Categories
Archives
Europe Automotive Parts Remanufacturing Market is Anticipated
-
The Europe automotive parts remanufacturing market involves the process of salvaging used automotive components and remanufacturing them into components as efficient and durable as new ones. Parts commonly remanufactured include engines, transmissions, turbochargers, steering racks, air conditioning compressors, and alternators. Remanufacturing helps reuse materials and brings old components back to original quality specifications. It aids in reducing waste and saving costs for vehicle owners compared to entirely new components. The Global Europe automotive parts remanufacturing market is estimated to be valued at US$ 16.54 Bn in 2024 and is expected to exhibit a CAGR of 7.8% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Europe automotive parts remanufacturing are Borg Automotive
A/S, Budweg Caliper A/S, Caterpillar Inc., LuK Unna GmbH and Co. KG, Valeo SA,
Schouw and Co., ZF Friedrichshafen AG, Monark Automotive GmbH, Carwood Group, Robert Bosch GmbH, and Meritor, Inc. These key players are focusing on developing innovative and reliable remanufacturing technologies to strengthen their market position.
The market provides several opportunities for players given the increasing vehicle fleet and rising demand for cost-effective components. Governments across Europe are also encouraging the use of remanufactured components to aid sustainability efforts.
Technological advancements in 3D printing and robotics allow designing components with complex geometries and material combinations, improving remanufacturing efficiency.
Technological advancements play a vital role in the automotive parts remanufacturing market. Europe Automotive Parts Remanufacturing Market share adoption of REMAN is expected to increase as OEMs aim for more sustainable production.
components that match OEM performance at lower costs. It facilitates on-demand manufacturing and simplifies inventory management for spare parts. Other technologies such as robotics, artificial intelligence, and big data analytics are also being utilized to automate remanufacturing processes and enhance quality control.
Market Drivers
Stringent emission regulations: Europe has implemented stringent emission norms such as Euro 6 that mandate lowering vehicle emissions. Using remanufactured components helps automakers comply with these regulations in a cost-effective manner compared to developing new technologies.
Increasing vehicle parc: The rising vehicle fleet in Europe is driving the need for costcompetitive component replacements. The expanding aftermarket for vehicle parts offers significant opportunities for remanufactured components.
Cost savings: Remanufacturing provides lifetime cost savings of up to 70% compared to purchasing new components. It benefits both automakers and vehicle owners through lower expenses.
Current challenges in the Europe Automotive Parts Remanufacturing Market:
With original equipment manufacturers (OEMs) now offering competitive remanufactured parts programs, the aftermarket is facing challenges. OE remanufactured parts must pass rigorous quality tests during the process. This raises the bar for independent remanufacturers who must meet these high quality standards to compete. Raw material costs like steel and plastics have also been rising, squeezing margins. Stricter emissions regulations in the EU have sped the transition to electric vehicles which use fewer parts that need remanufacturing like engines and transmissions. Finding skilled labor is another impediment as the workforce ages. Younger technicians prefer working with modern car electronics over manual jobs in remanufacturing.
SWOT Analysis
Strength: Process expertise and economies of scale from a large reman parts business.Green credentials of recycling cores appeal to sustainability-focused fleets and consumers. Weakness: High fixed costs of maintaining specialized production lines.Negative 'used' product perceptions persist among some buyers.
Opportunity: Expanding commercial vehicle segment offers a large profitable market.Emobility components like motors and batteries can also be reconditioned in future. Threats: Aggressive pricing from OEM reman programs.Shift to electric drivetrains reduces components available for refurbishing.
The Europe Automotive Parts Remanufacturing Market is concentrated in Western European countries where vehicle ownership is highest.Germany accounts for over 25% of the regional market value due to the large size of its auto industry and policies promoting sustainable resource use. The UK and France are other major hubs with well established independent remanufacturers serving sizable domestic aftermarkets. Eastern Europe is a fast growing region for automotive parts remanufacturing driven by rising incomes and vehicle fleet expansion programs in countries like Poland, Czech Republic, Hungary and Romania catching up with Western standards.
The Germany region holds the largest share in the Europe Automotive Parts Remanufacturing Market and is expected to grow at a CAGR of around 6.5% during the forecast period. This is attributed to the strong presence of automotive OEMs and independent remanufacturers catering to the demand from the large installed vehicle base in the country. The UK region is projected to exhibit the fastest growth rate owing to favorable regulatory policies supporting sustainable waste management practices through automotive core retrieval and remanufacturing
Get More Insights On Europe Automotive Parts Remanufacturing Market
Get this Report in Japanese Language
Get this Reports in korean Language
About Author:
Alice Mutum is a seasoned senior content editor at Coherent Market Insights, leveraging extensive expertise gained from her previous role as a content writer. With seven years in content development, Alice masterfully employs SEO best practices and cutting-edge digital marketing strategies to craft high-ranking, impactful content. As an editor, she meticulously ensures flawless grammar and punctuation, precise data accuracy, and perfect alignment with audience needs in every research report. Alice's dedication to excellence and her strategic approach to content make her an invaluable asset in the world of market insights.
(LinkedIn: www.linkedin.com/in/alice-mutum-3b247b137 )