|
Forecast Period
|
2026-2030
|
|
Market Size (2024)
|
USD 203.8 Billion
|
|
CAGR (2025-2030)
|
7.3%
|
|
Fastest Growing Segment
|
Driveline and Powertrain
|
|
Largest Market
|
China
|
|
Market Size (2030)
|
USD 311.0 Billion
|
Market
Overview
APAC Automotive Parts and
Components Market was valued at USD 203.8 Billion in 2024 and is expected to
reach USD 311.0 Billion by 2030 with a CAGR of 7.3% during the forecast period. The Asia-Pacific (APAC)
automotive parts and components market is witnessing robust expansion, driven
by the region's thriving automotive production ecosystem, rapid urbanization,
and rising demand for both personal and commercial vehicles. Countries such as
China, Japan, India, and South Korea serve as prominent manufacturing and
consumption hubs, supported by favorable government policies, technological
adoption, and cost-effective labor. The market encompasses a wide range of
components including engine parts, braking systems, electrical components,
drivetrain systems, suspension parts, and more.
The increasing integration of electric vehicles (EVs), along with
growing consumer preference for technologically advanced and fuel-efficient
automobiles, is reshaping the component supply chain. Moreover, OEMs and
aftermarket suppliers are significantly investing in local production
capabilities, R&D centers, and smart manufacturing to enhance operational
efficiency and cater to diverse customer demands. The market is also
experiencing growth from rising vehicle ownership, infrastructural investments,
and the growing popularity of shared and connected mobility solutions. However,
factors such as fluctuating raw material prices and supply chain bottlenecks
pose challenges to continuous growth.
Market
Drivers
Expanding Automotive Production in APAC
The automotive manufacturing output in APAC is among the highest
globally, with countries like China, India, Japan, and South Korea leading the
charge. The availability of low-cost skilled labor, coupled with substantial
domestic demand, has made these countries favorable destinations for global
automotive manufacturers. This high vehicle production directly correlates to a
growing demand for parts and components across the OEM and aftermarket sectors. Policies such as Japan’s “Green Growth Strategy,” India’s PLI Scheme for the auto sector, and ASEAN trade collaborations are actively promoting automotive sector development and local part manufacturing. These initiatives not only incentivize domestic players but also attract foreign investments, further fueling the growth of the parts and components ecosystem.
Rise in Electric Vehicle Penetration
With governments across APAC aggressively promoting electric mobility
through subsidies, tax rebates, and charging infrastructure expansion, the
demand for EV-specific components such as battery packs, electric drivetrains,
and advanced power electronics is surging. China, in particular, has become a
global leader in EV adoption, catalyzing a shift in component manufacturing
trends toward electric-compatible parts.
Increasing Aftermarket Activities
A growing number of vehicles in operation has led to rising demand in the
aftermarket segment. Consumers in countries like India, Indonesia, and the
Philippines are showing greater interest in vehicle customization and
maintenance, creating lucrative opportunities for aftermarket parts and
component providers, especially in suspension systems, brakes, and lighting. The emergence of smart mobility, ADAS (Advanced Driver Assistance
Systems), telematics, and autonomous features is driving the need for
high-precision electronic and sensor-based components. This technological
evolution is prompting component manufacturers to innovate and collaborate with
software developers to deliver integrated solutions.
Download Free Sample Report
Key Market Challenges
Supply Chain Volatility
Global supply chain disruptions due to geopolitical tensions, natural
disasters, or pandemics have underscored the vulnerability of component
availability. Many APAC countries depend on imported raw materials and
specialized parts, making them susceptible to international shipping
constraints and trade imbalances.
Counterfeit and Substandard Products
The aftermarket in several developing APAC economies is plagued by
counterfeit parts and low-quality imports. These substandard components not
only risk vehicle safety but also tarnish the reputation of genuine
manufacturers and reduce the profitability of quality-focused vendors. Price-conscious consumers in the region often prioritize cost over
quality, pressuring manufacturers to operate with thin profit margins. Intense
competition among local and global players also restricts the pricing
flexibility of branded component suppliers.
Regulatory Diversity
Each APAC country has distinct automotive regulations concerning safety,
emissions, and product certification. Navigating these varied requirements adds
complexity for regional and international component manufacturers trying to
achieve compliance across multiple markets. Rapid advancements in automotive technology, particularly with EVs and
autonomous systems, render some traditional components obsolete. Suppliers must
invest continuously in R&D to stay relevant, which can be financially
straining, especially for smaller players.
Key Market Trends
Localization of Supply
In response to recent global disruptions, including geopolitical tensions, pandemic-related shutdowns, and shipping bottlenecks, many manufacturers are shifting towards localized supply chains within the APAC region. This shift is driven by the need to enhance supply chain resilience, reduce lead times, and mitigate the risks associated with overdependence on a single country. As a result, countries such as India, Vietnam, Indonesia, and Thailand are gaining traction as alternative manufacturing and export hubs to China. These nations offer competitive labor costs, favorable government policies, and a growing ecosystem of component suppliers. India, for instance, has launched initiatives like “Make in India” to boost domestic manufacturing, while Vietnam has attracted substantial foreign direct investment due to its strategic location and trade agreements. The trend toward localization is also supported by advancements in regional logistics infrastructure, digital supply chain tools, and increasing demand from local markets, which collectively make decentralized production more feasible and cost-effective. Consequently, the APAC region is undergoing a structural transformation that is reshaping traditional supply chain models and fostering greater economic interdependence among neighboring countries.
Integration of IoT and Connectivity
Connected vehicle technologies are pushing parts manufacturers to
incorporate sensors, processors, and communication modules into traditional
components. The rise of software-defined vehicles is prompting deeper
collaboration between auto component manufacturers and tech firms. Environmental concerns are influencing material choices in automotive
components. Lightweight composites, recycled plastics, and biodegradable
materials are gaining traction, alongside cleaner production practices aligned
with ESG norms.
Digital Transformation in Distribution
B2B and B2C e-commerce platforms are reshaping the aftermarket
distribution landscape. Online ordering, digital catalogs, and predictive
inventory management are enabling faster and more efficient parts distribution,
especially in Southeast Asian markets. Key players are entering joint ventures and strategic partnerships to
pool resources, share technology, and expand market reach. Collaborations
between Asian firms and global automakers are on the rise to localize
production and enhance supply resilience.
Segmental Insights
Vehicle Type Insights
The APAC automotive parts and components market caters to a wide variety
of vehicle types, primarily segmented into passenger cars and commercial
vehicles. Passenger cars form a substantial part of the market due to
increasing urbanization and rising disposable incomes that are encouraging
individual vehicle ownership. The demand for comfort, performance, and fuel
efficiency in personal transportation has led to the integration of advanced
components such as infotainment systems, automatic transmissions, and
lightweight materials in modern car models. These preferences are creating an
ongoing need for high-quality, durable, and tech-integrated parts, especially
as consumer expectations evolve toward more efficient and connected driving
experiences.
In the commercial vehicle category, there is growing emphasis on
reliability, load-bearing capacity, and operational efficiency. This segment
includes light commercial vehicles (LCVs), heavy-duty trucks, and buses, each
with distinct requirements for parts such as powertrains, suspension systems,
braking systems, and engine components. Expanding infrastructure development,
logistics, and e-commerce sectors in several APAC countries are creating a
consistent demand for commercial transport solutions. As a result,
manufacturers are investing in rugged and long-lasting components that can
handle high-mileage operations under demanding conditions.
Both passenger and commercial vehicle segments are experiencing shifts
toward electrification and digitization. For passenger cars, this translates
into the adoption of electric powertrains, smart displays, and autonomous
features, while commercial vehicles are increasingly being fitted with
telematics systems, energy-efficient drivetrains, and emission control
components. These developments are influencing the type and complexity of
automotive parts being produced and supplied across the region. The requirement
for modular, lightweight, and scalable components is also gaining attention as
vehicle platforms diversify.
Download Free Sample Report
Country Insights
China accounted for the largest share of the APAC automotive parts and
components market in 2024. As the world's largest vehicle producer and one of
the top automotive consumers, China has built a comprehensive and vertically
integrated automotive supply chain. The presence of a vast manufacturing base,
well-developed infrastructure, and policy incentives has made it a central hub
for both domestic consumption and export of auto components. The country’s
strategic focus on becoming a global leader in electric mobility is
transforming the landscape of component production, particularly for battery
systems, electric drivetrains, and vehicle control electronics.
The national emphasis on sustainability, supported by extensive
investment in electric vehicle infrastructure and production capabilities, has
accelerated the transition toward EV-compatible components. This shift is
prompting suppliers to innovate across various part categories, including
braking systems optimized for regenerative braking, thermal management
solutions, and power electronics. Simultaneously, the country continues to
produce traditional internal combustion engine (ICE) components at scale to
meet the demand from hybrid and conventional vehicle platforms still prevalent
in both rural and export markets.
China's expansive logistics network and digitalization of automotive
manufacturing processes enhance operational efficiencies across the component
production lifecycle. Smart factories and industrial automation are playing a
pivotal role in boosting output quality and reducing production timelines. This
enables quicker responses to changes in OEM specifications, aftermarket needs,
and global supply demands. Technological partnerships with research institutes
and universities are also contributing to product innovation and the
development of next-generation components.
Domestic demand is fueled by an increasing middle-class population, a
strong preference for personal mobility, and evolving consumer expectations
around safety, connectivity, and energy efficiency. These factors support a
continuous influx of new vehicle models and upgrades, thereby stimulating
ongoing demand for a broad array of parts. Furthermore, the government’s
support for local manufacturing through tax breaks and funding incentives is
empowering small and medium-sized suppliers to scale their operations and
compete in high-value segments.
China’s ecosystem of tiered suppliers, supported by a dense network of
logistics providers and export-oriented policies, reinforces its dominance in
the APAC market. Its ability to balance large-scale production with advanced
innovation ensures that it remains at the forefront of regional component
manufacturing.
Recent
Developments
- In November 2024, Bharat Forge Limited entered a strategic partnership
with a Japanese firm to develop and introduce lightweight suspension systems
for passenger vehicles in India. This collaboration aims to enhance vehicle
efficiency by reducing overall weight, thereby improving fuel economy and
handling.
- In January 2025, NGK Spark Plug Co., Ltd., officially transitioned to
its new name, Niterra Co., Ltd., marking a bold step toward its identity as a
diversified provider of sustainable mobility and environmental solutions. Under
its corporate "Nittoku BX" transformation strategy, Niterra has
shifted focus from traditional ignition components to next-generation
automotive sensors critical to vehicle safety, emissions control, and
electrification.
- In February 2025, DENSO Corporation announced a significant expansion of
its manufacturing facility in Thailand to scale up production of thermal and
powertrain components. This strategic move is aligned with the growing demand
for energy-efficient automotive systems across the Asia-Pacific region,
particularly amid rising electric vehicle (EV) adoption and stricter emission
regulations. The expanded facility will focus on producing advanced thermal
management systems and high-efficiency powertrain parts tailored for both
internal combustion engine (ICE) vehicles and next-generation electric and
hybrid platforms.
Key
Market Players
- DENSO Corporation
- Aisin
Corporation
- Hyundai
Mobis Co., Ltd.
- NGK
Spark Plug Co., Ltd. (Niterra Co., Ltd.)
- Bharat
Forge Limited
- Toyota Boshoku
Corporation
- Minda
Corporation Limited
- Sumitomo
Electric Industries, Ltd.
- Bosch
Limited (India)
- Marelli
Corporation
|
By Vehicle Type
|
By Demand Category
|
By Type
|
By Country
|
|
|
|
- Electronics, Bodies & Chassis
|
|
Report
Scope:
In this
report, the APAC Automotive Parts and Components Market
has been segmented into the following categories, in addition to the
industry trends which have also been detailed below:
- APAC Automotive Parts and Components Market, By Vehicle
Type:
o
Commercial Vehicles
o
Passenger Cars
- APAC Automotive Parts and Components Market, By Demand
Category:
o
OEM
o
Aftermarket
- APAC Automotive Parts and Components Market, By Type:
o
Driveline and Powertrain
o
Interiors and Exteriors
o
Electronics, Bodies & Chassis
o
Tires
o
Others
- APAC Automotive Parts and Components Market, By Country:
o
China
o India
o Japan
o South Korea
Competitive
Landscape
Company
Profiles: Detailed
analysis of the major companies presents in the APAC Automotive Parts and
Components Market.
Available
Customizations:
APAC
Automotive Parts and Components Market report with the given market
data, TechSci Research offers customizations according to the company’s
specific needs. The following customization options are available for the
report:
Company
Information
- Detailed analysis and profiling of additional
market players (up to five).
APAC
Automotive Parts and Components Market is an upcoming report to be released
soon. If you wish an early delivery of this report or want to confirm the date
of release, please contact us at [email protected]