PUBLISHER: The Business Research Company | PRODUCT CODE: 1669399
PUBLISHER: The Business Research Company | PRODUCT CODE: 1669399
Automobile remanufacturing involves restoring an automobile product to at least its original condition, accompanied by a warranty equal to or better than that of a newly built vehicle. This process contributes to improved raw material circularity, enhanced resource efficiency, and a reduction in environmental impact.
The primary types of automobile remanufacturing include engine, transmission, starter, generator, and others. The engine, in this context, refers to a machine that generates motion using steam or liquid fuel. Different manufacturers are involved in automobile remanufacturing, including original equipment manufacturer (OEM) remanufacturers, independent remanufacturers, and subcontracted remanufacturers. These remanufactured components find applications in various vehicle types, including passenger vehicles and commercial vehicles.
The automobile remanufacturing market research report is one of a series of new reports from The Business Research Company that provides automobile remanufacturing market statistics, including automobile remanufacturing industry global market size, regional shares, competitors with an automobile remanufacturing market share, detailed automobile remanufacturing market segments, market trends and opportunities, and any further data you may need to thrive in the automobile remanufacturing industry. This automobile remanufacturing market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The automobile remanufacturing market size has grown strongly in recent years. It will grow from $67.54 billion in 2024 to $74.18 billion in 2025 at a compound annual growth rate (CAGR) of 9.8%. The growth in the historic period can be attributed to environmental concerns, cost-effectiveness, resource conservation, regulatory support, circular economy adoption
The automobile remanufacturing market size is expected to see rapid growth in the next few years. It will grow to $109.31 billion in 2029 at a compound annual growth rate (CAGR) of 10.2%. The growth in the forecast period can be attributed to electric vehicle (EV) growth, increased vehicle complexity, transition to autonomous vehicles, rise in sustainable practices, legislation on circular economy. Major trends in the forecast period include advancements in remanufacturing technologies, focus on battery remanufacturing, increased automation in remanufacturing, modularity and design for remanufacture, collaborative supply chain models.
The escalating demand for vehicles is anticipated to be a pivotal driver propelling the expansion of the automobile remanufacturing market. Vehicles, essential for land-based transportation of people or goods, are driving the need for automobile remanufacturing, a process focused on rebuilding and revitalizing previously used, sold, or damaged vehicles. This sector encompasses a spectrum of remanufactured components such as transmissions, clutches, steering systems, and axle systems designed for motor vehicles and trucks. For instance, as per data from MarkLines Co., Ltd. in June 2023, the US witnessed a surge in new vehicle sales, reaching 1,374,910 units in May 2023, marking a notable 22.8% increase from the preceding year. Hence, the burgeoning demand for vehicles acts as a significant impetus driving the growth trajectory of the automobile remanufacturing market.
The adoption of circular economy practices is anticipated to drive the growth of the automobile remanufacturing market. The circular economy emphasizes sustainability by encouraging the continuous use, recycling, and repurposing of resources, materials, and products. Implementing circular economy practices, including remanufacturing, fosters a more sustainable, resource-efficient, and environmentally friendly automotive industry by addressing environmental concerns, providing cost-effective solutions, and aligning with changing consumer preferences. For example, in April 2024, the World Economic Forum, a Switzerland-based non-governmental organization, reported that by 2050, adopting a circular economy approach could reduce the global volume of municipal solid waste from over 4.5 billion tonnes annually to under 2 billion tonnes. Additionally, this approach would decrease waste disposed of in open fires and lower landfill waste by more than 40%, reducing it to approximately 630,000 tonnes. Therefore, the adoption of circular economy practices will propel the automobile remanufacturing market in the future.
Product innovation stands as a pivotal trend gaining momentum within the automobile remanufacturing market. Leading companies in this sector are actively engaged in pioneering new remanufactured products to fortify their market standing. An illustration of this trend is observed in Blue Streak Electronics' June 2023 launch of remanufactured automotive driveline power inverters. These inverters undergo an extensive remanufacturing process, encompassing rigorous testing, refurbishment, and replacement of critical components, ensuring optimal performance, reliability, and extended lifespan. Functionally converting DC power from the vehicle's battery into AC power for driveline systems while also charging the battery, customers can expect products that match the performance of entirely new power inverters while concurrently reducing waste and carbon footprints.
Major companies in the automobile remanufacturing market are concentrating on innovative initiatives, such as electric vehicle (EV) battery testing and disassembly lines, to improve efficiency and sustainability through technology integration and material recovery. An EV battery testing and disassembly line is a specialized facility designed for testing, inspecting, and dismantling EV batteries. For example, in October 2023, the Agency for Science, Technology, and Research, a statutory board in Singapore, launched an EV Battery Testing and Disassembly Line that promotes sustainable management of retired batteries through automated, efficient processes that prioritize safety and resource recovery. This facility utilizes Industry 4.0 technologies, including automation and robotics, to disassemble EV battery packs safely and efficiently. It consists of three operational stations dedicated to inspection, discharging, and rapid cell grading, significantly reducing assessment times while addressing the environmental risks associated with retired EV batteries.
In February 2023, LKQ Europe GmbH, a Switzerland-based automotive aftermarket component provider, completed the acquisition of Rhenoy Group for an undisclosed amount. This strategic move reinforces LKQ's commitment to delivering cost-effective and sustainable mobility solutions across European markets. As an integral part of its European strategic plan, the company intends to leverage Rhenoy Group's expertise, particularly in remanufacturing capabilities. Rhenoy Group, based in the Netherlands, specializes in the remanufacturing of engines.
Major companies operating in the automobile remanufacturing market include Toyota Motor Corporation, Robert Bosch GmbH, Caterpillar Inc., Denso Corporation, ZF Friedrichshafen AG, Continental AG, Volvo Car Corporation, Cummins Inc., Valeo SA, Eaton Corporation plc., Tenneco Inc., Schaeffler Group, TRW Automotive Holdings Corp., BorgWarner Inc., LKQ Corporation, Marelli Europe S.p.A, Knorr-Bremse AG, Navistar Inc., GKN Automotive Limited, Garrett Motion Inc., Standard Motor Products Inc., Remy International Inc., BBB Industries, Jasper Engines and Transmissions, Cardone Industries Inc., Detroit Diesel Corporation, BORG Automotive AS, Maval Industries LLC., AMS Automotive LLC., WABCO Holdings Inc.
North America was the largest region in the automobile remanufacturing market in 2024. Asia-Pacific is expected to be the fastest-growing region in the automobile remanufacturing market report during the forecast period. The regions covered in the automobile remanufacturing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the automobile remanufacturing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The automobile remanufacturing market consists of sales of turbochargers, brake caliper, steering racks, steering pumps, and alternators. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Automobile Remanufacturing Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on automobile remanufacturing market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for automobile remanufacturing ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The automobile remanufacturing market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.