United States Auto Parts Manufacturing Market Size and Forecast 2025–2033

The United States Auto Parts Manufacturing Market is entering a new era of growth and transformation. According to Renub Research, the market is projected to reach US$ 754.5 billion by 2033, rising from US$ 647.15 billion in 2024, reflecting a CAGR of 1.72% from 2025 to 2033. This steady expansion is driven by multiple factors—most notably the rise of electric and hybrid vehicles, the resurgence in U.S. vehicle production, rapid digitization of factories, and the continued dominance of the aftermarket sector.

The U.S. automotive sector is one of the world’s most complex and dynamic manufacturing ecosystems. From engines, transmissions, and braking systems to batteries, ADAS sensors, and lightweight composite materials, the country’s auto parts manufacturing industry forms the backbone of production for both OEM supply chains and the aftermarket. As global industry trends shift toward electrification, autonomy, sustainability, and customization, U.S. parts manufacturers are rapidly positioning themselves to meet these evolving demands.

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Industry Overview: A Sector at the Crossroads of Innovation and Legacy Manufacturing

Auto parts manufacturing in the United States encompasses the production of everything that makes a vehicle function—powertrains, drivetrain components, chassis systems, interiors, electronics, safety structures, and more. The market serves both major OEMs, such as GM, Ford, and Stellantis, and a vast aftermarket ecosystem responsible for vehicle repairs, maintenance, and customization.

Modern manufacturers are blending traditional machining and large-scale assembly with next-generation technologies such as:

Robotics and automation

3D printing and additive manufacturing

Advanced materials (carbon fiber, high-strength steel, aluminum alloys)

AI-powered quality control

Sensor and computing integration for ADAS and EV systems

This industrial evolution is helping U.S. parts producers meet the growing consumer expectations for safety, performance, fuel efficiency, and digital connectivity, positioning the industry for long-term resilience.

Market Growth Drivers

1. Rising Vehicle Production Reinvigorates Parts Demand

One of the strongest growth catalysts is the rebound in U.S. vehicle production. After pandemic-era disruptions and semiconductor shortages, domestic vehicle output is steadily climbing. In July 2025, U.S. automobile production reached 10.58 million units, signaling renewed demand across the entire parts ecosystem.

In addition, motor vehicle and parts output increased by 2.6% in August 2025, reflecting strengthening manufacturing momentum. Higher production volume directly boosts demand for engines, transmissions, electronics, suspension components, and chassis systems.

Automakers continue to lean heavily on dependable U.S. parts suppliers, particularly as they ramp up assembly plant utilization and expand model portfolios. The result is a stronger OEM supply chain with predictable, stable demand for domestic manufacturers.

2. Electrification: The Biggest Revolution in U.S. Parts Manufacturing

Electric and hybrid vehicles are rapidly reshaping the landscape. In 2024, EVs and hybrids accounted for nearly 20% of all new U.S. automobile and light truck sales, a massive jump compared to earlier years. Hybrid-only vehicles saw explosive momentum, rising 53% year-over-year in 2023, reaching almost 1.2 million units sold.

This shift has forced parts manufacturers to pivot toward EV-specific components, including:

Battery packs and modules

Electric motors

Power electronics (inverters, control units, DC-DC converters)

Thermal management systems

Lightweight structural materials

High-voltage wiring harnesses

Moreover, federal and state incentives—combined with rising environmental regulations—are compelling automakers to accelerate electrification. This transition is opening enormous opportunities for U.S. suppliers specializing in advanced electronics, energy storage, and sustainable materials. EVs require fewer moving parts but more technologically advanced components, making innovation the new competitive currency.

3. Technological Advancements Fuel Efficiency and Competitiveness

The U.S. auto parts manufacturing sector is undergoing a profound technological transformation. Automation, robotics, and AI are improving precision and reducing production errors, while additive manufacturing is enabling faster prototyping and lighter part designs.

Key technological shifts include:

Lightweighting Materials

To meet fuel efficiency and range targets, OEMs are prioritizing materials such as:

High-strength aluminum

Magnesium alloys

Carbon fiber composites

These materials reduce vehicle weight, improve performance, and enhance energy efficiency—critical for EVs.

Smart and Connected Components

ADAS, infotainment integration, vehicle connectivity, and battery management systems have created demand for:

Sensors

Microchips

Radar systems

Software-integrated components

Suppliers that can meet these new electronics requirements are experiencing significant competitive advantages.

Challenges Restraining Market Growth

Despite its strong outlook, the U.S. auto parts manufacturing industry faces several challenges.

1. Supply Chain Disruptions and Material Dependency

Global volatility continues to disrupt supply chains. The industry relies heavily on imported raw materials such as:

Semiconductors

Steel and aluminum

Lithium, cobalt, and nickel for EV batteries

Rare earth elements for motors and electronics

Geopolitical tensions, shipping delays, trade restrictions, and port congestion make it difficult for manufacturers to maintain stable production cycles. Recent concerns over China’s rare earth export controls highlight the risk of supply shortages and spiraling input costs.

2. Tariff Uncertainty Increases Production Costs

Shifting U.S. trade policies have created volatility in material pricing. Tariffs on steel, aluminum, and certain auto components directly raise costs for parts manufacturers, especially smaller suppliers with thin margins.

Alongside tariffs, broader economic pressures such as:

Increasing labor costs

Inflation

High energy prices

are squeezing supplier profitability. These factors complicate long-term investment planning and limit innovation spending.

Regional Analysis: Key State Markets Driving Growth

California

California is a powerhouse for EV-related parts manufacturing. As the home base for major EV innovators—including Tesla—and a vast network of battery, sensor, and autonomous technology startups, the state leads in developing:

Advanced batteries

Lightweight composites

Smart electronics

Strict environmental policies and a booming customization culture continue to fuel aftermarket demand as well.

Texas

Texas is emerging as one of the fastest-growing automotive manufacturing hubs. The state’s proximity to Mexico strengthens cross-border supply chains, while its expanding energy and logistics sectors support the development of:

EV battery manufacturing

Electronic components

Heavy vehicle parts

A business-friendly environment and strong workforce availability make Texas a preferred destination for automotive investment.

New York

New York’s auto parts manufacturing market is defined by high-precision engineering, electronic systems, and specialized components. The state benefits from:

Cutting-edge R&D institutions

Urban mobility innovation

Electrified public transport initiatives

These factors support demand for battery systems, drivetrains, and advanced control units.

Florida

Florida’s strategic ports and thriving aftermarket sector give it a unique advantage. With one of the largest car ownership rates in the country, Florida experiences high demand for:

Replacement parts

Customization

Performance enhancements

Maintenance components

EV-related demand is also rising as the state expands its charging infrastructure and clean mobility programs.

United States Auto Parts Manufacturing 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 State (29 States + Rest of U.S.)

Including:

California, Texas, New York, Florida, Illinois, Pennsylvania, Ohio, Georgia, New Jersey, Washington, North Carolina, Michigan, Indiana, Tennessee, Arizona, and more.

Key Companies Covered (5 Viewpoints Each)

Aisin Corporation

Akebono Brake Industry Co. Ltd.

Brembo S.p.A.

Continental AG

DENSO Corporation

Faurecia SE

General Motors Company

Magna International Inc.

Each company is analyzed through:

Company Overview

Key Persons

Recent Developments & Strategies

SWOT Analysis

Sales Analysis

Final Thoughts: A Market Poised for Steady but Transformative Growth

The United States auto parts manufacturing market is not growing at breakneck speed, but its evolution is profound. The shift toward electric and hybrid vehicles alone is reshaping the entire supply chain, while robotics, automation, and lightweighting technologies are redefining production standards. At the same time, the aftermarket remains a reliable pillar, supported by the nation’s massive vehicle population and rising culture of customization.

With a projected valuation of US$ 754.5 billion by 2033, the sector is on a stable upward trajectory. Innovation, supply chain resilience, and strategic investment in EV capabilities will determine which companies emerge as leaders in the next decade. What’s clear is that the United States auto parts manufacturing industry remains vital—not only to the automotive sector but to the nation’s broader industrial and economic strength.