The global automotive parts market has been growing steadily in recent years, with North America and Europe maintaining their dominant positions. Meanwhile, the Asia-Pacific region, particularly China, has been rapidly emerging as a crucial part of the industry.

North American Market: Stable and Mature, Shifting Toward Electrification and Localization

The United States, as a key global automotive market, has a well-developed and large-scale auto parts industry. Between 2019 and 2024, the U.S. auto parts market grew from approximately $380 billion to $450 billion, with a compound annual growth rate (CAGR) of around 3.5%. In recent years, electrification and supply chain localization have become significant trends in the U.S. auto parts industry.

In terms of electrification, the U.S. government has actively promoted the development of the new energy vehicle (NEV) industry, creating new market opportunities for domestic auto parts companies. By 2024, NEV sales accounted for 15% of the U.S. automotive market, driving increased demand for key components such as batteries and electric motors. For example, General Motors announced plans to invest $27 billion in electric vehicles (EVs) by 2025, while its battery supplier, LG Chem, has been expanding its operations in the U.S., further increasing the production capacity of battery-related parts.

At the same time, the trend of supply chain localization has become increasingly apparent. The Inflation Reduction Act and the Bipartisan Infrastructure Law have incentivized automakers to accelerate their localization efforts. For instance, Ford has invested in new factories in Michigan to produce EV batteries and components, reducing reliance on imported parts and further supporting the growth of domestic auto parts manufacturers.

In the segment market, sewn automotive products such as car floor mats have continued to grow steadily. In 2024, the U.S. car floor mat market reached approximately $2 billion. Although average product prices have declined since 2022, the market still holds growth potential, especially for durable, easy-to-clean mats designed for popular models like the Ford F-150 and Chevrolet Silverado. Additionally, the growing sales of Tesla Model Y have driven demand for compatible floor mats.

Electronic automotive accessories have also shown strong performance, particularly in the automotive emergency power supply sector, where technological advancements and evolving consumer needs have fueled steady growth. In 2024, the U.S. automotive emergency power supply market reached $1.5 billion. Although the average transaction price declined between 2022 and 2023, it stabilized in 2024. These products are particularly popular in colder climates and low-population-density areas, making them an essential accessory for many American car owners.

European Market: Steady Growth Driven by NEVs and Environmental Regulations

The European automotive parts market is also substantial, experiencing steady growth from approximately $350 billion in 2019 to $380 billion in 2024, with a CAGR of 1.6%. The development of NEVs and increasingly stringent environmental regulations have been the two primary drivers of change in the European market.

By 2024, NEV sales accounted for 25% of the European automotive market, with penetration rates even higher in countries like Germany and Norway. This trend has led to a surge in demand for NEV-related components, particularly batteries, charging stations, and electric motors. For example, Volkswagen plans to launch 70 NEV models by 2025, while its battery supplier, CATL, has set up a factory in Germany to meet the growing demand for EV components.

Additionally, tightening environmental regulations are significantly shaping the European auto parts industry, with stricter emissions standards and material sustainability requirements driving demand for eco-friendly components such as automotive filters and emission control devices. For example, Mann+Hummel continues to develop high-efficiency filtration technologies to comply with these increasingly stringent emission standards.

In the segment market, demand for small car and NEV parts has been growing noticeably. Due to Europe's narrow city roads, small cars hold a significant market share, ensuring stable demand for their parts. Meanwhile, the NEV parts market is expanding rapidly, with core components such as batteries and electric motors for models like the Renault Zoe and Volkswagen e-up! experiencing significant growth.

Smart and connected vehicle components have also become a key market focus. By 2024, the European automotive sensor market had reached $5 billion, with a CAGR of 8%. Luxury brands such as BMW and Mercedes-Benz are integrating advanced sensors into their NEV models to enable features like autonomous driving assistance and vehicle health monitoring, further driving market expansion.

Chinese Market: Rapid Growth and a Key Player in the Global Supply Chain

With the global automotive market expanding and vehicle manufacturing shifting to China, the Chinese automotive parts industry has experienced rapid growth. The market size increased from CNY 3.46 trillion in 2016 to CNY 5.7 trillion in 2023, with a CAGR of 7.4%.

China’s auto parts industry has developed a comprehensive supply chain system, significantly improving technological and R&D capabilities. Numerous companies with independent design and development capabilities have emerged, along with a variety of competitive small and medium-sized enterprises in specialized sectors. Today, China has established the world’s largest and most complete auto parts industry system, deeply integrating into the global supply chain.

China's auto parts exports have continued to rise. In 2022, auto parts exports reached $81.09 billion, a 7.3% year-on-year increase, further growing to $87.67 billion in 2023, up 9%. In contrast, imports have been declining, dropping from $31.31 billion in 2022 (a 16.9% decrease) to $29.84 billion in 2023. This trend indicates China's increasing competitiveness in the global auto parts market.

North America and Europe remain the largest automotive parts markets globally. However, industry dynamics are shifting due to trends such as NEV adoption, environmental regulations, and supply chain localization.

- The U.S. market is expanding under the influence of NEV growth and localization, with steady development in segments like sewn automotive products and electronic accessories.

- The European market is driven by the dual forces of NEV adoption and tightening environmental regulations, with growth centered around NEV components and smart vehicle accessories.

- China, leveraging its comprehensive supply chain and advancing technological capabilities, is emerging as a major global production and export hub for auto parts.

Looking ahead, as the automotive industry undergoes continued transformation, the global auto parts sector will further evolve toward intelligent, electric, and environmentally friendly solutions. The coexistence of globalization and regional localization trends will present both opportunities and challenges for industry players worldwide.