The latest report by IMARC Group, titled “Vehicle Recycling Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2020-2025”, finds that the global vehicle recycling market size reached US$ 19.6 Billion in 2019. Vehicle recycling refers to the process of dismantling and reducing automobiles to small pieces. It involves the removal of all reusable parts like tires, wheels, batteries, radiators, transmission systems, oil filters and rubber hoses. After this, auto recyclers crush the vehicles using mobile auto crushing units. Earlier, the remaining shredded residue, made up of textile fibers, plastics, glass and even rust, usually ended up in landfills. However, with the latest vehicle recycling technologies, it has become possible to sort shredded materials, thereby enabling a zero-landfill process.
We are regularly tracking the direct effect of COVID-19 on the market, along with the indirect influence of associated industries. These observations will be integrated into the report.
Global Vehicle Recycling Market Trends:
The widespread adoption of metal scrap, particularly steel, in the manufacturing of affordable, lightweight and fuel-efficient vehicles represents one of the major factors driving the vehicle recycling market worldwide. Besides this, governments of various nations are implementing several regulations to reduce the negative environmental impact associated with the end of life vehicles (ELVs) and the disposal of batteries, rubber, oils and other materials. Moreover, nowadays, automotive recyclers are using sophisticated tools and methods to recover used vehicles for extracting polymers, fluids and natural materials. They are also utilizing various innovative devices, such as optical sensors, to identify small pieces of metal in the scrap. However, the coronavirus disease (COVID-19) pandemic is anticipated to negatively impact the recycling industry, as most automakers and recyclers have shut their plants to comply with lockdown directives announced in several countries. Looking forward, the market value is projected to reach US$ 26.6 Billion by 2025, growing at a CAGR of 6% during the forecast period (2020-2025).
- Based on the type, the market has been segmented into passenger cars and commercial vehicles. Passenger cars currently dominate the market, holding the largest market share.
- On the basis of the material, ferrous (steel and iron) and non-ferrous (aluminum and copper) metals, account for the majority of the global market share. Other major materials are rubber, glass, plastic and others.
- The market has been categorized based on the application into OEMs and aftermarket.
- Region-wise, North America, which includes the United States and Canada, exhibits a clear dominance in the market. Other major regions are Asia Pacific (China, Japan, India, South Korea, Australia. Indonesia and others), Europe (Germany, France, United Kingdom, Italy, Spain, Russia and others), Latin America (Brazil, Mexico and others) and Middle East and Africa.
- The competitive landscape of the market has been examined in the report, providing the detailed profiles of the key players operative in the industry.
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