Market Snapshot
| Study Period: | 2018 - 2026 |
| Base Year: | 2020 |
| CAGR: | 5.6 % |
|
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Market Overview
The Asia-Pacific automotive parts and components market was valued at USD 52.42 billion in 2020, and it is expected to reach USD 72.14 billion by 2026, registering a CAGR of 5.6% during the forecast period (2021 - 2026).
The outbreak of the coronavirus disease (COVID-19) acted as a massive restraint on the automotive parts and components market in 2020, as supply chains were disrupted due to trade restrictions and consumption declined due to lockdowns imposed by governments globally. However, government incentives, growing regional demand, and easy availability of raw materials are expected to drive the market growth during the forecast period.
For instance, India’s Automotive Mission Plan FAME-II emphasizes providing government support to the country’s growing automotive and its components manufacturing industry. Over the past few years, the automotive parts and accessories manufacturing industry has gone through a comprehensive remodeling, which is leading to the advent of a highly competitive industry.
The development of the auto parts manufacturing industry in Asia-Pacific is primarily driven by the growing automobile manufacturing industry, especially in countries such as China, Korea, and India. With the rising electric vehicle production, the requirement for a large and diversified number of automotive parts and components is increasing.
Scope of the Report
Automotive parts and components include bodies, chassis, interiors, exteriors, seating, powertrains, electronics, mirrors, closures, roof systems, and modules. All the parts and components are installed in a vehicle to supply the best driving experience to customers. The report covers the latest trends and technologies, followed by the COVID-19 impact on the market.
The Asia-Pacific parts and components market is segmented by type (driveline and powertrain, interiors and exteriors, electronics, bodies and chassis, wheels and tires, and other types), application (original equipment manufacturers (OEMs) and aftermarket), and country (India, China, Japan, South Korea, and Rest of Asia-Pacific). For each segment, the market sizing and forecast have been done on the basis of value (USD billion).
| Type | |
| Driveline and Powertrain | |
| Interiors and Exteriors | |
| Electronics | |
| Bodies and Chassis | |
| Wheel and Tires | |
| Other Types |
| Application | |
| Original Equipment Manufacturers (OEMs) | |
| Aftermarket |
| Country | |
| China | |
| India | |
| Japan | |
| South Korea | |
| Rest of Asia-Pacific |
Key Market Trends
Growing Innovations to Comply With Stringent Norms
The growing demand for hybrid powertrain systems in vehicles and the enactment of stringent norms are major factors driving the growth of the automotive parts and component market. With growing concerns about environmental pollution, all the countries in the region have been significantly focusing on tackling vehicle emissions. For instance,
- With a sales share of around 94%, domestic OEMs currently dominate the Chinese EV market. China imposed a quota on manufacturers for 100% electric or hybrid vehicles, which must represent at least 10% of total new sales. Additionally, some major cities and provinces are imposing increasingly stringent restrictions.
Besides that, manufacturers in the country are geared to limit their current GHG emission levels by optimizing their powertrain system design and focusing on the lightweight and reduced size of powertrain systems with better performance results.
- For instance, the Government of India is encouraging foreign investments through the programed course in the automotive area to bring new innovations to the market.
Apart from the mentioned factors, the increasing scrapping rates of motor vehicles and engines tend to propel the demand for original equipment engines. Scrap rates are higher in developed countries, owing to more stringent environmental regulations, and thus, the replacement of motor vehicles and their engines is more frequent compared to the developing world.
Similarly, the uptake of new technologies and innovations in engines such as hybrid engines is more prevalent in developed countries than the developing ones. The demand for the production of new vehicles with less fuel consumption is spurred by increasing support from governments with comparatively stricter emission norms, thus, resulting in the increased demand for auto parts.
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The Indian Market is Growing at a High CAGR
The Asia-Pacific region continues to dominate the market, and the manufacturers in this region offer high-cost reductions, owing to the availability of low-cost labor and raw materials. Furthermore, the region comprises countries such as China and India, which accounted for approximately 34% of the total vehicle production. The increasing popularity of active braking systems boosts the sales of luxury and premium vehicles. The increased growth, with commercial and government investments, as well as FDI involvement, is expected to drive the market growth during the forecast period.
In the manufacturing sectors of emerging economies, such as India, limited R&D expenditures, along with smaller capabilities, led to regional players compromise in the level of product quality. The problem is compounded when the price is often the primary priority for most customers, and product quality and reliability only come following the price. However, an increasing emphasis on low-quality coating products, particularly in certain end-user segments (such as automotive OEMs), is becoming outdated.
With the presence of luxury carmakers, such as Audi, BMW, Mercedes, and other players, in the country, customer preferences have changed to vehicles with luxurious and advanced features, and the new trend of giving importance to eco-friendly vehicles is likely to propel the automotive parts and components market in the country.
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Competitive Landscape
The automotive industry in the Asia-Pacific region has seen significant growth in the last few decades.
This made many western automotive and automotive component manufacturers eager to make their presence in the regions. Along with major automakers, the tier-1 and tier-2 component manufacturers, including Bosch GmbH, Continental, ThyssenKrupp, ZF TRW, Magneti Marelli, and Delphi, have started their operations in the region. The major players are adopting mergers and acquisitions along with joint ventures to enhance their market share. For instance,
- Alibaba formed a new joint venture with Zhejiang Jingu Co. Ltd that aided over 80,000 auto spare parts vendors in digitally transforming their business and improve their market share.
Besides the western manufacturers, many domestic component makers such as Sumitomo, Denso, NTN Corp., Mando, Hyundai Wia, MRF, TVS, and Bharat Forge, have also catered to the automotive industry in the region. With many manufacturers present, the market is very fragmented and competitive.
Recent Developments
- In February 2021, HELLA sold shares in the joint venture Mando HELLA Electronics to partner Mando to intensify direct business with customers by establishing a network on a global basis.
- In May 2020, Maruti Suzuki India Ltd announced the acquisition of Japan’s Sumitomo Corporation’s stake in their joint venture JJ Impex (Delhi) Pvt. Ltd, a company engaged in automobile service and repair business to expand its portfolio.
Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Type
5.1.1 Driveline and Powertrain
5.1.2 Interiors and Exteriors
5.1.3 Electronics
5.1.4 Bodies and Chassis
5.1.5 Wheel and Tires
5.1.6 Other Types
5.2 Application
5.2.1 Original Equipment Manufacturers (OEMs)
5.2.2 Aftermarket
5.3 Country
5.3.1 China
5.3.2 India
5.3.3 Japan
5.3.4 South Korea
5.3.5 Rest of Asia-Pacific
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 DENSO Corporation
6.2.2 Robert Bosch GmbH
6.2.3 Hella KGaA Hueck & Co.
6.2.4 Nidec Corporation
6.2.5 ZF Friedrichshafen AG
6.2.6 Aisin Seiki Co. Ltd
6.2.7 Magneti Marelli SpA
6.2.8 Mitsubishi Electric Corporation
6.2.9 Continental AG
6.2.10 Delphi Automotive
6.2.11 Valeo
6.2.12 Mahle Group
6.2.13 Magna International Inc.
6.2.14 Faurecia SA
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Asia-Pacific Automotive Parts and Components Market market is studied from 2018 - 2026.
What is the growth rate of Asia-Pacific Automotive Parts and Components Market?
The Asia-Pacific Automotive Parts and Components Market is growing at a CAGR of 5.6% over the next 5 years.
What is Asia-Pacific Automotive Parts and Components Market size in 2018?
The Asia-Pacific Automotive Parts and Components Market is valued at 59 Billion USD in 2018.
What is Asia-Pacific Automotive Parts and Components Market size in 2026?
The Asia-Pacific Automotive Parts and Components Market is valued at 72 Billion USD in 2026.
Who are the key players in Asia-Pacific Automotive Parts and Components Market?
HELLA GmbH & Co. KGaA, DENSO Corporation, ZF Friedrichshafen AG, Robert Bosch GmbH, Magneti Marelli S.p.A are the major companies operating in Asia-Pacific Automotive Parts and Components Market.
