According to a new market research report published by Credence Research “Automotive Parts remanufacturing Market (By Type: Remanufacturing With Identity Loss, Remanufacturing Without Identity Loss and Remanufacturing by Recoating Worn Parts; By Component: Mechanical, Electrical and Others) – Growth, Future Prospects, and Competitive Landscape, 2017-2025”, automotive parts remanufacturing market was valued at US$ 33.16 Bn in 2016 and is estimated to grow at a CAGR of 6.6% from 2017 to 2025.
The complete report is available at https://www.credenceresearch.com/report/automotive-parts-remanufacturing-market
Remanufacturing of automotive components is a form of the recovery process to remanufacture a machine part or component that would match the customer’s expectation as a replacement. Automotive parts remanufacturing offers a variety of benefits to the modern day automobile industry. Economic benefits for both remanufacturing companies as well as the customers are considered as the biggest driver for the overall automotive parts remanufacturing market. Remanufacturing aids in reducing cost pertaining to major parameters such as material, machining, production time, energy, fuel and labor costs, among other. In addition, present-day automobiles are made flexible in a way so that they can easily incorporate remanufactured parts without affecting the performance of the vehicle. The aforementioned factors have created a positive impact on the demand for remanufactured automotive parts. Consequently, the demand for remanufactured automotive parts is expected to grow consistently throughout the forecast period.
Apart from economic benefits, factors such as limitation of natural resources such as metals and other earthy elements is another major driving factor for the promotion of automotive parts remanufacturing. The remanufacturing of parts has created a positive impact on the environment in a variety of ways. Remanufacturing of auto parts has helped to conserve energy by reducing the amount of work to be done on the raw material to manufacture a new component. In addition, reducing the use of raw materials, reducing landfill space and reduction in air pollution are few of the many merits offered by the process of automotive parts remanufacturing. Therefore, with growing importance of environmental conservation, the demand for remanufactured automotive parts is expected to escalate consistently in the following years.
Automotive parts remanufacturing market is a well-established market with a number of local as well as international players characterizing the market. Business expansion by expanding the sales and distribution network in new and emerging markets in the Asia Pacific and Latin America regions has been one of the prime strategy adopted by the major automotive parts remanufacturing companies. Major players in the market include Caterpillar Inc., Robert Bosch GmbH, ZF Friedrichshafen AG, BORG Automotive A/S, Detroit Diesel Corporation, Motorcar Parts of America, Inc., Marshall Engines, Standard Motor Products Inc., Cardone Industries Inc., Genuine Parts Company, Maval Manufacturing Inc., ATC Drivetrain Inc., Teamec BVBA, Ander Niermann, and Jasper Engines and Transmissions.
- Growing trend of recycling and reusing the parts to prevent unnecessary landfills
- Use of advanced machining processes to attain optimum quality of remanufactured automotive parts so as to be comparable to new parts
- Expansion of sales and distribution network by the remanufacturing companies to capitalize new and emerging markets