Toronto, Ontario -- The global market for remanufactured automotive parts is expected to more than double in value over the next decade as automakers and repairers become more reliant their use.
According to a new study from Research & Markets, the sector was worth about US$69.8 billion in 2024 and is projected to reach US$141 billion by 2034, expanding at an annual rate of 7.4 percent per annum.
The report attributes much of this growth to rising interest in remanufactured parts from automakers and repairers seeking to cut costs and meet sustainability targets.
Unfortunately for the North American collision sector, the lion's share of this growth is expected to be found outside North America. Last year, the sector generated about US$24.43 billion on the continent -- or about 35 percent of total profits. The market forecast to hit about US$33 billion by the end of the period, or about 23 percent of total profits.
Electrical and electronic components dominated the category in 2024, representing about 30 percent of global demand, while passenger vehicles made up more than half at 54.6 percent. The report attributes the trend to rising vehicle complexity, automation and advances in materials and diagnostic technology that make remanufacturing more efficient and reliable.
The researchers said stronger environmental regulations and circular-economy policies are helping normalize the use of remanufactured parts across both original-equipment and aftermarket channels.
While the report paints a rosy picture of the sector, it acknowledges that auto recyclers are likely to face headwinds in the coming years. Supply-chain fragmentation, inconsistent quality controls and lingering consumer skepticism continue to slow adoption in some markets. Analysts also warned that tighter electronic waste and data security rules could complicate remanufacturing for newer vehicles loaded with software and sensors.
