Automotive component market is expected to register robust growth during the forecast period. The industry is driven by increased sales of motor vehicles worldwide. As per the estimates, over 97 thousand vehicles were sold in 2017, a 3.7% increase compared to that in 2016. Sales will continue to increase with rise in disposable income and higher preference for own commutation. As of 2017, global automotive components market is characterized by the presence of large number of domestic vendors and is highly fragmented. Over 69% of companies have revenue less than US$ 5 million.

While regional players continue to emphasize on distribution channels, multinational companies are primarily engaged in mergers/acquisitions and partnership to ensure long term business sustainability. The sector is underdeveloped in most parts of emerging regions – that in turn offers lucrative market opportunity. There is high growth potential across OEM and aftermarket. Aging fleets will be the prime source behind aftermarket sales.

Global Automotive Component Market Analysis, By Type

On the basis of type, the industry revenue is analyzed across engine parts, transmission and steering, electrical parts, braking and suspension components. Chassis, and others. Over 36% of sales was from engine parts followed by transmission and steering components.

Global Automotive Component Market Analysis, By Vehicle Type

Four wheelers will account for highest share by vehicle type. New business model is set to disrupt the industry as electric vehicles is gaining higher traction. It is expected that over 45% of vehicles in China will electric cars by 2028 end. This in turn will create favorable ecosystem for large number of vendors and suppliers.

Global Automotive Component Market Analysis, By Distribution Channels

By distribution channels, the global Automotive Component market value is segmented into OEM and aftermarket. OEM will continue to dominate the sales throughout the forecast period.

Global Automotive Component Market Size and Forecast: Regional Analysis

Globally, Asia Pacific will account for highest revenue share owing to large number of vehicles on road. In Asia Pacific, China will account for over 49% of regional share in 2018. The region reportedly registered over 23 million vehicle sales in 2017. This is expected to further shoot with emergence of advanced automated and electric vehicles.

There are over 170 million cars on road in China. This is expected to further shoot to 250 million by 2023.  Most of these sales is located in Guangdong and Beijing province of China. Eastern China is the major cluster of auto component manufacturers. These companies are expanding their production capacity in order to meet the global need. Domestic players have higher foothold in the region. Top three players are domestic followed by Bosch – a foreign component manufacturer.

India is another major destination for manufacturers. The auto component market in India is growing at 11% CAGR which is 3.5X faster than the global growth rate. India is expected to takeover China by 2028 with increased vehicle sales. Government favorable policies is also creating favorable ecosystem in the country. Government of India has allowed 100% foreign equity investment. As such many foreign players entered in the country to capitalize the market. Much of the automotive cluster belt is located in Western parts of the country. The competition is expected to rise owing to technological advancement and higher emphasis on electrical vehicles.

Global Automotive Component Market Size and Forecast: Competition Landscape

The industry is highly fragmented. Some key players are Weichai Group, Wanxiang Group, Bosch, Continental, cummins, Valeo, Magna, Delphi, Johnson Controls, Tri-Ring Group, Denso, Bridgestione, ZF Friedrichshafen, and Faurecia.