Global Vehicle Scrapping Market Insights Forecasts to 2032
- The Global Vehicle Scrapping Market Size was valued at USD 72.25 Billion in 2022.
- The Market Size is growing at a CAGR of 15.1% from 2022 to 2032
- The Worldwide Vehicle Scrapping Market Size is expected to reach USD 295.15 Billion by 2032
- North America Market is expected to grow the fastest during the forecast period
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The Global Vehicle Scrapping Market Size is expected to reach USD 295.15 Billion by 2032, at a CAGR of 15.1% during the forecast period 2022 to 2032.
Vehicle scrapping, also known as vehicle recycling, is the process of dismantling and recycling old or unwanted vehicles. It entails collecting old vehicles, draining their fluids, carefully dismantling them to salvage reusable parts, and shredding the remaining vehicle shell to separate materials for further recycling, such as steel, aluminum, rubber, plastics, and others. Nonferrous metals are separated from other materials using separation technologies such as laser, infrared, eddy current, and flotation before being melted. Furthermore, the reused components must be washed, tested, and repaired before resale. Other factors, such as increased use of recycled batteries in consumer electronics manufacturing and the implementation of government regulations to reduce environmental hazards associated with the disposal of batteries, rubber, oils, and other materials, are expected to drive the market during the forecast period.
Global Vehicle Scrapping Market Report Coverage
|Market Size in 2022:
|USD 72.25 Billion
|Forecast Period 2022-2032 CAGR:
|2032 Value Projection:
|USD 295.15 Billion
|Historical Data for:
|No. of Pages:
|Tables, Charts & Figures:
|By Material, By Vehicle Type, By Application, By Region
|ASM Auto Recycling Ltd., Copart Inc., Eco-bat Technologies, INDRA, Keiaisha Co. Ltd, Hensel Recycling Group, LKQ Corporation, Schnitzer Steel Industries, Scholz Recycling GmbH, Sims Metal Management Ltd, and Other Key Vendors.
|Pitfalls & Challenges:
|COVID-19 Empact,Challenges, Future, Growth, & Analysis
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The growing environmental consciousness and the implementation of stringent emission regulations drive the expansion of the vehicle scrapping market. Both governments and consumers are pushing for more sustainable practices, which is leading to an increase in recycling and scrapping of old vehicles. Polluting vehicles pose a significant impediment to a country's development. An effective car scrappage policy will reduce pollution while also providing other benefits such as a cleaner environment and opening up opportunities for new vehicle sales. Additionally, government incentives and stringent global scrappage policy are the main factors driving the vehicle scrapping market over the forecast period. Mandating vehicle scrappage after a set period and providing incentives such as tax rebates, discounts on brand-new vehicles, and zero registration fees to new vehicle owners will fuel vehicle scrapping market during the forecast period.
The challenges in the vehicle scrapping market include ensuring an adequate supply of end-of-life vehicle feedstock for recycling centers around the world. The majority of those involved in vehicle scrapping are unofficial and unorganized. As a result, these players find it difficult to outsource end-of-life vehicles because they lack intermediaries or channel partners for sourcing feedstock. Furthermore, the recycling industry lacks scrapping centers and recycling facilities due to a lack of a proper supply chain.
By Material Insights
The steel segment accounted for the largest revenue share of the global vehicle scrapping market during the forecast period.
Based on the material, the global vehicle scrapping market is classified into steel, aluminum, copper, and others. Among these, the steel segment is expected to hold the largest share of the vehicle scrapping market during the forecast period. Steel is the most common material recovered from vehicle scrapping. A car body and structure are mostly made of steel, which is highly recyclable and in high demand for various manufacturing processes. The growing awareness of environmental challenges, including the need to reduce carbon emissions and protect finite resources, has heightened the emphasis on implementing sustainability and circular economy principles. This has increased demand for recycled materials, such as steel recovered from scrap vehicles.
By Vehicle Type Insights
The passenger segment is witnessing significant CAGR growth over the forecast period.
Based on vehicle type, the global vehicle scrapping market is segmented into passenger vehicles and commercial vehicles. Among these, the passenger segment is witnessing significant CAGR growth over the forecast period. Passenger vehicles have a higher ownership rate than commercial vehicles. As a result, the sheer number of passenger vehicles reaching the end of their lifecycle is greater, resulting in a larger pool of vehicles eligible for scrapping. Furthermore, as passenger vehicles are less expensive than many commercial vehicles, owners may be more inclined to replace them with newer models rather than invest in costly repairs.
By Application Insights
The new products manufacture segment is witnessing substantial CAGR growth over the forecast period.
Based on the application, the vehicle scrapping market is segmented into new products manufacture, reusable parts. Among these, the new products manufacture segment is witnessing substantial CAGR growth over the forecast period. End-of-life vehicles (ELVs) are continuously scrapped to make new vehicles, components, and consumer products, propelling the growth of the new products manufacture segment during the forecast period. Recycling companies with advanced tools and facilities, such as ArcelorMittal, SIMS, and Aurubis AG, among others, convert scrap into high-quality finished and semi-finished goods through sorting and shredding. Nucor Corporation, a steel manufacturer based in the United States, recycles waste steel into hot-rolled steel, bars, and rods, which are used in the automotive, construction, machinery, and shipbuilding industries.
Asia Pacific dominates the market with the largest market share over the forecast period.
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Asia Pacific dominates the market share over the forecast period. This region, which includes China and India, has experienced rapid urbanization and significant economic growth. Individual's preference for vehicle ownership increases as their income levels rise. The area's growing middle class and higher living standards have resulted in a significant increase in vehicle fleet size. As these vehicles age, a natural progression occurs, resulting in a greater number of vehicles approaching the end of their operational lifespan and necessitating scrapping.
The North American market is estimated to show the fastest growth during the forecast period. Rapid industrialization and urbanization in North America are among the key factors driving market growth. Another growth-inducing factor is the widespread use of metal scrap, particularly steel, in the manufacture of more affordable, lightweight, and fuel-efficient vehicles. Key players in the North American market are heavily investing in vehicle scrapping market, this trend is expected to boost the market during the forecast period.
List of Key Market Players
- ASM Auto Recycling Ltd.
- Copart Inc.
- Eco-bat Technologies
- Keiaisha Co. Ltd
- Hensel Recycling Group
- LKQ Corporation
- Schnitzer Steel Industries
- Scholz Recycling GmbH
- Sims Metal Management Ltd
Key Market Developments
- In May 2022, Schnitzer Steel Industries, Inc. purchased Encore Recycling LLC's (Encore) operating assets in the Atlanta metropolitan area. This purchase includes full-service recycling facilities, metal shredding, and a recycled auto-parts center.
- In July 2023, Tata Motors opened a registered vehicle scrapping facility in Bhubaneswar: the cutting-edge facility uses environmentally friendly processes and can safely and sustainably disassemble 10000 end-of-life vehicles each year.
- In April 2023, from scrap to raw material: the state-funded Car2Car project is developing technologies to improve the recycling of used vehicles.
This study forecasts revenue at global, regional, and country levels from 2022 to 2032. Spherical Insights has segmented the global vehicle scrapping market based on the below-mentioned segments:
Global Vehicle Scrapping Market, Material Analysis
Global Vehicle Scrapping Market, Vehicle Type Analysis
- Passenger Vehicles
- Commercial Vehicles
Global Vehicle Scrapping Market, Application Analysis
- New Products Manufacture
- Reusable Parts
Global Vehicle Scrapping Market, Regional Analysis
- North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- South America
- Rest of South America
- Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of the Middle East & Africa
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