Auto parts industry trends 2024

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car parts under the hood

The auto parts industry includes companies and manufacturers that supply vehicle makers, as well as those that supply parts used for repair, replacement or aftermarket parts. Only one of the largest nine auto parts manufacturing companies in the world is headquartered in the U.S.: Lear Corporation.1 Nevertheless, the industry employs nearly 600,000 Americans.


Key insights

NGlobally, in 2023, the auto parts manufacturing market had a value of just over $700 billion. By 2032, this value is forecast to grow to more than $1.19 trillion.

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The U.S. auto parts industry employed 587,500 workers in January 2024.

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As of April 2024, Michigan has more auto parts industry employees than any other state. Coupled with Ohio, Indiana, Kentucky and Alabama, these states have more employees in this industry than all other states combined.

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Between 2020 and 2022, the producer price index for motor vehicle parts manufacturers increased by 8.7%, the largest such jump in the past 20 years.

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Auto parts industry statistics

Globally, in 2023, the value of the auto parts manufacturing market was over $700 billion. Industry forecasters expect the market to see a compound annual growth rate (CAGR) of 6.1% between 2024 and 2032. Growth is being driven by increased demand for cars, the growing number of older cars on the road and the expansion of the hybrid vehicle market.

Since 2000, the average age of light vehicles (cars and noncommercial trucks), has steadily been increasing.

Globally, the same trend is true, with the European Automobile Manufacturers’ Association reporting that the average age of a passenger car in the European Union is now 12 years old. The result of increasing numbers of older cars on the road is that the aftermarket parts market steadily continues to grow. Between 2024 and 2032, industry groups forecast a CAGR of 3.5% for this segment of the auto parts industry.

Auto parts industry market size

In the U.S., employment in the auto parts manufacturing industry has slightly grown over the past 10 years.

Employment in the industry is heavily concentrated in a select few states, led by Michigan and Ohio. In all, five states alone account for more than 50% of total auto parts manufacturing jobs in the U.S.

Auto parts manufacturing market share

The top auto parts manufacturing companies are spread across the globe, headquartered everywhere from South Korea to Germany to the U.S.

FAQ

What is the largest auto parts manufacturer?

The German company Robert Bosch GmbH, commonly known as Bosch, by revenue is the largest auto parts supplier in the world.

Is the auto parts industry growing?

The global auto parts manufacturing industry is expected to grow at a CAGR of 6.1% between 2024 and 2032.

Are auto parts getting more expensive?

Yes, the PPI for auto parts suppliers and auto parts retailers sharply grew following the pandemic, and since then, both indices have remained at elevated levels.


References

  1. “Top 9 Companies Dominating the Global Auto Parts Manufacturing Market Landscape.” Expert Market Research. Evaluated June 1, 2024.Link Here
  2. “Recent Price Trends in the Motor Vehicle Parts Industry.” U.S. Bureau of Labor Statistics. Evaluated June 1, 2024.Link Here
  3. “All employees, thousands, motor vehicle parts manufacturing, not seasonally adjusted.” U.S. Bureau of Labor Statistics. Evaluated June 2, 2024.Link Here
  4. “Automotive Industry: Employment, Earnings, and Hours.” U.S. Bureau of Labor Statistics. Evaluated June 2, 2024.Link Here
  5. “Producer Price Indexes.” U.S. Bureau of Labor Statistics. Evaluated June 2, 2024.Link Here
  6. “Producer Price Index by Industry: Motor Vehicle Parts Manufacturing (annual).” Federal Reserve Bank of St. Louis; U.S. Bureau of Labor Statistics. Evaluated June 2, 2024.Link Here
  7. “Average Age of Automobiles and Trucks in Operation in the United States.” United States Department of Transportation, Bureau of Transportation Statistics. Evaluated June 2, 2024.Link Here
  8. “Average age of the EU vehicle fleet, by country.” European Automobile Manufacturers’ Association. Evaluated June 2, 2024.Link Here
  9. “Automotive Aftermarket Industry Size, Share & Industry Analysis, By Replacement Part Type (Battery, Brake Pads, Filters, Gasket & Seals, Lighting Component, Body Part (Interior and Exterior, Wheels & Tires, and Others), By Vehicle Type (Passenger Cars and Commercial Vehicles), and Regional Forecast, 2024–2032.” Fortune Business Insights. June 2, 2024.Link Here
  10. Placek, M. “The leading global automotive suppliers in 2022, based on revenue.” Statista. Evaluated June 2, 2024.Link Here
  11. “Producer Price Index by Industry: Automotive Parts, Accessories and Tire Retailers.” Federal Reserve Bank of St. Louis. Evaluated June 2, 2024.Link Here

Figures

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