Techno World Automotive-Parts-Remanufacturing-Market | Page 2

Reduced impact on environment, owing to waste generated and industry emissions through reuse of the vehicle parts will leverage the industry demand In March 2018, the European Commission finalized its Circular Economy Package (COP) proposal that was originally proposed in 2015, for the introduction of set of directives and laws designed for the resource-efficient future of the European economies. The proposal details automotive parts remanufacturing market as an integral part for the reduction of emissions and wastes generated through end of life cycle of an automotive. Furthermore, with an estimated global vehicle parc over 1.2 billion, an expected increase of demand at around 3% year-on-year over the forecast period will present considerable requirement of raw materials for the manufacturing processes. Inadvertently, lack of raw material resources and the growing costs of mining metals, high carbon footprint on the environment due to high energy consumption, and water requirement for the new equipment manufacturing will increase the demand for remanufactured automotive parts over the coming years, thereby fueling growth of global automotive parts remanufacturing market. Trends expected to provide high traction to the industry growth include extended life of components, advent of predictive maintenance, and IoT connectivity that increasingly complement the repeated processing of vehicle components and engines. Growing concerns for environment responsibility, potential opportunities in component costs reduction, reduced resource security challenges, reduced lead time, secure spare parts supply, and increasing consumer confidence are some of the major factors that enhance the profitability of the participants. These factors are expected to provide strong growth opportunities for the global automotive parts remanufacturing (reman) market. Browse More About the Market Study @ https://www.coherentmarketinsights.com/market-insight/automotive-parts-remanufacturing-market-1498 Lack of adequate recognition by consumers and unfavorable regulatory policies in the Asia Pacific economies are expected to hamper the overall industry growth High competition from the vendors supplying recycled and repaired automobile body parts, shrinking price differences between these portfolio and the original products, and extended warranty of components are few factors restraining growth of the market. Moreover, lack of consumer recognition of the differences between used and reman products, as the connotation of the terminology is misconstrued, is another factor hindering growth of automotive parts remanufacturing market. Availability of the product at 60% of the original equipment also makes it difficult for vendors to overcome the consumer misconceptions regarding the product quality, specifically in emerging economies. In conjunction with these parameters, many Asian economies including India, have banned the import of cores, which forms the basic requirement for a remanufacturer. These parameters are expected to cause significant roadblock to the industry growth. Europe accounted for the second largest share of global automotive parts remanufacturing market and is expected to hold its position over the forecast period. Industry participants have