Auto Parts Manufacturing was hit hard during the COVID-19 pandemic, but is expected to rebound over the forecast period. Manufacturers will implement new operating models and rediscover key market segments.
As consumer demands and technological developments reshape the automotive industry, these five trends will shape how auto parts are produced, sold and repaired long into the future.
Passenger Cars
Passenger car parts make up the bulk of aftermarket sales for auto components. This trend may be partly driven by increased reliance on cars for daily commuter duties, leading to wear and tear requiring replacement and repair more frequently than in years past. Online shopping platforms and new technologies that extend automobile components also help spur this growth more rapidly than before.
Supply chain issues such as labor shortages and inflation are exerting immense strain on industries, leading to delayed production, disrupted distribution and increased freight costs. Companies may opt for specialization as a strategy for bettering their reputation and market penetration – with less than 40% revenue generated by four firms creating low market concentration. According to IBISWorld data, market concentration is highest among smaller firms.
Electric Vehicles
Electric vehicles (EVs) are becoming more prevalent, and manufacturers must adapt as the demand for these vehicles rises. Advanced technology like 3D printing and lightweight materials will need to be utilized so production runs as efficiently and cost-effectively as possible; LIDAR sensors, cameras, and other advanced parts will be necessary to increase fuel efficiency and autonomous vehicle features.
An electric vehicle (EV) conversion will help to decrease greenhouse gas emissions significantly. These vehicles emit far fewer toxins than their combustion counterparts and they’re far quieter as well. Chronic noise pollution has been linked with stress, hearing damage and sleep disruption in urban and highway settings; thus converting to an EV will provide more peaceful road environments for all involved.
Autonomous Vehicles
Fully self-driving vehicles are an emerging trend in the automotive industry. These cars can operate without driver input and can detect their surroundings using remote sensing technologies like GPS, cameras and radar sensors to form 3-D maps of their surroundings. Their powerful computer systems then monitor, adjust and control steering speed, acceleration rate and braking according to this information received from sensors.
Autonomous cars offer significant fuel-efficiency and safety advantages over traditional vehicles; however, they also present unique challenges. Autonomous driving software may be compromised; furthermore, automated vehicles could crash if their sensors become confused by objects like tree branches, road debris or other drivers; leading to calls for lawmakers to address the safety and liability concerns related to autonomous cars.
3D Printing
SmartTech Publishing reports that many major automotive manufacturers rely on 3D printing technology in their workflows, using it to reduce shipping costs, become independent from external suppliers and streamline production.
Ford utilizes stainless steel 3D printed locks that are custom designed to fit each vehicle, and prevent the removal of lug nuts with standard tools; access is granted through special keys only.
GM has made use of Markforged printers to fabricate replacement parts for older vehicles. This has saved both time and money while helping maintain an inventory of spares for them to sell as replacements – plus helping produce rare or low-volume parts no longer produced using traditional manufacturing techniques.
Sustainability
Environmental consciousness has driven auto manufacturers to produce environmentally sustainable vehicle parts. Meanwhile, electric vehicle sales have led to demand for specific EV components; furthermore, aftermarket parts demand is steadily growing with longer car lifespans.
Leading market players are turning to 3D printing technology in order to produce cost-effective and customisable automobile parts, meeting customer demand while remaining cost competitive.
Before the internet came along, distribution of aftermarket parts involved two-step processes – from manufacturer to warehouse distributors (WD), then onto retailers/jobbers. But thanks to new channels of distribution like eCommerce websites like eBay or Amazon Marketplaces and auction platforms like Ebay Motors/PonyParts/etc; consumers could buy directly from manufacturers via multiple avenues.
