Automotive Parts Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Global Automotive Parts Market Trends and Insights

Rise in Global Vehicle Production

Global automotive production reached 90.5 million units in 2023, returning to pre-COVID levels, though production is expected to moderate to 88.5 million units in 2024 before recovering^{[1]"Automotive market faces slower growth and capacity challenges amid electrification shift", Daniel Harrison, Automotive Logistics, automotivelogistics.media.}. This production expansion directly correlates with increased demand for both original equipment and aftermarket parts, particularly in emerging markets where vehicle ownership rates continue to climb. China's transformation into a net vehicle exporter, primarily of low-cost internal combustion engine and electric vehicles, reshapes global supply chains and creates new demand patterns for component suppliers. The shift toward "multi-energy" production lines allows manufacturers to adapt quickly to market uncertainties while maintaining consistent parts demand across different powertrain technologies.

Software-Defined Vehicles Requiring Upgradeable Hardware

The automotive software market is projected to demonstrate strong growth over the next few years, with industry executives believing vehicles will be software-defined and AI-powered by 2035. This transformation requires fundamentally different hardware architectures supporting over-the-air updates and continuous feature enhancements. Unlike traditional automotive components with fixed functionality, software-defined vehicles demand modular, upgradeable hardware platforms to accommodate evolving software requirements throughout the vehicle's lifecycle. This shift drives demand for high-performance computing units, advanced sensors, and flexible electronic control units that can be reprogrammed remotely, creating new revenue opportunities for suppliers capable of delivering these sophisticated components.

Rapid Growth of E-commerce Parts Platforms

The U.S. auto parts market is projected to grow to USD 41 billion from 2025 to 2029, driven by digitization, AI adoption, and e-commerce expansion. Online sales platforms are surpassing physical stores, with brakes, filters, batteries, tires, and lubricants emerging as top-selling categories^{[2]"U.S. auto parts market to grow driven by AI, ecommerce" Aftermarket International, aftermarketinternational.com.}. AI integration is enhancing supply chain efficiency and inventory management, while automated systems improve customer experience through better product recommendations and faster order processing. The e-commerce transformation is particularly pronounced in the aftermarket channel, where digital platforms enable smaller suppliers to reach broader customer bases without extensive physical distribution networks, fundamentally altering traditional parts distribution models.

"Right-to-Repair" Legislation Widening Independent Service Share

The bipartisan REPAIR Act, reintroduced in Congress in 2025, aims to ensure vehicle owners and independent repair facilities have access to essential repair data and tools, potentially disrupting traditional OEM control over aftermarket services. Currently, over 60% of independent repair shops face difficulties due to OEM restrictions, leading to higher costs for consumers and limited service options. The legislation could significantly expand the addressable market for aftermarket parts suppliers by breaking down data access barriers that have historically favored dealership networks. With independent shops performing 80% of out-of-warranty repairs at lower costs than dealerships, successful right-to-repair implementation could accelerate aftermarket growth and increase competition in the parts distribution ecosystem.

Persistent Semiconductor Shortages

The automotive semiconductor market faces continued supply constraints despite recovery efforts, with the industry experiencing production reductions of up to 40% during peak shortage periods. The automotive sector's transition to software-defined vehicles is increasing semiconductor content per vehicle from USD 800 in 2023 to an expected USD 1,350 by 2030. Supply chain vulnerabilities persist due to concentrated production in specific geographic regions and the long lead times required for automotive-grade components. The shortage particularly impacts advanced driver assistance systems and infotainment components, forcing OEMs to prioritize chip allocation and sometimes remove features from vehicles to maintain production schedules.

EV Shift Eroding Demand for ICE-Specific Parts

Electric vehicles require significantly fewer moving parts than internal combustion engines, with some estimates suggesting 40% lower maintenance requirements than traditional vehicles. This transition poses particular challenges for suppliers of ICE-specific components such as exhaust systems, fuel injection parts, and traditional transmission components. However, the shift creates opportunities in new component categories, including battery management systems, electric powertrains, and thermal management solutions. The transition timeline varies significantly by region, with Europe and China leading adoption. At the same time, North America follows at a more measured pace, creating a complex global landscape where suppliers must balance declining ICE demand with emerging EV opportunities.

Segment Analysis

By Type: Electronics Integration Drives Market Evolution

Electrical and electronics components command the largest market share at 29.84% in 2024 while achieving the fastest growth rate of 9.27% CAGR through 2030. This dual leadership reflects the automotive industry's fundamental shift toward connected, autonomous, and electrified vehicles that require sophisticated electronic systems. Modern vehicles average 80 sensors and 100 electronic units, with electronic components expected to comprise 50% of a new car's cost by 2030^{[3]"Automotive Trends and Electronic-Component Innovation Drive the Future," Electronic Design, electronicdesign.com.}. The segment encompasses critical systems including advanced driver assistance systems (ADAS), infotainment platforms, battery management systems, and vehicle-to-everything communication modules.

Driveline and powertrain components face a complex transition as traditional internal combustion engine parts experience declining demand while electric powertrain components surge. Interior and exterior segments benefit from premiumization trends and increased focus on user experience, particularly in software-defined vehicles where cabin technology becomes a key differentiator. Body and chassis components are evolving to accommodate new materials and lightweighting requirements. At the same time, wheel and tire segments remain relatively stable, with growth driven by replacement demand from aging vehicle fleets and expanding global vehicle populations.

Note: Segment shares of all individual segments available upon report purchase

By Propulsion: Electrification Reshapes Component Demand

Internal combustion engine vehicles maintain the largest market share at 76.51% in 2024, reflecting the installed base of existing vehicles and continued production in many global markets. However, battery-electric vehicles represent the fastest-growing segment with an extraordinary 35.18% CAGR, driven by regulatory mandates, improving battery technology, and expanding charging infrastructure. Global electric car production reached 17.3 million units in 2024, with China producing 12.4 million vehicles and dominating over 70% of global output.

Hybrid and plug-in hybrid electric vehicles serve as transitional technologies, requiring components for electric and combustion powertrains, creating complexity for suppliers and diversifying demand patterns. Fuel-cell electric vehicles remain a niche segment but show promise in commercial vehicle applications where hydrogen's energy density advantages become more pronounced. The propulsion mix varies significantly by region, with China and Europe leading electrification. At the same time, North America and emerging markets maintain higher ICE shares, requiring suppliers to maintain flexible production capabilities across multiple powertrain technologies.

By Vehicle Type: Commercial Vehicles Drive Innovation Adoption

Passenger cars dominate with 72.36% market share in 2024 and maintain the fastest growth rate at 4.89% CAGR, benefiting from higher production volumes and more frequent replacement cycles. The segment drives innovation in consumer-facing technologies, including infotainment systems, connectivity features, and autonomous driving capabilities. Premium passenger vehicles often serve as testbeds for new technologies before broader market adoption, creating early demand for advanced components.

While commercial vehicles represent a smaller market share, they exhibit strong growth driven by e-commerce expansion, urbanization, and fleet electrification initiatives. Commercial applications often justify higher component costs due to total cost of ownership considerations, making them attractive early adopters for advanced technologies like telematics systems, predictive maintenance solutions, and alternative powertrains. The segment also benefits from longer vehicle lifecycles that support sustained aftermarket demand for replacement parts and upgrades.

By Sales Channel: Aftermarket E-commerce Transforms Distribution

Original Equipment Manufacturer channels maintain 61.42% market share in 2024, reflecting the substantial value of components supplied directly to vehicle manufacturers during production. However, aftermarket e-commerce emerges as the fastest-growing segment with 13.54% CAGR, fundamentally disrupting traditional parts distribution models. Digital platforms enable direct-to-consumer sales, bypassing traditional distributor networks and reducing costs while improving convenience.

The traditional aftermarket channel faces pressure from e-commerce growth and potential right-to-repair legislation that could increase competition by improving independent shop access to OEM data and parts. However, physical aftermarket channels retain advantages in complex installations, technical support, and immediate availability for urgent repairs. The channel mix is evolving toward an omnichannel approach where digital platforms complement physical distribution networks, particularly for routine maintenance items and standardized components.

Geography Analysis

Asia-Pacific maintains its dominant position with 45.78% market share in 2024 and leads regional growth at 6.28% CAGR through 2030, driven by China's automotive manufacturing supremacy and expanding domestic markets. China produced 12.4 million electric vehicles in 2024, representing over 70% of global electric car output, while transforming into a net vehicle exporter. This dual role as producer and exporter creates substantial demand for automotive parts both domestically and for export vehicles. India's automotive aftermarket is projected to reach USD 14 billion by 2028, supported by increasing vehicle ownership and growing demand for aftermarket services. Japan continues to leverage its technological expertise in advanced components, particularly in hybrid powertrains and precision manufacturing. At the same time, South Korea focuses on electric vehicle technologies and semiconductor solutions for automotive applications.

North America and Europe represent mature markets with established automotive ecosystems but face distinct challenges in adapting to industry transformation. Europe's automotive aftermarket, valued at EUR 64 billion, confronts pressure from economic volatility, regulatory changes, and the transition to electric vehicles that require fewer traditional maintenance services. The region's independent aftermarket holds a 60% market share, driven by aging vehicles and budget-conscious consumers, but growth is expected to slow post-2026 due to EV adoption. North America benefits from nearshoring trends and the Inflation Reduction Act's support for domestic EV production, though the market faces potential disruption from trade policies and Chinese automotive competition.

Emerging markets in South America, the Middle East, and Africa demonstrate significant growth potential despite smaller current market shares. Mexico's auto parts sector attracted over USD 2.5 billion in foreign direct investment in 2024, representing a 23.5% increase driven by electric vehicle production growth in the U.S. and rising demand for electric components. The Middle East and North Africa region saw 11 new automotive projects with investments exceeding USD 2.9 billion in Q1 2024, led by Saudi Arabia's USD 1.3 billion electric vehicle manufacturing complex. These regions benefit from government initiatives to develop local automotive capabilities and reduce dependence on imports, creating opportunities for domestic and international parts suppliers.