South Korea Auto Parts Market Research Report By End-User (OEM, Aftermarket) and By Distribution Channel (Offline, Online) - Forecast to 2035

South Korea Auto Parts Market Overview:

As per MRFR analysis, the South Korea Auto Parts Market Size was estimated at 35.05 (USD Billion) in 2023. The South Korea Auto Parts Market Industry is expected to grow from 37.22 (USD Billion) in 2024 to 67.98 (USD Billion) by 2035. The South Korea Auto Parts Market CAGR (growth rate) is expected to be around 5.629% during the forecast period (2025 - 2035).

Key South Korea Auto Parts Market Trends Highlighted

The South Korea Auto Parts Market is witnessing significant trends driven by various factors. The increase in vehicle production and sales in South Korea is leading to a rise in demand for high-quality auto parts. Government initiatives promoting eco-friendly vehicles are further driving innovation in electric and hybrid vehicle components. With South Korea setting stringent emissions standards, manufacturers are focusing on developing sustainable parts, which aligns with the global trend towards environmentally friendly automotive solutions. Opportunities are emerging in the South Korean market as the nation emphasizes technological advancements in the automotive sector.

The move to smart and connected vehicles has opened opportunities for the development of advanced systems and electronic components. South Korean firms should consider teaming up with technological companies to expand their product portfolio and increase their business. In addition, the growing focus on aftermarket services provides a lucrative opporunity for companies to address the booming repair and maintenance needs of the increasing number of vehicles in operation. Recently, there has also been an increased use of automation and Industry 4.0 in the production of auto parts in South Korea. This not only improves the efficiency of the processes but also the caliber of the final products supplied.

Additionally, the increasing popularity of online sales platforms is reshaping the distribution dynamics of auto parts, providing a unique avenue for growth in the e-commerce sector. Overall, the South Korea Auto Parts Market is at a pivotal moment, with numerous trends shaping its future trajectory.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

South Korea Auto Parts Market Drivers

Rising Automotive Production in South Korea

The South Korea Auto Parts Market Industry is experiencing growth driven by the rising automotive production within the country. In recent years, South Korea has established itself as a key player in the global automotive sector, producing over 3 million vehicles annually. According to data from the Korea Automobile Manufacturers Association, South Korea's domestic production increased by approximately 5.1% last year alone. This growth in automotive manufacturing creates an increased demand for auto parts as manufacturers seek high-quality components to enhance vehicle performance and comply with stringent regulatory standards.

Established companies such as Hyundai Motor Company and Kia Corporation are major contributors to this expansion, leading innovation in electric and hybrid vehicles, which often require advanced parts and systems. The Korean government's support for the automotive industry, including initiatives that promote Research and Development for next-generation vehicles, further accelerates the growth within the South Korea Auto Parts Market Industry.

Growing Electric Vehicle Adoption

The increasing shift towards electric vehicles (EVs) in South Korea significantly impacts the South Korea Auto Parts Market Industry. The South Korean government has implemented policies to encourage EV adoption, aiming to have 3 million electric cars on the road by 2025. This initiative is supported by investment from major automotive players like Hyundai, which plans to introduce multiple electric models in the near future. As a result, there is a surge in demand for specialized auto parts such as batteries, charging systems, and electric drivetrains.

This trend is expected to create new opportunities for suppliers and manufacturers in the auto parts sector, thereby propelling the growth of the South Korea Auto Parts Market Industry.

Technological Advancements in Auto Parts

The South Korea Auto Parts Market Industry is heavily influenced by technological advancements that enhance the functionality and safety of vehicles. Innovations in materials, production techniques, and smart technologies have revolutionized the auto parts sector. For instance, South Korea has seen a significant rise in the integration of advanced driver assistance systems (ADAS) into vehicles, driven by both government regulations and consumer demand for safer transportation options.

According to data from the Ministry of Land, Infrastructure, and Transport, the adoption rate of vehicles equipped with ADAS rose by over 25% last year, indicating strong growth potential for parts manufacturers producing sensors and electronic systems. Companies like LG Electronics and Samsung are at the forefront of these innovations, collaborating with automakers to deliver cutting-edge solutions that cater to the evolving needs of the market, thus fostering the overall growth of the South Korea Auto Parts Market Industry.

Regulatory Changes and Environmental Standards

Strict regulatory changes and environmental standards in South Korea contribute significantly to the growth of the South Korea Auto Parts Market Industry. The government has introduced various environmental regulations aimed at reducing emissions and improving fuel efficiency in vehicles. This includes the implementation of more stringent emissions standards that require manufacturers to invest in high-quality auto parts that comply with these regulations.

For example, the Korean Ministry of Environment has set targets to reduce greenhouse gas emissions from the automotive sector by over 30% by 2030. As a result, manufacturers are increasingly seeking advanced parts, such as low-emission exhaust systems and lightweight materials, to meet these standards. Companies involved in the production of environmentally friendly parts stand to gain from this shift, propelling the demand within the South Korea Auto Parts Market Industry.

South Korea Auto Parts Market Segment Insights:

Auto Parts Market End-User Insights

The South Korea Auto Parts Market is characterized by a dynamic End-User segment, which is chiefly comprised of Original Equipment Manufacturers (OEM) and the Aftermarket. This market plays a crucial role in the overall automotive industry, contributing significantly to the economy of South Korea. The OEM segment is vital as it supplies auto parts to manufacturers for the assembly of vehicles, ensuring high-quality standards and reliability that adhere to rigorous specifications. These components are integral to vehicle functionality and safety, positioning OEMs as a critical player in maintaining the competitive edge of South Korean automotive brands in both domestic and international markets.

On the other hand, the Aftermarket represents a growing aspect of the Auto Parts Market, catering to the need for component replacement, upgrades, and maintenance once vehicles leave the assembly line. The Aftermarket promotes a culture of vehicle longevity, driving demand for high-quality parts that consumers trust. Trends in the Aftermarket highlight a shift toward third-party components, which offer competitive pricing and, in some cases, superior performance. The increasing vehicle population and the demand for servicing and maintaining older models further bolster the Aftermarket segment's growth.

As autonomous vehicles and advanced technologies emerge, there are significant opportunities for innovation in both OEM and Aftermarket sectors, prompting manufacturers to invest in Research and Development that aligns with future mobility solutions. The South Korean government supports these advancements through policies aimed at fostering innovation and enhancing the capabilities of local manufacturers. Overall, the segmentation of the South Korea Auto Parts Market emphasizes a blend of innovation, quality, and sustainability, reflecting the dual interests of manufacturers and consumers alike while addressing challenges related to production costs and competition within the global supply chain.

An emphasis on eco-friendly materials and the circular economy is increasingly influencing decision-making in both segments, highlighting the industry’s transition towards sustainability.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Auto Parts Market Distribution Channel Insights

The Distribution Channel segment of the South Korea Auto Parts Market plays a crucial role in shaping the industry landscape. With the increasing shift towards e-commerce, the online distribution channel is gaining momentum, reflecting the broader global trend of digitalization. Consumers in South Korea are increasingly preferring online platforms for their convenience, accessibility, and comprehensive product range. This has led to a significant uptick in the importance of online sales, as it allows for a wider reach and better customer engagement.

Conversely, the offline distribution channel remains significant, especially in regions where customers favor hands-on experiences and immediate availability of products. Traditional brick-and-mortar stores continue to hold a major share of the market owing to their established networks and trust among local consumers. Moreover, the integration of technology at physical locations is evolving to enhance customer experience. As South Korea’s automotive industry continues to innovate, both offline and online distribution channels will adapt to accommodate changing consumer preferences and market conditions, reflecting the evolving dynamics of the South Korea Auto Parts Market revenue.

The emphasis on consumer satisfaction and convenience in both channels represents a key driver of market growth and activity within this dynamic sector.

South Korea Auto Parts Market Key Players and Competitive Insights:

The South Korea Auto Parts Market is characterized by a highly competitive landscape, driven by both domestic and international players seeking to establish their presence in this dynamic sector. The market is influenced by several factors, including technological advancements, consumer preferences, and regulatory frameworks. With a robust automotive industry at its core, the auto parts sector is experiencing growth in response to increasing vehicle production and an emphasis on innovation. Companies are continuously engaged in research and development to enhance product offerings and meet the changing needs of consumers, further intensifying competition. As a result, the market is evolving with a focus on sustainability and the integration of advanced technologies, such as electric and hybrid automotive parts.

Hankook Tire stands out in the South Korea Auto Parts Market for its strong reputation and extensive market presence. As one of the leading tire manufacturers, it has established itself through a commitment to quality and innovation. The company's strong emphasis on research and development allows it to consistently release high-performance tires that cater to various segments, including passenger, light truck, and commercial vehicle tires. Hankook Tire has also invested significantly in expanding its distribution networks and building relationships with major automotive manufacturers, enhancing its competitive edge. The brand is well-respected for its efforts in sustainability and eco-friendly tire technology, which resonates with a growing consumer segment concerned with environmental impact.

Kumho Tire has a significant footprint in the South Korea Auto Parts Market, excelling in a diverse array of offerings across various tire categories. The company produces tires for passenger vehicles, trucks, buses, and motorsports, catering to both local and international markets. Kumho Tire is recognized for its competitive pricing and reliable product quality, which enable it to effectively reach a broad customer base. The company has a strong focus on research and innovation, with several facilities dedicated to developing cutting-edge tire technology. Kumho Tire has engaged in strategic partnerships, joint ventures, and mergers over the years to bolster its market position and expand its operational capabilities. This proactive approach has strengthened its brand presence in South Korea and contributed to its growth trajectory as it continues to adapt to changing market demands and consumer preferences.

Key Companies in the South Korea Auto Parts Market Include:

• Hankook Tire


• Kumho Tire


• Mando


• Daewha


• Hanon Systems


• Valeo


• Bosch


• Iljin


• Kyungshin Industrial


• LG Chem


• Hyundai Mobis


• Seoyon EHwa


• Sonnax


• Denso


• Samsung SDI

South Korea Auto Parts Market Industry Developments

The South Korea Auto Parts Market has witnessed significant developments recently. In October 2023, Hankook Tire announced its plans to expand its production capacity in response to increasing global demand, targeting a 15% growth in output by 2025. Kumho Tire is modernizing its facilities to enhance efficiency and sustainability, aligning with the growing emphasis on eco-friendly practices in the automotive sector. Mando has also made strides in the autonomous vehicle parts market, significantly investing in Research and Development to secure its competitive position.

In terms of mergers and acquisitions, Hyundai Mobis acquired a 51% stake in a local electric vehicle components company in September 2023, aimed at strengthening its portfolio in EV technologies. The surge in electric and autonomous vehicles has impacted major players like Denso and Valeo, both of which are expanding their presence in South Korea. Additionally, LG Chem is increasing its investments in battery technology, responding to rising demand for electric vehicle batteries. The overall market is benefiting from these strategic moves, reflecting a dynamic shift toward innovation and sustainability within the South Korean automotive industry.

Auto Parts Market Segmentation Insights

Auto Parts Market End-User Outlook

• OEM


• Aftermarket

Auto Parts Market Distribution Channel Outlook

• Offline


• Online

Report Attribute/Metric Source:	Details
MARKET SIZE 2023	35.05 (USD Billion)
MARKET SIZE 2024	37.22 (USD Billion)
MARKET SIZE 2035	67.98 (USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	5.629% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	Hankook Tire, Kumho Tire, Mando, Daewha, Hanon Systems, Valeo, Bosch, Iljin, Kyungshin Industrial, LG Chem, Hyundai Mobis, Seoyon EHwa, Sonnax, Denso, Samsung SDI
SEGMENTS COVERED	End-User, Distribution Channel
KEY MARKET OPPORTUNITIES	Electric vehicle components demand, Aftermarket parts growth, Advanced manufacturing technologies, Sustainable materials adoption, Digitization in supply chain
KEY MARKET DYNAMICS	Technological advancements, Increasing electric vehicle production, Strict regulatory frameworks, Growing consumer awareness, Import and export fluctuations
COUNTRIES COVERED	South Korea