Automotive Performance Parts Market

Key Points Covered in Automotive Performance Parts Market Analysis

• Market estimates and forecast 2021-2031
• Key drivers and restraints impacting market growth
• Segment-wise, country-wise, and region-wise analysis
• Competition mapping and benchmarking
• Brand share and market share analysis
• Key product Innovations and regulatory climate
• COVID-19 impact on automotive performance parts market and how to navigate
• Recommendation on key winning strategies

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2016-2020 Automotive Performance Parts Market Outlook Compared to 2021-2031 Forecast

Sales of automotive performance parts declined by 1.1% from 2016 to 2020, due to the impact caused by the COVID-19 pandemic in 2020. Lockdown restrictions and disrupted supply chains halted the production and sales of vehicles along with automotive parts and components.

As per FMI, the global automotive performance parts market is projected to grow at a CAGR of 4.7%.

Technological advancements in the automotive sector have improved the material grades used in automotive manufacturing. Light vehicles, such as light vans, pickup trucks have gotten older and less reliable over time. As a result, instead of reselling or scrapping their old cars, customers are opting to keep them as used vehicles.

For instance, air filters, brake pads, spark plugs and suspension bushings, must be replaced on a regularly. Longer-lasting vehicles provide a great opportunity for aftermarket performance component manufacturers as old vehicles require more maintenance and repairs, resulting in increasing sales of aftermarket performance parts.

Fleet owners have their vehicles serviced on a regular basis to ensure maximum fuel efficiency. Increasing number of fleet aggregators is identified as one of the chief factors boosting demand for automotive performance parts.

Large fleet owners seek characteristics such as greater handling, increased vehicle power, and higher fuel economy, which in turn, will fuel sales of automotive performance parts in the upcoming years.

How is Regulatory Framework Impacting Sales of Automotive Performance Parts across Various Nations?

Physical appearance of automobiles, how their components are designed, the safety features that are included, and the overall performance of vehicles are influenced by government regulation in the automotive industry.

As a result, these restrictions have a considerable impact on the automotive performance parts market, boosting overall manufacturing costs while also influencing how parts are sold and advertised.

What Is the Impact of COVID-19 Crisis on Automotive Performance Parts Market?

The COVID-19 outbreak has left a devastating impact on the global automotive sector. Disruptions in supply chains have affected import of automotive parts from China, large-scale manufacturing units suspended production across Europe, and assembly plants in the United States are collapsing. These disruptions caused a worldwide demand slump.

On an operational level, the pandemic has hastened advances in the automotive performance parts industry that had been underway for several years. Many of these developments are beneficial for the market, such as improvements in eCommerce and OEMs' readiness to work with partners—both automotive and non-automotive—to offer assistance and consultation.

On the flipside, some developments might have negative consequences, such as a tendency to focus on core pursuits rather than branching out. While OEMs may be focusing on the core keep the lights on, failing to look at other possibilities might have a negative impact on growth in the long run.

Country-wise Insights

What will be the Demand Outlook for Automotive Performance Parts in China?

As per FMI’s analysis, China is estimated to account for the leading share in the East Asia automotive performance parts market. China is one of the leading producers of automotive performance parts. The Chinese market is projected to offer an absolute dollar opportunity of more than US$ 38 Billion between 2021 and 2031. Growing demand for passenger car will continue boosting sales of automotive performance parts in China.

How will the Automotive Performance Market Expand Across the U.S.?

The U.S. is projected to account for has a share of nearly 87% of the North America automotive performance parts market in 2021. Rapid adoption of technological advancements in automotive performance parts manufacturing, increasing sales of commercial and passenger vehicles and digitization of automotive component delivery services will bode well for the market.

Why is Spain Considered a Leading Automotive Performance Parts Market?

With nearly 11% of the Europe market, growth prospects in Spain's automotive performance parts market appear promising. Spain is one of Europe’s most promising and fastest-growing automotive markets.

Availability of labor, research and development initiatives, and government assistance regarding advancements in automotive performance parts will augment market growth in the upcoming years.

Will Japan Emerge as an Attractive Market for Automotive Performance Parts?

Japan is anticipated to account for around 21% of the market share in East Asia in 2021. Automotive industry accounts for 89% of Japan's manufacturing sector, and automotive parts suppliers have become a significant contributor to the country's economy, branching out into industries like chemicals and rubber.

To meet Japan's limited space, ageing culture, and rise in single-person households, the automotive industry developed 'keijidsha,' or light automobiles, often known as Kei cars. These vehicles are smaller in size , which makes them cost-effective and easier to navigate in Japanese cities. Owing to these factors, the automotive performance parts is expected to witness upticks in demand in the forthcoming years

Category-wise Insights

Why are Sales of Shock Absorbers Increasing?

Sales of shock absorbers are projected to increase at a 4.7% CAGR in 2021. Shock absorbers are vital components of vehicle's suspension system because they minimize the impact of uneven roads and surfaces on the vehicle, thereby improving driving comfort.

Demand for automotive shock absorbers is predicted to rise globally due to expanding automobile demand and production, and increasing awareness regarding vehicle safety.

Hydraulic shock absorbers are more common in vehicles than gas-filled shock absorbers because they are more cost-effective. Passenger cars have the largest market share for shock absorbers.

Demand for Torque Converters to Continue Rising?

Torque converter sales are estimated to increase at a 5.8% CAGR during the forecast period. Rising demand for automatic transmission vehicles in developed regions is expected to foster sales of torque converters during the forecast period.

Increasing demand for torque converters is encouraging technological advancements and product developments to improve efficacy and quality. Additionally, by reducing the weight and size of the torque converter, improved operational efficiency can be achieved.

FMI projects the torque converters segment to create a total incremental $ opportunity of US$ 18,145.3 Mn between 2021 and 2031.

Sales of Air Filters to Witness an Uptick?

Stringent regulations regarding greenhouse emissions and fuel economy will continue propelling sales of air filters in the upcoming years. As per FMI, the sub-segment is projected to grow at a 4.2% CAGR through 2031.

Developments in air filters technology is facilitating optimal replacement cycles of air filters in passenger vehciles, resulting in increasing sales of the same. Additionally, rising sales of passenger vehicles across the globe are anticipated to bolster demand for highly efficient air filters throughput the forecast period.

Why is There High Demand for Spark Plugs?

Spark plugs transport electric current from the ignition system to the engine's combustion chamber. Growing demand for fuel-efficient vehicles and streingent decarbonization regulations will further boost sales of spark plugs. FMI’s analysis estimates spark plugs sales to grow at a 4.5% CAGR during the assessment period.

Moreover, economic reforms in developing nations, expansion of the automotive sector, and increasing private equity investments in spark plug manufacturing companies are expected to propel spark plug sales.

Competitive Landscape

Amid soaring competition, top 5 players in automotive performance parts market comprise ZF Friedrichshafen, Hitachi, Denso Corporation, Valeo, NGK Spark Plug Co., Ltd., holding 53% of the total market share.

Manufacturers of automobile performance parts have been influenced to strategize on internet retail channels, owing to growth of the ecommerce sector. For instance, Donaldson Company Inc. has created an e-commerce platform to sell air and gasoline filters.

Another differentiation tactic that is gaining traction among major market competitors is customization. Customized vehicle performance parts are being developed by manufacturers to provide operational gains while also complying with existing regulatory frameworks.

Leading companies operating in the market are:

• Tenneco Inc.
• Robert Bosch GmbH
• Continental AG
• BorgWarner Inc.
• Mahle GmbH
• Donaldson Company Inc.
• Holley Performance Products
• Mitsubishi Heavy Industries, Ltd.
• Honeywell International Inc.
• EXEDY Corporation
• Denso Corporation
• AISIN SEIKI Co., Ltd.
• Hitachi Astemo, Ltd.
• The NGK Spark Plug Co., Ltd.
• Cummins Inc.
• ZF Friedrichshafen AG
• Valeo
• TREMEC
• Hyundai Mobis

*The list is not exhaustive, and only for representational purposes. Full competitive intelligence with SWOT analysis available in the report.

Scope of Report

Key Questions Answered in the Report

• What is the current automotive performance parts market value?

  The automotive performance parts market is anticipated to reach US$ 324.5 Bn in 2021.

• At what rate did the automotive performance parts grow between 2016 and 2020?

  Sales of automotive performance parts witnessed a shape decline by -1.1% between 2016 and 2020.

• What are the key trends driving automotive performance parts sales?

  Growing demand from budget car owners, coupled with increasing sales through ecommerce are boosting sales of automotive performance parts.

• Who are the leading players in automotive performance parts market?

  ZF Friedrichshafen, Hitachi, Denso Corporation, Valeo, and NGK Spark Plug Co., Ltd. are the leading players operating the automotive performance parts market.

• What will be the demand outlook for North American automotive performance parts market?

  The North American automotive performance parts market is anticipated to expand at a 3.1% CAGR.

• What will be the automotive performance parts market share in Europe?

  The European automotive performance parts market is poised to grow at a 4.7% CAGR during the forecast period.

• What is the current market share of Japan and South Korea in the global automotive performance parts market?

  Japan and South Korea will collectively account for 7.7% of the total automotive performance parts market share.

Automotive Performance Parts by Category

By Product Type:

• Exhaust Systems
  • Headers
  • Mufflers
  • Oxygen Sensors
  • Exhaust Pipes
  • Catalytic Converters
• Suspension Parts
  • Suspension Bushing
  • Sway Bars
  • Shock Absorbers
• Brakes
  • Brake Pads
  • Brake Rotors
  • Brake Caliper
  • Brake Lines
  • Brake Master Cylinders
  • Vacuum Pumps
• Fuel Air & Intake Systems
  • Air Filters
  • MAF Sensors
  • Intake Manifold
  • Throttle Bodies
  • Fuel Filters
  • Spark Plugs
  • Fuel Injectors
  • Fuel Pumps
• Transmission Parts
  • Clutch Pressure Plates
  • Flywheels
  • Torque Converters
  • Clutch Linkage
• Power Adders
  • Turbochargers
  • Intercoolers
  • Nitrous Oxide Systems
  • Superchargers

By Vehicle Type:

• Passenger Cars
• Light Commercial Vehicles
• Heavy Commercial Vehicles

By Sales Channel:

• First Fit
• Aftermarket

By Region:

• North America
• Latin America
• Europe
• East Asia
• South Asia & Pacific
• Middle East & Africa