Automotive Recycling Market Size, Share, Growth, and Industry Analysis, By Type (Metal, Polymer and Other), By Application (New Products Manufacture and Reusable Parts), Regional Forecast To 2031

Updated On: 29 April 2024

Automotive Recycling Market Report Overview

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global automotive recycling market size was USD 123100 million in 2021 and market is projected to touch 202257.2 Million by 2031, exhibiting a CAGR of 18% during the forecast period.

The market includes the reuse, refurbishment, and recycling of end-of-life vehicles (ELVs) and their components. This market is critical to sustainable waste management and reducing the environmental impact of end-of-life cars.

The removal and separation of reusable parts and materials from ELVs, such as metals, plastics, glass, and rubber, which can be utilized in the manufacturing of new cars or other industrial purposes, is part of the automobile recycling process. The leftover materials, including as fluids and hazardous wastes, are disposed of in an environmentally responsible manner.

COVID-19 Impact: Pandemic has had a Mixed Impact on the Market Demand

The COVID-19 epidemic has had an influence on the worldwide automobile recycling sector, as it has on many other industries. Because of the pandemic, automobile sales have decreased, reducing the quantity of end-of-life vehicles accessible for recycling. Furthermore, the pandemic's supply chain interruptions and operational issues have resulted in reduced recycling volumes and higher expenses for recycling enterprises.

The epidemic, on the other hand, has highlighted the need for sustainability and circular economy practices, leading to a renewed emphasis on car recycling and the use of recycled materials and parts in vehicle manufacturing. The vehicle recycling sector is predicted to rebound as the world continues to recover from the pandemic.

Latest Trends

"Increasing Use of Technology in the Recycling Process to drive a major market trend"

The global automotive recycling market is experiencing several trends in recent times. One of the latest trends is the increasing use of technology in the recycling process. This includes the use of robotics and artificial intelligence for efficient and cost-effective processing of ELVs, as well as the development of advanced recycling technologies for the recovery of high-value materials from ELVs. Another trend is the growing demand for electric vehicle (EV) batteries recycling, as the use of EVs continues to rise globally. Additionally, the adoption of circular economy practices and sustainable waste management initiatives by governments and organizations is expected to drive automotive recycling market growth in the coming years.

Automotive Recycling Market Segmentation

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• By Type Analysis

According to type, the market can be segmented into metal, polymer and other.

• By Application Analysis

Based on application, the market can be divided into new products manufacture and reusable parts.

Driving Factors

"Environmental Regulations and Sustainability Initiatives to bolster product demand"

Stringent environmental regulations and policies that encourage sustainable waste management practices and increasing awareness about the environmental impact of end-of-life vehicles is attributing to the automotive recycling market growth. There is a growing focus on circular economy practices and the use of recycled materials in the automotive industry

"Rising Demand for Recycled Materials and Parts to propel market growth"

Increasing demand for recycled materials and parts due to their cost-effectiveness and environmental benefits and growing popularity of remanufactured parts as a more sustainable alternative to new parts is a significant driving factor. 

Restraining Factors

"Lack of Consumer Awareness and Declining Scrap Prices may retard market growth"

The global automotive recycling market faces some challenges that may restrain its growth, including declining scrap prices due to fluctuations in commodity prices. Additionally, lack of consumer awareness about proper end-of-life vehicle disposal and the potential for low collection rates may also hinder the growth of the market. However, the increasing demand for sustainable waste management practices and the adoption of circular economy principles are expected to support the growth of the industry in the long run.

Automotive Recycling Market Regional Insights

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"Growing Demand in North America Anticipated to Boost Market Expansion"

The market is dominated by North America, Europe, and Asia Pacific, with these regions accounting for a significant automotive recycling market share. North America is the largest market due to stringent environmental regulations and policies promoting sustainable waste management practices. Europe follows closely behind, driven by the region's focus on circular economy principles and the adoption of advanced recycling technologies. 

The Asia Pacific region is expected to witness the fastest growth in the automotive recycling market due to the increasing demand for recycled materials and parts in the growing automotive industry, as well as government initiatives promoting sustainable waste management practices. Other regions, such as Latin America, the Middle East, and Africa, are also expected to contribute to the growth of the market in the coming years.

Key Industry Players

"Adoption Innovative Strategies by Key Players Influencing Market Development"

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. The top key players in the market are Scholz, Schnitzer Steel Industries, LKQ, Toyota, ECOBAT Technologies, Sims Metal Management, EMR, Hensel Recycling, VW, Miracle Automation, KEIAISHA and Indra.

Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios. In addition, the strategies to develop new technologies, capital investment in R&D, improve product quality, acquisitions, mergers, and compete for the market competition help them to perpetuate their position and value in the market. Besides, collaboration with other companies & extensive possession over market shares by the key players stimulates the market growth.

List of Market Players Profiled

• Scholz: Essingen, (Germany)
• Schnitzer Steel Industries: (Portland, Oregon, United States)
• LKQ: Chicago,( Illinois, United States)
• Toyota: Toyota City, Aichi, Japan
• ECOBAT Technologies: London, United Kingdom
• Sims Metal Management: Sydney, Australia
• EMR: Leeds, United Kingdom
• Hensel Recycling: Aschaffenburg, Germany
• VW: Wolfsburg, Germany
• Miracle Automation: Pune, Maharashtra, India
• KEIAISHA: Osaka, Japan
• Indra: Alcobendas, Madrid, Spain

Report Coverage

This report examines an understanding of the market size, share, growth rate, segmentation by type, application, key players, and previous and current market scenarios. The report also collects the market’s precise data and forecasts by market experts. Also, it describes the study of this industry’s financial performance, investments, growth, innovation marks, and new product launches by the top companies and offers deep insights into the current market structure, competitive analysis based on key players, key driving forces, and restraints that affect the demand for growth, opportunities, and risks.

Furthermore, the post-COVID-19 pandemic’s effects on international market restrictions and a deep understanding of how the industry will recover, and strategies are also stated in the report. The competitive landscape has also been examined in detail to provide clarification of the competitive landscape.

This report also discloses the research based on methodologies that define price trend analysis of target companies, collection of data, statistics, target competitors, import-export, information, and previous years’ records based on market sales. Moreover, all the significant factors which influence the market such as small or medium business industry, macroeconomic indicators, value chain analysis, and demand-side dynamics, with all the major business players have been explained in detail. This analysis is subject to modification if the key players and feasible analysis of market dynamics change.