The foreign automotive parts market presents significant characteristics of diversification, technology driven, and regional differentiation

2025,04,25

The foreign auto parts market shows significant characteristics of diversification, technology-driven and regional differentiation. The following is an analysis from aspects such as market size, regional distribution, growth momentum, competitive landscape and future trends:

I. Market Size and Growth

The global auto parts market is huge and continuously growing. According to QYResearch data, the global automotive parts market sales reached 2,019.8 billion US dollars in 2023 and are expected to increase to 2,363 billion US dollars by 2030, with a compound annual growth rate (CAGR) of 2.3% (2024-2030). Another data source shows that the global market size is expected to be 1.5 trillion US dollars in 2024 and will grow to 1.8 trillion US dollars in 2025, with a CAGR of approximately 6%. This growth is mainly attributed to the popularity of new energy vehicles (NEVs), the application of intelligent connected technologies, and the rise of emerging markets.

Ii. Characteristics of Regional Markets

The North American market

North America is one of the largest auto parts markets in the world, with an estimated market size of 500 billion US dollars in 2025. The United States has a high number of cars, and the aftermarket (AM) accounts for a relatively large proportion. Consumers have a strong demand for personalized accessories and maintenance services. Meanwhile, policies for new energy vehicles have driven up the demand for accessories such as batteries and charging equipment. For instance, the Inflation Reduction Act (IRA) in the United States encourages domestic production and attracts Chinese enterprises to build factories in Mexico to avoid tariffs.

The European market

Europe is renowned for its high-end car brands and strict environmental regulations. The market size is expected to reach 400 billion US dollars in 2025. The strict carbon emission restrictions imposed by the European Union have accelerated the electrification process, leading to a sharp increase in demand for power batteries and motor control systems. In addition, the application of intelligent driving and Internet of Vehicles technologies (such as lidar and domain controllers) has driven the growth of the electronic accessories market. It is estimated that the market size of lidar will exceed 10 billion yuan by 2025.

The Asia-Pacific market (excluding China)

In Southeast Asia, the number of cars in countries such as Malaysia and Thailand is growing rapidly. The market size in Malaysia is expected to reach 6 billion US dollars by 2025, and the overall aftermarket in ASEAN is expected to reach 55.53 billion US dollars by 2033, with a CAGR of 8.5%. Japanese automakers dominate the market, driving the growth of Japanese parts suppliers. Meanwhile, Chinese enterprises have increased their market share in the local area by virtue of their cost-performance advantages.

India: The automotive industry is developing rapidly. The government is promoting domestic manufacturing and the transformation to new energy, attracting international parts manufacturers to invest and build factories.

Emerging markets

Africa: The market size is expected to reach 18.5 billion US dollars in 2025, with an annual growth rate of 11%. Kenya, Ethiopia and other countries are driving the growth of parts imports due to the demand for used cars and infrastructure construction.

South America: The market size of countries such as Brazil and Argentina is expected to reach 13.363 billion US dollars by 2025, with a CAGR of 5.9%. The Chile Auto Parts Exhibition has become an important platform for the after-sales market in South America.

Iii. Growth Drivers

The popularization of new energy vehicles

The rapid development of electric vehicles (EVs) and hybrid electric vehicles (HEVs) has reshaped the demand structure for components. The market size of core components such as power batteries, electric drive systems, and charging equipment has soared. It is estimated that by 2025, the global market size of new energy vehicle parts will account for 30% of the overall market. For instance, the global electric vehicle parts market is projected to have a CAGR of over 21% from 2023 to 2028, reaching 318.47 billion US dollars in 2028.

Technological innovation and intelligence

Intelligent connected vehicles are driving the growth in demand for in-vehicle electronics and autonomous driving accessories such as lidar and millimeter-wave radar. The market size of intelligent connected vehicle components is expected to exceed 350 billion yuan by 2025, with significant growth in sub-sectors such as domain controllers and by-wire chassis. In addition, the application of lightweight materials (such as aluminum alloy and carbon fiber) enhances vehicle energy efficiency. It is estimated that the consumption of aluminum alloy will reach 2 million tons by 2025, with a market size of 100 billion yuan.

Expansion of the aftermarket

The increase in global car ownership and the aging of vehicles have driven the growth of the aftermarket. The global automotive maintenance and repair market size is expected to reach 600 billion US dollars in 2025, with the replacement market at 400 billion US dollars and the AM market share continuously increasing. The popularization of online sales channels (such as e-commerce platforms) has further promoted the circulation of after-sales parts. It is expected that the scale of the online auto parts market in ASEAN will expand significantly by 2033.

Iv. Competitive Landscape and Major Enterprises

Dominated by international giants

Enterprises such as Bosch (Germany), Hyundai Mobis (South Korea), and Denso (Japan) occupy a dominant position in the global market. The 2025 global auto parts brand value list shows that Bosch leads with 7.266 billion US dollars, followed closely by Hyundai Mobis and Denso. These enterprises lead in technology in the fields of new energy and intelligent accessories, such as Bosch's autonomous driving sensors and Denso's in-vehicle infotainment systems.

The Rise of Chinese enterprises

Chinese enterprises such as CATL, Huayu Automotive and Weichai Power have gradually increased their market share through technological breakthroughs and global layout. Catl's export volume of power batteries accounts for 63% of the global total. Huawei and Desay SV have close cooperation with international automakers in the field of intelligent driving. Fuyao Glass has a global market share of 36% in the automotive glass field and has expanded its integrated "glass + trim" solution through acquisitions.

Regional competition differences

In Europe, local enterprises (such as Continental and Valeo) hold an advantage in the high-end market while facing cost competition from Chinese enterprises.

In North America, the aftermarket is dominated by chain brands such as Autozone and NAPA, and new energy vehicle accessories rely on imports.

Southeast Asia: Dominated by Japanese suppliers (such as Toyota Boshoku), Chinese enterprises penetrate the market through cross-border e-commerce and local production.

V. Challenges and Risks

Supply chain fluctuation

Fluctuations in raw material prices (such as lithium, cobalt and aluminium) and geopolitical risks (such as the Sino-US trade friction) affect the stability of the supply chain. In April 2025, the price of butadiene decreased by 9.71% year-on-year. The price of natural rubber remained relatively stable, but the prices of materials such as aluminum and steel were significantly affected by the global economy.

Policies and Regulations

Strict regulations on new energy vehicles and environmental protection in Europe and the United States (such as the EU's "New Battery Regulation" and the US IRA) have increased compliance costs, but they have also provided opportunities for technology-leading enterprises. For instance, the restrictions on carbon emissions in Europe have promoted battery recycling and the application of lightweight materials.

Technological iteration pressure

The rapid update of new energy and intelligent technologies requires enterprises to continuously invest in research and development. Traditional accessory manufacturers need to accelerate their transformation; otherwise, they may be eliminated from the market. For instance, the penetration rate of new technologies such as wire control and air suspension has increased, while the demand for traditional mechanical components has declined.

Vi. Future Trends

The integration of electrification and intelligence

The deep integration of new energy vehicles and intelligent connected vehicle technologies has driven the continuous growth in demand for batteries, autonomous driving, and Internet of Vehicles accessories. It is expected that by 2025, the global sales share of new energy vehicles will exceed 15%, and intelligent connected vehicles will account for 30% of new car sales.

Supply chain localization and globalization coexist

To reduce risks, automakers have adopted a "China + N" production capacity layout and established supply chain centers in Southeast Asia, Eastern Europe, Mexico and other regions. Meanwhile, cross-border e-commerce and digital marketing (such as live-streaming sales) have become important channels for small and medium-sized manufacturers to expand their overseas markets.

Sustainable development and circular economy

Environmental protection regulations promote the use of recycled materials and battery recycling. For instance, the European Union requires that the battery recycling rate reach 70% by 2030. Lightweight materials and energy-saving technologies (such as low rolling resistance tires and high-efficiency motors) will become the focus of competition.

Intelligentization of the after-sales market

Online platforms (such as Lazada and Shopee) and intelligent parts recommendation systems (such as AI-driven) enhance the efficiency of the aftermarket. It is expected that the online auto parts market in ASEAN will expand significantly by 2033.

Author:

Mr. yin chang

E-mail:

yinchanghaoshuai@163.com