North America Automotive Parts Packaging Market to 2027 - Regional Analysis and Forecasts by Product Type (Pallets, Crates, Cartons, Bags & Pouches, Trays, and Others); Packaging Type (Reusable and Disposable); and Component (Battery, Cooling Systems, Lighting Components, Engine Components, Electricals, and Others)
The North America automotive parts packaging market accounted for US$ 414.7 Mn in 2018 and is expected to grow at a CAGR of 2.8% over the forecast period 2019-2027, to account for US$ 531.2 Mn in 2027. The rising demand for aftermarket automotive parts is the key driver that is propelling the growth of the automotive parts packaging market. Moreover, the increase in the adoption of electric vehicles is expected to boost the automotive parts packaging market growth in the forecast period. The automotive industry has experienced the emergence of several new carmakers over the years. The automotive giants are always eyeballing on electric vehicle manufacturing as the section has attracted several customers globally. Major players catalyzing the market for electric vehicles worldwide include Tesla, BMW, Nissan, Ford, and Volkswagen, among others. As per the International Energy Agency, the global fleet of electric vehicles grew to 3.1 Mn in 2017, marking a 54% growth over the last year. The electrification of automobiles is ushering the automotive industry and the industries associated with it to a greater extent. With the rising electric vehicle production, the requirement for a large and diversified number automotive parts and components is increasing. The US is witnessing the adoption of electric vehicles, and the growth is soaring at a rapid rate year on year. 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 federal government offers grants for prioritizing CAV technologies and provides opportunities by collaborating with National Laboratories. The DOE allocated millions of dollars for its Transportation as a System (TAS) Initiative in 2017. Also, DOE created Energy Efficient Mobility Systems (EEMS) subprogram for the development of CAV technology.
Further, the Connected Vehicle Pilot Deployment Program is bolstering the growth of the connected vehicles in the country; this is anticipated to influence the market for automotive parts packaging 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.
Based on product type, the Crates segment is leading the automotive parts packaging market and is expected to continue its dominance during the forecast period. Similar to pallets, even crates can be of different materials including, wood, plastic, and metal, among others. Generally, crates are used for shipping heavy items. Specified crates can be designed for specified products and are often made to be reused. Wooden and plastic crates are preferred material for shipping automotive parts. However, the wooden crate is the most preferred in the shipping industry. They are low-priced and easy to repair. Also, they are made of interchangeable and recyclable material; thus, they can be remade, resold, or repurposed. Plastic crates are considerably expensive in comparison to wooden crates and do require a far more complicated process to replace. However, the longer shelf life and easy to reuse factor is bolstering their demand.
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 North America 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, JIT Packaging, The Nefab Group, Pacific Packaging Products Inc., Pratt Industries, Inc., Sealed Air Corp., Smurfit Kappa, Sonoco Products Co., Ckdpack Packaging Inc., and Signode Packaging Systems among others.
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