Global Auto Parts Market Size, Share, and Trends Analysis Report – Industry Overview and Forecast to 2032

What is the Global Auto Parts Market Size and Growth Rate?

• The global Auto Parts market size was valued at USD 24.60 billion in 2024 and is expected to reach USD 35.25 billion by 2032, at a CAGR of 4.60% during the forecast period
• Auto Parts market growth is driven by advancements in autonomous and electric mining equipment. Innovations such as automated drilling systems and electric haul trucks enhance efficiency and reduce operational costs. Increased adoption of these technologies is boosting market expansion, with a growing emphasis on sustainability and reduced environmental impact further propelling growth

What are the Major Takeaways of Auto Parts Market?

• Advancements in areas such as electric vehicles (EVs), autonomous driving systems, and connectivity features create new demands for specialized components and accessories. For instance, the rise of EVs necessitates the development of compatible charging infrastructure and battery management systems
• Similarly, the integration of advanced safety and infotainment technologies fuels demand for upgraded sensors, cameras, and entertainment systems. As automotive technology evolves, aftermarket manufacturers respond with innovative solutions, driving automotive parts industry by continually reshaping the landscape of automotive innovation
• North America dominated the auto parts market with the largest revenue share of 42.9% in 2024, driven by the presence of leading automakers, advanced manufacturing infrastructure, and growing investments in vehicle electrification and autonomous technologies across the U.S. and Canada
• Asia Pacific is poised to grow at the fastest CAGR of 8.7% during the forecast period from 2025 to 2032, driven by rapid industrialization, rising automotive production, and increasing investments in vehicle electrification across countries such as China, India, Japan, and South Korea
• The Surface Auto Parts segment dominated the auto parts market with the largest market revenue share of 47.6% in 2024, driven by the growing demand for large-scale mineral extraction, particularly in open-pit mining operations

Report Scope and Auto Parts Market Segmentation  

What is the Key Trend in the Auto Parts Market?

“Surging Demand for Lightweight, Sustainable, and Connected Components”

• A prominent and rapidly accelerating trend in the global auto parts market is the growing emphasis on lightweight materials, eco-friendly components, and connected automotive technologies aimed at improving fuel efficiency, reducing emissions, and enhancing vehicle safety. Automakers and suppliers are focusing on advanced materials such as aluminum, carbon fiber composites, and high-strength steel to reduce vehicle weight without compromising durability
  • For instance, in February 2024, BASF SE introduced a new range of lightweight thermoplastic composites for structural auto parts, contributing to significant weight reduction and improved energy efficiency, particularly in electric vehicles (EVs)
• In parallel, connected and smart auto parts such as advanced driver-assistance systems (ADAS), sensors, and telematics modules are transforming vehicle functionality, offering real-time data, predictive maintenance, and improved safety features. Automakers are integrating IoT and AI-driven technologies across critical components to meet evolving consumer expectations for connectivity and autonomous capabilities
• The shift towards electric mobility and stricter global emission regulations are driving increased adoption of lightweight and sustainable materials, enhancing overall vehicle performance and reducing carbon footprints
• Leading players such as DENSO CORPORATION and Continental AG are heavily investing in developing intelligent, lightweight, and environmentally friendly auto parts to align with future mobility trends
• This market trend is expected to reshape the automotive landscape by delivering more sustainable, efficient, and technologically advanced vehicles, reinforcing the strategic importance of innovative auto parts in achieving global decarbonization goals

What are the Key Drivers of Auto Parts Market?

• The rising production and adoption of electric vehicles (EVs), coupled with stringent emission regulations, are significant growth drivers for the auto parts market. Lightweight components, efficient powertrain parts, and advanced electronic systems are essential for improving vehicle range and complying with environmental standards
  • For instance, in January 2024, VALEO introduced next-generation electric powertrain solutions, offering higher efficiency and lighter weight, specifically designed to meet growing EV demand across Europe and Asia-Pacific
• Growing consumer demand for advanced safety features and in-vehicle connectivity is accelerating the development of smart auto parts, including sensors, ADAS modules, and communication systems, enhancing overall driving experience and safety
• Global trends towards vehicle electrification, shared mobility, and autonomous driving are reshaping the auto parts market, prompting investments in energy-efficient, connected, and sustainable components. The need to reduce overall vehicle weight and improve performance is boosting demand for innovative materials and designs
• In addition, expanding automotive production across emerging markets and increased focus on aftermarket components, including replacement parts and accessories, are contributing to steady market growth

Which Factor is challenging the Growth of the Auto Parts Market?

• The high cost of advanced auto parts, especially those utilizing premium materials such as carbon fiber composites or equipped with sophisticated electronic systems, poses a significant barrier, particularly for price-sensitive markets. The adoption of lightweight and connected components often increases overall vehicle production costs
  • For instance, automakers face cost challenges when integrating ADAS, electric drivetrains, or lightweight materials, which can elevate vehicle pricing and reduce affordability in developing regions
• Complex global supply chains and shortages of critical raw materials, such as semiconductors, lithium, and rare earth elements, have disrupted production timelines and increased the cost of key auto parts, hindering market stability
• In addition, regulatory uncertainties, trade restrictions, and geopolitical tensions in major automotive hubs can impact production and cross-border supply, challenging market expansion efforts
• Overcoming these challenges requires strategic partnerships, localized production, R&D in cost-efficient materials, and government support to promote the development and adoption of advanced auto parts that align with global sustainability and mobility goals

How is the Auto Parts Market Segmented?

The market is segmented on the basis of type, sales channel, material, and vehicle type.

• By Type

On the basis of type, the auto parts market is segmented into Engine Components, Transmission Components, Electrical Parts, Braking Systems, and Body Parts. The Engine Components segment dominated the auto parts market with the largest market revenue share of 36.7% in 2024, driven by the continued global demand for reliable and high-performance engines across passenger and commercial vehicles. The need for fuel-efficient, durable, and emission-compliant engine components remains a top priority for automakers and consumers asuch as.

The Electrical Parts segment is expected to witness the fastest growth rate from 2025 to 2032, fueled by the accelerating adoption of electric vehicles (EVs), advanced driver assistance systems (ADAS), and vehicle electrification technologies that require a robust electrical component infrastructure.

• By Sales Channel

On the basis of sales channel, the auto parts market is segmented into Original Equipment Manufacturer (OEM), Aftermarket, Retail, and Wholesale. The OEM segment accounted for the largest market revenue share in 2024, owing to the growing global production of vehicles and the demand for factory-fitted, high-quality, and performance-tested auto parts directly supplied by manufacturers.

The Aftermarket segment is projected to witness the fastest CAGR during the forecast period, driven by the increasing need for vehicle maintenance, repairs, and customization options, as well as the growing average age of vehicles worldwide.

• By Material

On the basis of material, the auto parts market is segmented into Metal, Plastic, Rubber, Composites, and Glass. The Metal segment dominated the market with the largest revenue share of 42.5% in 2024, driven by the widespread use of high-strength metals such as steel and aluminum in structural, engine, and braking components for durability, safety, and performance.

The Composites segment is anticipated to witness the fastest growth rate from 2025 to 2032, supported by increasing demand for lightweight, fuel-efficient vehicles where advanced composite materials reduce overall vehicle weight without compromising strength or safety.

• By Vehicle Type

On the basis of vehicle type, the auto parts market is segmented into Passenger Cars, Commercial Vehicles, Two-Wheelers, and Electric Vehicles. The Passenger Cars segment dominated the Auto Parts market with the largest market revenue share in 2024, driven by the high global sales volume of passenger vehicles and the growing need for advanced, comfortable, and efficient automotive components.

The Electric Vehicles (EVs) segment is projected to register the fastest growth rate from 2025 to 2032, propelled by global efforts to reduce carbon emissions, government incentives, and advancements in electric powertrain technologies, leading to a significant rise in EV production and corresponding component demand.

Which Region Holds the Largest Share of the Auto Parts Market?

• North America dominated the auto parts market with the largest revenue share of 42.9% in 2024, driven by the presence of leading automakers, advanced manufacturing infrastructure, and growing investments in vehicle electrification and autonomous technologies across the U.S. and Canada
• The region benefits from strong demand for technologically advanced vehicle components, a robust aftermarket industry, and increasing production of electric and connected vehicles, fueling steady demand for engine parts, electrical components, and lightweight materials
• Stringent regulatory standards for vehicle emissions, safety, and fuel efficiency are accelerating the adoption of innovative auto parts solutions, including electric powertrain components, ADAS parts, and lightweight body structures, positioning North America as the global market leader

U.S. Auto Parts Market Insight

U.S. auto parts market accounted for the largest revenue share in North America in 2024, supported by high vehicle production volumes, significant R&D investments, and strong consumer demand for advanced, fuel-efficient, and electric vehicles. The country’s well-established automotive supply chain, along with growing investments in EV components, is driving market growth.

Canada Auto Parts Market Insight

Canada auto parts market is expanding steadily, fueled by rising vehicle production, demand for aftermarket parts, and government incentives promoting the adoption of electric and zero-emission vehicles. The country’s focus on sustainable mobility and advanced manufacturing is boosting demand for high-performance auto components, including EV batteries, braking systems, and lightweight materials.

Which Region is the Fastest Growing in the Auto Parts Market?

Asia Pacific is poised to grow at the fastest CAGR of 8.7% during the forecast period from 2025 to 2032, driven by rapid industrialization, rising automotive production, and increasing investments in vehicle electrification across countries such as China, India, Japan, and South Korea. The region benefits from abundant raw material availability, expanding infrastructure, and a growing middle-class population driving vehicle demand, particularly in emerging markets. Asia Pacific is witnessing significant technological advancements and the expansion of automotive manufacturing hubs, with a strong focus on developing energy-efficient, lightweight, and electric vehicle components to meet evolving regulatory standards and consumer preferences.

China Auto Parts Market Insight

The China auto parts market captured the largest revenue share in Asia Pacific in 2024, fueled by the country’s dominant position in global vehicle production, strong EV market growth, and aggressive investments in autonomous and connected vehicle technologies. Domestic suppliers and global manufacturers are expanding production to meet soaring demand for high-performance, sustainable vehicle components.

India Auto Parts Market Insight

The India auto parts market is expected to witness significant growth during the forecast period, driven by rising vehicle production, increasing demand for affordable mobility solutions, and government initiatives promoting electric vehicle adoption. Growing investments in automotive manufacturing, coupled with technological advancements, are boosting demand for both conventional and electric auto parts in India.

Japan Auto Parts Market Insight

The Japan auto parts market is seeing steady growth, supported by its well-established automotive industry, strong focus on R&D, and leadership in hybrid and electric vehicle technologies. Japanese manufacturers are at the forefront of producing advanced, fuel-efficient, and lightweight components to meet global market demand, reinforcing Japan’s role in Asia Pacific’s rapid market expansion.

Which are the Top Companies in Auto Parts Market?

The auto parts industry is primarily led by well-established companies, including:

• AISIN CORPORATION (Japan)
• Autoliv Inc. (U.S.)
• BASF SE (Germany)
• BorgWarner, Inc. (U.S.)
• thyssenkrupp AG (Germany)
• Continental AG (Germany)
• DENSO CORPORATION (Japan)
• FORVIA Faurecia (France)
• VALEO SERVICE (France)
• Hitachi, Ltd. (Japan)
• The Pep Boys (U.S.)
• Pioneer Corporation (Japan)
• Garmin Ltd. (U.S.)
• Pecca Group Berhad (Malaysia)
• CAR MATE MFG, CO., LTD. (Japan)
• Covercraft Industries LLC (U.S.)

What are the Recent Developments in Global Auto Parts Market?

• In January 2025, American Axle & Manufacturing completed the acquisition of GKN Powder Metallurgy and GKN Automotive for USD 1.44 billion, significantly strengthening its advanced manufacturing capabilities and global footprint. This acquisition marks a key milestone in enhancing the company’s technological expertise and competitive market position
• In November 2024, Standard Motor Products finalized its acquisition of European aftermarket supplier Nissens Automotive for approximately USD 390 million, boosting its market presence across North America and Europe while benefiting from Nissens' proficiency in vehicle control solutions. This acquisition reinforces the company’s expansion strategy and enhances its product offerings
• In March 2023, Hitachi Ltd. expanded its global operations by establishing a new auto parts manufacturing facility in India, targeting both domestic and international markets. This strategic investment underlines Hitachi’s commitment to leveraging India’s growing automotive sector and strengthening its global manufacturing capabilities
• In April 2021, Lippert Components Inc. acquired Kaspar Ranch Hand Equipment, LLC, reinforcing its position within the automotive aftermarket segment. This move highlights Lippert's strategy to accelerate market share growth through acquisitions and expand its product portfolio in key markets
• In February 2020, MotoRad Ltd. partnered with the Auto Care Association and the Automotive Aftermarket Suppliers Association (AASA) to support the "Your Car. Your Data. Your Choice" initiative, aimed at empowering consumers with vital vehicle maintenance and repair information. This collaboration emphasizes the company's focus on consumer rights, transparency, and advocacy within the automotive industry

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