Car Parts Market Report 2026

The car parts market size has grown strongly in recent years. It will grow from $273.23 billion in 2025 to $292 billion in 2026 at a compound annual growth rate (CAGR) of 6.9%. The growth in the historic period can be attributed to vehicle production growth, expansion of global supply chains, demand for replacement parts, internal combustion engine dominance, automotive manufacturing scale.

The car parts market size is expected to see strong growth in the next few years. It will grow to $376.33 billion in 2030 at a compound annual growth rate (CAGR) of 6.5%. The growth in the forecast period can be attributed to electric vehicle adoption, connected vehicle technologies, sustainability regulations, demand for modular components, digital supply chain optimization. Major trends in the forecast period include shift toward electrified powertrain components, growth of advanced driver assistance parts, expansion of lightweight automotive materials, demand for high-precision components, rise of aftermarket replacement.

The increase in aging vehicles is expected to drive growth in the car parts market going forward. Aging vehicles are those that have been in use for over 8-10 years and remain operational, often requiring frequent maintenance, repairs, and replacement parts to stay roadworthy. This rise in aging vehicles is attributed to improved vehicle durability, which allows cars to remain reliable and in use for longer periods. Car parts play a vital role in supporting aging vehicles by facilitating timely repairs and replacements that extend their lifespan and maintain performance. For example, in April 2025, a report by CCC Intelligent Solutions Inc., a US-based SaaS platform provider for the property and casualty (P&C) insurance sector, noted that the average age of vehicles on US roads reached 12.7 years in 2024 and is expected to hit 13 years by 2026. Thus, the growing number of aging vehicles is fueling the expansion of the car parts market.

Leading companies in the car parts market are focusing on innovative solutions like brake-by-wire (BbW) systems to improve vehicle safety, responsiveness, and integration with advanced driver-assistance and autonomous driving technologies. Brake-by-wire systems replace traditional mechanical and hydraulic brake linkages with electronic controls to activate the vehicle’s brakes. For instance, in April 2025, Nexteer Automotive, a US-based automotive manufacturer, launched the Electro-Mechanical Brake (EMB) system, a cutting-edge BbW solution that enhances chassis control, efficiency, and safety. This technology allows precise, independent control of each wheel, improving vehicle stability, reducing response times, and boosting overall safety and comfort - especially important for electric vehicles, where reducing noise and vibration is critical. By removing hydraulic components, the EMB system contributes to vehicle lightweighting, improves energy efficiency, and lowers maintenance requirements, supporting the industry's move toward more sustainable, software-driven vehicle architectures.

In July 2024, Wharton Automotive Group, a US-based supplier of high-performance automotive driveline components, acquired Competition Clutch Inc. for an undisclosed sum. Through this acquisition, Wharton Automotive Group aims to strengthen its foothold in the high-performance driveline market by incorporating Competition Clutch's expertise in sport compact clutch kits and flywheels. Competition Clutch Inc., also US-based, specializes in manufacturing high-performance clutch kits and flywheels for both street and race cars.

Major companies operating in the car parts market report include Robert Bosch GmbH, Denso Corporation, ZF Friedrichshafen AG, Thyssenkrupp AG, Continental AG, Magna International Inc., Aisin Seiki Co. Ltd., Sumitomo Electric Industries, Ltd., Valeo SA, Lear Corporation, Faurecia SE, Tenneco Inc., Schaeffler Group, Adient plc, Yazaki Corporation, BorgWarner Inc., JTEKT Corporation, Mahle GmbH, Nexteer Automotive India Private Limited, Aptiv plc, Hitachi Automotive Systems (India) Private Limited.

Asia-Pacific was the largest region in the car parts market in 2025. The regions covered in the car parts market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the car parts market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The car parts market includes sales of pistons, shock absorbers, tie rods, air conditioning compressors, and side mirrors. 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.

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