Auto Parts and Accessories Market Size (2023 – 2030)

In 2022, the Global Auto Parts and Accessories Market was valued at USD 1.57 trillion and is projected to reach a market size of USD 2.15 trillion by 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 4.61%.

The auto parts and accessories market refers to the industry that manufactures and sells various automotive components and accessories. This includes engine components, tires, brakes, lighting, and audio systems. The industry's market size and growth can be affected by factors like as the overall health of the economy, the age of the vehicle fleet, and consumer preferences. Overall, the industry is likely to expand as more automobiles are sold and consumers seek more advanced and specialized items. The market's value chain is divided into two key segments: automotive replacement part suppliers and service enablers. At various phases, these key industry segments are exchanging value through the automotive sectors. Access to detailed component array, combined with transaction simplicity, delivered by digitalization of global automotive component sales, is destined to resolve obtain ability issues, thereby driving the automobile aftermarket industry. As more people become interested in Internet-of-Things (IoT) and digitalisation trends, the resulting digitalization is anticipated to have a significant impact on the industry. Automobile manufacturers confront a number of obstacles during the production process. One of these limits is the cost of production. Some automobile replacement parts, such as aftermarket filters, provide the option of selecting a part that is appropriate for the conditions under which a vehicle works. Furthermore, the move towards electric and self-driving vehicles is projected to have a substantial future impact on the auto parts and accessories market. Electric car popularity is projected to boost demand for electric vehicle components and charging equipment, while the development of autonomous vehicles is projected to boost need for improved sensor and camera systems. The auto parts and accessories market is projected to expand further in the future years, owing to factors such as population growth, urbanisation, and an increase in the number of vehicles on the road.

Global Auto Parts and Accessories Market Drivers:

Demand for auto parts and accessories is driven by global economy, technology, customer tastes and government regulations.

The global economy has been improving, resulting in a rise in the number of people who can afford to buy new vehicles. As a result, demand for vehicle parts and accessories is increasing. The introduction of new technologies, such as electric and hybrid automobiles, is pushing the creation of new auto parts and accessories built exclusively for these vehicles. Furthermore, as automobiles get more sophisticated, people are turning to aftermarket accessories to modify and enhance their vehicles. Consumers have become more aware of the numerous items available on the market as a result of the advent of the internet, and they have become more prepared to spend money on high-quality vehicle parts and accessories. Demand for some types of auto parts and accessories, such as emissions control systems and safety features, is also influenced by government laws. In conclusion, the strengthening global economy, new technology, and customer tastes are driving demand for auto parts and accessories, while government restrictions also shape the market.

Global Auto Parts and Accessories Market Challenges:

Several challenges threaten the global auto parts and accessories market's growth and development. Economic downturns can have a negative influence on consumer spending on auto parts and accessories since consumers are more likely to keep their older automobiles rather than buy new ones. The market is also extremely competitive, with multiple firms competing for market share, which can result in price wars and margin compression. Counterfeit items are also a problem in the market, causing legitimate manufacturers and supplier’s reputations to suffer. Raw materials, such as metals and plastics, can change in price, making it difficult for manufacturers to precisely anticipate expenses and price their products. Consumer preferences can shift quickly, making it challenging for manufacturers to stay on top of the current trends and create items that will be in demand.

Global Auto Parts and Accessories Market Opportunities:

The global market for Auto Parts and Accessories offers various opportunities: 

• Electric and hybrid vehicles: As demand for electric and hybrid vehicles grows, so will the demand for specialist parts and accessories for these vehicles.

• Linked cars: The growing popularity of connected automobiles, which rely on modern technology such as sensors, cameras, and telematics, opens the door to the creation of new auto parts and accessories that improve the driving experience.

• Aftermarket services: Consumers are increasingly opting for aftermarket services such as repair and maintenance, creating chances for growth in the auto parts and accessories market.

• Emerging markets: As the economies of emerging markets grow, so will demand for vehicles, auto parts, and accessories.

• Online sales: As e-commerce has grown in popularity, it has been easier for consumers to purchase auto parts and accessories online, resulting in an increase in sales and a chance for manufacturers to expand their reach.

• Increasing focus on safety features: Government laws and consumer demand for enhanced safety features such as lane departure warning, automatic braking systems, and airbags have created opportunities for manufacturers to develop and market these types of goods.

• Increased emphasis on sustainability and recycling: A greater emphasis on sustainability and recycling is leading to the development of eco-friendly materials and innovative recycling procedures for vehicle parts and accessories, which is opening up new business prospects.

COVID-19 Impact on Global Auto Parts and Accessories Market:

The COVID-19 pandemic has had a significant impact on the Auto Parts and Accessories Market. The Auto Parts and Accessories Market's supply chain and product demand have been impacted, with a fall in demand for commercial vehicle parts as a result of the suspension of non-essential services. Uncertainty has also influenced consumer purchasing behaviour, with people holding onto their vehicles for longer periods of time. This, along with a liquidity gap and a cash crisis, has affected Auto Parts and Accessories Market participants. Consumers may prefer private transportation in the aftermath of the pandemic, but price restrictions may lead to an increase in used car sales and need for aftermarket auto parts for maintenance. The market is projected to differ depending on the client category, and some entry-level aftermarket players may return in developing countries.

Global Auto Parts and Accessories Market Recent Developments:

• In November 2022, Bosch and Mercedes-Benz have made an important step toward self-driving technology by receiving approval from Germany's Federal Motor Transport Authority (KBA) for their advanced automated parking system, which will be deployed in APCOA's P6 parking garage at Stuttgart Airport.

• In June 2021, Delphi Technologies, a global leader in auto parts and technology, has announced the release of its latest brake components for 2020 Volkswagen cars, making it the first to market for this new model year. The components were created to deliver greater performance and longevity under the most severe braking circumstances.

AUTO PARTS AND ACCESSORIES MARKET REPORT COVERAGE:

Global Auto Parts and Accessories Market Segmentation: By Product

• Mechanical Parts

• Electrical Parts

• Body Parts

• Others

Electrical Parts stand out as the segment with the highest market share making it the dominant segment among others which is due to the increased integration of advanced electronics in modern vehicles. These parts encompass a range of components, including wiring, sensors, lights, and entertainment systems, contributing to the functionality and convenience of vehicles.

The Body Parts segment emerges as the fastest-growing category. The demand for Body Parts, such as bumpers, fenders, and mirrors, is on the rise due to factors like road accidents, wear and tear, and aesthetic upgrades. The desire to enhance the visual appeal and safety features of vehicles is fueling the growth of this segment.

Global Auto Parts and Accessories Market Segmentation: By Vehicle Type

• Passenger Cars

• Light Commercial Vehicles

• Heavy Commercial Vehicles

Passenger Cars are the dominant segment and enjoys a significant share of the market. The demand for parts and accessories for Passenger Cars is driven by individual consumers seeking to personalize their vehicles and improve their performance. Commercial Vehicles are emerging as the fastest-growing segment. This growth is attributed to the expanding logistics and transportation industries that heavily rely on LCVs and HCVs for their operations. With the increasing need for efficiency and durability in commercial fleets, the demand for auto parts and accessories designed for these vehicles is experiencing a notable surge.

Global Auto Parts and Accessories Market Segmentation: By Distribution Channel

• OEM (Original Equipment Manufacturer)

• Aftermarket

The Aftermarket segment emerges as the largest market revenue holder making it the most dominant segment among others which reflects the growing preference among vehicle owners to customize and upgrade their vehicles after the initial purchase. The Aftermarket offers a wide range of products that cater to individual preferences, from performance-enhancing parts to aesthetic modifications.

The OEM segment stands out as the fastest-growing segment. OEM parts are directly sourced from the vehicle manufacturer and are specifically designed to fit the original specifications of the vehicle. The rapid growth of the OEM segment can be attributed to the increasing demand for genuine and high-quality parts, driven by factors such as safety concerns and the desire to maintain the vehicle's warranty

Global Auto Parts and Accessories Market Segmentation: By Region

• North America
• Europe
• Asia Pacific
• Middle East
• Latin America

North America takes the lead as the largest regional market with the highest global market revenue share, owing to the high vehicle ownership rates and the prevalence of individual customization trends. Consumers in this region are keen on upgrading their vehicles with a wide range of parts and accessories.

The fastest-growing region during the forecast period is projected to be Europe. The growth in Europe's Auto Parts and Accessories market can be attributed to several factors, including the increasing awareness about vehicle maintenance and safety, as well as the rising adoption of electric vehicles. As the region embraces environmentally friendly alternatives, the demand for specialized parts and accessories to support electric vehicles is expected to surge.

Global Auto Parts and Accessories Market Key Players:

1. Bosch Automotive

2. Delphi Technologies

3. Denso Corporation

4. Magna International

5. Continental AG

6. Lear Corporation

7. TRW Automotive

8. Aisin Seiki Co., Ltd.

9. Autoliv Inc.

10. Hitachi Automotive Systems, Ltd.