Automotive Parts Market - Size, Share, Industry Trends, and Forecasts (2025-2032)

Key Drivers:

Rising vehicle production is driving the automotive parts market expansion

The growth in global vehicle production is a significant driver for the global market, with increasing urbanization playing a crucial role. As more people move to urban areas, the demand for personal transportation rises, leading to a surge in vehicle ownership. This trend is particularly evident in emerging economies where rapid urbanization is accompanied by an expanding middle class with rising disposable incomes. With more vehicles on the road, there is a growing need for reliable auto parts, such as suspension systems, brake and pads, and control arms, among others, to ensure safe operation and mitigate the risks associated with increased traffic density and congestion in urban environments.

Further, the rising disposable incomes contribute to the need for higher-quality vehicles equipped with advanced safety features, including state-of-the-art automotive components. Consumers are increasingly willing to invest in vehicles that offer superior performance, comfort, and safety, thereby driving the need for reliable automotive components.

• For instance, in March 2024, Tata Motors has signed a Memorandum of Understanding (MoU) with Tamil Nadu government, to set-up an automobile manufacturing facility in the state. With this MoU, Tamil Nadu investment promotion and facilitation agencies will enable Tata Motors to commence the production of vehicles. The MoU stated an investment of USD 1,081.6 million over 5 years.

Thus, according to the automotive parts market analysis, the growing vehicle production is driving the automotive parts market size and trends.

Key Restraints:

Supply chain disruptions are affecting the automotive parts market demand

The global automotive sector has been significantly impacted by supply chain disruptions, particularly in the realm of interior components and accessories. These disruptions have emerged from various factors, including the COVID-19 pandemic, geopolitical tensions, and natural disasters. The pandemic led to factory shutdowns, reduced production capacities, and logistical challenges, disrupting the flow of materials and components across borders. Further, the sector’s reliance on complex global supply chains has made it vulnerable to geopolitical tensions and trade disputes. In addition to this, tariffs, trade restrictions, and political uncertainties have led to increased costs and disruptions in the procurement of raw materials and components, further worsening the supply chain challenges.Thus, the above analysis depicts that the aforementioned factors would further impact on the automotive parts market size.

Future Opportunities :

Growing demand for electric vehicles is expected to create potential growth for automotive parts market opportunities

As the automotive sector shifts towards sustainability and efficiency, electric powertrains are gaining attraction due to their lower environmental impact and reduced reliance on fossil fuels. This shift has profound implications for steering systems, which must adapt to the unique characteristics of electric vehicles. Electric vehicles often incorporate advanced automotive systems, which replace traditional mechanical linkages with electronic controls. These advanced automotive systems allow for more precise control and enable vehicle manufacturers to optimize vehicle responsiveness and energy efficiency. Moreover, these systems pave the way for semi-autonomous and autonomous driving features, where inputs and systems can be dynamically adjusted based on real-time data from sensors and cameras.

• For instance, in December 2023, Nexteer achieved global production milestone of 100 million electric vehicle power steering systems, while enabling advanced safety performance and fuel efficiency. The company’s power steering systems can be found in several vehicles, such as Ford F150, GMC Hummer EV, Ford Bronco, and Jeep Avenger, among others.

Thus, based on the above automotive parts market analysis, the growing demand for electric vehicles is expected to drive the automotive parts market opportunities and trends.

By Vehicle Type:

Based on vehicle type, the automotive parts market is segmented into passenger vehicles, light commercial vehicles, heavy commercial vehicles, and sports vehicles.

Trends in vehicle type:

• As consumer preferences shift toward more advanced technology and aesthetic appeal in vehicles, the need for infotainment systems, advanced seating, and customized automotive parts continue to grow.
• Commercial vehicles, including trucks, buses, and trailers, require robust suspension systems to support heavy loads and ensure stability and control during transportation. The suspension systems offer benefits such as adjustable ride height and improved load distribution, making them ideal for commercial applications.

The passenger vehicles segment accounted for the largest revenue in the year 2024.

• Passenger vehicles constitute a significant segment of the global market, which includes sedans, hatchbacks, SUVs, and crossovers. These systems are essential for sustaining steering stability, which facilitates smooth handling and control for both drivers and passengers.
• To cater driver comfort and vehicle dynamics, automotive manufacturers are eager to incorporate advanced suspension components, such as steering systems, to enhance handling characteristics and reduce vibrations.
• For instance, in October 2022, Hitachi Astemo, Ltd. has unveiled a prototype for an advanced steer-by-wire steering system. This innovative technology eliminates the need for traditional steering wheels, thereby increasing cabin space. Such advancements are essential for the development of future-generation vehicles and autonomous cars.
• Thus, on the above analysis, these developments in the passenger vehicles segment are driving the automotive parts market growth.

The sports vehicles segment is anticipated to register the fastest CAGR during the forecast period.

• The rise of electric sports cars with advancements in battery technology and electric powertrain are enabling performance levels that compete traditional combustion engine vehicles.
• Consumers, particularly younger demographics, are increasingly seeking personalised vehicles. This is fuelling the growth in the aftermarket, with need or performance enhancements and custom interiors.
• These developments in the sports vehicles segment are anticipated to further drive the automotive parts market trends during the forecast period.

By Sales Channel:

Based on sales channel, the automotive parts market is segmented into OEMs, aftermarket, repair/service center, auto dealership, and retail store.

Trends in sales channel:

• Online sales platforms are becoming increasingly prominent, providing convenient access to a diverse range of automotive products for consumer and repair shops. These trends are further disrupting the traditional distribution channels.
• Both OEMs and aftermarket suppliers are placing greater emphasis on quality and reliability. This sift is influenced by customer expectations and the necessity to uphold vehicle safety and performance.

The OEMs segment accounted for the largest revenue share in the year 2024.

• OEMs, which include vehicle manufacturers, are pivotal in the initial integration of automobile parts into new vehicles throughout the production process. These collaborations with OEMs typically involve long-term contracts to guarantee the integration of automobile parts that comply with rigorous quality standards and specifications.
• The OEM segment gains from the consistent requirement for automotive products, fuelled by rising vehicle production volumes and the ongoing necessity for automotive components that promote vehicle safety, stability, and performance.
• Technological innovations in suspension systems and an increasing focus on driving comfort further enhance the need for advanced systems from OEMs.
• Thus, based on the above analysis, the rise in technological innovations would further supplement the global market share.

The aftermarket segment is anticipated to register the fastest CAGR during the forecast period.

• Many vehicle owners seek aftermarket products that allow them to enhance the aesthetics, performance, and functionality of their vehicles according to their individual preferences. This includes options such as aftermarket wheels, performance upgrades, interior accessories, and exterior styling enhancements.
• Aftermarket suppliers frequently emphasize value-added services such as product warranties, technical support, and installation assistance to distinguish themselves in a competitive market environment.
• For instance, in March 2021, SKF India’s automotive aftermarket segment launched three new products designed to meet the evolving needs of customers across various sectors in India. The new offerings include steering and suspension systems for 4-wheelers, timing belts, and chain and sprockets for 2-wheelers. This innovative product range features high quality, superior strength, and long-lasting durability
• These developments in the sales channel segment is anticipated to further drive the automotive parts market trends during the forecast period

Automotive Parts Market Ecosystem: