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Car Recycle Market

Car Recycle Market: information by Type (Metals, Polymer), Application (New Products Manufacture, and Reusable Parts) and Region—Forecast till 2031

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Market Overview

The global car recycle market is expected to grow at a CAGR of 13.5% during the forecast period, 2023–2031.

Car recycle market is expected to witness a rapid increase in the upcoming years owing to the increase in the global number of cars and end of life vehicles. It refers to the dismantling of the vehicles for spare parts. Auto recyclers have been focusing on the recyclability of car parts, majorly for the steel and iron parts. Other important parts considered in the recycle is obtaining the polymers, fluids and natural materials for sales or reuse. More than 27 million cars across the globe reach the end of their lives annually. Old vehicles and models involved in crashes contribute to the major share of cars that are sent for recycle.

There are four basic steps involved in the recycling of ELV vehicles, which includes, Dismantling, Crushing, Shredding, and Material Recovery. Sheet metals, magnetic parts, gas, seats, stereo, wheels etc. are removed and resold. Steel accounts for the largest material to be recycled in the metals category, followed by ferrous and nonferrous metals. More than 18 million tons of steel is recycled every year from end of life vehicles. Separation technologies such as eddy current, laser, infra-red, and flotation separation technologies are used to segregate the non-ferrous metals into pure streams of materials which are then sent for re-smelting.

Strategic Approach

The company's business strategy is to work towards a systematic approach. With its 360-degree view on recycling end-of-life vehicles and its consulting business, INDRA guarantees this systemic approach in the framework of building and organizing the ELV sector in the coming years. The company’s prime business strategy is to contribute to a society that operates on a resource recycling model, proactively promoting the 3R principle of Reduce, Reuse, and Recycle. It predominantly focuses on auto parts development, manufacturing, and supplying parts with superior performance as a proposal-based manufacturer. The company is shifting its focus from regional domestic expansion to expanding business in the American and Asian markets

 

Market Snapshot

market snapshot
Base Year
: 2022
Study Period
: 2021-2031
CAGR
: 13.5 %
Fastest Growing Market
: Europe
Largest Market
: North America
Market Size
:
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Market Dynamics

Global demand for the sustainable use of energy, and to reduce the emission of harmful gases in the environment is rapidly driving the need of efficient car recycling

High rate of obsolescence, energy-saving requirements, and the need to lower greenhouse gas emission levels are some of the major factors driving the car recycling market. Rapid growth in industrialization and urbanization in developing nations and increasing consumer awareness drive the metal recycling market. Automobile recyclers are employing sophisticated methods and strategies to improve their inflow of old vehicles. The increasing benefits of car recycling, such as the prevention of hazardous liquid from going to landfills every year and savings worth millions of barrels of oil, which can be used for other purposes, are further bolstering market growth. The increasing requirements to offer higher levels of customer service and greater ease of recycling drive the growth of efficient recycling and resource recovery in the car recycling market. The increasing rate of unorganized treatment of waste metals and the availability of relatively few scrap collection zones is anticipated to restrict the global car recycling market growth. OEM repair standards, suppression of scrap prices, and prevalence of unlicensed operators are among the key restraints in the U.S. car recycling market. Some of the biggest challenges here include education and training, insurance, and salvage. The lack of well trained and skilled labor in an auto recycling facility leads to the declination of the overall efficiency. Insurance proves to be a hurdle as the number of businesses that provide workers’ comp insurance in the industry is low.

The lack of reasonably priced preserved vehicles is another hindrance in the car recycling market, as many old cars are exported globally while more are purchased by unscrupulous buyers who will pay almost anything to get them. However, the growing popularity of recycled material and its benefits, such as a reduction in the consumption of limited natural resources and lower CO2 emissions, are compelling recyclers to adopt innovative approaches for better recycling. Lowing value of the U.S. dollar in recent years due to the changing interest rates of the Federal Reserve also poses opportunities for international trade businesses.

Segmental Analysis

Metal scrap segment is expected to gain the largest market share followed by polymers and others due to its highest demand by the OEMs

Based on Type, the global car recycle market is classified into Metals, Polymers and Others. The scrap metal segment is expected to observe a stagnant growth rate due to the fluctuating prices of scrap metal in recent years. However, an increase in the number of junk cars for scrap auto business, trading, and recycling are foreseen to positively influence the metal segment’s share in the global car recycling market. Advancements in the steel industry are foreseen to trigger the demand for more treated steel from recyclers. The polymers segment is anticipated to witness a significant upturn in the car recycle market growth, owing to its usage in the design and manufacturing of automotive vehicles. Stringent government regulations and changing consumer behaviors are expected to drive the demand for more affordable, lightweight, and fuel-efficient cars. The polyurethane foam used to make seat cushions, and wheel liners is a recycled product from the treatment of cars.  Thermoplastics are gaining attraction as the most widely used plastics in autos. The others segment in the car recycle market is classified into Elastomers, Fluid, Glass, and Natural Materials. With the rapid advancements in technology, automakers are finding new ways to make environmental-friendly vehicles. Toyota makes seat cushions and radiator tanks from bioplastics that use glycol from renewable sugar cane instead of petroleum-derived glycol. BMW, on the other hand, uses eucalyptus wood in dashboards in its i3 electric car

New products manufacture Segment is anticipated to bolster due to its multiple uses

On the basis of Application, the global car recycling market is bifurcated into New Products Manufacture and Reusable Parts. End-of-life vehicles (ELVs) are continuously recycled to produce new vehicles, components, and consumer products, propelling the new products manufacture segment growth during the forecast period. Recycling companies such as, ArcelorMittal, SIMS, Aurubis AG among others are some of the notable players with advanced tools and facilities, converting the scrap into high-quality finished and semi-finished goods through sorting and shredding. Nucor Corporation, a U.S.-based steel manufacturer, recycles waste steel items into hot-rolled steel, bars, and rods, which are utilized in the automotive, construction, machinery, and shipbuilding sectors. The reusable parts segment is expected to witness a sluggish growth rate and market share as most of the car spare parts are recyclable. The reusable parts market growth is mainly attributed to the availability of non-recyclable materials that can either be disposed of or reused in some other applications such as washer fluids and engine oils. The automotive recycling industry is determined to save energy, conserve natural resources, reduce air and water pollution, and greenhouse gas (GHG) emissions by the effective use of reusable parts. Engine oil, gasoline, and coolant are efficiently managed to prevent hazardous chemical releases by storing them in double-walled tanks and secondary containment before being reused.

Regional Analysis

North America is expected to dominate the global market during the forecast period due to large number of vendors present in the region

The North America car recycle industry has struggled in the last decade, dealing with foreign tariff battles regarding specific commodities. However, leading companies are ensuring that metal bearing items are well recycled and refined and recirculated back into the economy. Plastic recycling from automobiles is gaining attention in North America. The United States and Canada have witnessed strong exports and imports of plastic during the last couple of years. The demand for scrap materials, peddlers, or ferrous spare parts is likely to increase in the U.S. construction and automotive industries in the coming years.

European Union is expected to grow at a slow pace in the next few years due to the unresolved issues in the region, such as the export of discarded vehicles to countries with lower waste disposal standards, legal requirements for recyclers in EU states, and lack of incineration capacities for high-calorific shredder residues. These are expected to slow down Europe’s automotive recycle economy growth for a short period of time. A majority of these issues are being actively handled by European governments. For instance, 100 illegal scrap yards in France were shut down in 2013, and the U.K. closed down 989 illegal yards in 2015; such developments indicate better prospects for the car recycling market in Europe in the future

Urbanization, rising population along with a rise in disposable income in the developing economies of China and India, and rising awareness regarding the importance of waste management and resource efficiency are some of the key factors propelling Asia-Pacific’s car recycling market. The demand for metals and other ferrous and nonferrous products in construction, metal fabrication, electronics, and automotive sectors is expected to gain traction in the coming years. Growing hybrid car usage in the region is anticipated to positively impact the regional market

Rising sales of passenger cars is expected to drive significant growth in South America’s car recycle market with Brazil as a particularly noteworthy contributor. Improving economic infrastructure, a rise in credit availability to support the light-vehicle market, growing investments, and growing export demand are some of the key aspects driving market growth in Brazil

Growing demand for passenger cars, against a backdrop of rising per capita income, and commercial vehicles, on account of the development of economic infrastructure, is expected to bolster market growth in the Middle Eastern countries. Additionally, the UAE’s construction market drives the trading of heavy trucks, buses, cars, and other vehicles. In Saudi Arabia, the number of drivers is expected to increase in the coming years on account of the lifting of the ban on women driving in June 2018, which in turn will provide impetus to automotive and spare parts markets

Car Recycle Market Regional Analysis
Regional Growth Insights Download Free Sample

Top Key Players of Car Recycle Market

There is intense competition among the notable vendors in the market. Some of the prominent players in global car recycling market include

  • Scholz Recycling GMBH
  • Schnitzer Steel Industries, Inc.
  • LKQ Corporation
  • Toyota Motor Corporation
  • Eco-Bat Technologies Ltd
  • Sims Metal Management Limited
  • European Metal Recycling (EMR)
  • Hensel Recycling Group
  • Volkswagen AG
  • Tianqi Automation Engineering Co., Ltd. (Miracle Automation)
  • Keiaisha Co., Ltd.
  • INDRA

Report Scope

Report Metric Details
CAGR 13.5%
Forecast Period 2023-2031
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
Segments Covered
  1. By Type
    1. Metals
    2. Polymers
    3. Others
  2. By Application
    1. New Products Manufacture
    2. Reusable Parts
Geographies Covered
  • North America
  • Europe
  • APAC
  • Middle East and Africa
  • LATAM

Car Recycle Market Segmentation

By Type

  • Metals
  • Polymers
  • Others

By Application

  • New Products Manufacture
  • Reusable Parts

By Regions

North America

  • U.S.
  • Canada
  • Mexico

Europe

  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Rest of Europe

Asia-Pacific

  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Rest of Asia-Pacific

LATAM

  • Brazil
  • Argentina
  • Columbia
  • Rest of LATAM

Middle East

  • Saudi Arabia
  • Oman
  • Qatar
  • Bahrain
  • UAE
  • Rest of Middle East

Africa

  • Nigeria
  • Tanzania
  • South Africa
  • Ghana
  • Rest of Africa

Frequently Asked Questions (FAQs)

What is the estimated growth rate (CAGR) of the Car Recycle Market?
Car Recycle Market size will grow at approx. CAGR of 13.5% during the forecast period.
Some of the top prominent players in Car Recycle Market are, Scholz Recycling GMBH, Schnitzer Steel Industries, Inc., LKQ Corporation, Toyota Motor Corporation, Eco-Bat Technologies Ltd, Sims Metal Management Limited, European Metal Recycling (EMR), Hensel Recycling Group, Volkswagen AG, Tianqi Automation Engineering Co., Ltd. (Miracle Automation), Keiaisha Co., Ltd., INDRA, etc.
In the Car Recycle Market, North America has established itself as the market leader with a significant market share.
The region with the most rapid expansion in the Car Recycle Market is Europe.
The global Car Recycle Market report is segmented as follows: By Type, By Application
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