Outlook for the automotive parts industry in 2025
Electrification, intelligence and globalization drive new opportunities
As the global automotive industry accelerates its transformation, the popularity of new energy vehicles and intelligent technologies is profoundly reshaping the auto parts market. As the core link of the automotive industry chain, the auto parts industry is experiencing structural changes driven by technological innovation, market demand and policy guidance. This article combines authoritative industry reports with market trends to analyze the five major trends in the future development of auto parts and provide forward-looking insights for dealers and consumers.
1. Under the wave of electrification, core component technology has ushered in a breakthrough
- Solid-state batteries lead the energy revolution
In 2025, solid-state battery technology will enter the commercial mass production stage. Compared with traditional lithium-ion batteries, its energy density is increased to 300-400Wh/kg, and the cruising range exceeds 1,000 kilometers. At the same time, the solid electrolyte solves the flammability problem and significantly improves safety. Toyota, Qingtao Energy and other companies are expected to achieve mass production in 2025-2028, and the cost is expected to drop to below US$100/kWh, promoting the expansion of the new energy vehicle accessories market.
- Efficiency and integration of electric drive systems
The power density of the motor is increased to 5-6kW/kg, the overall efficiency exceeds 95%, and the manufacturing cost is reduced through modular design. GAC Aion and other automakers are accelerating the research and development of intelligent electronic control systems, promoting the transformation of accessory companies to the layout of the entire industrial chain of "three electrics" (batteries, motors, and electronic controls)
2. Intelligence and networking give rise to demand for high value-added accessories
- Smart driving accessories become a growth engine
The demand for sensors such as lidar, cameras, and millimeter-wave radar has surged, driving the market size of related accessories to grow by more than 20% annually. The entry of technology companies such as Xiaomi and Huawei has promoted the penetration rate of smart cockpits (such as in-vehicle infotainment systems and voice interaction modules). It is estimated that in 2025, the proportion of smart driving accessories in the cost of the whole vehicle will reach 30%.
- Internet of Vehicles and OTA upgrades drive software-defined cars
The proportion of software in the automotive value chain has jumped from 6% in 2020 to 25% in 2030. Accessories companies need to strengthen the coordination of software and hardware, such as implementing functional iterations through OTA (over-the-air upgrades) technology to meet user personalized needs
3. Lightweight and environmentally friendly materials reshape accessory manufacturing standards
- Accelerating the application of new materials
The penetration rate of aluminum alloy, carbon fiber and high-strength engineering plastics has increased, helping to reduce the weight of the whole vehicle by 10%-15% and reduce energy consumption. For example, lightweight technology for chassis and body structural parts has become the key to differentiated competition among automakers.
- Sustainable production and circular economy
The "dual carbon" policy of the EU and China promotes the transformation of the accessories industry to green manufacturing. Degradable materials, recycled plastics and battery recycling technologies (such as the closed-loop recycling of lithium-ion batteries in CATL) have become the core of the company's ESG strategy. It is estimated that the market size of environmentally friendly materials will exceed 500 billion yuan in 2030
4. Global competition and industrial chain integration intensify
- Modular supply and system integration capabilities are key
Original equipment manufacturers have shifted from single-part procurement to modular procurement (such as Bosch's intelligent driving domain controller), requiring suppliers to have system development and integration capabilities. Chinese leading companies such as CATL and Guoxuan High-tech have accelerated their entry into the European and American supply chain system through technical cooperation and overseas factory establishment.
- After-sales market digitalization and service upgrades
In 2025, the global automotive aftermarket is expected to exceed US$1.5 trillion, and China will have more than 200 million vehicles out of warranty. Parts dealers use e-commerce platforms (such as Alibaba International Station and Auto Parts Cloud) to achieve inventory sharing and precision marketing, while providing value-added services such as online diagnosis and one-click installation to increase customer stickiness.
5. Industry Challenges and Response Strategies
- Technical barriers and capital investment
high-end chips and precision sensors still rely on imports, and companies need to increase R&D investment and work with universities and research institutions to break through "bottleneck" technologies.
- Price competition and compliance risks:
In the context of global procurement, companies need to reduce costs and increase efficiency through lean production (such as Toyota's TPS model), while adapting to international standards such as the EU Battery Regulation to avoid trade barriers.
In 2025, the auto parts industry will see a reshuffle amid technological iteration and market differentiation. Dealers need to keep up with the trend of electrification and intelligence, optimize product structure, and strengthen digital service capabilities to cope with global competition. In the future, companies with technological leadership and sustainable supply chains will become market leaders.
