Vehicle Scrapping Market Research Report By Vehicle Type (Passenger Cars, Commercial Vehicles, Two Wheelers, Heavy Machinery), By Scrapping Method (Manual Dismantling, Mechanical Shredding, Hydrometallurgical Processing, Pyrometallurgical Processing), By Material Type (Ferrous Metals, Non-Ferrous Metals, Plastics, Glass, Fluids) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2032

Vehicle Scrapping Market Overview:

As per MRFR analysis, the Vehicle Scrapping Market Size was estimated at 69.11 (USD Billion) in 2022. The Vehicle Scrapping Market Industry is expected to grow from 73.99(USD Billion) in 2023 to 136.9 (USD Billion) by 2032. The Vehicle Scrapping Market CAGR (growth rate) is expected to be around 7.07% during the forecast period (2024 - 2032).

Key Vehicle Scrapping Market Trends Highlighted

The growth of the Vehicle Scrapping Market can be attributed to the expanding government policies and the need to protect the environment. Various countries are developing rules aimed at tackling the end of life vehicles and their effects on the environment. The upsurge in the prices for scrap metal and the rise in demand for recycled products are also factors that contribute to the growth of the market. The shift to electric vehicles is likely to help in that new markets will emerge owing to the disposal of EV batteries, which will inevitably boost recycling and scrapping companies.

Key trends that are changing the Vehicle Scrapping Market include the implementation of Artificial Intelligence (AI), the Internet of Things (IoT), and other advanced technologies to make scrapping activities less complex and more effective. Another movement that is being noticed is the enhanced commitment towards sustainability and the innovations of green scrapping practices. Furthermore, scrapping industry and automobile manufacturers’ strategic cooperation is also becoming common to improve the collection and recycling of end-of-life vehicles.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Vehicle Scrapping Market Drivers

Increasing Vehicle Production and Sales

The increasing production and sales of vehicles globally contribute significantly to the growth of the Vehicle Scrapping Market Industry. The rising demand for personal and commercial vehicles, particularly in emerging economies, leads to a substantial increase in the number of vehicles on the road. As these vehicles reach the end of their lifespan, they enter the scrapping process, driving the demand for vehicle scrapping services. This surge in vehicle production and sales is expected to continue in the coming years, further propelling the growth of the Vehicle Scrapping Market Industry.

Government Regulations and Environmental Concerns

Stringent government regulations and environmental concerns regarding vehicle disposal have played a crucial role in shaping the Vehicle Scrapping Market Industry. Governments worldwide are implementing policies and standards to promote environmentally friendly practices and reduce vehicle-related pollution. These regulations mandate the proper disposal and recycling of end-of-life vehicles, stimulating the demand for organized vehicle scrapping facilities.Additionally, rising consumer awareness about environmental sustainability and the need for responsible vehicle disposal practices further contribute to the growth of the Vehicle Scrapping Market Industry.

Technological Advancements and Innovation

Technological advancements and innovation are transforming the Vehicle Scrapping Market Industry. The introduction of automated dismantling systems, advanced recycling techniques, and data analytics optimizes the scrapping process, reduces environmental impact, and improves efficiency. These innovations enhance the overall value proposition of vehicle scrapping, attracting investments and fostering the growth of the industry. Moreover, the increasing adoption of electric vehicles and the development of sustainable battery recycling technologies are expected to create new opportunities in the Vehicle Scrapping Market Industry.

Vehicle Scrapping Market Segment Insights:

Vehicle Scrapping Market Vehicle Type Insights

The Vehicle Scrapping Market segmentation by Vehicle Type represents the range of vehicles across this market. It includes four major classes, namely, Passenger Cars, Commercial Vehicles, Two Wheelers, and Heavy Machinery. These four types vary in their characteristics and, therefore, in their rates of growth and their contributions to the industry. Passenger Cars, the leading segment in this context, constitute a considerable amount of the Vehicle Scrapping Market’s revenue. The number of vehicles that reach the end of their usable life continuously grows, and government regulations and support exist in this context, which accounts for its rapid expansion.The 2023 value of this segment is approximately USD 29.5 billion, and it is projected to increase to USD 52.3 billion by 2032, with the CAGR of growth being 7.2%. Commercial Vehicles, the second Vehicle Type segment, include trucks, buses, and vans. The demand in this industry is high because the regulatory controls on these sources of emissions are among the most stringent in the automotive world, simultaneously, the necessity to update large vehicle fleets within transporting enterprises exists. The value of the Commercial Vehicle segment is approximately USD 21.7 billion, and it is going to rise to USD 38.4 billion by 2032, with a CAGR of 7.4%.Two Wheelers, the third segment, which also contains motorcycles and, to a lesser extent, scooters, reflect that the ease of driving and the ability to participate profitably in the widespread sharing of rides become more affordable for the population. The market value for this part in 2023 is almost USD 12.6 billion, and the 2032 value is expected to be around USD 22.5, which represents the CARG of 7.6%. Heavy Machinery, the fourth segment, reflects the building and harvesting devices, including tractors, bulldozers, and others. This sector is already of significant size within the market, but it is expected to expand at a considerable CAGR of 7.8%, with the 2023 value being nearly USD 10.1 billion and the 2032 level reaching USD 18.2 billion.Overall, this Vehicle Type segment is diverse and interesting; each part has its own specific aspects that define the overall industry.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Vehicle Scrapping Market Scrapping Method Insights

Segmentation by Scrapping Method includes Manual Dismantling, Mechanical Shredding, Hydrometallurgical Processing and Pyrometallurgical Processing. Manual Dismantling is a manual labour process that involves disassembling vehicles by hand. Mechanical Shredding is mechanical processing, vehicles are broken down by heavy machinery into small parts. Hydrometallurgical Processing uses chemicals to remove valuable materials from a damaged vehicle. Pyrometallurgical Processing is an incineration process in which material is removed by heat in two different methods.

Vehicle Scrapping Market Material Type Insights

Vehicle scrapping involves the dismantling of end-of-life vehicles (ELVs) to recover valuable materials. The Vehicle Scrapping Market segmentation by Material Type includes Ferrous Metals, Non-Ferrous Metals, Plastics, Glass, and Fluids. Ferrous Metals, primarily steel, account for the largest share of revenue due to their extensive use in vehicle manufacturing. Non-Ferrous Metals, such as aluminum and copper, are also significant contributors to the market. Plastics, used in various vehicle components, are gaining traction due to increasing environmental regulations.Glass, utilized for windshields and windows, represents a smaller but stable segment. Fluids, including oils and coolants, are carefully handled and recycled to minimize environmental impact.

Vehicle Scrapping Market Regional Insights

The regional segmentation of the Vehicle Scrapping Market presents significant insights into the geographical distribution of market growth and opportunities. North America is expected to maintain its dominance in the market, accounting for a major share of the global revenue in 2023. This dominance is primarily driven by the presence of established automotive industries, stringent regulations for vehicle disposal, and rising consumer awareness about environmental sustainability. Europe follows closely, with a significant market share attributed to the region's mature automotive sector and the implementation of end-of-life vehicle directives.APAC is projected to witness substantial growth in the coming years, driven by the increasing vehicle population, growing industrialization, and government initiatives to promote sustainable waste management practices. The region's emerging economies, such as China and India, are expected to contribute significantly to the growth of the Vehicle Scrapping Market. South America and MEA are also anticipated to experience steady growth, albeit at a slower pace compared to other regions. These regions are characterized by a growing automotive sector and increasing environmental concerns, which are driving the demand for organized vehicle scrapping services.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Vehicle Scrapping Market Key Players And Competitive Insights:

The Vehicle Scrapping Market’s major players, such as Umicore and Sims Metal Management, have been concentrating on augmenting their market position by expanding their geographical reach and developing new technologies. Moreover, the leading players have been strengthening their market presence by maintaining strategic partnerships and acquisitions. The Vehicle Scrapping Market industry is highly competitive due to the presence of established players who are constantly seeking to enlarge their market share and new entrants who intend to create a niche for themselves in the market. The development of the Vehicle Scrapping Market is primarily driven by a set of factors, including, but not limited to, the growing environmental concerns, the increasing demand for recycled material, and the governments’ policies encouraging sustainability.Umicore, one of the leading players in the Vehicle Scrapping Market, has been concentrating on its endeavor to boost its global presence by implementing acquisitions and partnerships. As a part of its expansion strategy, the company has invested significantly in developing first-rate recycling facilities and has created pioneering technologies that ensure efficient and sustainable metal recovery. Umicore’s reliance on its longstanding experience in the recycling industry and its commitment to sustainability and environmental protection are the major drivers of the company’s prominent role in the Vehicle Scrapping Market.

Its main competitor, the industry’s major player, Sims Metal Management, has also been expanding its market presence by maintaining acquisitions and partnerships. The company provides a set of recycling services that are executed in its extended global network of recycling facilities. The major services offered by the company include metals recovery, electronics recycling, and waste management. The company relies on its trend toward fostering innovation and its commitment to environmental protection to keep its stronghold position in the Vehicle Scrapping Market.

Key Companies in the Vehicle Scrapping Market Include:

• Sims Metal Management


• ArcelorMittal


• Covanta Holding Corporation


• Nucor Corporation


• Befesa Group


• Stena Metall Group


• EMR


• Metal Management, Inc.


• Umicore


• European Metal Recycling


• Veolia Environnement


• Commercial Metals Company


• Schnitzer Steel Industries


• SA Recycling


• Tata Steel

Vehicle Scrapping Market Industry Developments

The Vehicle Scrapping Market is anticipated to reach a valuation of USD 136.9 billion by 2032, expanding at a 7.07% CAGR from 2024 to 2032. This growth is attributed to rising environmental awareness, stringent government regulations on vehicle disposal, and technological advancements in scrapping processes.In recent news, the Indian government launched a vehicle scrapping policy in 2021 to promote organized scrapping and reduce pollution. This policy offers incentives for scrapping old vehicles and encourages the establishment of authorized scrapping centers.Moreover, the increasing adoption of electric vehicles is expected to drive the demand for vehicle scrapping services in the coming years. The batteries and other components of electric vehicles require specialized disposal techniques, leading to the growth of specialized scrapping facilities.

Vehicle Scrapping Market Segmentation Insights