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Report Overview
The global auto parts manufacturing market size was valued at USD 744.37 Billion in 2025. Stringent emissions norms in Europe and Asia are compelling automakers to adopt lightweight, high-performance auto parts, accelerating demand for precision-cast aluminium alloys, forged carbon composites, and next-gen suspension systems. In turn, the market is expected to grow at a CAGR of 6.10% during the forecast period of 2026-2035 to reach a value of USD 1345.68 Billion by 2035.
Funds granted by the governments all around the globe significantly generate demand in the auto parts manufacturing market. The United States Department of Energy has already invested USD 13 million in grants toward domestic EV parts production. Similarly, India’s Production Linked Incentive (PLI) Scheme for Auto Components has attracted companies, with INR 25,938 crore earmarked to ramp up the manufacturing of critical parts like advanced batteries and EV motors. The market growth is further accelerated by tech-savvy manufacturers investing heavily in automation, sustainability, and AI-driven production.
The surge in demand for lighter, durable components compatible with EVs and hybrids is creating fresh growth opportunities for auto parts manufacturing companies. Firms are integrating 3D printing and digital twin technology to reduce lead times and prototype costs. For instance, Spanish-based manufacturer, Gestamp, is harnessing the capabilities of LTE and 5G networks as well as IoT-based devices for the development of a smart factory that relies on data analytics and processing for the real-time control and processing of the auto parts, thereby propelling the auto parts manufacturing market growth. This initiative, funded by the European Union, is aimed at promoting digitalisation in the automotive sector of the country.
2025
Base Year
2019-2025
Historical Period
2026-2035
Forecast Period
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Auto parts manufacturers are enhancing their online presence to reach a broader customer base.
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Favourable government regulations are expected to promote the demand for environmentally friendly auto parts.
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North America is expected to emerge as a significant market due to the high usage of commercial vehicles.
Competitive Landscape
The auto parts manufacturing companies are leveraging advanced technologies to improve their production capabilities as well as promote sustainable development, lowering their carbon footprints to gain a competitive edge in the market.
Robert Bosch GmbH
Robert Bosch is a multinational engineering technology company in automotive parts industry, based in Gerlingen, Germany. Founded in 1886, the company offers smart building solutions, carbon neutrality solutions, and hydrogen technology, among others.
DENSO CORPORATION
DENSO is an automotive component provider, headquartered in Aichi, Japan. Some of its specialities include electric/hybrid components, human-machine interfaces, wireless charging, and robotics, among others.
Continental AG
Continental AG is an automotive parts manufacturer in the automotive sector, based in Hanover, Germany. Incorporated in 1871, the company offers efficient and cutting-edge solutions for the mobility and transport sectors.
Valeo
Valeo, a French-based auto parts company, announced that it is expanding its operations in Tamil Nadu, India, to strengthen its position in the Indian subcontinent.
The market players are steadily incorporating green auto parts, which are manufactured from the tree waste to reduce their dependency on plastics and biocomposites. These sustainable auto parts reduce waste generation and contribute to the circular economy by reusing waste tree parts which are discarded. Furthermore, tests have shown that these auto parts are durable and robust and can be incorporated into vehicles for mass production, opening new avenues and creating opportunities for the auto parts manufacturing market development.
Auto Parts Manufacturing Market Report Snapshots
*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
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Key Questions Answered in the Report
In 2025, the auto parts manufacturing market reached an approximate value of USD 744.37 Billion.
The market is projected to grow at a CAGR of 6.10% between 2026 and 2035.
The market is estimated to witness a healthy growth during 2026-2035 to reach around USD 1345.68 Billion by 2035.
Key strategies driving the market include investing in AI prototyping, scaling regional micro-factories, partnering with OEMs for R&D, enhancing recyclability of parts, and localising sensor tech supply chains.
The key trends aiding the market include surge in the production of hybrid vehicle parts; growth of 3D printing; growing demand for autonomous vehicle parts; and favourable government initiatives supporting sustainable auto body parts.
The major regions in the industry are North America, Latin America, the Middle East and Africa, Europe, and the Asia Pacific.
The leading components in the market are battery, cooling system, underbody components, engine components, automotive filter, lighting components, and electrical components, among others.
The major sales channels in the industry are OEM and aftermarket.
The significant vehicle types in the market are passenger cars, light commercial vehicles, and heavy commercial vehicles, among others.
The major players in the market are Robert Bosch GmbH, DENSO CORPORATION, Continental AG, ZF, Friedrichshafen AG, Hyundai Motor Group, Aisin Corporation, Magna International Inc., Valeo, Lear Corporation, Yazaki Group, Tenneco Inc., Sumitomo Electric Industries, Ltd., Akebono Brake Industry Co., Ltd., Panasonic Holdings Corporation, Faurecia S.E., and Marelli Holdings Co., Ltd, among others.
COVID-19 restrictions, along with health and safety concerns, led to fewer workers in factories. This shortage slowed down production rates, even as demand began to recover.
The key challenges are raw material volatility, rising compliance costs, and tech obsolescence.
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