United States Auto Parts Manufacturing Market to Reach US$ 754.5 Billion by 2033

United States Auto Parts Manufacturing Market Overview

According to Renub Research Latest Report United States auto parts manufacturing market is poised for steady growth, with projections indicating an increase from US$ 647.15 billion in 2024 to US$ 754.5 billion by 2033, registering a CAGR of 1.72% from 2025 to 2033. The sector encompasses the production of components used in vehicles by both original equipment manufacturers (OEMs) and the aftermarket.

Manufactured parts include engines, transmissions, braking and suspension systems, electrical systems, interiors, and body components, combining traditional machining with modern technologies like robotics, 3D printing, and lightweight materials. This integration improves performance, safety, and fuel efficiency while meeting increasingly stringent regulatory standards.

The industry is essential for ensuring vehicle reliability and compliance with safety and emissions regulations. Beyond OEM supply chains, the U.S. auto parts market supports vehicle customization, repair, and maintenance, reinforcing its importance across the automotive ecosystem. The rising demand for electric and hybrid vehicles, coupled with advancements in manufacturing technology, ensures the sector’s resilience and continued expansion.

👉 Want to explore detailed market trends, segment insights, and forecasts? 🔗 Request Sample Report

Key Market Drivers

1. Rising Vehicle Production

Vehicle production is a primary driver of the U.S. auto parts manufacturing market. Following pandemic-related declines, U.S. car production has resumed growth. In July 2025, production reached approximately 10.58 million units, reflecting increased demand for engines, transmissions, and electronic components.

Higher production volumes create economies of scale, enabling suppliers to invest in advanced technologies, increased manufacturing capacity, and improved tooling. In addition, higher plant utilization supports consistent component orders, ensuring a steady pipeline for both OEM and aftermarket segments.

2. Growth of Electric and Hybrid Vehicles

The rising adoption of electric vehicles (EVs) and hybrids (HEV/PHEV) is transforming the auto parts landscape. In 2024, EVs and hybrids accounted for nearly 20% of new U.S. vehicle sales, signaling a shift in market requirements.

Hybrid-only vehicle sales grew by 53% in 2023, reaching 1.2 million units.

Electrified vehicles (HEV, PHEV, and BEV) represented 16.3% of total light-duty vehicle sales.

This shift necessitates the production of EV-specific components, including battery modules, electric motors, power electronics, and advanced thermal management systems. Government incentives and emissions regulations further support adoption, creating sustained demand for innovative auto parts.

3. Technological Advancements

The U.S. auto parts industry is benefiting from rapid technological progress. Advances in automation, robotics, additive manufacturing, and digital integration have enabled manufacturers to produce lighter, more durable, and energy-efficient components.

Automation and robotics enhance precision and reduce waste.

Additive manufacturing (3D printing) allows for complex, custom-designed parts.

Connectivity and sensor integration support ADAS (Advanced Driver Assistance Systems) and battery management technologies.

Such innovations allow suppliers to serve both traditional ICE vehicles and electrified vehicles, maintaining competitiveness through enhanced quality, efficiency, and cost-effectiveness.

4. Expanding Aftermarket Opportunities

The aftermarket segment is growing alongside OEM demand. Vehicle owners are increasingly seeking customization, performance enhancements, and replacement components. This trend is reinforced by higher car ownership rates, urbanization, and the rising popularity of EV conversion kits and specialty components.

Challenges Facing the U.S. Auto Parts Manufacturing Market

1. Supply Chain Disruptions

Supply chain stability remains a significant challenge. Many raw materials, including steel, aluminum, semiconductors, and rare earth elements, are imported. Disruptions from trade restrictions, shipping delays, or geopolitical conflicts can severely impact production schedules and costs.

Recent concerns, such as Chinese restrictions on rare earth exports, highlight the vulnerabilities in sourcing critical materials. Port congestion, inconsistent freight services, and reliance on foreign suppliers limit flexibility, affecting output and profitability.

2. Tariff Uncertainty and Rising Costs

Trade policy uncertainty and tariffs on steel, aluminum, and automotive components increase operational costs, particularly for smaller suppliers. Rising labor, energy, and raw material costs further strain profitability.

Manufacturers must balance cost pressures with automakers’ demands for competitive pricing, complicating long-term investment planning. These challenges can affect the global competitiveness of U.S. auto parts manufacturers, potentially limiting innovation and growth.

Regional Insights

California

California leads the nation in auto parts manufacturing due to its technology ecosystem, clean transportation focus, and EV R&D hubs. The proximity to Tesla and numerous EV startups drives demand for battery modules, sensors, and lightweight components. Stringent environmental regulations incentivize the production of eco-friendly parts, while a strong aftermarket supports performance enhancements and customization.

Texas

Texas is emerging as a major manufacturing hub due to its industrial base, logistical infrastructure, and proximity to Mexico’s assembly plants. The state supports truck and commercial vehicle component production, and growing investment in EV manufacturing, including battery and electronics factories, positions Texas as a key player in national supply chains.

New York

New York’s auto parts market is characterized by advanced manufacturing, electronics production, and precision-engineered components. Urban mobility programs, such as the electrification of public transportation, create demand for batteries, drivetrains, and control systems. Strong R&D collaborations and a sizable aftermarket market enhance the state’s position in both OEM and aftermarket segments.

Florida

Florida’s market benefits from its strategic geographic location, extensive port infrastructure, and high vehicle ownership rates. The state supports international trade, aftermarket services, and EV component demand through clean mobility programs and charging infrastructure. Tourism and service-driven economies further bolster fleet and rental car maintenance opportunities.

👉 For deeper analysis, detailed segment data, and company insights: 🔗 Request Customization Report

Market Segmentation

By Type

Battery

Cooling System

Underbody Component

Automotive Filter

Others

By End User

OEMs

Aftermarket

By Vehicle Type

Passenger Cars

Light Commercial Vehicles

Heavy Commercial Vehicles

Others

By Geography (29 U.S. States)

California, Texas, New York, Florida, Illinois, Pennsylvania, Ohio, Georgia, New Jersey, Washington, North Carolina, Massachusetts, Virginia, Michigan, Maryland, Colorado, Tennessee, Indiana, Arizona, Minnesota, Wisconsin, Missouri, Connecticut, South Carolina, Oregon, Louisiana, Alabama, Kentucky, Rest of United States

Competitive Landscape

The U.S. auto parts manufacturing market is highly competitive, with major players focusing on innovation, technology integration, and global supply chain optimization. Key players include:

Aisin Corporation

Akebono Brake Industry Co. Ltd.

Brembo S.p.A.

Continental AG

DENSO Corporation

Faurecia SE

General Motors Company

Magna International Inc.

Companies are adopting strategies such as expanding EV component production, forming strategic partnerships, and investing in advanced manufacturing facilities to maintain competitiveness. Detailed company analysis covers overview, key personnel, recent developments, SWOT, sales analysis, and strategic insights.

Conclusion

The U.S. auto parts manufacturing market demonstrates resilient growth despite challenges such as supply chain vulnerabilities and rising costs. Expansion is driven by rising vehicle production, the EV and hybrid vehicle boom, technological innovations, and a growing aftermarket segment.

States such as California, Texas, New York, and Florida play pivotal roles in shaping regional growth, leveraging their technological, logistical, and demographic advantages.

With continued investments in automation, additive manufacturing, lightweight materials, and smart components, the market is poised to reach US$ 754.5 billion by 2033, reflecting the U.S.’s strategic leadership in automotive manufacturing innovation.

The future of auto parts manufacturing in the U.S. will be defined by technology-driven efficiency, sustainability, and adaptability, ensuring long-term growth across both OEM and aftermarket sectors.

Note: If you need details, data, or insights not covered in this report, we are glad to assist. Through our customization service, we will collect and deliver the information you require, tailored to your specific needs. Share your requirements with us, and we will update the report to align with your expectations.