UK Auto Parts Market Research Report By End-User (OEM, Aftermarket) and By Distribution Channel (Offline, Online) - Forecast to 2035
ID: MRFR/AM/45402-HCR | 128 Pages | Author: Sejal Akre| April 2025
As per MRFR analysis, the UK Auto Parts Market Size was estimated at 15.77 (USD Billion) in 2023. The UK Auto Parts Market Industry is expected to grow from 16.75 (USD Billion) in 2024 to 32.6 (USD Billion) by 2035. The UK Auto Parts Market CAGR (growth rate) is expected to be around 6.241% during the forecast period (2025 - 2035).
The UK Auto Parts Market is experiencing notable trends shaped by various market drivers. One significant driver is the growing emphasis on sustainability and eco-friendly practices in the automotive industry. The UK, with its commitment to achieving net-zero carbon emissions by 2050, is seeing an increasing demand for electric vehicles (EVs) and the auto parts that support them. This trend is pushing manufacturers to innovate their product lines, focusing on greener materials and components that align with environmental regulations. Additionally, the digital transformation in the auto parts sector is creating new opportunities for growth. The rise of e-commerce platforms is making it easier for consumers and businesses to access auto parts, enhancing the customer experience while streamlining supply chains.
The expansion of online sales channels caters to new purchasing habits while allowing local businesses to reach a broader market. The AI component and sensor-laden advanced auto parts are in demand due to the shift towards autonomous vehicles in the UK. These businesses are able to gain market share by investing in innovative technology because the government funds R&D in that area. Changes in the UK supply chain and the sourcing of auto parts have arisen from the recent Brexit shifts. With changes come new challenges and opportunities for local manufacturers striving to adapt to the new trading conditions.
Overall, the UK Auto Parts Market is evolving with a focus on sustainability, digital channels, automation, and adaptability in response to economic changes, presenting substantial opportunities for industry players.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The transition towards electric vehicles (EVs) in the UK Auto Parts Market Industry is a significant driver of growth. The UK government has set aggressive targets for reducing carbon emissions, with plans to ban the sale of new petrol and diesel cars by 2030. This shift towards EVs is projected to create a robust market for auto parts associated with electric drivetrains, battery systems, and charging infrastructure. According to the UK Department for Transport, registrations of new battery electric vehicles increased by 186 percent in 2021, with more than 100,000 new electric vehicles registered during the year.
This trend is supported by organizations such as the Society of Motor Manufacturers and Traders (SMMT), which highlights the increasing need for manufacturers to adapt to new technologies. As a result, the demand for specialized components is anticipated to surge, driving significant growth in the UK Auto Parts Market.
The rising vehicle ownership rates in the UK are also driving growth in the UK Auto Parts Market Industry. The latest statistics from the UK Department for Transport indicate that there were approximately 38 million registered vehicles in the UK as of 2022, reflecting a steady increase in ownership over the past decade. This rise is primarily due to population growth and the increasing disposable income of average consumers. The higher number of vehicles leads to increased wear and tear, necessitating more frequent maintenance and replacement of auto parts.
Established automotive manufacturers such as Ford and Vauxhall are focusing on expanding their service offerings and spare parts supply chains to cater to this expanding vehicle base, thereby boosting the UK Auto Parts Market.
Technological advancements in manufacturing processes and automotive components are fueling growth in the UK Auto Parts Market Industry. Innovations such as 3D printing, automation, and smarter supply chain logistics are enabling manufacturers to produce auto parts more efficiently and at lower costs. Notably, the UK government has been supporting initiatives like the 'Made Smarter' program, which aims to optimize manufacturing through digital technologies.
According to the UK Manufacturing Technology Association, companies embracing Industry 4.0 technologies could improve productivity by up to 30 percent. Such improvements will likely enhance the overall quality and availability of auto parts, stimulating consumer demand and contributing positively to the UK Auto Parts Market.
The rapidly growing trend of online retail and e-commerce has become a critical driver for the UK Auto Parts Market Industry. With increasing internet penetration and shifts in consumer behavior, more consumers are shopping for auto parts online. According to Statista, the UK e-commerce market was valued at approximately 200 billion pounds in 2021 and is projected to grow further. Major retailers like Halfords and Euro Car Parts are actively enhancing their online platforms to cater to this demand.
The convenience of online shopping is prompting consumers to seek replacement parts through digital channels, which is expected to promote further market growth in the auto parts sector in the UK.
The End-User segment of the UK Auto Parts Market plays a pivotal role in shaping the overall dynamics of the industry, categorizing demand primarily into Original Equipment Manufacturer (OEM) and Aftermarket. The OEM segment represents the components and parts produced by manufacturers to fit their own vehicles directly, ensuring compatibility and maintaining high-quality standards. This segment is notably significant in the UK as domestic vehicle production is supported by a steady stream of economic activity and localized supply chains, which enhance efficiency and reliability for consumers seeking immediate solutions from original manufacturers.
Conversely, the Aftermarket segment encompasses a diverse range of replacement parts, accessories, and upgrades sold by independent sellers and specialty retailers. The after-sale services are crucial, catering to a wide audience of vehicle owners eager for competitively priced options without compromising quality. Both segments contribute notably to the UK Auto Parts Market revenue, reflecting growth in consumer vehicle maintenance trends and a rise in car ownership rates nationwide. Additionally, the aftermarket serves as a major competitor to OEM parts, with drivers often opting for alternatives due to cost considerations or product availability.
This growth is propelled by changing consumer preferences, an increase in vehicle age, and advances in technology facilitating the development of better aftermarket products. Furthermore, regulatory influences from the UK government regarding emissions standards and safety requirements motivate consumers to upgrade parts. The segment's response to evolving consumer demands and trends demonstrates its dynamic character, while the interplay between OEM and Aftermarket highlights the competitive landscape within the UK Auto Parts Market. Overall, the End-User segment showcases considerable potential for growth driven by both segments, coupled with innovations in automotive technology, which continues to reshape the market landscape.
The commitment to sustainability and the rising trend of electric vehicles also shape product offerings, encouraging both OEM and Aftermarket players to adapt and thrive in a transforming industry. In summary, the End-User segment significantly impacts the UK Auto Parts Market, with both OEM and Aftermarket emphasizing the importance of quality, accessibility, and innovation, paving the way for continued growth trajectories in this essential market.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The UK Auto Parts Market showcases a diverse range of distribution channels, prominently featuring offline and online sales channels. The offline distribution channel has historically been a robust avenue for the market, driven by traditional retail outlets, automotive shops, and parts distributors that provide customers with physical access to products and immediate assistance. However, the online distribution channel has seen a significant surge in recent years, benefiting from the rise of e-commerce and the increasing preference of consumers for convenience and efficiency when shopping.
Enhanced by advancements in technology, the online channel enables broader accessibility to a variety of auto parts, making it a critical player in the market. Additionally, the shift toward digitalization and online shopping is evident in consumer behavior, thereby fostering market growth. The ongoing trend of integrating omnichannel strategies enables businesses to leverage both physical and digital platforms, offering customers a seamless experience. Understanding the dynamics of these distribution channels is essential for stakeholders in the UK Auto Parts Market, as it reflects consumer preferences and adapts to changing market demands.
The overall market growth is driven by these channels' adaptability to emerging trends and consumer needs, ultimately influencing the market landscape.
The UK Auto Parts Market is characterized by a dynamic competitive landscape driven by several key factors, including technological advancements, consumer preferences, and regulatory initiatives. With a growing emphasis on sustainability and the shift towards electric vehicles, auto parts manufacturers are increasingly focusing on innovation and product differentiation. This environment has led to the emergence of both established players and new entrants, each vying for market share. Competitive insights reveal that companies are investing in research and development to enhance the functionality and sustainability of their products while also seeking collaborative opportunities and strategic partnerships to leverage new technologies and expand their market reach. The competitive dynamics are further influenced by the complexity of the supply chain, as well as the impacts of Brexit on trade policies and supply chain logistics within the region.
Faurecia has carved out a strong presence in the UK Auto Parts Market, leveraging its expertise in automotive technology and interior systems. The company is recognized for its innovative approach to producing lighter, more sustainable components, which align with the automotive industry's shift towards fuel efficiency and reduced emissions. Faurecia's strengths lie in its advanced manufacturing capabilities and commitment to sustainability, evident in its extensive portfolio of products that include seating, emissions control technologies, and interior systems. By focusing on customer-centric solutions and sustainability, Faurecia is well-positioned to meet the demands of the UK market, engaging in partnerships and collaborations that further reinforce its innovative edge.
Denso Corporation is another key player in the UK Auto Parts Market, renowned for its extensive range of products that cater to various automotive needs. Denso’s offerings include advanced electronic components, thermal systems, powertrain control units, and aftermarket parts, which are critical in enhancing vehicle performance and efficiency. The company has established a robust market presence through strategic mergers and acquisitions, enabling it to expand its technological capabilities and market reach in the UK. Denso's strengths include its commitment to research and development, which allows it to stay at the forefront of industry trends such as electrification and connectivity in vehicles. Moreover, Denso actively invests in sustainable technologies and practices, ensuring that it not only meets regulatory standards but also addresses the growing consumer demand for eco-friendly automotive solutions. This focus on innovation, coupled with a strong legacy and strategic industry partnerships, makes Denso a formidable competitor in the UK Auto Parts Market.
In recent months, the UK Auto Parts Market has experienced significant developments. In October 2023, Denso Corporation announced its expansion in the UK by opening a new manufacturing facility aimed at producing advanced thermal systems. Similarly, Faurecia is investing in sustainable technologies that align with the growing demand for eco-friendly components in the automotive sector. Valeo and Continental AG have also been focusing on the development of electric vehicle components, notably in response to the UK's commitment to achieving net-zero emissions by 2050.
Notably, in July 2023, BorgWarner completed the acquisition of Delphi Technologies, enhancing its capabilities in electric vehicle propulsion systems. The automotive supply chain has seen a notable market valuation increase partly driven by these strategic investments and acquisitions, fostering innovation within the UK auto parts industry. Over the past few years, companies like ZF Friedrichshafen have ramped up Research and Development in smart automotive technologies as the UK transitions toward electrification and connectivity in vehicles. This dynamic landscape is reflective of the broader trends influencing the global automotive market.
Report Attribute/Metric Source: | Details |
MARKET SIZE 2023 | 15.77(USD Billion) |
MARKET SIZE 2024 | 16.75(USD Billion) |
MARKET SIZE 2035 | 32.6(USD Billion) |
COMPOUND ANNUAL GROWTH RATE (CAGR) | 6.241% (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 | Faurecia, Denso Corporation, Robert Bosch, Valeo, Delphi Technologies, Tenneco, Magneti Marelli, Continental AG, ZF Friedrichshafen, BorgWarner, Johnson Controls, Mann+Hummel, Hella, Aisin Seiki, Eaton Corporation |
SEGMENTS COVERED | End-User, Distribution Channel |
KEY MARKET OPPORTUNITIES | Electric vehicle parts demand growth, Sustainable and eco-friendly materials, Online aftermarket sales expansion, Innovations in supply chain logistics, Rising DIY repair culture |
KEY MARKET DYNAMICS | rising demand for electric vehicles, increasing e-commerce for auto parts, growing focus on sustainability, supply chain disruptions, technological advancements in manufacturing |
COUNTRIES COVERED | UK |
Frequently Asked Questions (FAQ) :
The UK Auto Parts Market is expected to be valued at 16.75 billion USD in 2024.
By 2035, the UK Auto Parts Market is anticipated to reach a valuation of 32.6 billion USD.
The CAGR for the UK Auto Parts Market is expected to be 6.241% during the period from 2025 to 2035.
In 2024, the OEM segment of the UK Auto Parts Market is valued at 8.43 billion USD, while the Aftermarket segment is valued at 8.32 billion USD.
By 2035, the OEM segment is expected to reach 16.5 billion USD, whereas the Aftermarket segment is projected to be valued at 16.1 billion USD.
Key players in the UK Auto Parts Market include Faurecia, Denso Corporation, Robert Bosch, Valeo, and Delphi Technologies, among others.
The OEM sub-segment is expected to dominate the UK Auto Parts Market due to its significant market valuation.
The UK Auto Parts Market is driven by factors such as increasing vehicle production, advancements in automotive technology, and rising after-sales service demand.
Challenges such as fluctuating raw material prices and supply chain disruptions could impact the growth of the UK Auto Parts Market.
The market is expected to witness significant technological advancements, including the adoption of electric and autonomous vehicle components.
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