United States Auto Parts Manufacturing Market Outlook (2025–2033)
According to Renub Research United States auto parts manufacturing market stands as one of the most influential segments of the national industrial economy, driven by continued vehicle production, electrification trends, aftermarket expansion, and advanced manufacturing technologies. Expected to rise from US$ 647.15 billion in 2024 to US$ 754.5 billion by 2033, the market will grow at a CAGR of 1.72% during 2025–2033.
The auto parts sector supports both OEM production and the aftermarket, supplying components essential for performance, safety, emissions control, and vehicle functionality. As the U.S. automotive ecosystem shifts toward electrification and digitalization, the demand for next-generation parts—such as battery systems, lightweight materials, and advanced electronics—is expanding rapidly.
Despite facing challenges such as supply chain disruptions, tariff uncertainty, and raw material dependence, the market shows long-term resiliency driven by technological innovation and evolving consumer preferences.
United States Auto Parts Manufacturing Industry Overview
Auto parts manufacturing encompasses the production of components used in the assembly, repair, and customization of automobiles and commercial vehicles. These parts include:
- Powertrain components (engines, transmissions)
- Suspension and braking systems
- Electrical and electronic modules
- Exhaust and filtration systems
- Body panels and structural frames
- Interiors, seating, and infotainment modules
The U.S. industry combines traditional machining with advanced manufacturing processes such as intelligent robotics, additive manufacturing, and digital quality control. The incorporation of materials like carbon fiber, high-strength steel, and aluminum has also reshaped production methods to achieve fuel efficiency and durability.
Auto parts manufacturing supports two broad channels:
- OEM (Original Equipment Manufacturer) Supply Chains
These parts are integrated into new vehicles produced by automakers such as Ford, GM, Stellantis, Tesla, Toyota, and Honda. - Aftermarket
This includes parts used for repairs, replacements, customization, and performance enhancements across millions of vehicles currently on the road.
Together, these segments ensure continuous demand for components, making the auto parts manufacturing industry a vital pillar of American manufacturing and global automotive supply networks.
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Key Growth Drivers in the U.S. Auto Parts Manufacturing Market
Rising Vehicle Production Across the Country
The recovery of U.S. vehicle production post-pandemic has stimulated demand for an extensive range of auto parts. Production levels reached approximately 10.58 million units in July 2025, signaling robust expansion across assembly plants in states such as Michigan, Ohio, Kentucky, and Texas.
Higher vehicle output directly increases the consumption of:
- Drivetrain components
- Steering and braking systems
- Sensors and electronic control units
- HVAC and cooling systems
- Exhaust and filtration parts
Additionally, motor vehicle and parts output increased by 2.6% in August 2025, underscoring renewed OEM orders. As automakers invest in expanding assembly lines and upgrading factories for EV production, parts suppliers benefit from long-term production stability.
Rapid Adoption of Electric and Hybrid Vehicles
One of the most transformative forces shaping the U.S. auto parts market is the explosive growth of electric vehicles (EVs) and hybrid electric vehicles (HEVs/PHEVs). Nearly 20% of new vehicle sales in 2024 were electrified models. Hybrid-only vehicle sales grew nearly 53% in 2023, reaching 1.2 million units, and electrified vehicles collectively represented 16.3% of total light-duty vehicle sales.
EVs require a completely different parts architecture compared to internal combustion engine (ICE) vehicles. Key high-growth component categories include:
- Lithium-ion battery modules
- Battery management systems
- Electric motors and inverters
- Regenerative braking modules
- Power electronics and thermal management components
Federal incentives, state rebates, and emissions regulations are accelerating the shift toward EVs. As automakers expand domestic EV production, suppliers of EV-specific parts will continue to see strong opportunities.
Technological Advancements Transforming Production
Advanced technology has become one of the most important drivers of competitiveness in the auto parts sector. Manufacturers are transitioning toward intelligent, automated, and sustainable production systems.
Key technological trends include:
Advanced Materials and Lightweighting
Lightweight components increase fuel efficiency and are essential for EV range optimization. Suppliers are adopting:
- Aluminum and magnesium alloys
- High-strength steel
- Carbon fiber composites
Automation and Robotics
Automated assembly lines improve precision, reduce waste, and enhance worker safety.
3D Printing and Additive Manufacturing
These technologies enable rapid prototyping, small-batch production, and complex geometries difficult to achieve with traditional machining.
Connected and Smart Components
As vehicles integrate more sensors, ADAS features, and connectivity systems, demand grows for parts containing:
- High-resolution sensors
- Radar and LiDAR units
- Electronic control modules
- Battery and energy management systems
These technological advancements allow U.S. manufacturers to serve both conventional and electric vehicle markets while remaining globally competitive.
Major Challenges Facing the U.S. Auto Parts Manufacturing Market
Supply Chain Disruptions and Raw Material Dependence
Supply chain volatility remains one of the biggest threats to stable production. The U.S. imports significant amounts of raw materials such as:
- Steel and aluminum
- Lithium, cobalt, and nickel
- Semiconductors
- Rare earth elements for electric motors
Geopolitical tensions, export restrictions, and transportation disruptions—particularly in semiconductor supply—have led to production delays and increased costs. Any interruption can significantly slow down manufacturing timelines for automakers and their suppliers.
Tariff Fluctuations and Rising Costs
Uncertainty around import tariffs for metals, mineral inputs, and automotive parts creates cost instability for manufacturers. Rising labor costs, inflation, and energy expenses increase the financial pressures on suppliers.
With OEMs demanding cost-competitive pricing, suppliers often face shrinking margins. This situation complicates long-term investment in new technologies or capacity expansion, especially for smaller and mid-size manufacturers.
State-Level Market Overviews
California Auto Parts Manufacturing Market
California is a powerhouse for advanced automotive technology and a leading state for EV-focused manufacturing. The state benefits from:
- Proximity to EV pioneers like Tesla, Rivian, and Lucid
- Strong R&D ecosystem in Silicon Valley
- Stringent zero-emission vehicle mandates
- High demand for performance and aftermarket parts
California manufacturers are heavily involved in producing sensors, battery components, software-integrated systems, and lightweight materials. The state’s commitment to clean mobility further accelerates innovation in eco-friendly automotive components.
Texas Auto Parts Manufacturing Market
Texas is emerging as one of the fastest-growing auto parts manufacturing hubs. It offers:
- A robust industrial base
- Strategic location near Mexico’s automotive manufacturing corridor
- Extensive logistics and transportation networks
- Growing EV and battery production facilities
Texas supports strong demand for truck, SUV, and commercial vehicle parts, aligning with regional transportation needs. The state’s favorable business climate and affordable operating costs attract continuous investments.
New York Auto Parts Manufacturing Market
New York’s auto parts sector is supported by advanced manufacturing, high aftermarket consumption, and research institutions focusing on mobility innovation. Key areas of production include:
- Control systems and electronics
- Specialty drivetrain components
- Battery and EV charging technologies
Urban transportation electrification initiatives—such as electric buses and municipal fleets—present new opportunities for component suppliers.
Florida Auto Parts Manufacturing Market
Florida’s auto parts market is shaped by:
- Strategic port access for international trade
- High vehicle ownership rates
- A massive rental and tourism fleet generating aftermarket demand
Florida is increasingly adopting EV technologies, expanding charging networks, and building consumer interest in electrified mobility. With strong import/export flows, the state plays a major role in distributing automotive components across North America.
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 States (29-Key Regional Markets)
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, and the Rest of the U.S.
Key Players (with 5-Viewpoint Analysis)
Each company may be analyzed under:
Company Overview • Key Persons • Recent Strategies • SWOT Analysis • Sales Analysis
Major companies include:
- Aisin Corporation
- Akebono Brake Industry Co. Ltd.
- Brembo S.p.A.
- Continental AG
- DENSO Corporation
- Faurecia SE
- General Motors Company
- Magna International Inc.
