important driver for the market growth. Moreover, the introduction of advanced hybrid vehicles is the region is further influencing the growth of automotive parts remanufacturing market. Core components are getting modified by using remanufacture procedures and are improved with smart devices.
Demand for transmission components and remanufacturing engines is considerably high across the region and anticipated to continue to rise during the forecast period. Remanufacturing of brake calipers turbochargers, steering wheels, and transmission clutches will witness robust growth in terms of revenue, exhibiting over 7% CAGRs.
Meanwhile, passenger cars will account for more than 40% of region’s automotive parts remanufacturing. It is projected that over 23 million passenger car part will be remanufactured in countries in Europe. Off-highway vehicles and HCVs are also expected to present healthy demand for remanufacturing of automotive parts over 2024
Germany is Europe’s leading automobile manufacturing country, therefore, the country holds a major percentage of the region market, accounting for one-third revenue share by 2024. The market is also expected to witness an impressive growth in the United Kingdom, whereas countries such as Italy, Russia and France might come up short.
In 2017 and beyond, the region will continue to hold a dominant position as an industry leader owing to the existence of prominent car makers such as Bayerische Motoren Werke, Volkswagen and Mercedes-Benz. Lucrativeness of the market is luring leading automakers towards remanufacturing businesses. Healthy profit margins of automotive aftermarket business coupled with the minimum cost of remanufacturing car components are encouraging more players to join the market in Europe.
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