A vehicle is made up of many complex parts that increase its efficiency and durability. Some components are very crucial and must-have for every car. However, these components need regular maintenance and timely replacement. Automobile parts are manufactured all over the globe with great precision and with advanced technological methods.
Automotive components are essential parts of vehicles that enable them to function efficiently and safely. These components can be broadly categorized into four main categories: powertrain, chassis, electronics, and body and interior.
The global automotive components market is vast and highly competitive. Major players in the industry are located in regions such as North America, Europe, Asia-Pacific, South America, and Middle East & Africa. These companies manufacture and supply components to automakers worldwide.
Factors such as increasing vehicle production, technological advancement, and growing consumer demand for safer and more sustainable vehicles drive the automotive components market. Additionally, the shift towards electrical vehicles and the development of autonomous cars are creating new opportunities and challenges for component manufacturers. In conclusion, automotive components play a critical role in the functionality, safety, and comfort of vehicles worldwide. The industry is continuously evolving due to advancements in technology and changing consumer preferences, creating an exciting and dynamic landscape.
World Wide Automotive Component and Part Scenario:
Multiple trends along the following four themes could shape the future of the automotive and the auto component industry:
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In the full version of report, Data Bridge will provide market size in terms of Value (USD Million) or customize as per client requirements. Global auto parts and accessories market is expected to gain market growth in the forecast period of 2022 to 2029. Data Bridge Market Research analyses the market is expected to grow at a CAGR of 11.20% in the above-mentioned forecast period. Major factors that are expected to boost the growth of the auto parts and accessories market in the forecast period are the incentives taken by the government and the rise in the regional demand. Furthermore, the easy availability of raw materials is further anticipated to propel the growth of the auto parts and accessories market. Moreover, the growing scrapping rates of motor vehicles and engines is further estimated to cushion the growth of the auto parts and accessories market.
Source: Company websites, Society of Indian Automobile Manufacturers, Automotive Component Manufacturers Association
Manufacturing locales, customer demands, and operating models are all evolving, creating a dynamic market for auto component manufacturers.
The production and demand of the auto component industry are directly proportional to that of the automobile industry. Although a sizeable portion of auto components production caters to OEMs, the aftermarket or the replacement markets have emerged as crucial sources of revenue for the auto components industry over the past few years. Historically, the automobile OEMs were concentrated in the developed nations and so did the ancillaries. However, in recent years, manufacturing of auto components is gradually gaining traction in Asian countries such as China, India, and others due to the presence of higher market potential and low-cost manufacturing. The automotive original equipment manufacturer (OEMS) market has witnessed substantial growth in recent years owing to increased demand for passenger and commercial vehicles. The need for original equipment manufacturing parts has become significant in passenger vehicles because there is a rise in the market for cars and the upsurge in the usage of these vehicles globally. According to the Data Bridge Market Research analysis, the automotive original equipment manufacturer (OEMS) market is projected to grow at a compound annual growth rate (CAGR) of 4.7% from 2023 to 2030.
Fig: 2 Classification of Major Auto-Components Produced in India
Source: EXIM Bank India, ACMA
To cater to the growing automobile industry across the globe, increasing number of global OEMs are sourcing their auto components from India. India manufactures several key auto components for customers in the U.S, Germany, Turkey, Thailand, Turkey, Thailand, U.K., Brazil, Mexico, Bangladesh, Italy, U.A.E., and Sri Lanka, among others. Furthermore, the gap between international and national regulations on safety and emissions has narrowed down considerably, bolstered recently by the compulsory implementation of BS-6 emission norms in April 2020. Also, as the need for reducing the cost of manufacturing is increasingly being felt among the automobile OEMs in developed countries, they seek to either set up their operations or source their component requirements from developing nations such as India.
The steady rise in production of automobiles in India over the past few years, has led to a healthy growth in demand for its components. Since India does not produce all varieties of components that automobile OEMs require for manufacturing, they need to be imported. India has a high dependence on China for its auto components imports with a 26% share in FY20. Key items imported were drive transmission and steering parts, cooling systems, suspension, and brake parts. Due to COVID-19 pandemic, most nations, including India, are now seeking to minimalize their reliance on China for imports. The ongoing India-China standoff is expected to hasten this process. However, this is easier said than done, as China offers the advantage of mass manufacturing, availability of subsidies, and deployment of power at an economical cost, among others. These factors give the nation a favorable spot in the global export market. Additionally, China presents a technological competence, which the Indian automotive industry currently lacks to a large extent. Hence, being self-sufficient and reducing imports from China shall take longer than expected, unless the industry receives the required government support.
Key strategies for automotive component companies to remain competitive in the market:
By implementing these key strategies, automotive component companies can enhance their competitiveness adapt to market dynamics, and maintain long-term success in the industry.
Key Industry Quality Standards:
It is important to note that these are just some example of automotive component regulatory and quality standards. There may be additional standards specific to certain countries or regions.
The Key Technology of automotive components and parts manufacturers:
Several key technologies play a crucial role in the development and production of automotive components and parts. Some of these technologies include:
These technologies are continually evolving, driven by the automotive industry’s pursuit of innovation, performance, efficiency, and safety in automotive components and parts.
Global Advanced Driver-Assistance Systems (ADAS) market has witnessed a substantial growth in recent years due to increased production of vehicles equipped with higher safety standards around the world is expected to propel the advanced driver-assistance market. The increased use of artificial intelligence and the internet of things (IoT) in vehicles is also prompting automakers to develop advanced driver assistance systems. The implementation of stringent rules and regulations governing vehicle safety standards is expected to boost the global market for advanced driver assistance systems. According to the Data Bridge Market Research analysis, the smart manufacturing market is projected to grow at a compound annual growth rate (CAGR) of 21.7% from 2022 to 2029.
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Challenges Faced By Components/Parts Companies:
There are several challenges that automotive component/parts companies face in today’s industry. These challenges includes:
Overall, automotive components/parts companies need to navigate these challenges to stay competitive, meet customer demands, and remain profitable in a dynamic and evolving industry.
The increasing demand for automotive components and parts across the globe is driven by factors such as growing automotive production, technological advancement, increasing vehicle sales, government regulations, the shift towards lightweight components, and the globalization of the automotive industry. Manufacturers are responding to this growing demand by expanding production capacities, diversifying products offerings, investing in technological innovations, collaborating with industry stakeholders, and driving growth in the automotive components market
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