CANADA'S LEADING INFORMATION SOURCE FOR THE METALWORKING INDUSTRY

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CANADA'S LEADING INFORMATION SOURCE FOR THE METALWORKING INDUSTRY

CANADA'S LEADING INFORMATION SOURCE FOR THE METALWORKING INDUSTRY

Rise in aging vehicles significant driver to parts manufacturing growth

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A heightened demand over the next decade encompasses a variety of auto parts, including filters, spark plugs, brake pads, and alternators, according to a report from DataHorizon Research. Photo courtesy Makino.

The auto parts manufacturing market size, valued at USD 39.2 billion in 2022 is anticipated to reach USD 41.2 billion by 2032 with a CAGR of 0.5%, according to a report from DataHorizon Research.

The rising number of aging vehicles worldwide will be a key driver, increasing the demand for auto parts and propelling market growth.

The average age of passenger cars in the US exceeds 12 years, while that of light trucks surpasses 11 years.

“With such a large population of older vehicles, the need for repair and maintenance has surged, as aging vehicles require more frequent servicing and replacement parts. This heightened demand encompasses a variety of auto parts, including filters, spark plugs, brake pads, and alternators, among others,” the report states.

Additionally, the upsurge in automotive sales, attributed to improved supply, heightened demand for personal transportation, and increased savings, further augments market growth.

According to the International Organization of Motor Vehicle Manufacturers (OICA), passenger car sales increased by approximately 1.9% in 2022 compared to the previous year. Moreover, with various government initiatives aimed at promoting the adoption of electric vehicles (EVs), the sales of EVs are expected to experience exponential growth. This anticipated surge in EV sales will consequently drive demand for OEM auto parts such as batteries, motors, and lighting components, thereby bolstering market expansion.

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