Automotive Performance Parts Market Likely To Reach US$ 339.32 Mn: Report
As a result of escalating demand for passenger cars, the market for automotive performance parts is likely to reach an estimated US$ 339.32 Mn by the end of 2023. A rise in disposable income across the globe further supplements the growth of the automotive performance parts market during the forecast period.
Manufacturers in this market are able to provide cost-effective products and record sales growth because of the competition in China, India, Thailand, and Vietnam. With the advancement of technology and swift development occurring in the field of logistics, many manufacturers are now able to supply high-quality items faster and across a variety of regions. The expanding market for used cars in the United States further bolsters the maintenance and repair segment of the automotive performance parts market during this period. In the past couple of years, owing to rising vehicle ownership and a surge in car collisions, replacement parts dominated the automotive performance parts market, thus contributing immensely to the overall growth of the target market.
Moreover, rapid transformation in lifestyles and a growing desire for useful and progressive technology-based products are propelling consumer growth for the target market. Automotive performance parts are more appealing than ever as they are readily available. Heightened use of gauges, switches, and audio/video devices has resulted in the market domination of the anterior segment, which, in turn, contributes to the growth of the automotive performance parts market during the forecast period.
"Rising vehicle ownership coupled with escalating demand for passenger cars will propel the global growth of the automotive performance parts market over the forecast period," says an FMI analyst.
Key Takeaways:
♦ The automotive performance parts market in the U.S. will account for 87 per cent of the market share in North America.
♦ By suspension parts, sales of the shock absorbers segment will grow at 4.6 per cent
♦ Sales of torque converters will register a CAGR of 5.8 per cent.
♦ The air filter segment will grow at a CAGR of 4.2 per cent.
♦ High demand for passenger cars will push the target market growth in China.
Regional Analysis
♦ According to FMI's study, China is predicted to hold the largest market share in East Asia for automotive performance parts. One of the top manufacturers of automobile performance components is China. Between 2022 and 2032, the Chinese market is expected to have an absolute dollar potential of about US$ 38 billion. Sales of automotive performance parts in China are likely to continue to rise as demand for passenger cars rises.
♦ In 2022, it is predicted that Japan is likely to hold around 21 per cent of the market in East Asia. The automobile industry makes up 89 per cent of Japan's manufacturing sector, and suppliers of automotive parts have grown to be a key force in the economy of the nation by diversifying into sectors like chemicals and rubber. ; To accommodate Japan's limited space, aging society, and growth in single-person homes, the automotive industry created 'keijidsha,' or light vehicles, often known as Kei cars. As these cars are smaller in size, they are less expensive and easier to navigate in Japanese cities. As a result of these factors, demand for automotive performance parts is likely to rise in the future years.
Competitive Landscape
Tenneco Inc., Robert Bosch GmbH, Continental AG, BorgWarner Inc., Mahle GmbH, Donaldson Company Inc., Holley Performance Products, MITSUBISHI HEAVY INDUSTRIES, Honeywell International Inc., EXEDY Corporation, Denso Corporation, AISIN SEIKI Co., Hitachi Astemo, The NGK Spark Plug Co., Cummins Inc., ZF Friedrichshafen AG, Valeo, TREMEC, and Hyundai Mobis, among others are some of the major players in the automotive performance parts market profiled in the full version of the report.
Leading market players are focusing on adopting new strategies such as internet sales channels. Some of the other businesses are offering customizations and concentrating on expanding their businesses to gain a competitive advantage.
More Insights into Automotive Performance Parts Market Report
According to the latest FMI reports, based on segmentation, the shock absorbers segment will register a CAGR of 4.6 per cent propelled by the rising global demand. The torque converters segment will grow at 5.8 per cent CAGR while the sales of air filters will also record a spike during the projected period.
Based on region, the automotive performance parts market in China will demonstrate substantial growth during 2022-2032. Owing to the presence of top manufacturers of automobile performance components, the country is expected to present an opportunity of US$ 38 Bn. The target market in this region will hold the largest market share in East Asia. Other countries like Japan, Spain, and the United States will exhibit notable growth over the forecast period.
