Germany Auto Component Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Auto Component Industry in Germany Market Trends & Growth Drivers

Electrification of Automobiles Is Key Trends for Market

• Nowadays, the automotive industry in Germany is shifting to electric vehicles (EVs).
• This shift involves the development of and power electronics, improvements to battery systems and thermal management components, and the expansion of charging infrastructure.
• In 2022, approximately 104,325 new EVs were registered in Germany.
• Due to this, traditional suppliers are quickly modifying their product lines by investing in research and development for EV-specific technologies.
• Additionally, the changing consumer preferences and stringent emission regulations lead to partnerships between automotive suppliers and tech companies.

Expanding Export Market Is Key Driver for Market Growth

• The German automotive suppliers are well represented in multiple global markets, from which they get a significant portion of their revenue through exports.
• This export destination may include Asian markets such as China, India, North America, and various European countries.
• Additionally, German components are renowned for their high quality, reliability, and technological advancements worldwide, driving their demand in the export market.
• This export opportunity enables German suppliers to broaden their customer base and decrease reliance on domestic automakers.

Supply Chain Distribution Is Major Challenge for Market

• Nowadays, many global events such as geopolitical tensions and wars have created problems in supply chains.
• For instance, the Russia-Ukraine conflict, increasing tensions between China and Taiwan, Germany's growing reliance on China, and the Middle East conflict.
• This creates shortages of metals, plastics, glass, rubbers, and semiconductors that have especially impacted the automotive industry.
• Due to this disruption, the market has experienced production delays and increased costs, highlighting the need for better risk management and backup plans in the industry.

Germany Auto Component Market Analysis

Type Insights

• The electronics category is expected to dominate the market by contributing 40% of the revenue in 2024 due to the proliferating trend of digitalization and the growing complexity of vehicles.
• This category includes components such as advanced driver assistance systems (ADAS), infotainment systems, control units, and sensors.
• Additionally, major players, such as Continental AG and Robert Bosch GmbH, have strong positions in this sector.
• The driveline & powertrain category is expected to witness a CAGR of 5.9% in 2024−2030 due to the rapid shift toward electrification, which continues to drive the usage of batteries, hybrid transmission systems, electric drivetrains, and power electronics.
• Traditional powertrain suppliers are quickly shifting their focus to hybrid and electric technology.

The types covered in the report include:

• Driveline & Powertrain (Fastest-Growing Category)
• Interiors & Exteriors
• Electronics (Largest Category)
• Bodies & Chassis
• Wheel & Tires
• Others

Vehicle Insights

• The passenger category will dominate the market by contributing 65% revenue in 2024, due to the presence of a wide range of automobiles, from compact cars to luxury sedans.
• Major German companies, such as Volkswagen, BMW, Audi, and Mercedes-Benz, are primarily focused on this category, which generates a high demand for automotive components.
• Additionally, it includes a wide range of drivetrain technologies, including both conventional and electric.
• The commercial category is expected to witness higher CAGR in 2024−2030 due to the growing trend of electric and autonomous technologies in urban delivery and public transport vehicles.
• It includes light commercial vehicles, trucks, and buses, which are vital to handling the increasing e-commerce and logistics demand.
• In 2023, more than 359,000 commercial vehicles were sold in Germany.

The following vehicles are included in the report:

• Passenger (Larger Category)
• Commercial (Faster-Growing Category)

Material Insights

• The metals category will dominate the market by contributing 30% revenue in 2024 because metals are extensively used in body structures, powertrains, and chassis components.
• This includes high-strength steel, advanced aluminum alloys, and other evolving alloys.
• The composites category is expected to witness highest CAGR in 2024−2030.
• Nowadays, there is a growing demand for lightweight materials, including carbon-fiber-reinforced polymers (CFRP) and glass fibers, for use in the body panels, structural components, and interior parts of automobiles.

The following materials are included in the report:

• Metals (Largest Category)
• Plastics
• Composites (Fastest-Growing Category)
• Rubber
• Others

End User Insights

• The OEMs category will dominate the market in 2024 because of the presence of major automakers, such as Volkswagen, BMW, Mercedes-Benz, and Audi.
• Tier II automotive suppliers generally operate under long-term contracts and close collaboration with OEMs.
• Additionally, they provide high-quality parts and often undertake the co-development of components with automakers.
• The aftermarket category is expected to witness a CAGR of 5.7% in 2024−2030 because it includes part replacement, provides accessories, and helps enhance performance.
• Moreover, this growth is driven by the rising average age of vehicles on German roads.
• In 2022, the average lifespan of a car in Germany is 10 years, while in Europe overall it ranges from 8 to 11 years.

The end users included in the report are:

• Original Equipment Manufacturers (OEMs)(Larger Category)
• Aftermarket (Faster-Growing Category)

Geographical Analysis

• The Bavaria region will hold the largest market share, of 35%, in 2024 because it is the hub of major automotive companies such as BMW and Audi.
• In addition, many important suppliers, such as Webasto and Schaeffler, are present in this region.
• It also has a strong focus on R&D, leading to several innovations in automotive technologies.
• In addition, this region is renowned for its strong infrastructure, highly qualified workforce, and rich engineering heritage, all of which contribute to its status as a major center for automotive innovation and manufacturing.
• The Baden–Württemberg region will become the fastest-growing market, with a CAGR of 6.1%, in 2024−2030 due to the presence of major companies, such as Daimler (Mercedes-Benz) and Porsche.
• This region also has the headquarters of major supplier companies such as Bosch and ZF Friedrichshafen.
• The presence of an extensive supply chain network and collaboration between industry and academic institutions will further accelerate its competitiveness and developments in the automotive industry.

The regions analyzed for this report include:

• Baden–Württemberg (Fastest-Growing Region)
• Bavaria (Bayern) (Largest Region)
• Berlin
• Brandenburg
• Bremen
• Hamburg
• Hesse (Hessen)
• Lower Saxony (Niedersachsen)
• Mecklenburg–Vorpommern
• North Rhine–Westphalia (Nordrhein–Westfalen)
• Rhineland–Palatinate (Rheinland–Pfalz)
• Saarland
• Saxony (Sachsen)
• Saxony–Anhalt (Sachsen-Anhalt)
• Schleswig–Holstein
• Thuringia (Thueringen)

Germany Auto Component Market Share

This market is consolidated in nature because of the presence of various key players, including Robert Bosch GmbH, Modine Manufacturing Company, Continental AG, HELLA GmbH & Co. KGaA, MAHLE GmbH, and Prevent Group. This is due to the market concentration, company mergers and acquisitions, the establishment of innovation hubs, and high barriers to entry into the market.

Germany Auto Component Market News

• In June 2024, HELLA GmbH & Co. KGaA announced structural measures for making the lighting production at the Lippstadt site competitive for the future.
• In May 2024, Continental AG deployed a cross-domain high-performance computer (HPC) in a car that hosts cockpit functions along with additional vehicle functions like driving safety.
• In January 2024, HELLA GmbH & Co. KGaA collaborated with TÜV Rheinland to develop a market-compliant traffic rule engine. This new software module makes it possible for self-driving vehicles to follow the law as it is aware of the necessary local traffic restrictions.
• In September 2023, Modine Manufacturing Company announced the sale of three automotive businesses in Germany principally manufacturing parts for internal combustion engine applications in Europe.