End-of-Life Vehicle Market

The End-of-Life Vehicle market is projected to grow from USD 25.18 billion in 2025 to USD 46.68 billion by 2032, at a CAGR of 9.2%.

The end-of-life vehicle (ELV) market is being driven by stringent environmental regulations, rising metal and component recovery rates, and growing awareness around sustainable vehicle disposal. Governments worldwide are enforcing stricter recycling and waste reduction policies such as the European Union’s revised ELV directive under the Circular Economy Action Plan, which targets 100% reuse and recycling by 2035. Additionally, the increasing number of aging vehicles, especially in developed regions like North America and Europe, is accelerating vehicle retirements. Automakers such as BMW Group, Toyota Motor Corporation, Renaults Group, and others are also stepping up extended producer responsibility (EPR) efforts; for instance, in October 2024, Renault Group and SUEZ stepped up their long-term partnership, which encompasses recycling waste metal and recovering end-of-life vehicles, with strategic agreements aimed at supporting the ecological transition in the automotive sector. In India, the government’s Vehicle Scrappage Policy incentivizes voluntary scrapping of unfit vehicles, boosting formal ELV handling infrastructure. The demand for recycled metals like steel, aluminum, and copper driven by EV production and global commodity price volatility is further reinforcing the ELV market’s momentum.

The passenger car segment  is expected to grow at a higher rate during the forecast period

The passenger car segment is expected to grow at a higher CAGR in the end-of-vehicle-life market primarily due to the increasing vehicle parc of aging internal combustion engine (ICE) cars, especially in developing economies. As more countries implement stricter regulations around scrappage and recycling such as mandatory vehicle retirement policies and incentives for turning in old vehicles the volume of passenger cars reaching their end-of-life stage is rising. For instance, Government of India notification GSR 653 (E) dated 23.09.2021, removal or re-cycling or disposal of hazardous parts of the scrapped vehicle is to be done as per CPCB guidelines for Environmentally Sound Management of End-of-Life Vehicles and AIS-129. The said guidelines outline the procedures and infrastructure facilities required for de-pollution & dismantling of ELVs for further recovery of metals and other materials and requirements under environmental regulations. Additionally, the higher replacement rate of personal vehicles compared to commercial vehicles, driven by evolving consumer preferences and affordability of new models, is contributing to a faster accumulation of end-of-life passenger cars, thereby accelerating growth in this segment. Further, OEMS are also stepping initiatives towards the circular economy principle. For instance, in August 2024, Honda Motor and Nissan Motor, alongside other Japanese automakers, are actively working to develop supply chains for recycled plastic. Also, in December 2023, Renault opted for an Individual System to manage end-of-life vehicles (ELVs) in compliance with its Extended Producer Responsibility under France’s Anti-Waste and Circular Economy Act (AGEC). Such development will boost the market growth during the forecast period.

The tires segment holds a prominent market share in the End-of-Life Vehicle market.

The tires segment holds a prominent market share in the End-of-Life Vehicle market due to the high volume of tire waste generated and the increasing focus on tire-derived products. With nearly every scrapped vehicle contributing four or more used tires, recyclers are capitalizing on the economic potential of tire pyrolysis, crumb rubber, and repurposed tire-derived fuel (TDF). Further, the end-of-vehicle-life stage significantly impacts the green tire market by creating opportunities for recycling and material recovery, which align with sustainability goals. As vehicles reach the end of their lifespan, proper disposal and recycling of green tires designed with eco-friendly materials and lower rolling resistance help reduce environmental waste and carbon emissions. Tire manufacturing companies are actively engaging in tire recycling and reuse strategies within the End-of-Life Vehicle (ELV) market to align with circular economy goals and regulatory compliance. For instance, in July 2024, Continental concluded a long-term purchase agreement with Pyrum Innovations, a specialist in the thermolysis technology of end-of-life tires, for particularly high-quality carbon black recovered from end-of-life tires. These initiatives not only reduce landfill burden but also help OEMs meet sustainability targets and enhance brand value. Also, in May 2024, CSRC Group's board approved a joint venture with Eco Infinic Co. (a SHEICO Group subsidiary) to invest in the recovered carbon black (rCB) business at the former Continental Carbon Company (CCC) Phenix plant. The new facility, set to begin production in 2026, will be one of North America's largest, with annual outputs of 30,000 tons of rCB, 35,000 tons of tire pyrolysis oil (TPO), and 2,300 tons of steel wire. Such development will boost the market growth in the forecast period.

Asia Pacific is expected to have the largest market share in the End-of-Life vehicle market during the forecast period.

Asia Pacific holds the largest market share in the End-of-Life Vehicle (ELV) market, primarily driven by the region's rapidly expanding vehicle parc, stringent government regulations on vehicle scrappage, and the growing presence of organized recycling infrastructure, especially in countries like China, Japan, and India. China’s "dual carbon" goals and its push for circular economy models have accelerated the formalization of ELV dismantling and recycling. Further, OEMs in the region are also collaborating on recycling activity. For instance, in November 2024, Tata Motors and Tata International jointly launched a vehicle scrapping facility called "Re.Wi.Re" in Pune, India. This facility, with an annual capacity to scrap 21,000 vehicles, is part of a broader initiative to establish India as a vehicle scrapping hub. Also, in 2021 Indian government introduced  The Vehicle Scrappage Policy in India, Where Commercial vehicles older than 15 years and personal vehicles over 20 years will be deregistered if they fail automated fitness tests. Additionally, the rising volume of aging vehicles across Southeast Asia, coupled with increased OEM participation in reverse logistics and material recovery, has reinforced Asia Pacific’s dominance in the ELV market.

The End-of-Life Vehicle market is dominated by major players, including LKQ Corporation (US), European Metal Recycling Ltd. (UK), Toyota Motor Corporation (Japan), HKS Scrap Metals (Netherlands), Volkswagen Group (Germany) and Stellantis (Netherlands). These companies provide services for dismantling, recycling, and reuse of automotive components and materials.