Vehicle Scrapping Market Report 2024

This Vehicle Scrapping market report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The vehicle scrapping market size has grown rapidly in recent years. It will grow from $70.21 billion in 2023 to $80.9 billion in 2024 at a compound annual growth rate (CAGR) of 15.2%. The growth during the historic period can be attributed to rising urbanization and space constraints, increased use of autonomous vehicles, the growing popularity of shared mobility services, the globalization of vehicle recycling standards, and a heightened focus on second-life applications.

The vehicle scrapping market size is expected to see rapid growth in the next few years. It will grow to $143.69 billion in 2028 at a compound annual growth rate (CAGR) of 15.4%. The growth in the forecast period can be attributed to increasing consumer demand for sustainable and eco-friendly products, a continued preference for vehicle ownership, a stronger emphasis on the circular economy, a rise in electric vehicle (EV) scrapping, and the expansion of recycling infrastructure. Key trends during this period include advancements in electric vehicles (EVs), innovations in recycling technology, progress in battery recycling, recycling of lightweight materials, and technological integration.

The growing environmental consciousness is expected to drive the growth of the vehicle scrapping market in the future. Environmental consciousness refers to an awareness of the impact of human actions on the environment and a commitment to making choices that minimize negative effects. This growing consciousness is fueled by climate change awareness, scientific research, ecological disasters, and sustainability movements. Vehicle scrapping supports environmental consciousness by recycling valuable materials, safely managing hazardous substances, and reducing waste and pollution from end-of-life vehicles. For example, in April 2024, theroundup.org, a U.S.-based website dedicated to promoting environmental awareness, reported that the percentage of people who always or often seek environmentally sustainable products rose from 27% in 2021 to 62% in 2024. Therefore, the rise in environmental consciousness is driving the growth of the vehicle scrapping market.

Leading companies in the vehicle scrapping market are focusing on expanding their service offerings by introducing innovative solutions, such as registered vehicle scrapping facilities, to enhance compliance with environmental regulations and improve the efficiency of the dismantling process. Registered vehicle scrapping facilities are authorized and certified locations that meet regulatory standards for properly dismantling, recycling, and disposing of end-of-life vehicles, ensuring the safe handling of hazardous materials and protecting the environment. For instance, in February 2023, Tata Motors Limited, an India-based automotive company, launched Re.Wi.Re, the first registered vehicle scrapping facility (RVSF), designed to dismantle end-of-life vehicles in an environmentally friendly manner and process up to 15,000 vehicles annually. By utilizing advanced eco-friendly techniques and fully digitalized operations, Re.Wi.Re aims to promote sustainable mobility and aligns with the national vehicle scrappage policy by encouraging the retirement of older, polluting vehicles. This initiative reflects Tata Motors' commitment to sustainability and is part of a broader plan to establish more RVSFs across India.

In February 2022, Daimler India Commercial Vehicles (DICV), an India-based commercial automobile company, partnered with Cero Recycling. Through this partnership, the companies aim to facilitate the scrapping of end-of-life commercial vehicles, reduce carbon footprints by phasing out older, polluting vehicles, and boost new BharatBenz truck sales through a comprehensive end-to-end solution for customers. This collaboration also enables BharatBenz dealerships to expand their service offerings and contribute to eco-friendly initiatives. Cero Recycling is an India-based organized vehicle scrapping and recycling company.

Major companies operating in the vehicle scrapping market are Tata Motors Ltd., Mahindra& Mahindra Ltd., LKQ Corporation, Sims Metal Management Ltd., Copart Inc., Schnitzer Steel Industries, ASM Auto Recycling Ltd., Scholz Recycling GmbH, American Iron & Metal Company Inc., Blue Water Recycling Inc., Pick-n-Pull, Hensel Recycling Group, J & J Recycling Inc., Evergreen Recycling Inc., Keiaisha Co. Ltd., Green Metals Inc., City Scrap Metal Ltd., Auto Recycling Solutions Inc., Certified Auto Recyclers Inc., Premier Recycling Ltd., Eco Recycling Ltd.

Asia-Pacific was the largest region in the vehicle scrapping market in 2023. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the vehicle scrapping market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the vehicle scrapping market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Vehicle scrapping refers to the process of dismantling and disposing of an end-of-life vehicle in an environmentally responsible way. This process includes removing and recycling usable parts, safely disposing of hazardous materials, and crushing the remaining vehicle frame to recover metal and other materials. The vehicle scrapping process ensures that vehicles that are no longer operational or are deemed unfit for the road are managed in a way that minimizes environmental impact.

The primary types of vehicles involved in vehicle scrapping are passenger vehicles and commercial vehicles. Passenger vehicles are automobiles primarily designed for transporting passengers rather than cargo. These vehicles are made up of various materials, such as steel, aluminum, copper, and others, which are used for different applications, including manufacturing new products and providing reusable parts.

The vehicle scrapping market research report is one of a series of new reports that provides vehicle scrapping market statistics, including vehicle scrapping industry global market size, regional shares, competitors with a vehicle scrapping market share, detailed vehicle scrapping market segments, market trends and opportunities, and any further data you may need to thrive in the vehicle scrapping industry. This vehicle scrapping market research report delivers a complete perspective on everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The vehicle scrapping market includes revenues earned by entities by traditional dismantling, shredding, crushing, fluid draining, and material recycling. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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