Vehicle Scrapping Market Report 2026

The vehicle scrapping market size has grown rapidly in recent years. It will grow from $93.61 billion in 2025 to $108.16 billion in 2026 at a compound annual growth rate (CAGR) of 15.5%. The growth in the historic period can be attributed to end-of-life vehicle regulations, growth in vehicle parc, metal recycling demand, informal scrapping control, environmental compliance.

The vehicle scrapping market size is expected to see rapid growth in the next few years. It will grow to $190.74 billion in 2030 at a compound annual growth rate (CAGR) of 15.2%. The growth in the forecast period can be attributed to circular economy mandates, ev adoption growth, battery recycling investments, digital vehicle tracking, sustainability regulations. Major trends in the forecast period include growth of authorized scrapping facilities, expansion of metal recovery operations, adoption of automated dismantling, rising focus on ev battery recycling, demand for circular automotive economy.

Growing environmental consciousness is expected to drive the expansion of the vehicle scrapping market going forward. Environmental consciousness refers to increased awareness of the impact of human activities on the environment and a commitment to adopting practices that reduce negative environmental effects. This growing awareness is driven by heightened concern over climate change, advancements in scientific research, frequent ecological disasters, and the rise of global sustainability movements. Vehicle scrapping supports environmental responsibility by enabling the recycling of valuable materials, ensuring the safe handling of hazardous substances, and reducing waste and pollution associated with end-of-life vehicles. For example, in April 2024, according to the National Association of Convenience Stores, a U.S.-based trade association representing the convenience and fuel retailing industry, survey results indicated that 80% of consumers were concerned about the environmental impact of their purchases, up from 68% in 2023 and 66% in 2022. Therefore, increasing environmental consciousness is driving the growth of the vehicle scrapping market.

Major companies in the vehicle scrapping market are expanding their service offerings by introducing innovative solutions such as registered vehicle scrapping facilities to improve compliance with environmental regulations and enhance dismantling efficiency. Registered vehicle scrapping facilities are authorized centers that meet regulatory standards for dismantling, recycling, and disposing of end-of-life vehicles while ensuring safe handling of hazardous materials and environmental protection. For instance, in February 2023, Tata Motors Limited, an India-based automotive manufacturer, launched Re.Wi.Re, its first registered vehicle scrapping facility, designed to dismantle end-of-life vehicles using environmentally responsible processes and handle up to 15,000 vehicles annually. The facility employs advanced eco-friendly technologies and fully digitalized operations to promote sustainable mobility and supports the national vehicle scrappage policy by encouraging the removal of older, high-emission vehicles. This initiative reflects Tata Motors’ broader sustainability strategy, which includes plans to establish additional registered vehicle scrapping facilities across India.

In December 2023, Autocirc, a Sweden-based automotive parts company, acquired Auto Pièces Caréco for an undisclosed amount. Through this acquisition, Autocirc aims to strengthen its vehicle scrapping and circular automotive parts capabilities by integrating Caréco’s expertise in end-of-life vehicle processing and expanding its range of recycled and second-hand vehicle components. Auto Pièces Caréco is a France-based company specializing in vehicle dismantling, automotive parts recycling, and the sale of used components, processing approximately 150,000 vehicles each year.

Major companies operating in the vehicle scrapping market report include 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 2025. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the vehicle scrapping market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the vehicle scrapping market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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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