Market Overview
The Global Automotive Parts Packaging Market is expected to reach a value of
USD 9.4 billion in 2023, and it is further anticipated to reach a market value of
USD 14.0 billion by 2032 at a
CAGR of 4.5%.
Packaging includes methods to enclose & protect products during storage & transport. Further, materials like molded pulp, foam, plastic, corrugated, & void fill are used. Returnable packaging is used for shipping components, while disposable packaging is also common. Multiple layers in the packaging protect against corrosion, moisture, & scratches, securing the safety of vehicle parts. Moreover, packaging serves the dual purpose of safeguarding & promoting goods to consumers.
Key Takeaways
• By Packaging, Disposable packaging leads in 2023 & is anticipated to dominate throughout the forecasted period.
• In addition, Reusable packaging is expected to have significant growth over the forecasted period.
• By Component, Electric components takes the lead & drives the market in 2023.
• Asia Pacific has a 46.4% share of revenue in the Global Automotive Parts Packaging Market in 2023.
Market Dynamic
The automotive parts packaging market is experiencing growth in demand, driven by the global population's rapid growth & urbanization, as the increased production & packaging of heavy components like cooling systems & engine parts highly contribute to market expansion in the forecast period.
Further, the consumer preferences for bio-based packaging materials, driven by environmental concerns, along with the rise in integration of electronic & electrical equipment in automobiles, are anticipated to drive market growth substantially. Also, the adoption of reusable packaging & the packaging of heavy components have generated significant demand for protective packaging, further boosting the automotive parts packaging market during the forecast period.
However, fluctuating demand from automotive & spare parts manufacturers may restrain market growth, along with concerns about the large volume of waste produced by protective packaging posing potential challenges to market expansion.
Research Scope and Analysis
By Packaging
The major market share in automotive parts packaging belongs to disposable packaging in 2023, mainly comprising single-use options designed for recycling or proper disposal once a vehicle part fulfills its intended purpose. These packaging solutions focus on the importance of integrating a routine material disposal procedure into the entire production & packaging lifecycle.
Further, there has been a growth in the advancement of returnable packaging alternatives customized for reuse within manufacturing & distribution systems, which eliminates the necessity for constantly purchasing disposable packaging, reducing the environmental impact associated with landfill disposal or recycling. The switch towards returnable packaging not only aligns with sustainable practices but also addresses the growing need for effective, eco-friendly solutions in the automotive parts packaging sector.
By Product
In 2023, the Global Automotive Parts Packaging Market sees the Protective Packaging segment taking the lead in terms of product type, which is attributed to the increasing complexity of supply networks & the expanding transportation of goods, increase in the risk of damage or spoilage. Further, it addresses these challenges by providing features like cushioning, shock absorption, temperature regulation, & moisture resistance.
These protective qualities play a vital role in reducing the potential dangers associated with the complicated journey of automotive parts. As supply chains become more complex & goods traverse longer distances, the importance of protective packaging becomes noticeable, ensuring the preservation & safe delivery of automotive components by minimizing the risks posed by various environmental factors & handling conditions.
By Component
The Global Automotive Parts Packaging Market is categorized by component into Electrical Components, Automotive Filter, Battery, Cooling Systems, and Others. Among these, the Electrical Components segment leads the market in 2023, which is highlighted by the rise in consumer demand for electrical & electronic equipment used in the automotive sector, along with growing concerns regarding the safety & quality of such components.
Further, modern vehicles integrate advanced electronic systems, there is a growing emphasis on packaging solutions to ensure the secure transportation of electrical components. Also, growth in the need for electric vehicles & the proliferation of advanced automotive technologies contribute to the prominence of the Electrical Components segment, signifying a market trend aligning with the changing landscape of the automotive industry.
The Automotive Parts Packaging Market Report is segmented on the basis of the following:
By Packaging
• Reusable
• Disposable
By Product
• Crates
• Pallets
• Bags & Pouches
• Bulk Containers & Cases
• Folding Carton
• Trays
• Corrugated Products
• Protective Packaging
By Component
• Electrical Components
• Automotive Filter
• Battery
• Cooling System
• Others
Regional Analysis
Asia Pacific region dominates the automotive parts packaging market, claiming a significant 46.4% share in 2023, and is expected to persist throughout the forecast period. Further, China stands out as the leading & rapidly growing automotive industry globally, providing a lucrative opportunity for global packaging leaders to venture into the Chinese market with advanced packaging solutions. Further, established packaging providers in the region provide affordable solutions, global leaders have the potential to leverage their expertise for a competitive edge.
Moreover, in China, a noteworthy aspect is the comparatively less investment in R&D by packaging companies in comparison to North America & Europe. Also, the competition in China's packaging sector addresses traditional packaging products rather than cutting-edge solutions. Furthermore, advancements in material science have led to the development of affordable biodegradable plastics, revolutionizing disposable packaging for automotive parts. The automotive industry's growing inclination towards disposable packaging, driven by its advantages over reusable alternatives, provides enticing global opportunities in the automotive parts packaging market.
By Region
North America
• The U.S.
• Canada
Europe
• Germany
• The U.K.
• France
• Italy
• Russia
• Spain
• Benelux
• Nordic
• Rest of Europe
Asia-Pacific
• China
• Japan
• South Korea
• India
• ANZ
• ASEAN
• Rest of Asia-Pacific
Latin America
• Brazil
• Mexico
• Argentina
• Colombia
• Rest of Latin America
Middle East & Africa
• Saudi Arabia
• UAE
• South Africa
• Israel
• Egypt
• Rest of MEA
Competitive Landscape
The global automotive parts packaging market experiences intense competition as companies compete for market share., with a major focus on innovation, sustainable practices, & affordability to gain a competitive edge. Packaging solutions that meet to changing industry trends, like e-commerce growth & environmental concerns, are major. Further strategic partnerships & technological developments contribute to the dynamic competitive landscape, shaping the industry's future trajectory.
In February 2022, Smurfit Kappa made a significant investment in its new Design2Market Factory, which facilitates quick & smooth progress from designing a package to launching it in the market. Further, the company's significant financial commitment highlights its dedication to effectively bringing new products from the drawing board to the consumer market.
Some of the prominent players in the global Automotive Parts Packaging Market are:
• Nefab AB
• Mondi Plc
• Knauf Industries
• Smurfit Kappa Group
• WestRock Company
• Sonoco Products
• DS Smith
• Signode India
• Schoeller Allibert Services
• Sealed Air Corp
• Other Key Players
COVID-19 Pandemic & Recession: Impact on the Global Automotive Parts Packaging Market:
The COVID-19 pandemic & the following economic recession have highly impacted the global automotive parts packaging market. Further, the interruption in supply chains, manufacturing slowdowns, & reduced consumer demand for vehicles has led to a growing effect on the packaging sector. Automotive parts packaging manufacturers faced challenges like material shortages, labor force disruptions, & logistical complexities, impacting their production capabilities.
In addition, the recessionary environment allowed cost-conscious measures across industries, influencing packaging preferences & purchasing decisions. Also, firms in the automotive parts packaging market adapted by aiming at resilience, affordability, and sustainable practices. E-commerce growth, driven by a pandemic-induced switch in consumer behavior, further influenced packaging strategies. The industry's recovery depends on flexibility, innovation, & the ability to align with changing market dynamics in the middle of uncertainties.
Recent Development
• In March 2023, Pregis introduced its AirSpeed Ascent air cushioning system in Europe. Using patented square-designed hybrid cushioning (HC) developed with high-pressure air improves shock absorption for enhanced product protection. Further, the AirSpeed HC Renew film meets Circular Economy Flexible Packaging standards, having over 30% recycled material. Also, the compact design conserves space and its 30 minutes per second speed benefits users.
• In November 2022, Onsemi introduced a new line of MOSFET devices with innovative top-side cooling, particularly designed for challenging automotive applications like motor control & DC/DC conversion, these devices were highlighted at Electronica, the premier electronics trade show. Further, the Automotive Power Solutions at Onsemi, solving cooling challenges is critical for reducing size & weight in modern car design, offering an efficient & compact solution.
• In August 2022, ORBIS Corporation, a global leader in reusable packaging, showcased solutions for the battery supply chain & electric vehicles at the North American Battery Show, including protective dunnage, hand-held containers, bulk containers, & metal racks. These options focus on enhancing sustainability, efficiency, and affordability in the automotive supply chain, addressing challenges expected by the complexities of Li-ion batteries in electric vehicles.
Report Characteristics |
Market Size (2023) |
USD 9.4 Bn |
Forecast Value (2032) |
USD 14.0 Bn |
CAGR (2023-2032) |
4.5% |
Historical Data |
2017 - 2022 |
Forecast Data |
2023 - 2032 |
Base Year |
2022 |
Estimate Year |
2023 |
Report Coverage |
Market Revenue Estimation, Market Dynamics, Competitive Landscape, Growth Factors and etc. |
Segments Covered |
By Packaging (Reusable and Disposable), By Product
(Crates, Pallets, Bags & Pouches, Bulk Containers &
Cases, Folding Carton, Trays, Corrugated Products,
and Protective Packaging), By Component (Electrical
Components, Automotive Filter, Battery, Cooling
System, and Others) |
Regional Coverage |
North America – The US and Canada; Europe – Germany, The UK, France, Russia, Spain, Italy, Benelux, Nordic, & Rest of Europe; Asia- Pacific– China, Japan, South Korea, India, ANZ, ASEAN, Rest of APAC; Latin America – Brazil, Mexico, Argentina, Colombia, Rest of Latin America; Middle East & Africa – Saudi Arabia, UAE, South Africa, Turkey, Egypt, Israel, & Rest of MEA
|
Prominent Players |
Nefab AB, Mondi Plc, Knauf Industries, Smurfit Kappa
Group, WestRock Company, Sonoco Products, DS
Smith, Signode India, Schoeller Allibert Services,
Sealed Air Corp, and Other Key Players |
Purchase Options |
We have three licenses to opt for: Single User License (Limited to 1 user), Multi-User License (Up to 5 Users), and Corporate Use License (Unlimited User) along with free report customization equivalent to 0 analyst working days, 3 analysts working days and 5 analysts working days respectively. |
Frequently Asked Questions
The Global Automotive Parts Packaging Market size is estimated to have a value of USD 9.4 billion in
2023 and is expected to reach USD 14.0 billion by the end of 2032.
Asia Pacific has the largest market share for the Global Automotive Parts Packaging Market with a share
of about 46.4% in 2023.
Some of the major key players in the Global Automotive Parts Packaging Market are Nefab AB, Mondi
Plc, Knauf Industries, and many others.
The market is growing at a CAGR of 4.5 percent over the forecasted period.