United States Auto Parts Manufacturing Market Overview
The United States Auto Parts Manufacturing Market is expected to reach US$ 754.5 billion by 2033 from US$ 647.15 billion in 2024, growing at a CAGR of 1.72% during 2025–2033. Market growth is being driven by increased vehicle production, rising demand for electric and hybrid vehicle components, expansion of the aftermarket sector, technological advancements, and more stringent safety and environmental regulations. The industry spans OEM supply chains and replacement parts markets, supporting both the automotive production ecosystem and long-term vehicle maintenance.
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Industry Outlook
The auto parts manufacturing industry produces components for both original equipment manufacturers (OEMs) and the aftermarket. Products include engines, transmissions, braking and suspension systems, electrical systems, interiors, and body parts. Modern manufacturing combines advanced technologies, such as robotics, additive manufacturing (3D printing), and innovative materials, with traditional machining and assembly processes to enhance performance, safety, and efficiency.
The U.S. auto parts market supports growing demand for electric and hybrid vehicles, which require specialized electronics, battery systems, and lightweight materials. Automation and advanced manufacturing technologies are improving efficiency and product quality, while the aftermarket segment benefits from customization and repair services. Regulatory pressures on safety and emissions also drive innovation in parts design, reflecting the industry’s adaptability and robust demand.
Growth Drivers
Rising Vehicle Production
Vehicle production growth is a key driver for the U.S. auto parts market. After pandemic-related declines, U.S. car production increased to around 10.58 million units in July 2025. Higher production volumes drive demand for engines, transmissions, electronics, and other components. Increased plant utilization (e.g., motor vehicle and parts output rose 2.6% in August 2025) creates scale, allowing suppliers to invest in new technologies, capacity expansion, and advanced tooling.
Electric & Hybrid Vehicle Expansion
The rising popularity of electric vehicles (EVs) and hybrids (HEV/PHEV) is reshaping the market. EVs and hybrids represented nearly 20% of new car and light truck sales in 2024. Hybrid-only sales grew 53% in 2023, reaching 1.2 million units. This shift necessitates the production of EV-specific components like battery modules, electric motors, and power electronics, while supply chains adapt to new requirements. Regulatory incentives and environmental policies further accelerate the adoption of green vehicle technologies.
Technological Advancements
Technological innovation is driving growth in auto parts manufacturing. New materials, automation, 3D printing, and digitization allow production of lighter, more efficient, and reliable components. Innovations in sensors and connectivity enable advanced driver-assistance systems (ADAS), battery management, and smart vehicle integration. Manufacturers now serve both ICE vehicles and the expanding EV/HEV segment, gaining competitive advantages in performance, cost efficiency, and quality through technology-driven differentiation.
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Challenges
Supply Chain Disruptions and Raw Material Dependency
The industry faces supply chain vulnerabilities due to heavy reliance on imported raw materials such as steel, aluminum, semiconductors, and rare earths. Disruptions from trade restrictions, shipping delays, or geopolitical conflicts can reduce output and raise costs. Port congestion and irregular freight services exacerbate the issue. These dependencies reduce flexibility, making it harder to maintain steady production and profitability.
Tariff Uncertainty and Cost Pressures
Tariff policies on imports, including steel, aluminum, and certain auto parts, increase input costs, particularly for smaller suppliers with tight margins. Rising labor, energy, and inflationary pressures further strain manufacturers. Trade policy uncertainty complicates long-term planning and investment, affecting competitiveness and innovation while influencing supplier-OEM relationships.
State-Wise Market Overview
California
California’s technology ecosystem and focus on clean transportation drive auto parts manufacturing. The state’s EV research hub, proximity to companies like Tesla, and startups focused on electrification support demand for advanced batteries, sensors, and lightweight materials. Strict environmental regulations encourage the production of green components. California also benefits from a strong aftermarket for customization and performance enhancements.
Texas
Texas leverages its industrial base, logistics network, and proximity to Mexico (a key assembly hub) to support auto parts manufacturing. The state produces parts for trucks and commercial vehicles while attracting investment in EV-related components, including battery and electronics production. A skilled workforce and growing aftermarket demand make Texas a significant contributor to national auto parts manufacturing.
New York
New York’s market is defined by advanced manufacturing and aftermarket demand. The state produces precision-engineered components and electronics for ICE and EV vehicles. Urban mobility initiatives, including electrification of public transport, drive demand for batteries, drivetrains, and control systems. Collaboration with research institutes fosters innovation in sustainable materials and smart technology.
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Florida
Florida benefits from its strategic location and robust aftermarket sector. Ports enable international trade with Latin America, while a high population and car ownership rates drive replacement, customization, and maintenance demand. Growth in EV infrastructure and clean mobility programs also contributes to EV component demand. Tourism and rental fleets further boost aftermarket prospects.
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 viewpoints)
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
Key Players
The U.S. auto parts manufacturing market is highly competitive, with key players driving innovation, efficiency, and market expansion:
· 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 covered through company overview, key persons, recent developments, strategies, SWOT analysis, and sales performance.
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