Automobile Remanufacturing Global Market Report 2024

The automobile remanufacturing market size has grown rapidly in recent years. It will grow from $62.11 billion in 2023 to $68.71 billion in 2024 at a compound annual growth rate (CAGR) of 10.6%. The growth in the historic period can be attributed to increasing environmental concerns, a focus on cost-effectiveness, emphasis on resource conservation, supportive regulatory measures, and the adoption of circular economy principles.

The automobile remanufacturing market size is expected to see strong growth in the next few years. It will grow to $98.88 billion in 2028 at a compound annual growth rate (CAGR) of 9.5%. The growth in the forecast period can be attributed to the growth of electric vehicles (EVs), increased vehicle complexity, the transition to autonomous vehicles, a rise in sustainable practices, and legislation promoting the circular economy. Major trends in the forecast period include advancements in remanufacturing technologies, a focus on battery remanufacturing, increased automation in remanufacturing processes, emphasis on modularity and design for remanufacture, and the development of collaborative supply chain models.

The escalating demand for vehicles is anticipated to be a pivotal driver propelling the expansion of the automobile remanufacturing market. Vehicles, essential for land-based transportation of people or goods, are driving the need for automobile remanufacturing, a process focused on rebuilding and revitalizing previously used, sold, or damaged vehicles. This sector encompasses a spectrum of remanufactured components such as transmissions, clutches, steering systems, and axle systems designed for motor vehicles and trucks. For instance, as per data from MarkLines Co., Ltd. in June 2023, the US witnessed a surge in new vehicle sales, reaching 1,374,910 units in May 2023, marking a notable 22.8% increase from the preceding year. Hence, the burgeoning demand for vehicles acts as a significant impetus driving the growth trajectory of the automobile remanufacturing market.

The embrace of circular economy principles is poised to be a pivotal force propelling the growth of the automobile remanufacturing market. The circular economy, promoting sustainability through continuous resource use, recycling, and repurposing, holds significance in driving a more environmentally friendly automotive industry. Practices such as remanufacturing contribute to sustainability, offering cost-effective solutions while addressing environmental concerns and aligning with evolving consumer preferences. For instance, a January 2021 report by the World Economic Forum highlighted the potential impact of implementing circular economy practices within the automotive sector. By 2030, these practices have the potential to reduce carbon emissions by up to 75% and decrease non-circular resource consumption by up to 80% per mile. This underscores the pivotal role of adopting circular economy practices in steering the growth trajectory of the automobile remanufacturing market.

Product innovation stands as a pivotal trend gaining momentum within the automobile remanufacturing market. Leading companies in this sector are actively engaged in pioneering new remanufactured products to fortify their market standing. An illustration of this trend is observed in Blue Streak Electronics' June 2023 launch of remanufactured automotive driveline power inverters. These inverters undergo an extensive remanufacturing process, encompassing rigorous testing, refurbishment, and replacement of critical components, ensuring optimal performance, reliability, and extended lifespan. Functionally converting DC power from the vehicle's battery into AC power for driveline systems while also charging the battery, customers can expect products that match the performance of entirely new power inverters while concurrently reducing waste and carbon footprints.

Prominent companies operating in the automobile remanufacturing sector are prioritizing innovative initiatives, particularly in remanufacturing solutions tailored for electric vehicles, aimed at enhancing sustainability, curbing waste, and prolonging the life cycle of electric vehicle components. These solutions involve refurbishing and reviving components to extend their usability and bolster sustainability within the electric vehicle industry. For instance, in June 2021, ATC Drivetrain, a US-based company specializing in remanufacturing solutions, introduced remanufacturing capabilities for electric vehicle systems. Operating from its facilities in Oklahoma City, OK, for the North American automotive market, and Zhangjiang, China, for the Asian automotive market, ATC Drivetrain's investments enable the refurbishment of batteries and electric drive units for plug-in hybrid and battery-electric vehicles. This strategic move marks the company's advancement in its electrification strategy, leveraging expertise and processes developed at ATC's UK facility.

In February 2023, LKQ Europe GmbH, a Switzerland-based automotive aftermarket component provider, completed the acquisition of Rhenoy Group for an undisclosed amount. This strategic move reinforces LKQ's commitment to delivering cost-effective and sustainable mobility solutions across European markets. As an integral part of its European strategic plan, the company intends to leverage Rhenoy Group's expertise, particularly in remanufacturing capabilities. Rhenoy Group, based in the Netherlands, specializes in the remanufacturing of engines.

Major companies operating in the automobile remanufacturing market report are Toyota Motor Corporation, Robert Bosch GmbH, Caterpillar Inc., Denso Corporation, ZF Friedrichshafen AG, Continental AG, Volvo Car Corporation, Cummins Inc., Valeo SA, Eaton Corporation plc., Tenneco Inc., Schaeffler Group, TRW Automotive Holdings Corp., BorgWarner Inc., LKQ Corporation, Marelli Europe S.p.A, Knorr-Bremse AG, Navistar Inc., GKN Automotive Limited, Garrett Motion Inc., Standard Motor Products Inc., Remy International Inc., BBB Industries, Jasper Engines and Transmissions, Cardone Industries Inc., Detroit Diesel Corporation, BORG Automotive AS, Maval Industries LLC., AMS Automotive LLC., WABCO Holdings Inc.

North America was the largest region in the automobile remanufacturing market in 2023. Asia-Pacific is expected to be the fastest-growing region in the automobile remanufacturing market report during the forecast period. The regions covered in the automobile remanufacturing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the automobile remanufacturing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary types of automobile remanufacturing include engine, transmission, starter, generator, and others. The engine, in this context, refers to a machine that generates motion using steam or liquid fuel. Different manufacturers are involved in automobile remanufacturing, including original equipment manufacturer (OEM) remanufacturers, independent remanufacturers, and subcontracted remanufacturers. These remanufactured components find applications in various vehicle types, including passenger vehicles and commercial vehicles.

The automobile remanufacturing market research report is one of a series of new reports that provides automobile remanufacturing market statistics, including automobile remanufacturing industry global market size, regional shares, competitors with an automobile remanufacturing market share, detailed automobile remanufacturing market segments, market trends and opportunities, and any further data you may need to thrive in the automobile remanufacturing industry. This automobile remanufacturing market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The automobile remanufacturing market consists of sales of turbochargers, brake caliper, steering racks, steering pumps, and alternators. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.