Global Demand for Auto Parts is Huge

Looking at the global auto parts market is expected to grow at a compound annual growth rate of 5.70% to reach $877.12 billion by 2030. North America and Europe, as traditional automotive powerhouses, continue to dominate the market. Against the backdrop of a massive number of cars owned in Europe and America, the rigid demand for auto parts is particularly prominent. The North American market, with a scale of $319.7 billion, has become the world’s largest market for auto parts.

In recent years, emerging markets such as Southeast Asia have also begun to show great development opportunities. According to a report released by the international consulting firm KPMG, the Southeast Asian new energy vehicle market is expected to grow from 38,000 vehicles in 2020 to 1 million by 2030. As of 2022, the annual sales of new energy passenger vehicles in the six major economies of Southeast Asia reached about 51,000 units, representing a year-on-year surge of over 200%. This has greatly boosted the synchronized growth in demand for auto parts.

Popular Auto Parts

External Accessories: Headlights, bumpers, tires, door handles, etc.

Customized and personalized auto parts have become the new favorites in the market. For instance, consumers in Europe and the United States like to spend on car modifications, creating unique and trendy car appearances by replacing headlights, tires, door handles, and other accessories, showcasing personal taste and preference.

Internal Parts: Generators, fuel pumps, brake pads, etc.

In some Southeast Asian countries, the second-hand car market is thriving, providing a broad market for the maintenance and servicing of auto parts. In these overseas markets, filters, engines, shock absorber springs, and other regularly replaced and inspected auto parts are very popular.

Car Interiors: Car power supplies, car refrigerators, etc.

With advancements in science and technology, consumer demand for car decoration and in-car features has increased. For example, in Europe and the United States, due to climate reasons, there is high demand for car power supplies, heated start-up power supplies, and other emergency equipment. Meanwhile, consumers in Japan and South Korea prefer automotive technology and internal features, showing a greater inclination towards car refrigerators, car speakers, and more.

Sustainable and Eco-Friendly Accessories: Sunshades, seat cushions, floor mats, etc.

The increasing environmental awareness among foreign consumers has led them to prefer auto parts made from recyclable and eco-friendly materials. Products such as car sunshades and heat shields, which are popular in summer, reflect this trend. At the same time, durable and easy-to-maintain seat cushions, floor mats, and other accessories are also favored by foreign consumers.

By expanding into overseas markets, domestic auto parts companies can access broader market opportunities and potential customers. Entering new regions or countries can reduce dependency on a single market, diversify business risks, and achieve diversified business development.

From October 14 to 18, 2024, the 3rd LIC New Energy Vehicles Export Expo will be held at the LINGAN Innovation Expo Center in Pazhou, Guangzhou. The auto parts sector will be a major highlight, bringing together numerous high-quality auto parts companies to showcase their latest technological achievements in intelligent connectivity, new materials, automotive safety, and other fields.