Toronto, Ontario — Over the next decade, the global vehicle recycling market will expand by 5.5 percent each year, a new report has found.
According to a recent report by Exactitude Consultancy, auto recycling activities around the world will generate US$85 billion in 2034, compared to just US$55 billion in 2024. The US$30 billion growth will be driven by advancements in recycling technologies, tightening environmental regulations and increasing demand for sustainable and circular economy practices within the automotive sector.
While North America is the largest region in 2024, with a 40 percent market share, the Asia-Pacific region is the fastest-growing, with a projected 7 percent CAGR. According to the report’s key market highlights, the leading segment is passenger cars, and the emerging segment is electric vehicles. Segmented by vehicle type, material recycled, end-of-life vehicle management, recycling process technology and distribution channel, the report highlights circular economy and sustainability trends in the global vehicle recycling market.
North America’s large market share is partly due to frameworks in Canada and the U.S. that support the collection, dismantling and recycling of ELVs. In addition to stringent environmental regulations and mature automotive markets, investments in AI for sorting and dismantling are increasing efficiency and sustainability.
Key player companies include AERC Recycling Solutions, EnviroGreen, LKQ Corporation and Schnitzer Steel Industries, Inc. Significant growth drivers consist of the increasing global focus on environmental regulations and sustainability and the adoption of circular economy principles, such as OEMs incorporating recycled parts and materials into their production lines in addition to technological advancements.
Challenges facing the global vehicle recycling market include the lack of regulatory harmonization across regions, supply chain disruptions and the infrastructural gap in EV handling. Areas of opportunity are the rising need for EV battery recycling, digital marketplaces for recycled auto parts and vehicle tracking and the integration of AI and robotics into dismantling operations.
