The Europe automotive parts packaging market accounted for US$ 698.4 Mn in 2018 and is expected to grow at a CAGR of 3.8% over the forecast period 2019-2027, to account for US$ 968.7 Mn in 2027. The increase in vehicle production in Europe and the increase in the sales of aftermarket automotive parts are propelling the growth of the automotive parts packaging market. Moreover, the growth in the electric vehicle market is expected to boost the automotive parts packaging market growth in the forecast period. The aftermarket or replacement market plays a vital role in automotive parts packaging market. With the increasing awareness of preventive maintenance as well as scheduled servicing of vehicles, consumers today are focusing on maximizing the lifespan value of their existing vehicles. This has significantly bolstered the growth of aftermarket parts and service demands globally. Also, the buying behavior of consumers has generated new revenue opportunities for a large number of players operating in the automotive aftermarket industry. Moreover, the increasing spending capacity of people to pay for comfort and luxury is propelling the demand for Head-Up Displays, better audio and video system, lights, comfortable seats, and decorative interiors and exteriors among others. Further, the need for replacement of vehicle tires due to safety reasons in the coming years is bolstering the aftermarket growth. The overall increase in the sales of aftermarket automotive parts is bolstering the automotive parts packaging market growth. The automotive parts packaging market players are focusing on various initiatives to enhance their capabilities and boost its position in the market.
The automotive parts packaging market is fragmented in nature due to the presence of several industries, and the competitive dynamics in the market is expected to change during the upcoming years. In addition to this, various initiatives are undertaken by the governmental bodies to accelerate the automotive parts packaging market further. For instance, the automotive industry plays a significant role in the growth of Europe's prosperity, as this industry accounts for a major portion in the region's GDP and also offers job opportunities for a large number of population. Due to these factors, the European Commission has taken several initiatives for the development of the automotive industry. For example, CARS 2020 Action Plan, GEAR 2030, etc. Also, Horizon 2020 by EU focuses on providing funds for R&D on automotive by launching programs such as European Green Vehicles Initiative and programs on 'Road Transport,' 'ICT for Smart Mobility,' 'Factories of the Future' and 'Logistics.' This is anticipated to influence the automotive parts packaging market during the forecast period. These initiative provide various benefits to the automotive parts packaging based companies located in the region, thus, increasing the growth of the automotive parts packaging market.
On the basis of packaging type, the reusable segment is leading the automotive parts packaging market and is expected to continue its dominance during the forecast period. Reusable packaging, commonly known as returnable packaging is packaging materials that are capable of being reused in the manufacturing & distribution cycle. It involves materials like crates, racks, and pallets. Generally, the reusable packaging is used by automotive manufacturers for the shipment of body parts particularly, between component suppliers and assembly plants. The returnable packaging materials offer several benefits such as reduced carbon footprint & packaging waste, rigid packaging material resulting in enhanced protection of parts from damage, moisture, as well as other contaminants throughout the shipment process, and better inventory control due to tracking of the package.
The overall automotive parts packaging market size has been derived using both primary and secondary source. The research process begins with exhaustive secondary research using internal and external sources to obtain qualitative and quantitative information related to the automotive parts packaging market. It also provides an overview and forecast for the automotive parts packaging market based on all the segmentation provided for the Europe region. Also, primary interviews were conducted with industry participants and commentators to validate data and analysis. The participants who typically take part in such a process include industry expert such as VPs, business development managers, market intelligence managers, and national sales managers, and external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the automotive parts packaging market. Some of the players present in automotive parts packaging market are DS Smith Plc, Encase Ltd., The Nefab Group, Sealed Air Corp., Smurfit Kappa, Sonoco Products Co., Mondi Group, Schoeller Allibert, Ckdpack Packaging Inc. and Signode Packaging Systems among others.