The Europe Automotive Parts Remanufacturing Market is estimated to be valued at US$ 15.33994 Mn or Mn in 2023 and is expected to exhibit a CAGR of 7.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The automotive parts remanufacturing market in Europe involves repairing and rebuilding worn, damaged or used vehicle components to restore them to an acceptable working condition. Some key components that are commonly remanufactured include engines, transmissions, fuel pumps, steering racks, turbochargers, and alternators. Remanufacturing helps reduce the consumption of raw materials by recycling the existing parts. It also aids in waste reduction and lowers the operational costs for customers. Reusing automotive components provides an economical and environment-friendly alternative to brand new components.
Market Dynamics:
The Europe automotive parts remanufacturing market is primarily driven by stringent environmental norms towards waste reduction and sustainability. For instance, the European Commission has implemented regulations such as the EU Directive on Waste Electrical and Electronic Equipment (WEEE Directive) to boost recycling and reuse of components. Moreover, remanufacturing helps achieve cost savings of up to 60% compared to new parts replacement. This is expected to boost the demand for remanufactured automotive components across commercial vehicle and passenger vehicle fleets. Furthermore, advancements in technology such as 3D printing and AI are enabling precision repairs of small damaged areas, thereby improving the quality and life of remanufactured parts.
Segment Analysis
The Europe automotive parts remanufacturing market is dominated by the engine & engine parts segment. It accounted for over 30% share of the total market in 2023. This is because engines have a large number of core components such as pistons, starters, alternators and turbochargers that require frequent remanufacturing as they face high wear and tear during vehicle operation. The transmission and drivetrain components segment is also quite prominent due to regular remanufacturing needs of clutches, differential carriers and torque converters.
PEST Analysis
Political: Stringent emission norms in the EU are compelling automakers to focus more on engine efficiency, promoting the demand for remanufactured engine parts with near-new performance at lower costs.
Economic: The weak economy of some European countries after the pandemic is pushing cost-conscious customers towards low-cost remanufactured parts instead of new OEM components.
Social: Growing environmental awareness among consumers is boosting the adoption of remanufactured parts that reuse existing materials and save on raw material consumption during manufacturing.
Technological: Advanced remanufacturing techniques like 3D scanning and precision CNC machining are helping produce remanufactured parts with designs and specifications identical to new components.
Key Takeaways
Europe Automotive Parts Remanufacturing Market Size is expected to witness high growth, exhibiting CAGR of 7.8% over the forecast period of 2023 to 2030, driven by stringent emission regulations and rising environmental awareness. The market size for 2023 is estimated at US$ 15.33994 Mn.
Germany accounts for the largest share in the European market currently due to presence of leading automotive parts manufacturers and remanufacturers like Robert Bosch, ZF Friedrichshafen, Schouw & Co. and others. France and the UK also offer substantial growth opportunities backed by their large vehicle parc and established automotive industries.
Key players operating in the Europe automotive parts remanufacturing market are Borg Automotive A/S, Budweg Caliper A/S, Caterpillar Inc., LuK Unna GmbH & Co. KG, Valeo SA, Schouw & Co., ZF Friedrichshafen AG, Monark Automotive GmbH, Carwood Group, Robert Bosch GmbH, and Meritor, Inc. Players are focusing on new product developments and adopting advanced technologies like 3D printing and AI to offer remanufactured components comparable to new parts in design, durability and performance at lower costs.
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