Auto Parts Manufacturing Market is Projected to Reach USD 2,761.1 Billion by 2033 | At CAGR 2.3%

Auto Parts Manufacturing Market Overview:

The global auto parts manufacturing market size was valued at USD 2,250.5 Billion in 2024 and is projected to reach USD 2,761.1 Billion by 2033. This growth corresponds to a CAGR of 2.3% during the forecast period 2025-2033. Key drivers include rising vehicle demand, governmental initiatives promoting automotive growth and sustainability, and consumer preferences for enhanced vehicle comfort, connectivity, and convenience features. Increasing automotive production, electrification, and rising demand for high-tech automotive components are expected to drive growth in the auto parts manufacturing market. As vehicle manufacturers and suppliers aim to improve fuel economy while increasing strength and durability, lightweight materials, precision-engineered components, artificial intelligence based manufacturing, and robotics are gaining traction. Growth of electronic and battery systems, sensors, powertrain, and thermal management products due to demand for EVs, hybrid vehicles, smart mobility, advanced driver-assistance systems (ADAS), and connected car(s) across the automotive sector, in addition to demand for aftermarket equipment and off-the-shelf distribution of automotive components via e-commerce. Government incentives for clean mobility and regulatory emission norms favor the long-term outlook of the market.

Study Assumption Years

• Base Year: 2024
• Historical Year/Period: 2019-2024
• Forecast Year/Period: 2025-2033

Auto Parts Manufacturing Market Key Takeaways

• Current Market Size (2024): USD 2,250.5 Billion
• CAGR (2025-2033): 2.3%
• Forecast Period: 2025-2033
• The market is driven by the increasing global demand for automobiles and government incentives supporting growth and sustainability in the automotive sector.
• Engine components represent the largest segment within component types due to their critical role in vehicle performance and efficiency.
• OEM sales channel holds the largest market share, supplying parts directly to vehicle manufacturers.
• Passenger cars dominate vehicle type segments, driven by consumer preference for personal transportation and advanced features.
• Asia Pacific is the leading regional market due to rapid industrialization, urbanization, and its position as a global automotive manufacturing hub.

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Market Growth Factors

Additionally, the automobile components industry is changing because of rapidly changing manufacturing processes such as additive manufacturing (3D printing) and automation techniques with robotics. Additive manufacturing (3D Printing) enables the manufacture of complex, customized parts that is fast, accurate, cost effective, and has low wastage now. Robotic assembly improves productivity in that it precisely builds items and provides flexibility, thus enabling manufacturers to switch production rapidly to accommodate new models. Productivity, unit costs and innovation are improved, which increases auto parts manufacturing growth.

Factors contributing to the global growth of the automotive parts market include population growth, rapid urbanization, and increased disposable incomes in developing countries. Increased vehicle ownership in these countries generates demand for automotive parts in manufacturing and repair. The development of electric and self-driving vehicles, in conjunction with growing connected vehicle technologies, is increasing the potential market for specialized automobile parts such as battery systems, sensors and smart technologies, and government regulations on fuel efficiency and emissions are impacting the industry.

The demand for electric motors, battery packs and thermal management components is being fueled by global awareness of climate change, government support for EVs, and advancements in EV battery technology. The industry is researching and expanding capacity with an emphasis on components that are light-weight and consume less energy in an effort to improve overall EV performance and range. Infrastructure to support the equipment, such as charging stations and grid infrastructure, also create further opportunities.

Market Segmentation

Breakup by Component Type:

• Battery
• Cooling System: Compressor, Radiator, Pump, Thermostat
• Underbody Components: Brake and Exhaust
• Engine Components: Starter, Pump, Engine, Alternator
• Automotive Filter
• Lighting Components
• Electrical Components: Ignition Coil, Ignition Switch, Spark and Glow Plug
• Others

_Description:_ Components range from power sources like batteries to various systems ensuring functionality and safety, with engine components dominating due to their impact on performance and efficiency.

Breakup by Sales Channel:

• OEM
• Aftermarket

_Description:_ OEM sales channel supplies parts directly to vehicle manufacturers for original installations, representing the largest market share. The aftermarket serves vehicle maintenance and repairs, catering to cost-effective and customization demands.

Breakup by Vehicle Type:

• Passenger Cars
• Light Commercial Vehicles
• Heavy Commercial Vehicles
• Others

_Description:_ Passenger cars hold the largest share driven by demand for personal transportation and advanced features. Other vehicle types include commercial and heavy-duty vehicles with distinct component needs.

Breakup by Region:

• North America: United States, Canada
• Asia-Pacific: China, Japan, India, South Korea, Australia, Indonesia, Others
• Europe: Germany, France, United Kingdom, Italy, Spain, Russia, Others
• Latin America: Brazil, Mexico, Others
• Middle East and Africa

_Description:_ The auto parts manufacturing market spans major global regions, highlighted by Asia Pacific’s dominance due to its automotive sector growth and manufacturing advantages.

Regional Insights

Asia Pacific accounts for the largest market share in the global auto parts manufacturing market. Growth in this region is fueled by rapid industrialization, urbanization, and expansion of the automotive sector. Asia Pacific benefits from lower production costs, a skilled workforce, and a robust supply chain ecosystem. Increasing disposable incomes and transportation infrastructure development contribute to market expansion, positioning Asia Pacific as the leading regional market.

Recent Developments & News

• In 2021, Aisin Corporation collaborated with DENSO Corporation and JTEKT Corporation to establish BluE Nexus Corporation, focusing on electric vehicle integrated electric drive units (eAxles).
• In 2020, Akebono Brake Industry Co. Ltd. partnered with Electric Drivetrain Technologies (EDT) to develop electric vehicle brake systems.
• In 2019, Brembo S.p.A. formed a strategic partnership with Pirelli to create the "Pirelli P Zero World" retail concept combining high-performance brakes with premium tires.

Key Players

• Aisin Corporation
• Akebono Brake Industry Co., Ltd.
• Brembo N.V.
• Continental AG
• DENSO Corporation
• Forvia SE
• General Motors Company
• Hyundai Mobis Co., Ltd
• Magna International Inc.
• Marelli Holdings Co., Ltd.
• Robert Bosch LLC
• Schaeffler AG
• Valeo Service
• ZF Friedrichshafen AG

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