Global 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.
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.
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.
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.
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.
| Report Attribute | Specifications |
| Market Size Value In 2024 | USD 148.2 Bn |
| Revenue Forecast In 2034 | USD 393.8 Bn |
| Growth Rate CAGR | CAGR of 10.7% from 2025 to 2034 |
| Quantitative Units | Representation of revenue in US$ Bn and CAGR from 2025 to 2034 |
| Historic Year | 2021 to 2024 |
| Forecast Year | 2025-2034 |
| Report Coverage | The forecast of revenue, the position of the company, the competitive market structure, growth prospects, and trends |
| Segments Covered | By Vehicle Type, Propulsion Type, Process Type, Component Type, And End-User |
| Regional Scope | North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
| Country Scope | U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico; France; Italy; Spain; South East Asia; South Korea |
| 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. |
| Customization Scope | Free customization report with the procurement of the report and modifications to the regional and segment scope. Particular Geographic competitive landscape. |
| Pricing And Available Payment Methods | Explore pricing alternatives that are customized to your particular study requirements. |
Automotive Circular Economy Market By Vehicle Type-
Automotive Circular Economy Market By Propulsion Type-
Automotive Circular Economy Market By Process Type -
Automotive Circular Economy Market By Component Type-
Automotive Circular Economy Market By End-User-
Automotive Circular Economy Market By Region-
North America-
Europe-
Asia-Pacific-
Latin America-
Middle East & Africa-
Chapter 1. Methodology and Scope
1.1. Research Methodology
1.2. Research Scope & Assumptions
Chapter 2. Executive Summary
Chapter 3. Global Automotive Circular Economy Market Snapshot
Chapter 4. Global Automotive Circular Economy Market Variables, Trends & Scope
4.1. Market Segmentation & Scope
4.2. Drivers
4.3. Challenges
4.4. Trends
4.5. Investment and Funding Analysis
4.6. Porter's Five Forces Analysis
4.7. Incremental Opportunity Analysis (US$ MN), 2024-2034
4.8. Competitive Landscape & Market Share Analysis, By Key Player (2023)
4.9. Use/impact of AI on Automotive Circular Economy Market Industry Trends
4.10. Global Automotive Circular Economy Market Penetration & Growth Prospect Mapping (US$ Mn), 2021-2034
Chapter 5. Automotive Circular Economy Market Segmentation 1: By Vehicle Type, Estimates & Trend Analysis
5.1. Market Share by Vehicle Type, 2024 & 2034
5.2. Market Size Revenue (US$ Million) & Forecasts and Trend Analyses, 2021 to 2034 for the following Vehicle Type:
5.2.1. Passenger Vehicles
5.2.2. Commercial Vehicles
5.2.3. Light Commercial Vehicles
5.2.3.1. Trucks
5.2.3.2. Buses
Chapter 6. Automotive Circular Economy Market Segmentation 2: By Propulsion Type, Estimates & Trend Analysis
6.1. Market Share by Propulsion Type, 2024 & 2034
6.2. Market Size Revenue (US$ Million) & Forecasts and Trend Analyses, 2021 to 2034 for the following Propulsion Type:
6.2.1. Internal Combustion Engine Vehicles
6.2.2. Electric Vehicles
6.2.2.1. Hybrid Electric Vehicles
6.2.2.2. Plug-In Hybrid Electric Vehicles
6.2.2.3. Battery Electric Vehicles
Chapter 7. Automotive Circular Economy Market Segmentation 3: By End-User Type, Estimates & Trend Analysis
7.1. Market Share by End-User Type, 2024 & 2034
7.2. Market Size Revenue (US$ Million) & Forecasts and Trend Analyses, 2021 to 2034 for the following End-User Type:
7.2.1. Original Equipment Manufacturers (OEMs)
7.2.2. Automotive Aftermarket
7.2.3. Others
Chapter 8. Automotive Circular Economy Market Segmentation 4: By Process Type, Estimates & Trend Analysis
8.1. Market Share by Process Type, 2024 & 2034
8.2. Market Size Revenue (US$ Million) & Forecasts and Trend Analyses, 2021 to 2034 for the following Process Type:
8.2.1. Recycled Products
8.2.2. Remanufactured Products
8.2.3. Refurbished Products
8.2.4. Reused Products
Chapter 9. Automotive Circular Economy Market Segmentation 5: By Component Type, Estimates & Trend Analysis
9.1. Market Share by Component Type, 2024 & 2034
9.2. Market Size Revenue (US$ Million) & Forecasts and Trend Analyses, 2021 to 2034 for the following Component Type:
9.2.1. Battery
9.2.2. Tire
9.2.3. Polymers
9.2.4. Body Parts
9.2.5. Brakes and Suspensions
9.2.6. Other
Chapter 10. Automotive Circular Economy Market Segmentation 6: Regional Estimates & Trend Analysis
10.1. Global Automotive Circular Economy Market, Regional Snapshot 2024 & 2034
10.2. North America
10.2.1. North America Automotive Circular Economy Market Revenue (US$ Million) Estimates and Forecasts by Country, 2021-2034
10.2.1.1. US
10.2.1.2. Canada
10.2.2. North America Automotive Circular Economy Market Revenue (US$ Million) Estimates and Forecasts by Vehicle Type, 2021-2034
10.2.3. North America Automotive Circular Economy Market Revenue (US$ Million) Estimates and Forecasts by Propulsion Type, 2021-2034
10.2.4. North America Automotive Circular Economy Market Revenue (US$ Million) Estimates and Forecasts by End-User Type, 2021-2034
10.2.5. North America Automotive Circular Economy Market Revenue (US$ Million) Estimates and Forecasts by Process Type, 2021-2034
10.2.6. North America Automotive Circular Economy Market Revenue (US$ Million) Estimates and Forecasts by Component Type, 2021-2034
10.3. Europe
10.3.1. Europe Automotive Circular Economy Market Revenue (US$ Million) Estimates and Forecasts by Country, 2021-2034
10.3.1.1. Germany
10.3.1.2. U.K.
10.3.1.3. France
10.3.1.4. Italy
10.3.1.5. Spain
10.3.1.6. Rest of Europe
10.3.2. Europe Automotive Circular Economy Market Revenue (US$ Million) Estimates and Forecasts by Vehicle Type, 2021-2034
10.3.3. Europe Automotive Circular Economy Market Revenue (US$ Million) Estimates and Forecasts by Propulsion Type, 2021-2034
10.3.4. Europe Automotive Circular Economy Market Revenue (US$ Million) Estimates and Forecasts by End-User Type, 2021-2034
10.3.5. Europe Automotive Circular Economy Market Revenue (US$ Million) Estimates and Forecasts by Process Type, 2021-2034
10.3.6. Europe Automotive Circular Economy Market Revenue (US$ Million) Estimates and Forecasts by Component Type, 2021-2034
10.4. Asia Pacific
10.4.1. Asia Pacific Automotive Circular Economy Market Revenue (US$ Million) Estimates and Forecasts by Country, 2021-2034
10.4.1.1. India
10.4.1.2. China
10.4.1.3. Japan
10.4.1.4. Australia
10.4.1.5. South Korea
10.4.1.6. Hong Kong
10.4.1.7. Southeast Asia
10.4.1.8. Rest of Asia Pacific
10.4.2. Asia Pacific Automotive Circular Economy Market Revenue (US$ Million) Estimates and Forecasts by Vehicle Type, 2021-2034
10.4.3. Asia Pacific Automotive Circular Economy Market Revenue (US$ Million) Estimates and Forecasts by Propulsion Type, 2021-2034
10.4.4. Asia Pacific Automotive Circular Economy Market Revenue (US$ Million) Estimates and Forecasts by End-User Type, 2021-2034
10.4.5. Asia Pacific Automotive Circular Economy Market Revenue (US$ Million) Estimates and Forecasts by Process Type, 2021-2034
10.4.6. Asia Pacific Automotive Circular Economy Market Revenue (US$ Million) Estimates and Forecasts by Component Type, 2021-2034
10.5. Latin America
10.5.1. Latin America Automotive Circular Economy Market Revenue (US$ Million) Estimates and Forecasts by Country, 2021-2034
10.5.1.1. Brazil
10.5.1.2. Mexico
10.5.1.3. Rest of Latin America
10.5.2. Latin America Automotive Circular Economy Market Revenue (US$ Million) Estimates and Forecasts by Vehicle Type, 2021-2034
10.5.3. Latin America Automotive Circular Economy Market Revenue (US$ Million) Estimates and Forecasts by Propulsion Type, 2021-2034
10.5.4. Latin America Automotive Circular Economy Market Revenue (US$ Million) Estimates and Forecasts by End-User Type, 2021-2034
10.5.5. Latin America Automotive Circular Economy Market Revenue (US$ Million) Estimates and Forecasts by Process Type, 2021-2034
10.5.6. Latin America Automotive Circular Economy Market Revenue (US$ Million) Estimates and Forecasts by Component Type, 2021-2034
10.6. Middle East & Africa
10.6.1. Middle East & Africa Wind Turbine Rotor Blade Market Revenue (US$ Million) Estimates and Forecasts by country, 2021-2034
10.6.1.1. GCC Countries
10.6.1.2. Israel
10.6.1.3. South Africa
10.6.1.4. Rest of Middle East and Africa
10.6.2. Middle East & Africa Automotive Circular Economy Market Revenue (US$ Million) Estimates and Forecasts by Vehicle Type, 2021-2034
10.6.3. Middle East & Africa Automotive Circular Economy Market Revenue (US$ Million) Estimates and Forecasts by Propulsion Type, 2021-2034
10.6.4. Middle East & Africa Automotive Circular Economy Market Revenue (US$ Million) Estimates and Forecasts by End-User Type, 2021-2034
10.6.5. Middle East & Africa Automotive Circular Economy Market Revenue (US$ Million) Estimates and Forecasts by Process Type, 2021-2034
10.6.6. Middle East & Africa Automotive Circular Economy Market Revenue (US$ Million) Estimates and Forecasts by Component Type, 2021-2034
Chapter 11. Competitive Landscape
11.1. Major Mergers and Acquisitions/Strategic Alliances
11.2. Company Profiles
11.2.1. Umicore
11.2.1.1. Business Overview
11.2.1.2. Key Vehicle Type/Service Overview
11.2.1.3. Financial Performance
11.2.1.4. Geographical Presence
11.2.1.5. Recent Developments with Business Strategy
11.2.2. Sims Metal (Sims Limited)
11.2.3. ZF Friedrichshafen AG
11.2.4. BorgWarner
11.2.5. LKQ Corporation
11.2.6. Valeo
11.2.7. Copart Inc.
11.2.8. IAA Holdings LLC.
11.2.9. RB Global
11.2.10. Renault Group
11.2.11. BMW Group
11.2.12. TOYOTA MOTOR CORPORATION.
11.2.13. Redwood Materials Inc.
11.2.14. Aptiv.
11.2.15. Bosch GmbH
Automotive Circular Economy Market By Vehicle Type-
Automotive Circular Economy Market By Propulsion Type-
Automotive Circular Economy Market By Process Type -
Automotive Circular Economy Market By Component Type-
Automotive Circular Economy Market By End-User-
Automotive Circular Economy Market By Region-
North America-
Europe-
Asia-Pacific-
Latin America-
Middle East & Africa-