Italy Automotive Components Market Report 2025
Executive Summary
The Italian automotive components industry is facing one of its most challenging periods in recent history in 2025. The sector, which generated €55.5 billion in revenue and employed over 168,000 people in 2024, is experiencing widespread contraction driven by declining vehicle production, the disruptive transition to electric mobility, and structural vulnerabilities within the supply chain.
Key Findings:
- Revenue projected to decline by 6% nationally in 2025
- Only 20% of companies anticipate increased turnover, while 63% expect reductions
- 53% of manufacturers foresee staff cuts, up from 33% in 2024
- Vehicle production has reached its lowest point in 25 years
- The aftermarket and motorsport segments show resilience amid broader downturn
- Export markets maintain a positive trade balance of €5.4 billion (Jan-Sept 2025)
Market Overview and Size
Current Market Status
Italy maintains its position as the
second-largest manufacturing power in Europe with approximately
€353 billion in output across all manufacturing sectors in 2025
VRM SPA (vrmspa.com). However, the automotive components segment is experiencing significant headwinds.
The Italian Automotive Parts and Components Market is expected to grow during the
2025-2031 period according to long-term forecasts
6W Research (6wresearch.com), but the immediate outlook for 2025 remains deeply pessimistic.
Business Sentiment for 2025
| Indicator | Forecast | Net Balance |
|---|
| Turnover | 63% expect reduction, 20% expect increase | -43% |
| Domestic Orders | 60% expect decrease | -46% |
| Foreign Sales | 55% expect decline | -35% |
| Employment | 53% anticipate cuts | -39% |
| Fixed Investments | Markedly negative | -27% |
Production Statistics
Overall Automotive Production Decline
Italian automotive production has experienced dramatic contraction in 2025:
- Overall automotive sector: -3.8% in June 2025 (year-over-year)
- First half 2025: -17.3% decline
- January-August 2025: -13.7% decline compared to same period in 2024
Parts and Accessories Production:
- June 2025: -5% compared to previous month, -11.3% cumulative (H1 2025)
- August 2025: +32.7% recovery compared to previous year (single month)
- January-August 2025: -7.7% cumulative declineInfoRicambi (inforicambi.it)
Vehicle Production Context
Key Market Trends and Challenges
1. Electric Mobility Transition
The shift to electrification represents both the greatest challenge and opportunity for Italian suppliers:
Market Transformation:
- ICE components expected to nearly halve from 2024 to 2030
- Electric powertrain components projected to grow at 30% CAGR
- 40% of Italian suppliers remain specialized in traditional ICE components
- Only 18.5% currently engaged in EV component production and charging infrastructureStrategy& PwC (strategyand.pwc.com)
EV Adoption Acceleration:
- Battery Electric Vehicles (BEV) reached 12.2% market share in November 2025, up from 5.2% in November 2024
- First quarter 2025 saw 75.4% increase in BEV registrations year-over-yearEnel (enel.it)
Economic Impact:
Studies estimate the industry could lose
70-80% of direct employment and value-added if an effective transition to electric mobility is not achieved. The cumulative costs of inaction through redundancy schemes could range between
€500 million and €2 billionECCO Climate (eccoclimate.org).
2. Structural Weaknesses
Italian automotive suppliers face several competitive disadvantages:
| Weakness | Impact |
|---|
| Small Company Size | Average 46 employees vs. 100+ in other European countries, limiting R&D investment capacity |
| OEM Dependency | Over 50% of revenue from Stellantis for one-third of suppliers |
| ICE Specialization | 40% of 2,000+ companies still focused on traditional engines |
| Limited Diversification | Heavy concentration in passenger vehicles vs. commercial/off-road segments |
3. Resilient Segments
Despite overall decline, certain segments demonstrate strength:
Aftermarket Sector:
- Italian automotive aftermarket valued at $9.89 billion in 2024
- Projected to reach $10.24 billion in 2025
- Expected CAGR of 3.4% through 2035
- Driven by aging vehicle fleet (average age nearly 13 years)Market Research Future (marketresearchfuture.com)
Motorsport Sector:
Italian Automotive Component Manufacturers
Italy is home to over 2,000 automotive component manufacturers, ranging from global leaders to specialized small and medium enterprises. Our research identified 90 verified manufacturers operating across various automotive segments:
Industry Leaders
Brembo S.p.A. - Global leader in high-performance braking systems
- 9M 2025 Revenue: €2,790 million (-4.7% YoY)
- Innovation Focus: Brake-by-wire systems, Sensify AI-powered braking, integrated brake-suspension solutions
- Strategic Acquisitions: Öhlins Racing for integrated chassis solutions
- 2025 Outlook: Slight revenue decline (-2%) but maintaining >16% EBITDA marginBrembo Group (brembogroup.com)
Marelli (formerly Magneti Marelli) - Diversified component supplier
- Key Focus Areas: Electric propulsion systems, battery thermal management, electronic control systems
- Major Contracts: Secured supply of approximately 5 million battery thermal plates for Chinese, North American, and European markets
- Technology Platform: Marelli Energy Platform integrating cloud tracking and AI algorithms for battery managementIndustria Italiana (industriaitaliana.it)
Other Notable Manufacturers:
- SPAL Automotive: Electric fans, blowers, coolant pumps
- Brembo N.V.: Complete braking and suspension systems
- Eurocardan S.p.A.: Automotive driveshafts
- DENSO Corporation (Italy): Thermal systems, air-conditioning, starters
- Brovedani Group: Precision mechanical components for Bosch, Continental, Denso
Export Markets and Trade Statistics
Trade Performance (January-September 2025)
Despite production challenges, Italy maintains a positive trade balance in automotive components:
| Period | Exports | Change YoY | Trade Balance |
|---|
| Jan-Jun 2025 | €12.55 billion | -3.9% | +€3.6 billion |
| Jan-Sep 2025 | Data available | -1.3% | +€5.4 billion |
| Jan-Aug 2025 | Data available | -2.3% | +€4.7 billion |
Primary Export Destinations
Europe dominates Italian automotive component exports, accounting for approximately 80.3% of total export value:
Top Export Markets (2025):
- Germany: 20.5% of exports - Leading market
- France: Second largest destination
- Spain: Third largest destination
- North America: 7.8% of exports - Primary extra-European region
- United States: Identified as having highest growth potential (+$720M)ANFIA (anfia.it)
Import Statistics
Import Sources (Jan-June 2025):
- Europe: 77.5% of imports
- Asia: 16.9% of imports (first macro-area outside Europe)
- Top Import Countries: Germany (23.4%), China (second), France (third)
Imports declined by
-6.3% in H1 2025, contributing to the improved trade balance
ANFIA (anfia.it).
Electric Vehicle Components Landscape
Current EV Component Production
The Italian automotive supply chain is undergoing fundamental transformation toward electrification:
Supplier Specialization (2025):
- 77.1% produce components for any vehicle type (powertrain-agnostic)
- 38.2% continue to focus on ICE components
- 18.5% engaged in EV components and charging infrastructure
- Two-thirds have invested in R&D for new technologies
Key EV Component Segments
1. Electric Powertrains
- Electric motors, inverters, integrated reducers
- Projected 30% CAGR through 2030
- Major investments from Marelli and other suppliers
2. Battery Thermal Management
- Critical for safety, durability, and range optimization
- Marelli's "Dot Dimples" thermal plate technology
- Advanced Battery Management Systems (BMS) using electrochemical impedance spectroscopy
3. Power Electronics
- Inverters and converters for energy flow management
- Strategic growth area for suppliers transitioning from ICE
4. Charging Infrastructure & Accessories
- Surging demand for charging cables, adapters, smart supports
- Driven by Italy's "Green Mobility Initiative 2025"FreshDi (freshdi.com)
Investment and Modernization
Stellantis has announced
€2 billion in investments for modernizing Italian plants and producing hybrid and electric models in Italy. However, concerns remain about the pace and scale of transformation needed across the broader supply base
Automax Online (automaxonline.it).
Strategic Recommendations
For Italian Suppliers
1. Accelerate EV Component Diversification
- Invest in electric powertrain, battery management, and power electronics capabilities
- Form partnerships with EV manufacturers and Tier 1 suppliers
- Leverage existing precision manufacturing expertise for EV applications
2. Expand into Resilient Segments
- Aftermarket: Capitalize on aging vehicle fleet and stable replacement demand
- Commercial Vehicles: Target medium-heavy and off-road vehicles with slower electrification timelines
- Motorsport & Performance: Leverage Italian heritage and technical excellence
3. Geographic and Customer Diversification
- Reduce dependency on Stellantis through new OEM partnerships
- Target growth markets: United States (+$720M potential), Asia-Pacific
- Explore adjacency sectors: aerospace, industrial machinery, renewable energy
4. Pursue Scale and Consolidation
- Form strategic alliances and aggregations to increase investment capacity
- Joint ventures for expensive EV component technologies
- Merger opportunities to reach critical mass for Tier 1 status
For Industry and Government
1. Innovation Support
- Targeted R&D funding for electrification and digitalization
- Support for supplier transformation and retooling
- Technology transfer programs from research institutions
2. Workforce Development
- Reskilling programs for digital and mechatronic competencies
- University partnerships for next-generation talent
- Retention of specialized engineering knowledge
3. Policy Framework
- Technology-neutral approach including carbon-neutral fuels
- Phased transition timelines aligned with supplier capacity
- Trade agreements supporting Italian component exports (EU-MERCOSUR, US relations)
Market Outlook
Short-Term (2025-2026)
The immediate future remains challenging:
- Continued revenue and production declines expected
- Employment reductions likely as social safety nets expire
- Estimated 20,000-25,000 potential job losses in coming months
- Critical period requiring rapid strategic pivots
Medium-Term (2027-2030)
Transformation period with bifurcating outcomes:
- Winners: Suppliers successfully transitioning to EV components, diversified customer base
- Losers: Companies remaining ICE-focused without diversification strategy
- Expected 50% reduction in ICE component market
- 30% annual growth in electric powertrain components
Long-Term (2031+)
Market stabilization with new equilibrium:
- Italian Automotive Parts and Components Market projected to grow through 2031
- Aftermarket expected to reach new highs with electric vehicle service needs
- Italy's precision manufacturing and quality reputation supporting premium positioning
- Successful suppliers emerging as global leaders in specialized EV components
Conclusion
The Italian automotive components industry stands at a critical crossroads in 2025. While the sector faces unprecedented challenges from declining production, technological disruption, and structural vulnerabilities, it also possesses significant assets: world-class engineering capabilities, a strong aftermarket presence, export competitiveness, and innovative leaders like Brembo and Marelli pioneering next-generation technologies.
The key to survival and success lies in speed of transformation. Companies that rapidly diversify into EV components, expand into resilient segments, and achieve greater scale through partnerships will emerge stronger. Those that delay adaptation risk irrelevance in a fundamentally transformed automotive landscape.
For Italy to maintain its position as a vital node in the global automotive supply chain, coordinated action among suppliers, OEMs, government, and educational institutions is essential. The window for effective transition is narrow, making 2025-2026 decisive years for the sector's future.
Report compiled from multiple sources including ANFIA (Italian Association of the Automotive Industry), Camera di Commercio di Torino Observatory, Strategy& PwC analysis, Brembo Group financial reports, and various industry publications covering the Italian automotive components market in 2025.