Germany is set to increase its hold on Europe’s automotive parts remanufacturing market over the next seven years, according to a new study. The country already had an estimated 30% of the sector by the end of 2016, but this figure is set to increase to nearly 40% by 2024, says Persistence Market Research’s Europe Market Study on Automotive Parts Remanufacturing.
Over the survey period, the market in Germany “is expected to create total incremental opportunity of more than $3 billion” – an estimated 1.8 times that of the figure generated in the UK over that time (although demand for reman parts in the UK will still show “impressive growth”). Germany’s dominance is down to the presence of large local parts remanufacturers in the country. The German market is expected to register a compound annual growth rate (CAGR) of 7.9% over the forecast period, the report finds, while “stringent government laws towards waste management likely to propel the growth” of the sector further.
The research suggests that Europe's automotive parts reman market will jump from 35 million units to more than 56 million by the end of 2024. Demand for reman engine and transmission components is “fairly high across Europe, and is expected to remain so throughout the forecast period”. Remanufacturing of turbochargers, transmission clutches, brake calipers, and steering wheels “will register rampant growth in revenues and exhibit CAGRs not less than 7.8%”. The report also predicts that, by 2025, more than 23 million passenger car parts will be remanufactured across European countries.