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, By Competition, 2020-2030F

Market Overview

The Global Automotive Parts and Components Market was valued at USD 629.81 Billion in 2024 and is expected to reach 2030 USD 929.39 Billion by 2030 with a CAGR of 6.70% during the forecast period. The automotive parts and components market is undergoing significant transformation, driven by the growing demand for safer, smarter, and more fuel-efficient vehicles. Consumers are increasingly favoring vehicles that integrate high-end functionalities such as autonomous driving aids, efficient drivetrains, and connected systems, encouraging automakers and suppliers to invest heavily in product innovation. Rising disposable incomes and evolving lifestyles are pushing up sales across different vehicle categories, supporting the market's strong growth trajectory. Stricter regulatory requirements related to emissions and safety standards are also prompting a steady evolution of automotive components to align with changing compliance norms. The increasing incorporation of connected vehicle technologies is shaping new opportunities for the market. Components related to telematics, sensors, and electronic control units are seeing rising demand as manufacturers move toward smarter and more automated vehicles. Rapid advancements in electric vehicle (EV) technology are further influencing market dynamics, requiring significant adaptation of components like battery packs, electric motors, and regenerative braking systems. Lightweight materials such as carbon fiber and aluminum are gaining traction, offering performance improvements and enhanced fuel economy. Meanwhile, digitalization across manufacturing processes is boosting efficiency and allowing for greater customization in parts production.

Despite the positive outlook, the market faces considerable challenges. Supply chain disruptions due to geopolitical tensions, raw material price volatility, and technical complexities associated with integrating next-generation components are creating hurdles. The shift toward EVs requires heavy upfront investments, which smaller players may find difficult to manage. Another challenge includes the cybersecurity risks that accompany connected vehicle parts. Nevertheless, investments in research and development, the emergence of shared mobility concepts, and the constant consumer appetite for enhanced automotive experiences are expected to sustain market growth in the coming years.

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.

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.

Download Free Sample Report

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.

Technological Complexity in Component Development

The shift toward electrification, autonomy, and connectivity is driving up the technological complexity of automotive parts. Developing components that are lighter, smarter, and more efficient requires a multidisciplinary approach involving software engineering, materials science, electronics, and traditional mechanical expertise. The rising intricacy in designing parts such as integrated power electronics, sensor arrays, and AI-based control units adds to development timelines and R&D costs. Suppliers must invest heavily in acquiring new technical capabilities and talent pools, which can be particularly challenging for mid-sized and smaller enterprises.

Cybersecurity Concerns in Connected Vehicles

As vehicles become increasingly connected to the internet, cybersecurity risks are emerging as a serious challenge. Automotive parts and components that interact with digital systems, such as infotainment units, navigation modules, and advanced driver-assist systems, are potential targets for cyberattacks. Unauthorized access to vehicle control systems can have catastrophic consequences for passenger safety and brand reputation. Suppliers must invest in robust cybersecurity protocols and collaborate closely with automakers to ensure that their components are secure against evolving threats, often leading to higher development costs and regulatory compliance burdens.

Transition Risks with Electrification

While electrification offers long-term growth prospects, it also presents near-term risks for traditional automotive parts suppliers. Components such as internal combustion engine (ICE) parts, exhaust systems, and fuel delivery modules face declining demand. Suppliers heavily reliant on ICE vehicle components must pivot their business models, invest in EV-compatible product lines, or risk obsolescence. Transitioning business operations and retraining workforces to align with electric vehicle requirements is a capital-intensive and operationally challenging process, particularly during periods of economic uncertainty.

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.

Expansion of Advanced Thermal Management Systems

With the rise of electric and hybrid vehicles, there is an increased focus on developing advanced thermal management systems. Efficient cooling of battery packs, electric motors, and electronic control units is critical for performance and safety. Innovations such as phase-change materials, liquid cooling modules, and integrated thermal control architectures are becoming essential automotive parts. Suppliers specializing in thermal technologies are witnessing growing opportunities as OEMs prioritize efficient heat management solutions.

Rising Adoption of Over-the-Air (OTA) Updates

Over-the-air software updates are becoming a key feature in modern vehicles, allowing automakers to remotely update vehicle software without requiring service center visits. This trend is influencing component design, necessitating those parts such as control units, infotainment systems, and telematics devices are OTA-compatible. The ability to improve functionality, patch security vulnerabilities, and add new features remotely adds value for consumers and operational flexibility for manufacturers, driving greater integration of OTA-ready components.

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.

Download Free Sample Report

Regional Insights

Asia-Pacific dominates 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. 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.

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. ​

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:

·         Global Automotive Parts and Components Market, By Type:

o    Driveline and Powertrain

o    Interiors and Exteriors

o    Electronics

o    Bodies & Chassis

o    Tires

o    Others

·         Global Automotive Parts and Components Market, By Demand Category:

o    OEM

o    Replacement

·         Global 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, Tech Sci 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).

Global Automotive Parts and Components Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at sales@techsciresearch.com