Cruise control: The strengthening US auto sector will fuel industry exports

Over the five years to 2018, the Auto Parts Manufacturing industry in Canada is expected strongly expand. The industry relies heavily on automakers; therefore, fluctuating demand for automobiles leads to changes in demand for industry products. The greater demand is for automobiles, the more automakers will need to order from upstream suppliers such as auto parts manufacturers. Strong automotive sales, both domestically and in the United States, boosted demand from automakers. Over the five years to 2023, revenue for domestic auto parts manufacturers is forecast to grow gradually. While the strong growth in automotive sales is expected to subside, manufacturing activity is anticipated to remain strong...read more.

Industry Statistics & Market Size
Revenue
$9bn
Annual Growth 13-18
8.8%
Forecast Growth 18-23
Profit
Employment
13,161
Businesses
331

Industry Threats & Opportunities

  • Persistently high automotive production in North America has driven overall growth
  • A greater manufacturing presence is anticipated to result in import growth
  • Domestic standards follow suit as domestic emission standards get stricter
  • Industry Report - Industry Products Chapter

    Companies in this industry manufacture and rebuild a wide variety of motor vehicle parts and accessories. These parts include airbags, air conditioners, catalytic converters, engine exhaust systems, mufflers and resonators, radiators, radiator cores and wheels. Furthermore, these products are primarily used in new motor vehicle production.Exhaust systems and radiatorsVehicle exhaust systems and radiators are some of the more mechanically integral parts manufactured by the industry and account for an expected 22.5% of revenue. Exhaust systems guide harmful gas byproducts of fuel combustion out of an engine; nitric oxide (NO), carbon monoxide (CO) and particulate matter (PM) are the primary target gases. Dep...purchase to read more.

    Additional Insights for the Auto Parts Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Auto Parts Manufacturing Industry are

  • Access to the latest available and most efficient technology and techniques
  • Effective cost controls
  • Undertaking technical research and development
  • IBISWorld analysts also discuss how external factors such as New vehicle sales and Canadian-dollar effective exchange rate index in the Auto Parts Manufacturing industry impact industry performance..

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    What's in this report

    What is the Auto Parts Manufacturing Industry?

    Companies in this industry manufacture and rebuild a wide variety of motor vehicle parts and accessories. These parts include air bags, air conditioners, catalytic converters, engine exhaust systems, mufflers and resonators, radiators, radiator cores and wheels.

    Industry Products
  • Air-conditioning systems
  • Fuel tanks and filters
  • Exhaust systems
  • Wheels
  • Air bags
  • Automobile body parts
  • Other auto parts
  • Industry Activities
  • Manufacturing motor vehicle air conditioners
  • Manufacturing motor vehicle air bag assemblies
  • Manufacturing catalytic converters and engine exhaust
  • Manufacturing mufflers and resonators
  • Manufacturing radiators and cores
  • Manufacturing wheels (rims)
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • New vehicle sales
  • Canadian-dollar effective exchange rate index
  • Consumer Confidence Index
  • World price of crude oil

  • Current Performance
  • Chart: Revenue Growth

  • Industry Outlook
  • Regulation and innovation
  • International trade
  • Table: Auto Parts Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Auto Parts Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Car & Automobile Manufacturing in Canada
  • SUV & Light Truck Manufacturing in Canada
  • Truck & Bus Manufacturing in Canada
  • Auto Parts Wholesaling in Canada

  • Key Selling Industries
  • Aluminum Manufacturing in Canada
  • Inorganic Chemical Manufacturing in Canada
  • Iron & Steel Manufacturing in Canada
  • Paint Manufacturing in Canada
  • Screw, Nut & Bolt Manufacturing in Canada
  • Textile Mills in Canada

  • Products & Services
  • Other auto parts
  • Exhaust systems
  • Air-conditioning systems
  • Fuel tanks and filters
  • Wheels
  • Air bags
  • Automobile body parts
  • Chart: Auto Parts Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports
  • General Motors
  • Toyota
  • FCA
  • Honda
  • Ford
  • Other parts manufacturers
  • Aftermarket
  • Chart: Major Market Segmentation for the Auto Parts Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciation and other expenses
  • Chart: Cost Structure Benchmarking – Sector vs Auto Parts Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Auto Parts Manufacturing Industry

  • Industry Globalization
    Magna International Inc., Denso Corp.,
  • Table: Magna International Inc. - financial performance
  • Table: Denso Corp. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Auto Parts Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Auto Parts Manufacturing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • New Vehicle Sales (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Big Three
  • Another name for the top US automotive companies, which are General Motors, Ford and Chrysler.
  • Original Equipment Manufacturer (Oem)
  • A company that manufactures products or components that are purchased by a company and retailed under the purchasing company's brand name.
  • Scrappage Rates
  • The rate at which used vehicles are retired from active use.
  • Tier 1 Manufacturer
  • These are the manufacturers that supply directly to automaker OEMs. This is opposed to Tier 2 and Tier 3 companies that supply to Tier 1.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Auto Parts Manufacturing market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Auto Parts Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Auto Parts Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Auto Parts Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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