Automotive Components Market Size, Share, and Industry Analysis by Vehicle Type (Hatchback/Sedan, SUVs, LCVs, and HCVs), By Product Type (Engine Parts, Electrical Parts, Drive and Transmission Steering Parts, Suspension and Braking Parts, and Others), By Distribution Channel (OEM and Aftermarket), and Regional Forecast till 2032

The global automotive components market is growing significantly with the expansion of aftermarket sector and increasing advancements in technology. The market covers engine parts, electrical systems, and suspension, which are some of the important automotive components used in making and servicing vehicles.

Because of these components, the vehicle works properly, stays safe, and performs well, supporting advancements related to green power, online systems, and improved driving.

• According to the U.S. Bureau of Labor Statistics, 920,000 individuals are employed in the auto parts manufacturing sector.

Automotive Components Market Driver

Electrification Growth, Technological Advancements, Aftermarket Expansion, and Global Trade to foster the Demand for Automotive Components

As people pay more attention to being green, auto companies are needing more batteries, electrical elements, and low-weight materials when making cars. Since there are rules limiting carbon emissions worldwide, manufacturers tend to make cars that are good for the environment and save energy.

Because of ADAS, autonomous driving, and similar high-tech features, parts in vehicles are now more elaborate and useful. R&D spending by manufacturers is rising to bring about better safety features, automated driving, and a fun experience in cars.

Because many are now picking custom vehicles, the aftermarket industry is expanding. For these reasons, consumers purchase more parts and want to make their vehicles better, which prompts suppliers to focus on supplying top-quality alternatives for wider needs.

Trade agreements between major countries, such as the ceasefire between China and the U.S., are impacting the way companies build their manufacturing and supply plans. Due to new ways of sourcing and distributing, companies are advised to change their operations to ensure they remain efficient and secure.

Automotive Components Market Restraint

Supply Chain Disruptions, Raw Material Shortages, Regulatory Compliance, and Technological Obsolescence May Affect Market Expansion

Issues such as the U.S.-China trade war and interruptions brought by COVID-19 have uncovered major problems in the way companies get their products. Because of these difficulties, there are component shortages and delays in production, which have affected how efficient and reliable global auto components are.

As semiconductors and rare earth elements are scarce, production activities are reduced and the expenses of manufacturers keep rising. The fact that there are not enough chips creates a big challenge for businesses, who must search for different versions or suppliers to produce components regularly.

Not only does automotive component design and manufacturing have its challenges, but it also has to cope with multiple environmental and safety regulations found in different regions. Since companies have to meet different rules, the costs go up and operations become harder, usually delaying their products’ entry into the market.

Since technological developments are happening rapidly in the automotive field, carmakers have to keep progressing. Quick progress increases the risk that current items will lose their value, so businesses need to invest a lot in research and development.

Automotive Components Market Opportunity

Electric Vehicle Components, Sustainable Lightweight Materials, and Digitalization Connectivity Advancements to Offer New Growth Avenues

Increasing numbers of vehicles on roads and the industry’s ongoing growth in Asia Pacific and Latin America mean more opportunity for the automotive market. They are receiving more investment, helping to produce vehicles more in the area and increasing the use of diverse car components and technologies.

As more electric vehicles are used, manufacturers need more battery management systems, electric drivetrains, and charging systems. As a result, manufacturers are now motivated to create innovative solutions, especially for electric vehicles.

As fuel and emissions are important in the automotive industry, the development of sustainable and light materials is moving ahead fast. As a result, these materials are excellent for performance and help with environmental protection, making it easier for suppliers to come up with eco-friendly innovations.

With new technology coming in, automotive manufacturers are now able to create innovative new components. Using infotainment, telematics, and connected cars together is driving the demand for high-end electronics and encouraging cooperation between technology and the auto industry.

Segmentation

Key Insights

The report covers the following key insights:

• Vehicle Production Growth, By Key Countries
• Electrification and Sustainability Trends
• Advanced Technologies and Innovation, By Major Countries
• Regulations on Emissions and Safety
• Key Industry Developments (Mergers, Partnerships, and Acquisitions)

Analysis by Vehicle type

By vehicle type, the automotive components market is divided into hatchback/sedan, SUVs, LCVS, and HCVS.

The demand for SUVs that fit the family, are flexible, and are considered safe is growing fast in this industry. For this reason, current car models have suspension, interfaces, and transmissions that make SUV ownership much safer and more enjoyable. Because many people enjoy SUVs, their numbers are greater, and luxury items are favoured, these cars have become the top-selling type.

Due to more delivery and logistics businesses are needed nearby, LCVs are enjoying steady growth. Thanks to this rapid growth, crafting small and efficient vehicle parts such as engines, module chassis pieces, and modern brakes has become common. These elements improve a fleet’s fuel mileage and reduce its overall running costs.

Analysis by Product type

Based on product type, the automotive components market is subdivided into engine parts, electrical parts, drive and transmission steering parts, suspension and braking parts, and others.

Improvements in engine efficiency, emission reduction, and smaller-sized engines have increased the share of the market that goes to engine parts. OEMs are making advances in piston, valve, crankshaft, and cylinder technologies since buyers are interested in energy-saving cars and there are stricter regulations to protect nature. Because car owners often need to upgrade their engines, this part of the market plays a leading role.

The growth of the electrical parts sector is driven by more electric vehicles being sold and the increasing use of advanced systems that help drivers. Because of concern for car intelligence, connectivity, and meeting new safety and emission norms, wiring harnesses, sensors, ECUs, and alternators are being produced in large quantities.

Analysis by Distribution channel

By distribution channel, the automotive components market is fragmented into OEM and aftermarket.

The car-making industry depends on original equipment manufacturers, since manufacturers prefer using well-designed and custom-built parts during the assembly of their vehicles. Thanks to OEM parts, products meet safety requirements and are both reliable and compatible, which helps build strong relationships between manufacturers and their suppliers. Through reliable manufacture, solid alliances, and integration, the OEM segment has taken the largest market share.

The aftermarket industry is growing rapidly thanks to a bigger number of aged vehicles globally. As people want cheaper upkeep, there is more need for replacing parts such as filters, brakes, and lights. Because of the growth of online shopping and better distribution, it is easier for people to buy aftermarket components.

Regional Analysis

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Based on region, the automotive components market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

As of large investments in manufacturing and the use of innovative technologies in cars, North America is the leading region. These reasons are why the region’s technology and manufacturing are getting better, which lets it play a bigger role in the new car parts industry.

The automotive components sector in Europe does well since it cares for the environment and follows strict emission guidelines. Thanks to the big OEMs and suppliers, the region is introducing new environmental solutions and technology for electric cars and lighter materials.

Since the Asia Pacific region has factories in China, Japan, and India, it holds the top position in making automotive parts. Due to the increase in prosperity among the middle class, advanced manufacturing, and actions by the government, the car industry in Asia grows and develops.

Key Players Covered

The report includes the profiles of the following key players:

• Denso Corporation (Japan)
• Dana Holding Corporation (U.S.)
• Delphi Corporation (U.K.)
• Valeo (France)
• Magna International Inc (Canada)
• Aisin (Japan)
• Hyundai Mobis (South Korea)
• Robert Bosch AG (Germany)
• Continental AG (Germany)
• ZF Friedrichshafen (Germany)
• Akebono Brake Industry Co. Ltd. (Japan)
• Autoliv Inc. (Sweden)
• BorgWarner Inc. (U.S.)
• Brembo Spa (Italy)
• General Motors Co. (U.S.)
• HELLA GmbH and Co. KGaA (Germany)
• Lear Corp. (U.S.)
• Marelli Holdings Co. Ltd. (Japan)
• Schaeffler AG (Germany)
• Stellantis NV (Netherlands)
• Tenneco Inc. (U.S.)
• The Goodyear Tire and Rubber Co. (U.S.)
• Toyota Motor Corp. (Japan)
• Valeo SA (France)
• Faurecia (France)
• Mahle GmbH (Germany)
• Panasonic Corporation (Japan)
• Yazaki Corp. (Japan)
• Sumitomo Electric (Japan)
• Aptiv (Ireland)
• Panasonic Automotive (Japan)

Key Industry Developments

• In May 2025, the government of the U.K. decided to provide EUR 1 billion for a new electric battery factory in Sunderland, thus helping the country produce EV parts.