United States Auto Parts Manufacturing Market Report by Type, End User, Vehicle Type, States and Company Analysis 2025-2033

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

United States Auto Parts Manufacturing Market is expected to reach US$ 754.5 billion by 2033 from US$ 647.15 billion in 2024, with a CAGR of 1.72% from 2025 to 2033. As a result of increased vehicle production, the growing demand for electric and hybrid components, aftermarket expansion, technological advancements, and more stringent regulations, the U.S. auto parts manufacturing market is expanding steadily across OEM supply chains and replacement parts industries across the country.

United States Auto Parts Manufacturing Industry Overview

Manufacturing auto parts include creating the parts that go into cars for both original equipment manufacturers (OEMs) and the aftermarket. Engines, transmissions, braking and suspension systems, electrical systems, interiors, and body parts are all manufactured in this industry. It enhances performance, safety, and efficiency by fusing cutting-edge technologies like robotics, 3D printing, and new materials with conventional machining and assembly. The production of auto parts is essential to the automotive supply chain since it guarantees that automobiles satisfy customer demands and legal requirements. The sector serves the markets for customisation and repair as well, making it a vital component of global auto manufacturing and long-term maintenance.

By providing OEMs and the aftermarket with necessary components, the US auto parts manufacturing market is a key contributor to the automobile industry. The demand for vehicles is growing, especially for electric and hybrid versions that need sophisticated electronics, battery systems, and lightweight materials. Automation and additive manufacturing are two examples of technological innovation that is increasing production efficiency and product quality. Additionally, the aftermarket's growth for upkeep and personalization is creating new options. Safety and pollution regulations also promote innovation in the design of parts. All things considered, the market exhibits robust flexibility and steady demand for both consumer and business automobiles.

Growth Drivers for the United States Auto Parts Manufacturing Market

Rising Vehicle Production

The volume of vehicles produced is one of the main factors propelling the US auto parts manufacturing market's expansion. U.S. car production has started increasing after declines during the pandemic interruption; in July 2025, it was around 10.58 million units. The need for parts, such as engines, transmissions, and electronics, increases proportionately with increased production quantities. To meet rising production requirements, auto OEMs want dependable component suppliers. Additionally, growing plant utilization (motor vehicle and parts output rose by 2.6% in August 2025) supports component orders. Production growth creates scale, which allows parts suppliers to invest in newer technologies, increased capacity, and better tooling.

Electric & Hybrid Vehicle Expansion

The growing popularity of electric (EV) and hybrid (HEV/PHEV) vehicles is another significant factor. EVs and hybrids accounted for almost 20% of new automobile and light truck sales in the United States in 2024, indicating a dramatic change in demand trends. For instance, sales of hybrid-only cars increased by almost 53% in 2023, reaching almost 1.2 million units, while sales of light-duty vehicles that included all three types of electrified vehicles (HEV, PHEV, and BEV) accounted for roughly 16.3% of total sales. This change forces automakers to develop and create EV-specific parts, such as battery modules, electric motors, and power electronics, and to modify supply chains appropriately. This expansion is also fueled by the growing regulations and incentive programs that favor greener automobiles.

Technological Advancements

One of the main factors propelling the American car parts industry forward is technological advancement. Manufacturers can now create parts that are lighter, more dependable, and more efficient thanks to developments in materials, automation, additive manufacturing (3D printing), and digitization. For instance, the drive for lighter materials increases energy efficiency; automation and robotics increase production speed while lowering waste and increasing precision. Additionally, new component types are required due to the expansion of sensor and connectivity technologies (for ADAS, battery management, etc.). Parts manufacturers may now cater to both the established ICE vehicle market and the developing EV/HEV market thanks to the convergence of these advances. Suppliers have a competitive advantage in terms of quality, performance, and cost-effectiveness because to this technology-driven differentiation.

Challenges in the United States Auto Parts Manufacturing Market

Disruptions to the Supply Chain and Reliance on Raw Materials

One of the biggest problems facing the US car parts manufacturing industry is supply chain instability. A large portion of the raw materials used by manufacturers, including steel, aluminum, semiconductors, and rare earths, are imported. Any interruption, whether brought on by trade prohibitions, shipping delays, or geopolitical conflicts, can dramatically reduce output and raise expenses. The vulnerability of U.S. providers is exemplified by recent worries about Chinese curbs on rare earth exports. Complexity is increased by port congestion and erratic freight services. In addition to affecting supply schedules, these dependencies also limit flexibility, which makes it more difficult for manufacturers to sustain steady output and profitability.

Tariff Uncertainty and Cost Pressures

The US car parts manufacturing sector is facing uncertainty and increased prices as a result of tariff policy. Import taxes on steel, aluminum, and some car parts immediately increase suppliers' input costs, especially for smaller businesses with narrow profit margins. In addition to growing labor, energy prices, and inflationary pressures, manufacturers must strike a balance between profitability and automakers' needs for competitive pricing. Long-term planning and investment decisions are made more difficult by the unpredictability of trade policy, such as shifting tariffs and renegotiated trade agreements. In the end, these financial costs may affect the competitiveness of the U.S. auto parts industry in the global market by impeding innovation, discouraging growth, and straining supplier-OEM relationships.

California Auto Parts Manufacturing Market

California's robust technology ecosystem and focus on clean transportation are driving the state's car parts manufacturing market. The demand for sophisticated batteries, sensors, and lightweight components is being driven by the state's role as a center for electric vehicle (EV) research. Being close to EV leaders like Tesla and a plethora of startups devoted to electrification and autonomous driving is advantageous for manufacturers. The production of environmentally friendly auto parts is further accelerated by California's strict environmental rules. The industry is also supported by a burgeoning aftermarket for performance enhancements and customisation. California continues to be a leader in the development of car parts thanks to its robust R&D, investments in green technologies, and integration of sophisticated manufacturing.

Texas Auto Parts Manufacturing Market

Texas is becoming a major force in the market for auto parts manufacture thanks to its strong industrial base, well-established logistical system, and expanding automotive footprint. Being close to Mexico, a significant automobile assembly hub, helps the state by strengthening cross-border supply chains. In keeping with its sizable transportation and energy sectors, Texas also supports the production of truck and commercial vehicle parts. Further supporting the market is rising investment in EV-related manufacturing, such as battery factories and electronic components. With its highly qualified workforce, welcoming business environment, and growing aftermarket demand, Texas is establishing itself as a major player in the expansion of the auto parts manufacturing industry in the United States.

New York Auto Parts Manufacturing Market

The advanced manufacturing industry and robust aftermarket demand in New York define the state's car parts manufacturing market. The state serves as a center for electronics, precision-engineered parts, and specialized parts for both conventional and electric automobiles. Opportunities for suppliers of batteries, drivetrains, and control systems are created by urban mobility programs, such as the electrification of public transportation. Additionally, New York fosters innovation through collaborations and research institutes that concentrate on smart technology and sustainable materials. Together with a sizable population and car population that fuel aftermarket sales, the state's diverse economy guarantees steady demand for the production and delivery of high-quality auto parts.

Florida Auto Parts Manufacturing Market

Florida's advantageous geographic position and booming aftermarket sector have an impact on the state's car parts manufacturing economy. By connecting suppliers to Latin America and international markets, the state's ports facilitate international trade in car parts. The demand for replacement parts, customisation, and maintenance services is driven by Florida's sizable population and high rates of car ownership. With the help of clean mobility programs and the development of charging infrastructure, the state is also witnessing an increase in demand in EV components. Strong tourism and service-based economies increase aftermarket prospects by driving up demand for fleet and rental car repair. In its car parts industry, Florida thus strikes a balance between manufacture, commerce, and aftermarket demand.

United States Auto Parts Manufacturing Market Segments:

Type

• Battery
• Cooling System
• Underbody Component
• Automotive Filter
• Others

End User

• OEMs
• Aftermarket

Vehicle Type

• Passenger Cars
• Light Commercial Vehicles
• Heavy Commercial Vehicles
• Others

States-Market breakup in 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

All companies have been covered from 5 viewpoints:

• Company Overview
• Key Persons
• Recent Development & Strategies
• SWOT Analysis
• Sales Analysis

Key Players Analysis

• Aisin Corporation
• Akebono Brake Industry Co. Ltd.
• Brembo S.p.A.
• Continental AG
• DENSO Corporation
• Faurecia SE
• General Motors Company
• Magna International Inc.