As per Intent Market Research, the Automotive Recycling Parts Market was valued at USD 67.8 billion in 2023-e and will surpass USD 117.5 billion by 2030; growing at a CAGR of 8.2% during 2024 - 2030.
The automotive recycling parts market is witnessing significant growth as the automotive industry shifts towards sustainability and resource conservation. As global awareness regarding environmental issues escalates, the demand for recycled automotive parts has surged. This market encompasses various components retrieved from end-of-life vehicles (ELVs), which are dismantled and processed for reuse. By recycling these parts, manufacturers can reduce waste, lower production costs, and mitigate the environmental impact associated with new parts manufacturing.
Metal Segment is Largest Owing to High Demand for Steel and Aluminum Parts
The metal segment is the largest in the automotive recycling parts market, primarily due to the high demand for steel and aluminum components. Metals are integral to vehicle manufacturing, and recycling these materials can significantly reduce production costs. The reprocessing of metal parts not only conserves natural resources but also consumes less energy compared to producing new metals from ores. Steel, in particular, is a key component, as it constitutes a substantial portion of vehicle structure, making its recycling a vital part of the automotive lifecycle. The continuous demand for metal parts, coupled with the increasing focus on reducing carbon footprints, makes this segment a robust player in the market.
Moreover, the metal recycling subsegment is expected to expand further as automotive manufacturers are increasingly incorporating recycled metal into new vehicle production. Innovations in metal recycling processes enhance the quality of recycled materials, making them more attractive for manufacturers. As a result, the metal segment is anticipated to maintain its dominant position in the automotive recycling parts market, further propelled by regulatory mandates favoring recycled materials.
Plastic Segment is Fastest Growing Owing to Innovation in Recycling Technologies
The plastic segment in the automotive recycling parts market is witnessing rapid growth, driven by advancements in recycling technologies and the increasing use of plastics in vehicle production. As automotive manufacturers adopt lightweight materials to improve fuel efficiency, plastics have become integral to modern vehicle design. Consequently, the demand for recycled plastic parts is soaring. Innovations in recycling processes, such as chemical recycling, allow for the recovery of high-quality plastic materials, making them suitable for use in new automotive applications. This technological evolution is anticipated to foster a CAGR of around 6.7% for the plastic segment from 2024 to 2030.
The increased focus on circular economy principles has further fueled the growth of the plastic recycling subsegment. Automotive companies are now implementing take-back programs and partnerships with recycling firms to ensure that plastic components are effectively reclaimed at the end of their lifecycle. As consumers and regulatory bodies demand greater sustainability in automotive manufacturing, the plastic segment is expected to emerge as a critical player in the automotive recycling parts market, underscoring the industry's shift towards responsible resource management.
Rubber Segment is Largest Owing to High Volume of Used Tires
The rubber segment holds the largest share in the automotive recycling parts market, primarily due to the substantial volume of used tires generated annually. Tires are one of the most recycled automotive components, with approximately 70% of scrap tires being processed and repurposed. The recycling of rubber not only reduces landfill waste but also provides valuable materials for various applications, including asphalt, flooring, and automotive parts. This segment benefits from a well-established recycling infrastructure and strong demand for recycled rubber products across multiple industries.
The demand for eco-friendly alternatives to virgin rubber is accelerating the growth of the rubber recycling market. Innovations in rubber processing technologies are enhancing the quality and usability of recycled rubber, further propelling this segment. With ongoing efforts to promote sustainability and responsible waste management, the rubber segment is poised to maintain its leadership in the automotive recycling parts market, contributing significantly to the industry's overall growth.
Glass Segment is Fastest Growing Owing to Increased Focus on Sustainability
The glass segment is emerging as the fastest-growing subsegment in the automotive recycling parts market, driven by an increased focus on sustainability and energy efficiency. Automotive glass, which includes windshields, windows, and mirrors, is increasingly being recycled to create new glass products. The recycling process for glass is highly efficient, as it can be remelted and reformed multiple times without losing quality. As automotive manufacturers seek to reduce their environmental impact, the use of recycled glass in new vehicles is gaining traction, leading to a projected CAGR of approximately 7.3% for this segment from 2024 to 2030.
The growing consumer demand for vehicles with improved energy efficiency and reduced carbon footprints is propelling the growth of the glass recycling market. Additionally, regulatory pressures mandating the use of recycled materials in vehicle manufacturing are further incentivizing the adoption of recycled glass. With innovative recycling techniques and increased awareness of sustainability, the glass segment is expected to play a pivotal role in the future of the automotive recycling parts market.
Leading Region is North America Owing to Established Recycling Infrastructure
North America is currently the leading region in the automotive recycling parts market, attributed to its established recycling infrastructure and strong regulatory support for sustainability initiatives. The United States and Canada have well-developed recycling processes that ensure a high recovery rate of automotive parts from end-of-life vehicles. The presence of numerous recycling facilities and the proactive approach of automakers towards sustainable practices contribute to the region's leadership in this market. The North American automotive recycling parts market is anticipated to witness steady growth, supported by ongoing technological advancements and increasing consumer awareness regarding recycling benefits.
Moreover, regional initiatives to promote circular economy practices are expected to further bolster the automotive recycling parts market in North America. The integration of recycled materials into new vehicle production aligns with the objectives of reducing waste and conserving natural resources. With a robust regulatory framework and increasing collaboration between automotive manufacturers and recycling firms, North America is set to maintain its position as the largest region in the automotive recycling parts market.
Competitive Landscape and Leading Companies
The automotive recycling parts market is characterized by a competitive landscape comprising several key players dedicated to sustainability and innovation. Leading companies in this market include LKQ Corporation, Schnitzer Steel Industries, Inc., and Rethink Materials. These companies have established strong market presence through strategic acquisitions, investments in advanced recycling technologies, and partnerships with automotive manufacturers.
The competitive environment is increasingly focused on enhancing operational efficiency and product quality. Companies are adopting digital technologies and data analytics to optimize recycling processes and improve supply chain management. Furthermore, the push towards sustainability is driving collaborations among industry stakeholders, paving the way for innovative solutions in automotive recycling. As the market continues to evolve, these leading companies are well-positioned to capitalize on the growing demand for recycled automotive parts, contributing to a more sustainable automotive industry.
Report Scope:
Report Features |
Description |
Market Size (2023-e) |
USD 67.8 billion |
Forecasted Value (2030) |
USD 117.5 billion |
CAGR (2024-2030) |
8.2% |
Base Year for Estimation |
2023-e |
Historic Year |
2022 |
Forecast Period |
2024-2030 |
Report Coverage |
Market Forecast, Market Dynamics, Competitive Landscape, Recent Developments |
Segments Covered |
Automotive Recycling Parts Market By Component Type (Engine & Transmissions Components, Electrical System Components, Steering Components, Fuel Components, Wheels & Brakes Component), By Vehicle Type (Passenger Car, Commercial Vehicles), By Engine Type (Internal Combustion Engine (ICE), Electric-Powered), By End-Use (Aftermarket, Original Equipment Manufacturers (OEM)) |
Regional Analysis |
North America (US, Canada, Mexico), Europe (Germany, France, UK, Spain, Italy & Rest of Europe), Asia Pacific (China, Japan, South Korea, India, and rest of Asia Pacific), Latin America (Brazil, Argentina, & Rest of Latin America), Middle East & Africa (Saudi Arabia, South Africa, UAE, & Rest of MEA) |
Customization Scope |
Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements |
1.Introduction |
1.1.Market Definition |
1.2.Scope of the Study |
1.3.Research Assumptions |
1.4.Study Limitations |
2.Research Methodology |
2.1.Research Approach |
2.1.1.Top-Down Method |
2.1.2.Bottom-Up Method |
2.1.3.Factor Impact Analysis |
2.2.Insights & Data Collection Process |
2.2.1.Secondary Research |
2.2.2.Primary Research |
2.3.Data Mining Process |
2.3.1.Data Analysis |
2.3.2.Data Validation and Revalidation |
2.3.3.Data Triangulation |
3.Executive Summary |
3.1.Major Markets & Segments |
3.2.Highest Growing Regions and Respective Countries |
3.3.Impact of Growth Drivers & Inhibitors |
3.4.Regulatory Overview by Country |
4.Automotive Recycling Parts Market, by Component Type (Market Size & Forecast: USD Billion, 2024 – 2030) |
4.1.Engine & Transmissions Components |
4.2.Electrical System Components |
4.3.Steering Components |
4.4.Fuel Components |
4.5.Wheels & Brakes Component |
4.6.Others Components |
5.Automotive Recycling Parts Market, by Vehicle Type (Market Size & Forecast: USD Billion, 2024 – 2030) |
5.1.Passenger Car |
5.2.Commercial Vehicle |
6.Automotive Recycling Parts Market, by Engine Type (Market Size & Forecast: USD Billion, 2024 – 2030) |
6.1.Internal Combustion Engine (ICE) |
6.2.Electric-Powered |
7.Automotive Recycling Parts Market, by End Use (Market Size & Forecast: USD Billion, 2024 – 2030) |
7.1.Aftermarket |
7.2.Original Equipment Manufacturers (OEM) |
8.Regional Analysis (Market Size & Forecast: USD Billion, 2024 – 2030) |
8.1.Regional Overview |
8.2.North America |
8.2.1.Regional Trends & Growth Drivers |
8.2.2.Barriers & Challenges |
8.2.3.Opportunities |
8.2.4.Factor Impact Analysis |
8.2.5.Technology Trends |
8.2.6.North America Automotive Recycling Parts Market, by Component Type |
8.2.7.North America Automotive Recycling Parts Market, by Vehicle Type |
8.2.8.North America Automotive Recycling Parts Market, by Engine Type |
8.2.9.North America Automotive Recycling Parts Market, by End Use |
*Similar Segmentation will be provided at each regional level |
8.3.By Country |
8.3.1.US |
8.3.1.1.US Automotive Recycling Parts Market, by Component Type |
8.3.1.2.US Automotive Recycling Parts Market, by Vehicle Type |
8.3.1.3.US Automotive Recycling Parts Market, by Engine Type |
8.3.1.4.US Automotive Recycling Parts Market, by End Use |
8.3.2.Canada |
8.3.1.Mexico |
*Similar Segmentation will be provided at each country level |
8.4.Europe |
8.5.APAC |
8.6.Latin America |
8.7.Middle East & Africa |
9. Competitive Landscape |
9.1.Overview of the Key Players |
9.2.Competitive Ecosystem |
9.2.1.Platform Manufacturers |
9.2.2.Subsystem Manufacturers |
9.2.3.Service Providers |
9.3.Company Share Analysis |
9.4.Company Benchmarking Matrix |
9.4.1.Strategic Overview |
9.4.2.Product Innovations |
9.5.Start-up Ecosystem |
9.6.Strategic Competitive Insights/ Customer Imperatives |
9.7.ESG Matrix/ Sustainability Matrix |
9.8.Manufacturing Network |
9.9.1.Locations |
9.9.2.Supply Chain and Logistics |
9.9.3.Product Flexibility/Customization |
9.9.4.Digital Transformation and Connectivity |
9.9.5.Environmental and Regulatory Compliance |
9.9.Technology Readiness Level Matrix |
9.10.Technology Maturity Curve |
9.11.Buying Criteria |
10.Company Profiles |
10.1.Aesop Auto Parts |
10.1.1.Company Overview |
10.1.2.Company Financials |
10.1.3.Product/Service Portfolio |
10.1.4.Recent Developments |
10.1.5.IMR Analysis |
*Similar information will be provided for other companies |
10.2.Stellantis |
10.3.BORG Automotive |
10.4.CARDONE Industries |
10.5.Carwood Group |
10.6.Detroit Diesel Corporation |
10.7.Jaguar Land Rover |
10.8.LKQ Corporation |
10.9.NK Parts Industries, Inc. |
10.10.Bosch |
11.Appendix |
A comprehensive market research approach was employed to gather and analyse data on the Automotive Recycling Parts Market. In the process, the analysis was also done to estimate the parent market and relevant adjacencies to measure the impact of them on the automotive recycling parts market. The research methodology encompassed both secondary and primary research techniques, ensuring the accuracy and credibility of the findings.
Secondary Research
Secondary research involved a thorough review of pertinent industry reports, journals, articles, and publications. Additionally, annual reports, press releases, and investor presentations of industry players were scrutinized to gain insights into their market positioning and strategies.
Primary Research
Primary research involved conducting in-depth interviews with industry experts, stakeholders, and market participants across the automotive recycling parts ecosystem. The primary research objectives included:
- Validating findings and assumptions derived from secondary research
- Gathering qualitative and quantitative data on market trends, drivers, and challenges
- Understanding the demand-side dynamics, encompassing end-users, component manufacturers, facility providers, and service providers
- Assessing the supply-side landscape, including technological advancements and recent developments
Market Size Estimation
A combination of top-down and bottom-up approaches was utilized to estimate the overall size of the automotive recycling parts market. These methods were also employed to estimate the size of various subsegments within the market. The market size estimation methodology encompassed the following steps:
- Identification of key industry players and relevant revenues through extensive secondary research
- Determination of the industry's supply chain and market size, in terms of value, through primary and secondary research processes
- Calculation of percentage shares, splits, and breakdowns using secondary sources and verification through primary sources
Data Triangulation
To ensure the accuracy and reliability of the market size estimates, data triangulation was implemented. This involved cross-referencing data from various sources, including demand and supply side factors, market trends, and expert opinions. Additionally, top-down and bottom-up approaches were employed to validate the market size estimates.
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