Auto Parts: OEM

The Auto Parts: OEM industry focuses on producing components and systems supplied to vehicle manufacturers for new automobile assembly. OEM parts are designed to the exact specifications of the original vehicle manufacturer, ensuring reliability and performance. The industry includes a wide range of components, such as body, powertrain, chassis, electrical, and interior parts.

The performance of the Auto Parts: OEM industry is driven by the increasing global demand for new vehicles and the rising number of vehicle owners worldwide. Growing consumer desire for advanced features and technological advancements in manufacturing processes are also key drivers. The global shift towards electric vehicles (EVs) and stringent regulations concerning harmful emissions further impact the industry.

The Auto Parts: OEM industry is characterized by large automotive manufacturers and their Tier-1 suppliers. Major global players include Robert Bosch GmbH, Denso Corporation, Continental AG, Magna International Inc., Aisin Seiki Co. Ltd., ZF Friedrichshafen AG, Valeo SA, Lear Corporation, and Aptiv PLC. These companies compete on innovation, quality, and scale, focusing on B2B sales to car manufacturers.

The global automotive OEM market was valued at approximately USD 39.39 billion in 2024 and is projected to reach around USD 61.16 billion by 2034, demonstrating a compound annual growth rate (CAGR) of roughly 4.50% between 2025 and 2034. Global automotive production saw a decline of 1.1% in 2024 after a recovery of 9.6% in 2023. Profitability within the automotive supplier industry has experienced a structural decline. The outlook for 2025 suggests that automotive production will likely stall at 89.5 million vehicles. Despite challenges, increasing vehicle production and demand for high-quality parts are expected to drive growth, with the shift to EVs and ADAS contributing to market expansion.

The Auto Parts: OEM industry faces risks including economic fluctuations impacting new vehicle demand, intense competition from aftermarket brands, and volatility in raw material and energy costs. Supply chain disruptions, labor shortages, and compliance with evolving regulatory standards also pose challenges. The transition to electric vehicles presents a risk for manufacturers heavily invested in traditional ICE components.