Auto Parts Remanufacturing in the US - Industry Market Research Report

Break Even: Improving Economic Conditions Following the Pandemic are Expected to Help Industry Revenue Recover

Auto parts remanufacturers have contended with new challenges in recent years. Typically, demand for remanufactured auto parts is countercyclical to the economy, as remanufactured parts offer savings when compared with their brand-new counterparts. But this all changed when COVID-19 swept the globe. Although economic conditions fell steeply, stay-at-home orders pushed transportation to the bottom of the public's priority list, causing remanufacturers to endure steep declines. As the United States reopened, remanufacturers gained some ground but still struggled, as high commodity prices raised the cost of parts production and vehicle ownership while low-cost new imported parts took away customers. Altogether, industry revenue has been falling at a CAGR of 3.1% to $5.8 billion over the past five years, despite an anticipated growth of 0.4% in 2023 alone. This industry includes operators that remanufacture automotive parts. Remanufacturers acquire disassembled, used components and combine several pieces to reassemble or remanufacture an automotive part. Operators remanufacture alternators, starters, steering parts and electrical units. Companies operate as stand-alone enterprises or as part of a larger retailer, services garage or original equipment manufacturer. This industry excludes engine remanufacturing. This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.