Auto parts industry gears up for trillion-dollar growth by 2030

The global auto parts and accessories sector is on track for significant expansion, with market value expected to climb from US$2 trillion (R37 trillion) in 2024 to approximately US$2.4 trillion (R44.4 trillion) by 2030, according to a new study by Research and Markets, a Dublin-based analytics firm.

This projected growth equates to a steady 2.8% annual increase, with the drivelineand powertrain category showing particularly strong momentum. While other areas such as interior and exterior parts are also seeing gains, they are growing at a more moderate pace.

Canada’s auto parts market is predicted to expand at around 2.4% per year, reaching about US$40 billion (R740 billion) by the end of the forecast period.

Meanwhile, the United States remains the world’s biggest auto parts market, already valued at over US$550 billion (R10.2 trillion) in 2024. China, however, is rapidly catching up, with its market forecast to grow at 4.8% annually, reaching US$472.5 billion (R8.75 trillion) by 2030.

A number of trends are fueling this global growth. As vehicles stay in service longer, owners are spending more on repairs and part replacements. There's also a surge in consumer interest in personalizing and upgrading vehicles, which is boosting demand for accessories.

Innovation is playing a major role as well. Emerging technologies like 3D printing,smart components, and augmented reality tools are streamlining production andimproving installation processes.

The global shift toward electric vehicles (EVs) is generating demand for entirely new types of parts, while environmental concerns are pushing manufacturers to adopt recycled and sustainable materials.

Finally, the growing prevalence of online shopping is reshaping the way consumers purchase parts, making it easier to find and order from a wider selection of products, often at more competitive prices.