Automotive parts, after a certain period of usage, undergo wear and damage, and require replacement. Automotive parts will thus continue to witness significant demand in the aftermarket, which in turn is likely to create multiple growth opportunities for the automotive parts remanufacturing market players.
Attractive cost savings and profitable margins associated with the automotive parts remanufacturing market have been securing a profitable position for automotive remanufacturers over the years. Remanufactured parts cost nearly 50-75% as much as the original product - while providing the same quality, which remains the key booster to demand growth of remanufactured parts.
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The global automotive parts remanufacturing market is estimated to grow at a value CAGR of 7.1% over 2018-2026, roughly equating US$ 91 Bn by the end of 2026.
Automotive Parts Remanufacturing Market Analysis by Component
By component, electrical & electronics parts are projected to lead the automotive parts remanufacturing market in terms of value. The growth of this segment can be primarily attributed to increasing rate of replacement of alternators and starters. Engine and related parts also hold a significant value share in the automotive parts remanufacturing market, i.e. over 30%.