News: Global automotive remanufacturing market to reach $104.8 billion by 2015
GIA announces the release of a comprehensive global report on Automotive Remanufacturing. The world market for automotive remanufacturing is projected to reach $104.8 billion by 2015.
Wednesday, 10th February 2010
Growth is primarily forecast to be driven by stringent environmental regulations demanding eco-friendly automobile production, rising average life of vehicles, recession induced decline in new automobile purchases, and growing interest among industry players as well as end-users in tapping economic and environmental benefits that the technology has to offer. The automobile sector has a long-standing relationship with the remanufacturing industry, as vehicle parts and components are subject to significant wear and tear, thereby necessitating repairs or replacements during their operating life. The evolution of the remanufacturing industry, which was hitherto driven by the pressures exerted by environmental regulations legislated by environmental agencies and governments, today stands poised for upscale proliferation guided by the economic rationality of remanufacturing. Original equipment manufacturers (OEMs) are fast learning to adroitly maximize their profits by offering a judicious mix of both new and remanufactured versions of their product brands. Gradual dissipation of misconceptions surrounding captive remanufacturing activities is leading to increasing number of original equipment manufacturers commencing remanufacturing operations for their own products. Unfounded fears over remanufacturing eating into production volumes of newly manufactured products, thus negatively impacting economies of scale in existing capital-intensive manufacturing lines, are gradually beginning to ease. Additionally, given the strong brand equity, and reputation for quality in primary product brands, OEMs have an inherent competitive edge over independent remanufacturers in providing guaranteed level of quality and scalability for their own remanufactured products. Remanufacturing additionally gives OEMs an opportunity to tap into the perennial market for low-cost alternatives. This is especially important in the current scenario where recession-induced sensitivity to prices is helping inflate the market for cheaper substitutes, with the greatest beneficiary of this trend being remanufactured products. Automotive Remanufacturing: A Global Strategic Business Report The United States dominates the global automotive remanufacturing market as stated by the new market research report on automotive remanufacturing. The US market is especially driven by growing number of automotives in prime replacement/repair age. The growing popularity of expensive and sophisticated products such as rack & pinion steering gears and electric power steering, together with the rising demand for automatic transmissions and diesel engines, is expected to boost the automotive remanufacturing market to a great extent. Re-manufactured alternators and starters, which come with competitive warranties and low price points, are expected to become popular aftermarket products in future. The report titled "Automotive Remanufacturing: A Global Strategic Business Report" announced by Global Industry Analysts, Inc., provides a comprehensive review of market trends, conceptual overview, product overview, product launches, and recent industry activity. The study analyzes market data and analytics in terms of annual revenues (in US$ Billion) for markets including The United States, Europe, and Rest of World.