The automotive parts remanufacturing market in Europe involves the rebuilding of end-of-life cores into like-new parts. Remanufacturing of automotive parts such as engines, transmissions, and turbochargers helps reduce raw material usage and waste generation. These parts undergo disassembly, cleaning, inspection, replacement or remanufacturing of worn components, reassembly, and testing to ensure like-new performance.
The global Europe automotive parts remanufacturing market is estimated to be valued at US$ 15.34 Mn in 2023 and is expected to exhibit a CAGR of 38.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Regulatory policies supporting sustainable practices play a major role in driving the growth of the Europe automotive parts remanufacturing market. Strict legislation such as the European Union's End-of-Life Vehicles Directive promotes reuse, recycling, and recovery of vehicles and their components. Remanufacturing helps reduce the environmental impact of raw material extraction and waste generation from manufacturing processes. It is estimated to conserve around 85-95% of the embodied energy content of original equipment compared to new parts production. The growth of the automotive industry and rising vehicle parc in Europe further support the remanufacturing market by providing an ample supply of core components for rebuilding.
SWOT Analysis
Strength: The Europe automotive parts remanufacturing market size is expected to have a solid aftermarket demand for remanufactured parts. The existing fleet of vehicles provide a large remanufacturing opportunity. Strict emission regulations will also drive more consumers towards opting for remanufactured parts which are cheaper than new ones.
Weakness: Lack of standardized procedures for remanufacturing across all part categories can affect quality assurance. Higher investment and more complex operations involved in parts remanufacturing compared to manufacturing of new parts.
Opportunity: Increasing vehicle repair and service activities provide ample opportunities for growth of parts remanufacturing industry. Growing environmental concern regarding sustainable transportation will boost adoption of remanufactured auto components.
Threats: Introduction of new technologies in vehicles may reduce demand for certain conventional parts in long run. Price pressure from low-cost new components imported from other regions.
Key Takeaways
The Europe automotive parts remanufacturing market is expected to witness high growth over the forecast period of 2023 to 2030 supported by strong demand for cost-effective alternatives. The global Europe automotive parts remanufacturing market is estimated to be valued at US$ 15.34 Mn in 2023 and is expected to exhibit a CAGR of 38.% over the forecast period 2023 to 2030.
Regional analysis:
The Europe automotive parts remanufacturing market is dominated by Germany, United Kingdom, Italy and France who collectively accounts for over 80% of market share. Germany has the highest number of automotive vehicles in operation providing largest remanufacturing potential. It is also a major automotive production base with presence of OEMs like Volkswagen, Daimler, and BMW. U.K is second largest market driven by strong automotive aftermarket industry. However, Eastern European markets like Poland and Czech Republic are expected to witness fastest growth during the forecast period supported by increasing vehicle fleet.
Key players
Key players operating in the Europe Automotive Parts Remanufacturing Market are AnaSpec, Inc., BTG International Inc., Midwest Reman, LLC, Walker Manufacturing, restorparts, and Detroit Diesel Corporation. The market is currently led by companies based in Germany and U.K with local and regional players. However, consolidation activities are expected to increase with focus on partnerships and acquisitions.
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