The global auto parts manufacturing market is predicted to grow at a compound annual growth rate (CAGR) of 3.6 percent by 2025, according to Persistent Market Research.
Globally the market is anticipated to reach around $466 billion in value by 2025.
The engine component segment is the largest by market valuation and is expected to continue to dominate the market, followed by the underbody component segment. Another one to watch is the OEM segment, which is the most lucrative when measured by sales channels and is likely to grow at a relatively high CAGR.
Passenger cars are expected to be the most valuable segment by vehicle type, with an anticipated value of $348 billion, followed by the light commercial vehicle segment.
Persistent Market Research attributes the growth to increasing demand for high energy density batteries and other technologically progressive products, the manufacturing of brake pads with reduced levels of copper and heavy metals, and wider scope for pumps. The report also notes “expansion and collaboration among manufacturers to increase market reach” and increasing auto production in general.
Some factors of modern automotive manufacturing do present challenges that may decrease the growth of the global market. The report cites “low replacement rate and aftermarket potential for automotive pumps, increasing demand for electric vehicles, higher import taxes, threats from substitutes and alternatives, and mushrooming counterfeit auto parts” as potential roadblocks.