Automotive Parts and Components Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented Type (Driveline and Powertrain, Interiors and Exteriors, Electronics, Bodies & Chassis, Tires, and Others), By Demand Category (OEM, Replacement), By Region & Competition, 2020-2030F

Market Overview

Global Automotive Parts and Components Market was valued at USD 629.81 Billion in 2024 and is expected to reach USD 929.39 Billion by 2030 with a CAGR of 6.70% during the forecast period. The automotive parts and components market is experiencing a major transformation, fueled by increasing demand for safer, smarter, and more fuel-efficient vehicles. Consumers are gravitating towards vehicles equipped with advanced features like autonomous driving aids, efficient drivetrains, and connected technologies, prompting automakers and suppliers to significantly ramp up investments in innovation. Growing disposable incomes and changing lifestyles are driving sales across various vehicle segments, sustaining strong market growth.

Meanwhile, stricter regulations on emissions and safety standards are accelerating the evolution of automotive components to ensure compliance with new norms. The rise of connected vehicle technologies is creating fresh opportunities, with components such as telematics, sensors, and electronic control units seeing heightened demand as manufacturers pursue smarter and more automated vehicles. Rapid progress in electric vehicle (EV) technology is also reshaping the market, requiring adaptations in key parts like battery packs, electric motors, and regenerative braking systems. Lightweight materials like carbon fiber and aluminum are increasingly adopted, delivering performance gains and improved fuel efficiency. Additionally, digitalization of manufacturing processes is enhancing efficiency and enabling greater customization in parts production. Supporting this growth, the Indian government has extended the Production Linked Incentive (PLI) Scheme for Automobile and Auto Components by one year, offering incentives based on sales over five consecutive financial years from 2023–24 to 2027–28. This initiative has attracted proposed investments totaling USD 8.1 billion (INR 67,690 crore), surpassing the original target of USD 5.1 billion (INR 42,500 crore), with USD 1.6 billion (INR 13,037 crore) already invested as of December 31, 2023.

Market Drivers

Increasing Demand for Electric Vehicles (EVs)

The global shift toward sustainable mobility is fueling strong growth in electric vehicle adoption. As governments worldwide introduce stringent emission targets and offer incentives for clean vehicles, automakers are compelled to redesign automotive parts and components to cater to EV-specific requirements. Components such as electric drivetrains, high-capacity batteries, thermal management systems, and lightweight body structures are increasingly in demand. Electrification requires new material innovations to optimize energy efficiency and range, further encouraging significant R&D investments. The automotive parts and components sector is thus positioned to capitalize on this paradigm shift, with suppliers adjusting product lines and manufacturing capabilities to support the EV revolution. In 2024, global EV sales reached a record 17.1 million units, marking a 25% increase from 2023, with more than 1 in 5 new cars sold globally being electric. Electric vehicle adoption in India has surged by 47%, creating a new demand for EV-specific spare parts, including batteries, powertrain components, and charging accessories. 

Integration of Advanced Driver Assistance Systems (ADAS)

Growing consumer demand for enhanced safety features is accelerating the adoption of Advanced Driver Assistance Systems across a broad spectrum of vehicles. Technologies such as adaptive cruise control, automatic emergency braking, and lane-keeping assist depend on highly sophisticated parts like radar sensors, cameras, electronic control units, and software algorithms. The heightened focus on vehicle safety, coupled with regulatory mandates, is forcing automakers to integrate ADAS features even into entry-level vehicles. This trend is creating lucrative opportunities for suppliers of electronic components and sensor technologies, as they strive to meet rising OEM requirements for safety system integration.

Focus on Fuel Efficiency and Lightweighting

Tightened fuel economy regulations are pushing automakers to enhance the efficiency of their vehicles, which in turn boosts the demand for lightweight automotive parts. Materials such as carbon fiber composites, aluminum alloys, and advanced plastics are gaining importance in reducing vehicle weight without compromising strength or durability. Weight reduction strategies improve fuel consumption rates and reduce CO2 emissions, helping automakers meet environmental standards. As the automotive industry shifts toward electrification, lightweighting becomes even more critical to extend electric vehicle range and improve battery performance. Suppliers specializing in lightweight materials and components are seeing increasing interest and investment opportunities.

Rising Adoption of Connected Car Technologies

The growing proliferation of connected car technologies is significantly impacting the automotive parts and components landscape. Consumers are seeking vehicles that offer real-time navigation, remote diagnostics, infotainment connectivity, and autonomous driving capabilities. These demands require advanced telematics, high-speed communication modules, robust cybersecurity systems, and integrated sensors. The expansion of 5G networks is expected to further boost the connected car ecosystem, pushing demand for intelligent electronic components and data management systems. Automotive suppliers are rapidly innovating to develop products that align with the shift toward smarter, digitally integrated vehicles.

Growing Aftermarket Demand

Rising vehicle ownership rates and longer average vehicle lifespans are expanding the global automotive aftermarket. Consumers are increasingly investing in replacement parts, performance upgrades, and customization, driving demand for a broad range of components including brakes, suspensions, infotainment systems, and tires. The do-it-yourself (DIY) repair culture and the growing popularity of online automotive part retailers are supporting aftermarket growth. Suppliers catering to the aftermarket segment are focusing on offering high-quality, durable, and easily installable products to capture this expanding customer base. The aftermarket’s resilience also acts as a buffer against fluctuations in new vehicle sales cycles. Online sales of car spare parts have seen a 35% increase in 2024 due to greater trust in e-commerce platforms. Digital platforms such as Autozilla have enabled easy access to a wide variety of spare parts at competitive prices.

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Key Market Challenges

Supply Chain Disruptions

Supply chain resilience has become a critical concern for automotive parts manufacturers. Geopolitical tensions, trade barriers, and labor shortages are causing delays in sourcing raw materials and delivering finished components. Natural disasters and pandemic-induced shutdowns have highlighted vulnerabilities in global supply networks, creating unpredictability and cost inflation across the automotive industry. Manufacturers are increasingly looking to diversify their supplier bases and relocate production closer to demand centers, but these strategies require time and significant capital investments, adding layers of complexity to operations.

Rising Raw Material Costs

Fluctuating prices of key raw materials such as steel, aluminum, rare earth metals, and plastics are exerting pressure on profit margins across the automotive parts supply chain. As demand for lightweight and advanced materials rises, suppliers face difficulties in maintaining cost competitiveness while delivering quality products. This pricing volatility not only affects production budgets but also introduces uncertainty into long-term strategic planning. Companies must strike a delicate balance between absorbing higher costs, passing them onto customers, or redesigning components to optimize material usage without compromising performance.

Key Market Trends

Shift Toward Modular Component Designs

Manufacturers are increasingly embracing modular component designs that offer greater flexibility across different vehicle models and platforms. Modularization allows for cost-effective scalability, easier customization, and faster time-to-market. Suppliers benefit from economies of scale and simplified logistics, while automakers can cater to a wider array of consumer preferences without a complete redesign. This trend is reshaping product development strategies across the automotive components industry and enabling quicker adaptation to market changes.

Integration of Smart Materials

Smart materials such as shape-memory alloys, piezoelectric materials, and self-healing polymers are gradually making their way into automotive parts and components. These advanced materials can adapt to external stimuli such as temperature, pressure, or electrical currents, offering enhanced functionality and durability. Applications range from smart seating systems to responsive crash protection features. The use of smart materials enhances vehicle safety, comfort, and energy efficiency, driving new innovation cycles in component manufacturing.

Growth of 3D Printing in Component Manufacturing

Additive manufacturing or 3D printing is gaining traction in the production of automotive parts due to its ability to create complex geometries, reduce material waste, and shorten prototyping cycles. Companies are leveraging 3D printing to manufacture lightweight brackets, intricate cooling ducts, custom interiors, and specialized tooling parts. The flexibility to produce small batches economically also supports niche product customization. Advances in metal 3D printing are expected to further expand applications in structural and high-performance automotive parts. Industry-wide R&D spending is expected to surpass USD 50 billion in 2024–2025, focusing heavily on EV components and autonomous driving systems. In addition, partnerships between automotive suppliers and tech firms increased by 18% in 2024, accelerating innovation and technology adoption.

Segmental Insights

Type Insights

The automotive parts and components market covers a wide array of product categories, each critical to the construction, functionality, and aesthetics of modern vehicles. Driveline and powertrain components form the core mechanical systems responsible for delivering power from the engine or electric motor to the wheels, comprising elements such as transmissions, driveshafts, and differentials. Interiors and exteriors represent components that enhance comfort, safety, and vehicle appearance, including seating systems, dashboard assemblies, door panels, lighting systems, and bumpers. Electronics are gaining prominence with the rise of vehicle automation and connectivity, involving sophisticated control modules, sensors, infotainment systems, and advanced safety technologies.

Bodies and chassis form the structural backbone of a vehicle, providing the necessary strength and rigidity while integrating crumple zones and modular attachment points for other systems. The demand for lightweight chassis materials is increasing in response to emissions regulations and performance expectations. Tires, another vital category, influence handling, safety, and fuel efficiency, with continuous innovations in tread designs, rubber compounds, and smart tire technologies. Other parts encompass specialized systems such as exhaust modules, steering assemblies, HVAC units, and braking components. Each type of automotive part and component must evolve to meet changing industry standards, technological advancements, and consumer expectations for performance, safety, and sustainability.

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Regional Insights

Asia-Pacific

Asia-Pacific dominated the global automotive parts and components market, supported by its strong automotive manufacturing ecosystem and growing vehicle ownership rates. Countries such as China, Japan, India, and South Korea are key contributors, producing a significant percentage of the world's passenger and commercial vehicles. The region’s expanding middle-class population and rising disposable incomes are major drivers behind increasing vehicle sales, which, in turn, boost demand for OEM and aftermarket parts. Additionally, the growing adoption of electric vehicles (EVs) and hybrid models across Asia-Pacific is creating a surge in demand for specialized components, such as battery packs, advanced drivetrains, and lightweight materials. China leads the global EV market, and its initiatives toward vehicle electrification and smart mobility are influencing demand patterns for automotive components. China's EV market penetration surpassed 30% nationally in 2024, while the U.S. achieved around 12% EV penetration, aided by federal tax credits and state-level mandates. Government support through subsidies, tax incentives, and infrastructure development programs aimed at promoting green and sustainable mobility further strengthens the market. Technological advancements, local manufacturing capabilities, and a cost-competitive supplier base enhance the region's attractiveness for global automakers and parts manufacturers, securing Asia-Pacific’s position as the largest and most influential market in this sector. India's automobile sector has identified 28 essential components for indigenization as part of its 'localization roadmap' to bolster the 'Make in India' initiative. These efforts have already resulted in foreign exchange savings exceeding USD 833 million. 

Recent Developments

• In January 2025, American Axle & Manufacturing Holdings Inc. (AAM) announced the acquisition of British automotive components supplier Dowlais Group plc for USD 1.2 billion. Dowlais, formerly part of GKN Automotive, is a significant player in driveline technologies. This acquisition aims to enhance AAM's global footprint and technological capabilities, particularly in electric vehicle (EV) components. The deal reflects a strategic move to consolidate resources and expertise to better serve the evolving automotive industry, especially with the shift towards electrification. 
• In early 2025, Aptiv PLC revealed plans to split its operations into two distinct entities. One will concentrate on supplying electrical systems, particularly for electric and hybrid vehicles, while the other will focus on automotive software and hardware for autonomous driving. This strategic move is designed to allow each entity to specialize and innovate more effectively in their respective domains, aligning with the industry's rapid evolution towards electrification and autonomy. 
• In October 2024, Tenneco Inc. completed the sale of its majority stake in Öhlins Racing, a Swedish high-performance suspension manufacturer, to Brembo S.p.A. for USD 405 million. This divestiture is part of Tenneco's strategy to streamline its operations and focus on core product lines. For Brembo, the acquisition enhances its product portfolio in the high-performance segment, aligning with its growth objectives in advanced suspension systems.
• In December 2024, NIO introduced its new sub-brand, 'Firefly,' focusing on small, high-end electric vehicles for the Chinese and European markets. The Firefly brand aims to compete with European premium small car brands like Smart and Mini. The first model, a compact hatchback, was unveiled at the NIO Day 2024 event. The brand is set to launch in Europe in the second quarter of 2025, with plans to expand into Latin America and Southeast Asia thereafter.

Key Market Players

• Denso Corporation  
• Aisin Corporation
• BorgWarner Inc.
• Samvardhana Motherson International Limited
• Tenneco Inc.
• Hella GmbH & Co. KGaA
• American Axle & Manufacturing Holdings Inc.
• Lear Corporation
• Autoliv Inc.
• Visteon Corporation

Report Scope:

In this report, the Global Automotive Parts and Components Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

•         Automotive Parts and Components Market, By Type:

o    Driveline and Powertrain

o    Interiors and Exteriors

o    Electronics

o    Bodies & Chassis

o    Tires

o    Others

•         Automotive Parts and Components Market, By Demand Category:

o    OEM

o    Replacement

•         Automotive Parts and Components Market, By Region:

o    North America

§  United States

§  Canada

§  Mexico

o    Europe & CIS

§  Germany

§  France

§  U.K.

§  Spain

§  Italy

o    Asia-Pacific

§  China

§  Japan

§  India

§  South Korea

o    Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

§  Turkey

o    South America

§  Brazil

§  Argentina

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global Automotive Parts and Components Market.

Available Customizations:

Global 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).

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