Vehicle Recycling Market Size, Share, and Industry Analysis By Type (Passenger Cars Recycling and Commercial Vehicles Recycling), By Propulsion Type (Conventional Vehicle and Electric Vehicle), By Material (Iron, Aluminum, Steel, and Others), and Regional Forecast till 2032

The global vehicle recycling market is expected to grow over the upcoming years. The dismantling of vehicles to retrieve and reuse spare parts, fuel, and scrap metals is known as vehicle recycling. Dismantling, crushing, shredding, and material recovery are carried out to retrieve magnetic pieces, sheet metals, seats, wheels, and other components. The market is growing due to rapid industrialization and urbanization worldwide. Furthermore, the increasing use of metal scrap, particularly steel, to produce cheaper, lighter, and more fuel-efficient vehicles is also driving growth.

• In November 2024, U.S. announced USD 70.8 million increase in funding for modernizing EV battery recycling and manufacturing.

 Vehicle Recycling Market Driver

Advancements in Technology for Recycling

Technological advances in recycling, including better sorting methods, enable the more effective extraction of valuable materials such as metals and plastics from obsolete vehicles. These advancements improve the overall effectiveness of the recycling process.

Regulations and Initiatives for the Environment and Sustainability

Stringent governmental rules regarding vehicle emissions and waste disposal are driving the need for vehicle recycling. These rules promote sustainable behaviors and reduce the environmental consequences linked to discarded vehicles.

Vehicle Recycling Market Restraint

Consumer Ignorance May Hinder Industry Expansion

Consumers lack awareness about the correct ways to dispose of end-of-life vehicles. A lack of awareness about the advantages of recycling vehicles results in decreased collection rates and less materials for recycling facilities. The overall growth of the vehicle recycling market may be hindered by a lack of consumer engagement.

Vehicle Recycling Market Opportunity

Rising Demand for Recycled Materials

The demand for recycled materials, particularly metals such as steel and aluminum, is growing as manufacturers seek to reduce costs and environmental impact. Recycling helps conserve natural resources and reduces energy consumption compared to primary production.

• In November 2024, the Indian government is anticipated to require automakers to reclaim a certain quantity of steel from retired vehicles, a step that is likely to enhance the steel circular economy and increase the availability of scrap.

Segmentation:

Key Insights

The report covers the following key insights:

• Incidence and Prevalence of Selective Chronic Diseases, Key Countries, 2023
• Aging Population Statistics - By Key Countries
• Key Industry Developments (Mergers, Acquisitions, and Partnerships)
• Overview: Regulatory and Reimbursement Scenario
• Number of Hospitals, Long Term Care Centers, Key Countries, 2023
• Impact of COVID-19 on the Market 

Analysis by Type

Based on type, the vehicle recycling market is segmented into passenger cars recycling and commercial vehicles recycling.

The passenger cars segment leads the market. This control is influenced by the growing number of cars on the streets, as well as a greater understanding of the environmental effects and sustainability measures. As the benefits of recycling vehicles are increasingly acknowledged by consumers, the demand for recycling passenger cars is also on the rise.

The commercial vehicles segment, especially for light commercial vehicles, is projected to experience the most rapid growth rate over the forecast period. The increase is driven by growing needs from logistics and transportation industries, which are dependent on these vehicles. With the growth of industries and fast-paced urbanization, there is an increasing demand for effective waste management solutions for commercial vehicles, leading to a rise in recycling efforts in this sector.

Analysis by Propulsion Type

Based on propulsion type, the vehicle recycling market is divided into conventional vehicles and electric vehicles.

The conventional vehicle segment continues to lead the vehicle recycling industry. The main reason for this dominance is the greater presence of traditional vehicles on the roads in comparison to electric vehicles. Currently, traditional vehicles such as gas and diesel cars make up a large share of recycled end-of-life vehicles (ELVs).

The electric vehicle segment is projected to expand rapidly, fueled by the growing popularity of EVs worldwide. As the number of electric vehicles at the end of their lifespan increases, there will also be a higher need for specific recycling methods designed for the distinctive components of EVs, such as lithium-ion batteries. There is a big chance for growth in this sector due to the need to recover valuable materials such as lithium, cobalt, and nickel from these batteries.

Analysis by Material

Based on material, the vehicle recycling market is divided into iron, aluminum, steel, and others.  

The steel currently holds the top position as the primary material in the automotive recycling industry. Steel is commonly utilized in vehicle production due to its strong, long-lasting, and cost-efficient properties. Therefore, a substantial amount of end-of-life vehicles (ELVs) is made up of steel parts, making it the most sizable sector in recycling operations in terms of volume.

The aluminum segment will experience rapid growth in the vehicle recycling industry. The growth is being driven by the rising utilization of aluminum in vehicle production, specifically in efforts to lighten vehicles for better fuel efficiency and lower emissions.

Regional Analysis

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Based on region, the market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

North America dominates the market owing to a strong recycling infrastructure and high rates of recycling. The U.S. leads globally in vehicle recycling rates, making a substantial impact on their superiority in this area.

The Asia Pacific market is predicted to exhibit the fastest expansion owing to strict regulations that support recycling and sustainability and an increasing awareness of environmental concerns among both consumers and businesses. Factors driving this expansion consist of quick industrialization, growing vehicle manufacturing, and heightened knowledge of environmental sustainability. Countries in this area are starting to adopt better waste management practices and rules, leading to an increase in the need for vehicle recycling services as more cars near the end of their lifespan.

Key Players Covered

The global vehicle recycling market is fragmented with the presence of a large number of group and standalone providers.

The report includes the profiles of the following key players:

• Keihin Corporation (Japan)
• Sensata Technologies Inc. (U.S.)
• SANDEN HOLDINGS CORPORATION (Japan)
• Calsonic Kansei Corporation (Japan)
• Valeo (France)
• DENSO CORPORATION (Japan)
• Johnson Electric Holdings Limited (China)
• Hanon Systems (South Korea)
• JAPAN CLIMATE SYSTEMS CORPORATION (Japan)
• MAHLE GmbH (Germany)

Key Industry Developments

• In September 2024, LKQ Corporation, a top supplier of alternative and specialty car parts, revealed the purchase of Rhiag Group, a prominent distributor of automotive spare parts in Italy and other European nations. This growth enhances LKQ's standing in the European market for vehicle recycling and aftermarket parts.
• In August 2024, Toyota Motor Corporation has put money into a new battery recycling plant in Japan to extract valuable materials such as cobalt, nickel, and lithium from old hybrid and electric vehicle batteries. This action is in line with Toyota's dedication to sustainable transportation and closed-loop recycling methods.
• In July 2024, Schnitzer Steel Industries, Inc., a top recycler of both ferrous and nonferrous scrap metal, announced its purchase of specific assets from Cascade Steel Rolling Mills, Inc. This important decision broadens Schnitzer's steel production abilities and fortifies its presence in the Pacific Northwest area of the U.S.