Automotive industry is more concern about environment pollution. Stringent emission norms by government bodies and strict implementation by the automotive sector are prompting a complete shift in business from manufacturing of traditional parts to ecofriendly solutions. Remanufacturing is a process in which the new product is reassembled or remanufactured from the old product by utilizing various technical processes, or the new part is modified to enhance its life or performance. The automotive industry has a long tradition of remanufacturing, as compare to other types of industries.
Growing lifespan of modern vehicles and increased number of on-road vehicles across the globe are anticipated to drive the automotive remanufacturing market during the forecast period. Furthermore, several OEMs have realized the potential of remanufacturing business and hence, the automotive remanufacturing market is likely to expand during the forecast period.
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The automotive remanufacturing market can be segmented based on component types, service provider, vehicle type, and region. Based on Component Types, the automotive remanufacturing market can be classified into engine components, starters and alternators, wheels & brake-related components, electric & electronics, fuel system, transmission related, and others. Engine or engine related components are replaced or remanufactured twice during the vehicle’s lifespan. Starters and alternators are the most remanufactured components apart from the vehicle engine. Across the globe, approximately 300 manufacturers produce starter motors and alternators. Among them, 50% manufacturers are U.S.-based and 30% manufacturers are based in Europe. Likewise, transmission & transmission parts are also remanufactured, which enhances vehicle efficiency and offers additional benefits such as inspection of parts, replacement of overused parts, and diagnostics testing.
In terms of sales channel, the automotive remanufacturing market can be split into OEMs and independent remanufacturers. OEMs are investing in remanufacturing automotive businesses, considering the potential of the business. Utilization of advance of machinery, skilled technical staff, and reliable solutions with proper diagnostic facilities are the potential factor which is likely to expand OEMs segment during the forecast period. Consequently, the OEMs segment is anticipated to expand at a significant pace during the forecast period.
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In terms of vehicle type, the automotive remanufacturing market can be segregated into passenger vehicle, light commercial vehicle, heavy commercial vehicle, and off-road vehicle. Presence of numerous on road passenger vehicles creates considerable business opportunity for the automotive remanufacturing business. Remanufacturing of important parts of passenger vehicles is likely to account for a major share of the business and hence, the passenger vehicle segment is anticipated to expand significantly during the forecast period.
In terms of region, the automotive remanufacturing market can be classified into North America, Latin America, Europe, Asia Pacific, and Middle East & Africa. In North America, there are approximately 150 engine manufacturers and 1000 automotive parts remanufacturers in the U.S. alone. Furthermore, each year, in the U.S., approximately 95% of trucks and cars are recycled, among them 75% by weight are taken up for reuse. Therefore, North America is expected to dominate the global automotive remanufacturing market during the forecast period. The European Union passed a law regarding the reuse and recovery of 85% by weight of the average vehicle in 2006, and the percentage of reuse and recovery increased to 95% by 2015.
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Key players operating in the automotive remanufacturing market include Perkins Engines Company Limited, Caterpillar, BORG AUTOMOTIVE A/S, Jasper Engines & Transmissions, ZF Friedrichshafen AG, and Robert Bosch GmbH.
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