The Auto Parts Industry

The Auto Parts Industry

The auto parts industry supplies components, systems, and entire vehicles for a wide variety of automobile and truck manufacturers.

The industry has a global supply chain, with suppliers located on every continent but Antarctica. Exports and imports of automotive and truck parts have been growing at a modest rate over the past several years.

The Parts Industry

The Parts Industry manufactures and distributes a wide variety of vehicle parts, from small air-conditioning systems to complex powertrains. They also sell a range of accessories designed to add comfort, convenience, performance, safety or custom-design features to a car.

The auto parts industry is characterized by intense competition between OEMs and aftermarket manufacturers. OEM parts are branded by the automaker and produced at a higher price than their aftermarket counterparts.

Aftermarket companies compete with each other by offering a range of prices and unique features. They also try to differentiate themselves from other auto parts by offering quality products that meet or exceed industry standards.

In North America the auto parts industry is experiencing a difficult era of consolidation. Many suppliers have collapsed or been forced into bankruptcy, and the Big Three are producing fewer vehicles than in the past.

The U.S. Auto Parts Industry

The US auto parts industry is an important contributor to global car and truck sales. It is one of the world’s largest markets for original equipment manufacturer (OEM) and replacement parts, including tires, batteries, filters, brakes, body parts and wheels, lighting & electronics components, exhaust components, and turbochargers.

However, the U.S. auto-parts industry has been under intense pressure from several factors, most notably the growing trade deficit in auto parts, which is primarily due to a rapid increase in imports from China.

The industry consists of about 5,000 companies, and its combined annual revenue exceeds $300 billion. It faces a wide range of challenges as the automotive industry adapts to technological changes such as electric drivetrains and autonomous technology. Suppliers also must develop new strategies to meet the needs of emerging industry entrants. The auto-parts industry provides a valuable source of jobs and economic activity in the United States. Bizvibe’s smart B2B marketplace solution helps buyers and suppliers in the auto-parts industry to find and connect with each other, shorten sourcing and purchasing cycles, and maximise profit growth.

The Global Auto Parts Industry

The Global Auto Parts Industry is a global industry comprised of the manufacturers and distributors of automotive components. The industry has a high level of competition and is constantly evolving as it strives to maintain and improve its position in the global market.

The global automotive parts industry comprises of a wide range of components and systems that are essential to the operation of a vehicle. These include engine, transmissions and power trains, electrical, lighting, air conditioning, and other systems and parts.

Growth in the automotive parts industry is fueled by factors such as rapid urbanization, increasing disposable income, technological advancements and government initiatives that stimulate the demand for new vehicles and their parts. Additionally, rising competition among suppliers has prompted manufacturers to adopt strategies such as M&A and partnerships.

The global market for automotive parts is projected to reach a size of US$2.4 Trillion by 2030, growing at a CAGR of 2.8% during the analysis period 2022-2030. The Driveline & Powertrain segment, one of the key segments analyzed in this report, is estimated to record a CAGR of 3.3% during the analysis period and reach US$736.2 Billion.

The U.S. Auto Parts Manufacturing Industry

As the auto industry continues to adapt to a wide range of new technological challenges, including the increasing demand for electric drivetrains and mobility options outside traditional car ownership, suppliers must evolve their business models to meet these new demands.

Parts manufacturing is an important component of this sector. It includes motor vehicle stampings (fenders, tops, body parts and trim), electrical and electronic equipment, engine components, transmission and power train, braking systems, steering and suspension, seating and interior trim, and other automotive-related components.

The majority of workers in this industry are employed as assemblers and fabricators. These workers use hand tools and machine tools to put together a motor vehicle.

Trade flows in this industry are dominated by imports of unfairly traded auto parts from China, which have benefitted from subsidies in the United States. These imports displace domestic production that would otherwise support U.S. jobs and are contributing to the rising trade deficit in this industry.

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