Auto Parts Remanufacturing

Business for Sale Industry Economics




Projected CAGR

2003 - 2019


2019 - 2025






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Operators in the auto parts remanufacturing industry purchase disassembled used components and reassemble them to reassemble or remanufacture automotive parts such as alternators, engines, steering parts, and electrical units.

The sector is remarkable because of its cyclical and countercyclical characteristics.

During economic downturns, for example, consumers choose to purchase remanufactured products over cheaper, more expensive equivalents.

As a result, commodities in this sector are classified as inferior, and consumption tends to fluctuate in a countercyclical fashion to the economic cycle.

As automotive product performance and reliability improve, remanufactured automotive parts are becoming more appealing substitutes for new vehicle parts.


In the vehicle parts remanufacturing industry, old engines, alternators, and other components for cars and trucks are remanufactured.

Remanufacturing involves disassembling an auto part down to its constituent parts, cleaning them, determining what can be salvaged, replacing worn pieces with new ones, and reassembling the part for resale.

Recycling, repair, and renovation sales, as well as revenue from engine remanufacturing, are not included in this company.


Demand for the equipment produced by the Auto Parts Remanufacturing industry is projected to decline over the next five years, to 2024.

Demand for remanufacturing services will likely drop as the economy improves, as the fortunes of remanufacturing firms still continue to change in the opposite direction of the traditional consumer cycle to certain degree.

While shoppers were reluctant to spend in the previous five years, continued economic growth is expected to ease these concerns, allowing consumers to purchase new cars or, at the very least, replace their existing vehicles with new components rather than remanufactured parts.

According to Research, over the five years to 2024, industry revenue is forecast to fall at an annualized rate of 0.5 percent to $6.7 billion.

Business for Sale Indsutry Economics Auto Parts Remanufacturing 1


This business includes companies that remanufacture car parts.

Remanufacturers obtain disassembled, used pieces and mix several products to reassemble or remanufacture an automobile vehicle.

Operators remanufacture alternators, generators, steering components, and electrical units.

Companies may be self-contained or part of a larger store, repair shop, or manufacturer of original equipment.

This industry does not require engine remanufacturing.

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