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

According to Renub Research United States auto parts manufacturing market is projected to grow steadily over the forecast period, reaching US$ 754.5 billion by 2033, up from US$ 647.15 billion in 2024. This growth represents a compound annual growth rate (CAGR) of 1.72% between 2025 and 2033. Market expansion is supported by increasing vehicle production volumes, rising demand for electric and hybrid vehicle components, growth in the automotive aftermarket, rapid technological advancements, and increasingly stringent safety and emissions regulations. Together, these factors are strengthening both OEM supply chains and the replacement parts ecosystem across the country.

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United States Auto Parts Manufacturing Industry Overview

Auto parts manufacturing involves the production of components used in vehicles for original equipment manufacturers (OEMs) as well as the aftermarket. This includes engines, transmissions, braking systems, suspension components, electrical and electronic systems, interiors, body parts, and advanced mobility components. The industry combines traditional machining and assembly with modern technologies such as robotics, automation, additive manufacturing, and advanced materials to improve performance, safety, and efficiency.

The auto parts manufacturing sector is a critical pillar of the automotive supply chain in the United States. It ensures that vehicles meet regulatory standards, performance expectations, and consumer preferences. Beyond OEM supply, the industry also supports customization, repair, and maintenance markets, making it essential for the long-term operation of both passenger and commercial vehicles. The sector’s ability to adapt to technological shifts and regulatory changes highlights its resilience and strategic importance to the U.S. economy.

Growth Drivers for the United States Auto Parts Manufacturing Market

Rising Vehicle Production Volumes

Increasing vehicle production remains one of the primary growth drivers for the U.S. auto parts manufacturing market. After pandemic-related disruptions, domestic vehicle production has rebounded, reaching approximately 10.58 million units by mid-2025. As production volumes rise, demand for essential components such as engines, transmissions, braking systems, and electronic modules increases proportionally.

Higher plant utilization rates further support component demand, with motor vehicle and parts output showing consistent growth. Increased production scale enables auto parts manufacturers to invest in capacity expansion, advanced tooling, automation, and process optimization, strengthening their long-term competitiveness.

Expansion of Electric and Hybrid Vehicles

The rapid adoption of electric vehicles (EVs) and hybrid vehicles (HEVs and PHEVs) is reshaping the U.S. auto parts manufacturing landscape. Electrified vehicles accounted for nearly 20% of new vehicle sales in 2024, reflecting a structural shift in automotive demand. Hybrid-only vehicle sales alone grew by more than 50% in 2023, while total electrified vehicle sales represented over 16% of the market.

This transition is driving demand for EV-specific components, including battery packs, battery management systems, electric motors, inverters, power electronics, and lightweight structural materials. Government incentives, emissions regulations, and corporate sustainability goals are further accelerating the shift, compelling auto parts suppliers to realign product portfolios and invest in next-generation technologies.

Technological Advancements and Manufacturing Innovation

Technological progress is a major catalyst for growth in the U.S. auto parts manufacturing market. Advances in automation, robotics, artificial intelligence, additive manufacturing (3D printing), and advanced materials are enabling manufacturers to produce lighter, more durable, and more energy-efficient components.

Lightweight materials improve fuel efficiency and vehicle range, while automation enhances production speed, precision, and cost efficiency. The growing integration of sensors, connectivity, and advanced driver-assistance systems (ADAS) is also generating demand for new electronic and software-enabled components. These innovations allow suppliers to serve both traditional internal combustion engine (ICE) vehicles and the expanding EV and hybrid segments, strengthening their market position.

Challenges in the United States Auto Parts Manufacturing Market

Supply Chain Disruptions and Raw Material Dependence

Supply chain volatility remains one of the most significant challenges facing the U.S. auto parts manufacturing industry. Many critical raw materials—including steel, aluminum, semiconductors, and rare earth elements—are imported, exposing manufacturers to risks from trade restrictions, geopolitical tensions, and logistics disruptions.

Concerns over export controls on rare earth materials, port congestion, and shipping delays have highlighted the vulnerability of supply networks. These disruptions can increase production costs, delay deliveries, and reduce operational flexibility, making it difficult for manufacturers to maintain consistent output and profitability.

Tariff Uncertainty and Rising Cost Pressures

Uncertainty surrounding tariff policies continues to affect the U.S. auto parts manufacturing sector. Import duties on steel, aluminum, and certain automotive components raise input costs, particularly for small and mid-sized suppliers operating on thin margins. These pressures are compounded by rising labor costs, energy prices, and broader inflationary trends.

Unpredictable trade policies complicate long-term planning and capital investment decisions, potentially slowing innovation and capacity expansion. Persistent cost pressures may also strain relationships between suppliers and OEMs, impacting pricing negotiations and global competitiveness.

California Auto Parts Manufacturing Market

California’s auto parts manufacturing market benefits from the state’s strong technology ecosystem and leadership in clean transportation. As a hub for electric vehicle research and development, California drives demand for advanced batteries, sensors, power electronics, and lightweight components.

Proximity to EV manufacturers and startups focused on electrification and autonomous driving provides strategic advantages for component suppliers. Stringent environmental regulations further encourage innovation in sustainable and low-emission auto parts. Combined with a strong aftermarket for customization and performance upgrades, California remains a key center for advanced automotive manufacturing in the United States.

Texas Auto Parts Manufacturing Market

Texas is emerging as a major contributor to U.S. auto parts manufacturing due to its strong industrial base, extensive logistics infrastructure, and expanding automotive footprint. Its proximity to Mexico—a major vehicle assembly hub—supports integrated cross-border supply chains.

The state plays a significant role in the production of truck and commercial vehicle components, reflecting its large transportation and energy sectors. Growing investment in EV-related manufacturing, including battery and electronic components, further strengthens Texas’s market position. A skilled workforce and business-friendly environment continue to attract new manufacturing investments.

New York Auto Parts Manufacturing Market

New York’s auto parts manufacturing market is shaped by advanced manufacturing capabilities and strong aftermarket demand. The state specializes in precision-engineered components, electronics, and specialized parts for both conventional and electric vehicles.

Urban mobility initiatives, including public transportation electrification, create opportunities for suppliers of batteries, drivetrains, and control systems. Research institutions and industry partnerships support innovation in smart technologies and sustainable materials. A large vehicle population further sustains aftermarket demand, ensuring steady market activity.

Florida Auto Parts Manufacturing Market

Florida’s auto parts manufacturing market benefits from its strategic geographic location and strong aftermarket sector. Major ports facilitate international trade, connecting suppliers to Latin American and global markets.

High vehicle ownership rates and a large population drive demand for replacement parts, maintenance, and customization. The state is also experiencing increased demand for EV components as charging infrastructure expands. Tourism and rental vehicle fleets further boost aftermarket opportunities, making Florida a balanced market for manufacturing, trade, and replacement parts.

United States Auto Parts Manufacturing Market Segmentation

Segmentation by Type

Battery
Cooling System
Underbody Components
Automotive Filters
Others

Segmentation by End User

Original Equipment Manufacturers (OEMs)
Aftermarket

Segmentation by Vehicle Type

Passenger Cars
Light Commercial Vehicles
Heavy Commercial Vehicles
Others

Segmentation by State

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

Competitive Landscape and Key Player Analysis

The United States auto parts manufacturing market is moderately consolidated, with global and domestic players competing through innovation, scale, and strategic partnerships. Market analysis covers company overview, leadership, recent developments, SWOT analysis, and sales performance.

Key players operating in the market include Aisin Corporation, Akebono Brake Industry Co. Ltd., Brembo S.p.A., Continental AG, DENSO Corporation, Faurecia SE, General Motors Company, and Magna International Inc..