Automotive Circular Economy Market Size is valued at USD 148.2 Bn in 2024 and is predicted to reach USD 398.3 Bn by the year 2034 at a 10.7% CAGR during the forecast period for 2025-2034.
The automotive circular economy is a sustainable system that emphasizes improving the life cycle of cars and their components via reuse, remanufacturing, recycling, and sustainable design. Its objective is to reduce waste and resource utilization through the use of recycled materials, refurbishment of components, and facilitation of second-life applications for electric vehicle batteries.
To improve sustainability, reduce operating costs, and adhere to stricter environmental requirements, automakers are adopting circularity as the demand for greener options increases. The automotive circular economy market expansion is being driven by the growing use of circular economy techniques in the automobile sector, such as recycling, remanufacturing, and reusing components and materials. The need for recycled, remanufactured, and refurbished car parts is anticipated to increase as the automotive industry shifts to more resource-efficient and sustainable solutions.
Additionally, the increased emphasis on lowering carbon footprints, prolonging vehicle lifespans, and enhancing manufacturing process efficiency are other important reasons. With developments in electric vehicles, green technologies, and sustainable manufacturing, the automotive circular economy market is expected to grow significantly over the next ten years.
However, the market is confronted with obstacles such as the high cost of product processing, product deterioration and quality, logistical issues for product collection and sorting, limitations on product warranties, and consumer attitudes regarding recycled or refurbished goods. On the other hand, as the automotive industry keeps pushing the envelope of innovation, there are plenty of chances to broaden applications to different automotive components in order to provide affordable and sustainable substitutes for freshly made components.
Competitive Landscape
Some Major Key Players In The Automotive Circular Economy Market:
- Umicore
- ZF Friedrichshafen AG
- LKQ Corporation
- BorgWarner Inc.
- Valeo
- Sims Metal (Sims Limited)
- Copart Inc.
- IAA Holdings, LLC.
- RB Global
- BMW Group
- TOYOTA MOTOR CORPORATION
- Renault Group
- Redwood Materials Inc.
- Marelli Holdings Co., Ltd.
- Bosch GmbH
- Other Market Players
Market Segmentation:
The Automotive Circular Economy market is segmented based on vehicle type, propulsion type, process type, component type, and end-user. Based on vehicle type, the market comprises Passenger Vehicles, Commercial Vehicles, and Light Commercial Vehicles (Trucks, Buses). By propulsion type, the market is segmented into Internal Combustion Engine Vehicles, Electric Vehicles (Hybrid Electric Vehicles, Plug-In Hybrid Electric Vehicles, Battery Electric Vehicles). By process type, the market is segmented into Recycled Products, Remanufactured Products, Refurbished Products, and Reused Products. By component type, the market is segmented into Batteries, Tyres, Polymers, Body Parts, Brakes and Suspensions, and Others. By end-user, the market includes Original Equipment Manufacturers (OEMs), Automotive Aftermarket, and Others.
According To The Vehicle Type Segment, The Passenger Vehicles Sub Segment Is Accounted As A Major Contributor To The Automotive Circular Economy Market
The passenger vehicles category is expected to hold a major global market share in 2024, fueled by the rising necessity for environmentally friendly transportation options and mandates for lower emissions from regulations. The use of recycled materials, car recycling, and parts remanufacturing are examples of circular practices that are becoming more popular as automakers respond to growing consumer and regulatory demands for greener automobiles. Due to their extended lifespans and large manufacturing volumes, passenger cars provide substantial potential for waste reduction and resource recovery. Innovations in sustainable material use and electric vehicle (EV) battery recycling further drive this trend.
Original Equipment Manufacturers (OEMs) Segment To Witness Growth At A Rapid Rate
The market for the automotive circular economy is anticipated to be dominated by original equipment manufacturers (OEMs) as demand for sustainable vehicle production and component sourcing grows. In order to lessen their environmental impact, OEMs are implementing circular economy techniques, including recycling, refurbishment, and remanufacturing in their manufacturing processes. In addition, OEMs are being pushed to use circular design and production methods for new cars and parts because of the growing demand for manufacturers to adhere to more stringent regulatory requirements on environmental effects.
In The Region, The North American Automotive Circular Economy Market Holds A Significant Revenue Share
The North American Automotive Circular Economy market is expected to register the highest market share in revenue in the near future, driven by its investments in sustainable manufacturing, technology advancements, and robust regulatory frameworks. With major industry participants promoting the use of circular methods in automobile production, the United States and Canada are leading the way in car recycling, remanufacturing, and the utilization of recycled components.
Additionally, the region's supremacy is being driven by strong public-private collaborations, improvements in battery recycling technology, and rising demand for electric vehicles (EVs). In addition, Europe is projected to grow rapidly in the global Automotive Circular Economy market supported by countries like the United Kingdom, Germany, Italy, and France, which have a robust automotive sector and a rising awareness of ecological issues.
Automotive Circular Economy Market Report Scope
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Report Attribute |
Specifications |
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Market Size Value In 2024 |
USD 148.2 Bn |
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Revenue Forecast In 2034 |
USD 393.8 Bn |
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Growth Rate CAGR |
CAGR of 10.7% from 2025 to 2034 |
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Quantitative Units |
Representation of revenue in US$ Bn and CAGR from 2025 to 2034 |
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Historic Year |
2021 to 2024 |
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Forecast Year |
2025-2034 |
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Report Coverage |
The forecast of revenue, the position of the company, the competitive market structure, growth prospects, and trends |
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Segments Covered |
By Vehicle Type, Propulsion Type, Process Type, Component Type, And End-User |
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Regional Scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
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Country Scope |
U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico; France; Italy; Spain; South East Asia; South Korea |
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Competitive Landscape |
Umicore, ZF Friedrichshafen AG, LKQ Corporation, BorgWarner Inc., Valeo, Sims Metal (Sims Limited), Copart Inc., IAA Holdings, LLC., RB Global, BMW Group, TOYOTA MOTOR CORPORATION, Renault Group, Aptiv., Redwood Materials Inc., Marelli Holdings Co., Ltd., and Bosch GmbH. |
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Customization Scope |
Free customization report with the procurement of the report and modifications to the regional and segment scope. Particular Geographic competitive landscape. |
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Pricing And Available Payment Methods |
Explore pricing alternatives that are customized to your particular study requirements. |
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