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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