With strong demand for recycled metals and greener manufacturing, vehicle recycling could reach nearly US$287 billion by 2032.
Detroit, USA, 13 January 2026 – The vehicle recycling market is becoming a major part of the global automotive and sustainability ecosystem. As vehicle ownership continues to increase worldwide, more cars and commercial vehicles are reaching the end of their usable life. These end-of-life vehicles include older models, damaged vehicles, and outdated fleets that are no longer worth repairing. Instead of adding to landfill waste, recycling systems are helping recover valuable materials and reduce environmental impact.
According to Persistence Market Research, the global vehicle recycling market is projected to reach US$110.1 billion in 2025 and grow strongly to US$286.8 billion by 2032. The market is expected to expand at a CAGR of 14.2% from 2025 to 2032, showing how quickly the industry is becoming a mainstream solution for waste reduction and resource conservation.
One of the biggest growth drivers is the rising volume of end-of-life vehicles. As people replace vehicles more frequently due to new technologies and changing needs, recycling companies are seeing a steady increase in scrap vehicle supply. At the same time, demand for recycled materials is rising because metals like steel and aluminum can be recovered efficiently and sold at a strong market value. Metal recycling continues to dominate the market because these materials are widely used in manufacturing and are easier to reuse compared to many other vehicle components.
Vehicle recycling involves several steps, including manual dismantling, shredding, battery recycling, and advanced material recovery. Many facilities remove reusable parts first, such as engines, doors, or electronics, which can be resold. After dismantling, recyclers process the remaining materials to extract metals, plastics, rubber, and glass for reuse in construction, industrial applications, and energy recovery.
Developed regions like North America and Europe lead the market due to strong recycling infrastructure and strict vehicle disposal regulations. Emerging regions are also growing quickly as automotive use expands and structured recycling policies develop, creating new business opportunities.
The market includes established companies such as ASM Auto Recycling Ltd., Copart, Inc., Eco-Bat Technologies Ltd., INDRA (India), Keiaisha Co., Ltd., Hensel Recycling Group, LKQ Corporation, Schnitzer Steel Industries, Inc., Scholz Recycling GmbH, and Sims Metal Management Limited.
