Japan Auto Parts Market Research Report By End-User (OEM, Aftermarket) and By Distribution Channel (Offline, Online) - Forecast to 2035

Japan Auto Parts Market Overview:

As per MRFR analysis, the Japan Auto Parts Market Size was estimated at 52.57 (USD Billion) in 2023. The Japan Auto Parts Market Industry is expected to grow from 60 (USD Billion) in 2024 to 80 (USD Billion) by 2035. The Japan Auto Parts Market CAGR (growth rate) is expected to be around 2.65% during the forecast period (2025 - 2035).

Key Japan Auto Parts Market Trends Highlighted

The Japan Auto Parts Market is experiencing significant shifts driven by various factors. One key market driver is the increase in vehicle electrification, as more manufacturers are focusing on electric vehicles (EVs) to meet government regulations and consumer demand for sustainable options. With Japan aiming to become a leader in EV technology, including strong support for research and development from the Ministry of the Environment, this trend is expected to grow. Simultaneously, there is a rise in the demand for lightweight materials that enhance fuel efficiency as manufacturers strive to meet the Japanese government's energy conservation targets.

The expansion of smart technology and connectivity enhances vehicle functionality and presents new opportunities within the Japan auto parts market. There is a greater need for the implementation of IoT devices in automotive parts, which expands the market further. The advancement of smart auto parts that enhance vehicle performance and safety is being developed by Japanese companies for innovative consumers. Recent trends point towards the embrace of sustainability and circular economy approaches by auto parts manufacturers. A number of companies aim to adopt lower waste and higher recyclability measures in their production processes, which aligns with Japan’s commitment to a greener environment.

Additionally, collaborations between auto parts suppliers and tech firms are on the rise, driven by the need for enhanced vehicle automation and safety features. This merging of traditional manufacturing with cutting-edge technology illustrates Japan’s unique position in leading the global auto parts market while addressing contemporary challenges and consumer preferences.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Japan Auto Parts Market Drivers

Rising Demand for Electric Vehicles

The push towards sustainable transportation is significantly driving the Japan Auto Parts Market Industry, especially with the rising demand for electric vehicles (EVs). According to the Ministry of the Environment, Japan's government aims to have EVs comprise 100% of new vehicle sales by 2035. As of 2021, Japan accounted for approximately 15% of global EV sales, reflecting a steady increase year-on-year. This commitment has led to enhanced Research and Development (Research) initiatives among major automotive manufacturers such as Toyota Motor Corporation and Nissan Motor Corporation, which are introducing innovative EV models and associated auto parts to accommodate this electrification shift.

By focusing on EV technologies, the Japan Auto Parts Market Industry is expected to experience robust growth as suppliers adapt to supply chains focusing on battery systems, electric drivetrains, and charging infrastructure components.

Government Support for Advanced Manufacturing

Japan's government has been actively promoting advanced manufacturing technologies through the Society 5.0 initiative, which aims to integrate cyberspace with physical systems. Investment in this area is expected to exceed USD 35 billion by 2025, as reported by the Ministry of Economy, Trade and Industry (METI). This support incentivizes improvements in manufacturing efficiency and productivity, directly influencing the Japan Auto Parts Market Industry positively.

Companies like Denso Corporation, a significant automotive parts manufacturer, are benefitting from these technology advancements in automation and smart manufacturing processes, which streamline production capabilities and improve part quality.

Growing Focus on Automotive Safety Regulations

With increasing road traffic accidents, Japan is imposing stricter automotive safety regulations, projecting a more profound influence on the Japan Auto Parts Market Industry. The Japan Automobile Manufacturers Association reported that the number of traffic accidents fell by approximately 33% over the last decade. However, there remains an ongoing push for improved safety features in vehicles. This has led to advancements in auto parts related to safety and compliance, such as advanced driver-assistance systems (ADAS).

Major players like Subaru Corporation and Honda Motor Co. are investing in Research for high-tech safety systems, bolstering their product lines and driving up the demand for essential safety components in the market.

Japan Auto Parts Market Segment Insights:

Auto Parts Market End-User Insights

The End-User segment of the Japan Auto Parts Market plays a critical role in establishing the framework for industry growth and development. Within this segment, distinct categories emerge, such as Original Equipment Manufacturer (OEM) and Aftermarket. The OEM segment is characterized by its close collaboration with vehicle manufacturers, providing essential components that meet stringent quality standards and specifications. This partnership ensures reliable performance and safety in new vehicles, contributing significantly to the overall market demand for auto parts. As Japan is known for its automotive excellence, the OEM space is vital, serving both domestic and international manufacturers while adhering to technological advancements.

On the other hand, the Aftermarket segment encompasses a diverse range of auto parts and accessories utilized for vehicle repairs, replacements, and upgrades after the vehicle's initial sale. In Japan, the Aftermarket is particularly noteworthy, reflecting consumer preferences for customization and enhanced vehicle performance. Furthermore, this segment benefits from a growing trend towards vehicle maintenance and sustainability, as consumers seek longevity and efficiency in their vehicles. 

The Aftermarket thus represents a lucrative opportunity for businesses as it fosters innovation in product offerings, with advanced technology gradually being incorporated into aftermarket parts.
Both segments face challenges and opportunities due to rapid advancements in automotive technologies, such as electric vehicles and autonomous driving systems. While OEMs must adapt to these shifts by incorporating new technologies into their manufacturing processes, the Aftermarket can leverage these trends by developing compatible parts that enhance existing vehicle models.

Overall, as the Japan Auto Parts Market continues to expand, the End-User segment will be instrumental in driving this growth, fostering robust relationships with vehicle manufacturers and consumers to meet the ever-evolving needs of the automotive industry.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Auto Parts Market Distribution Channel Insights

The Japan Auto Parts Market has seen significant growth in its Distribution Channel segment, reflecting the evolving preferences of consumers. The market is strategically divided into Offline and Online channels, each playing a crucial role in meeting customer demands. Offline distribution remains a stronghold, leveraging established relationships with auto parts retailers and workshops across Japan. This channel benefits from the trust built through face-to-face interactions and the immediate availability of products for customers. Conversely, the Online segment is rapidly gaining traction, fueled by the growing popularity of e-commerce and digital transactions in Japan.

With a tech-savvy population, the convenience of online shopping is reshaping consumer habits, offering an expanded range of products and potential cost savings. The rise of mobile platforms and enhanced logistics are also supporting this shift. In summary, the Distribution Channel segment in the Japan Auto Parts Market reflects a balanced dynamic between traditional retail and modern online approaches, catering to a diverse consumer base and adapting to market trends effectively.

Japan Auto Parts Market Key Players and Competitive Insights:

The Japan Auto Parts Market is characterized by intense competition, driven by a strong automotive manufacturing base and evolving consumer demands. With a focus on innovation, quality, and technological advancements, local and international players vie for market share in this essential sector. Various factors, such as regulatory developments, sustainability initiatives, and shifts in consumer preferences, are shaping the competitive landscape. Emerging trends, including the rise of electric vehicles and smart technologies, are pushing traditional auto parts manufacturers to adapt swiftly. Understanding the competitive dynamics is vital for stakeholders looking to navigate this densely packed environment effectively.

Mando has established a formidable presence in the Japan Auto Parts Market by leveraging its expertise in producing high-quality brake, suspension, and steering systems. Known for its continual investment in research and development, Mando emphasizes innovation to meet the ever-changing demands of the automotive industry. The company's reputation for reliability and safety is a significant strength, allowing it to build strong relationships with major automotive manufacturers. Furthermore, Mando's strategic collaborations and supplier agreements have bolstered its market position, enabling it to maintain a competitive edge in a fast-evolving landscape.

Yazaki is another key player within the Japan Auto Parts Market, specializing in wiring harnesses and electrical components essential for modern vehicles. The company’s strong market presence is attributed to its wide array of products and services, which also extend to automotive components, connectors, and sensor systems. Yazaki's commitment to advanced technology and sustainability has driven its growth, focusing on electric and hybrid vehicle applications. The firm has engaged in notable mergers and acquisitions to expand its capabilities and reach in Japan, strengthening its supply chain and enhancing its product offerings. Its reputation for quality and innovation further solidifies Yazaki's position as a critical contributor to the automotive sector, particularly in the context of the Japanese market's evolving needs.

Key Companies in the Japan Auto Parts Market Include:

• Mando


• Yazaki


• Keihin


• JTEKT


• Hanon Systems


• Tenneco


• Sumitomo Electric


• Furukawa Electric


• Hitachi Astemo


• NSK


• Calsonic Kansei


• Mitsubishi Electric


• Denso


• Aisin Seiki


• Toyota Industries

Japan Auto Parts Market Industry Developments

The Japan Auto Parts Market is currently experiencing significant developments, particularly with ongoing shifts towards electric vehicle production and the adoption of Advanced Driver Assistance Systems (ADAS). Major companies like Denso and Aisin Seiki are investing heavily in Research and Development to bolster their electric vehicle components. In recent news from August 2023, Mando announced collaborations with local automakers to integrate its innovative technology into upcoming electric vehicles, enhancing efficiency and performance. Concurrently, Yazaki reported growth in its wire harness systems as demand escalates with the rise of electric vehicles.

Additionally, Keihin revealed plans to expand its manufacturing capabilities to meet the growing demand for eco-friendly automotive components. In the mergers and acquisitions sector, JTEKT successfully acquired a minority stake in a technology start-up focused on automotive sensors in July 2023, bolstering its commitment to advanced technology solutions. Furthermore, Sumitomo Electric is anticipated to see substantial market valuation growth as it focuses on sustainable practices within the automotive supply chain. These dynamics reflect a robust adaptation of the Japan Auto Parts Market to address changing consumer preferences and regulatory pressures amidst a global shift towards sustainable mobility solutions. 

Auto Parts Market Segmentation Insights

Auto Parts Market End-User Outlook

• OEM


• Aftermarket

Auto Parts Market Distribution Channel Outlook

• Offline


• Online

Report Attribute/Metric Source:	Details
MARKET SIZE 2023	52.57 (USD Billion)
MARKET SIZE 2024	60.0 (USD Billion)
MARKET SIZE 2035	80.0 (USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	2.65% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	Mando, Yazaki, Keihin, JTEKT, Hanon Systems, Tenneco, Sumitomo Electric, Furukawa Electric, Hitachi Astemo, NSK, Calsonic Kansei, Mitsubishi Electric, Denso, Aisin Seiki, Toyota Industries
SEGMENTS COVERED	End-User, Distribution Channel
KEY MARKET OPPORTUNITIES	Electric vehicle component demand, Aftermarket service growth, Advanced materials integration, Supply chain localization, Sustainability-focused product development
KEY MARKET DYNAMICS	Technological advancements in manufacturing, Growing demand for electric vehicles, Supply chain disruptions, Increasing regulations and standards, Rising consumer preference for quality
COUNTRIES COVERED	Japan