Japan Auto Parts Market Size, Share, and COVID-19 Impact Analysis, By End (OEM and Aftermarket), By distribution channel (Offline and Online), and Japan Auto Parts Market Insights, Industry Trend, Forecasts to 2035

Japan Auto Parts Market Insights Forecasts to 2035

• The Japan Auto Parts Market Size Was Estimated at USD 59 Billion in 2024
• The Market Size is Expected to Grow at a CAGR of around 2.45% from 2025 to 2035
• The Japan Auto Parts Market Size is Expected to Reach USD 77 Billion by 2035

According to a research report published by Spherical Insights & Consulting, the Japan auto parts market is anticipated to reach USD 77 billion by 2035, growing at a CAGR of 2.45% from 2025 to 2035. The market is expanding under the influence of several factors, such as growing global demand, technological progress, and the growing adoption of digitalization and automation. Demand for passenger cars and e-commerce platforms, as well as the expansion of aftermarket services, is also driving the market. 

Market Overview

The Japan auto parts market refers to designing, developing, making, and distributing motor vehicle parts for use in the domestic Japanese market (JDM). This includes original equipment manufacturer (OEM) parts and aftermarket parts, of which OEM parts are replicas of factory parts and aftermarket parts sold in individual units. The Japanese automotive components industry is a principal part of the world motor vehicle industry, highly reputed for quality manufacturing, high technology, and high integration with domestic and foreign motor vehicle production. The reach of the Japanese auto parts industry is extensive, with a high-income industrial foundation, advanced R&D strength, and world brand image for quality and reliability. It goes beyond conventional internal combustion gasoline engine parts to hybrid and electric vehicle components like batteries, inverters, and ADAS. Online shopping platforms increasingly in demand are reshaping the aftermarket to make direct-to-consumer car parts sales a possibility. Furthermore, Japan's old fleet of cars contributes to replacement parts demand, while sustainability trends create new market opportunities for sustainable and recyclable components. The government invites corporations in their supply chain, including auto parts, to adopt Corporate Social Responsibility (CSR) policies to ensure fair labour practices and environmental stewardship.  Drivers for the Japanese automobile components industry include the growth in the auto business, technology, and changing preferences among consumers.

Report Coverage

This research report categorizes the market for the Japan auto parts market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Japan auto parts market. Recent market developments and competitive strategies such as expansion, product launch, development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Japan auto parts market.

Driving Factors

The Japanese auto parts market is influenced by a mix of factors, such as the expansion of the automotive sector, technological progress, and evolving consumer tastes. In particular, the transition to electric and autonomous cars, the growing need for fuel-efficient vehicles, and the emergence of new technologies such as AI and IoT are major factors driving the market. The growth and implementation of autonomous driving technologies are driving the need for sophisticated sensors, cameras, and software components that support autonomous features. The growing connectivity of cars is propelling the demand for sensors and communication modules that facilitate remote diagnostics, real-time monitoring, and vehicle-to-vehicle communication. The growing need for sophisticated safety features in cars is propelling the demand for components that increase safety, like improved braking systems, airbags, and anti-lock braking systems. The Japanese government strongly promotes the development of new automobile technology, such as autonomous driving and EVs, which additionally pushes the market.

Restraining Factors

Several factors restrict the Japan auto parts market that are competition from a large number of suppliers can drive prices down to a point of price wars and low profit margins, particularly for small players. Disruptions in supply chains, such as those arising from geopolitical tensions, also affect the market.

Market Segmentation

The Japan auto parts market share is classified into end user and distribution channel

• The OEM segment held the largest share of the Japan auto parts market in 2024 and is anticipated to grow at a substantial pace during the forecast period.

The Japan auto parts market is segmented by end user into OEM and aftermarket.  Among these, the OEM segment held the largest share of the Japan auto parts market in 2024 and is anticipated to grow at a substantial pace during the forecast period. The OEM market is defined by a close association with the vehicle manufacturers to supply critical parts that are subject to high standards of quality and specifications. Such association guarantees constant performance and security in new vehicles, playing an important role in the total demand for auto components in the marketplace. Since Japan is renowned for its automotive industry, the OEM market is essential, catering to both local and foreign manufacturers by the pace with technological developments.

• The offline segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The Japan auto parts market is segmented by distribution channel into offline and online.  Among these, the offline segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period. This is due to the offline channel remaining a solid channel, based on established relationships with car spare parts dealerships and repair centres in Japan. The channel enjoys trust built upon personal contact and the timely readiness of products for customers.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Japan auto parts market, along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborate analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Hitachi Astemo
• Denso Corporation
• Keihin
• Aisin Seiki Co., Ltd.,
• Yazaki
• Panasonic Corporation
• Mitsubishi Electric
• Sumitomo Electric
• NGK Spark Plug Co., Ltd.
• Others

Recent Developments:

In December 2024, Hitachi Astemo Aftermarket Germany GmbH is pleased to announce a new partnership with Gulf Worldwide Distribution FZE (hereafter GWD), one of the largest authorized distributors of automotive and industrial products in the United Arab Emirates (UAE).

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at the Japan, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the Japan auto parts market based on the below-mentioned segments:

Japan Auto Parts Market, By End User

• OEM
• Aftermarket

Japan Auto Parts Market, By Distribution Channel

• Offline
• Online