Automotive Plastics Recycling Market Size, Share, By Type (Polyethylene Terephthalate, Polypropylene, Polyethylene, ABS, and Others), By Application (Interior Components, Exterior Components, Under the Hood, and Electrical Components), and By Region - Trends, Analysis and Forecast till 2034

Report Code: PMI547524 | Publish Date: July 2024 | No. of Pages: 175

Automotive Plastics Recycling Market Overview

Automotive Plastics Recycling Market Size was valued at USD 49.61 Billion in 2024 and is expected to reach USD 96.05 Billion by 2034, growing at a CAGR of 7.5%

Automotive Plastics Recycling is recovering and recycling plastic materials from end-of-life vehicles (ELVs) and automotive industry waste. This process entails gathering, classifying, cleaning, and repurposing several kinds of plastics used in autos, including PVC, polypropylene, polyethylene, and polyurethane. These recovered plastics can be used to make new car parts or other things. The method seeks to lessen the environmental effects of the automobile industry through resource conservation, a reduction in the amount of plastic waste dumped in landfills, and a decrease in the demand for virgin plastic production. New technologies and processes are also developed as part of the recycling process for automotive plastics to increase the quality and efficiency of recovered materials and qualify them for use in high-performance automotive applications.

Growing consumer awareness of environmental issues, government-set sustainability goals and regulations, and the financial advantages of employing recycled materials are propelling the automotive plastics recycling market. The market is growing due to growing raw material costs and the automobile industry's adoption of circular economy ideas. Some obstacles include the difficulty of isolating and classifying the various polymers used in cars, the possibility of material property deterioration in recycled plastics, and the requirement for large expenditures in recycling infrastructure and technologies. Furthermore, recycling is more difficult by the inconsistent use of plastic in various car models and manufacturers. Another obstacle to market expansion is the erratic pricing of virgin plastics, which can occasionally make recycled materials less desirable economically. Maintaining a balance between these forces and constraints is essential to the advancement and uptake of automotive recycling procedures of plastics.

Automotive Plastics Recycling Market Share

Disclaimer: This data is only a representation. Actual data may vary and will be available in the report.

Automotive Plastics Recycling Market Dynamics

Key Drivers of Target Market:

Government initiatives for providing environmental sustainability:

  • Governments across the globe are implementing stricter regulations, especially in the automotive industry, to promote circular economy principles and prevent waste. For example, the EU's End-of-Life Vehicles (ELV) Directive requires that at least 85% of a vehicle's weight be recycled or reused, or 95% of the vehicle's weight must be recovered or reused. Other regions are implementing similar laws, which force automakers to use more recycled materials in their manufacturing processes.

  • Automakers' voluntary sustainability pledges, coupled with these regulatory pressures, provide a powerful push for the growth and development of automotive plastic recycling. Because of this, there is a greater need for recycled plastics in automobile manufacturing, which encourages investment in infrastructure and recycling systems.

Lowered cost benefits:

  • Recycled plastics frequently offer a more affordable option as the price of virgin plastics and other raw materials rises. This economic benefit is especially noticeable when oil prices are high because petroleum is necessary to create virgin plastic. Furthermore, automakers can lower their production costs by using recycled plastics and increase their profit margins.
  • Beyond merely saving money on raw materials, recycled plastics are becoming increasingly comparable to virgin materials in terms of quality, opening up new uses for them in the automotive industry. Due to their increased use, recycled plastics are becoming increasingly economically attractive, allowing producers to retain product quality while saving money and improving sustainability criteria.

Restrains:

Complexity in recycling:

  • The technological difficulty of recovering complex plastic components is one significant barrier to the automotive plastics recycling market. Many plastic types are found in modern cars, either in composite forms or with additives that make recycling and separation challenging. For instance, bumpers may have paint or chrome plating that needs to be removed, while instrument panels may combine multiple plastic kinds with embedded electronics. Because of this intricacy, sophisticated sorting and processing technologies are required, which can be expensive to implement.

  • Furthermore, the polymers may undergo quality degradation during recycling, rendering them unfit for high-performance automotive applications. This is especially troublesome for components essential to safety and requiring specific material characteristics. Because of this, producers might be reluctant to employ recycled plastics in particular applications, restricting the market's potential for expansion.

Opportunities:

Technological advancements:

  • The need for environmentally friendly products drives the cost of sophisticated recycling techniques like chemical recycling and AI-powered sorting systems. These technologies could remove many of the present barriers to plastic recycling, resulting in the creation of recycled polymers of higher quality that could be applied to a wider variety of automotive applications.
  • Chemical recycling, for example, can reduce plastics to their molecular components and provide recovered materials that are nearly identical to virgin plastics. This may create new markets for recycled polymers in luxury or high-stakes vehicle components. Furthermore, recycling procedures can be made more efficient and traceable by incorporating Industry 4.0 technologies like IoT and big data analytics. This will increase the appeal of recovered plastics to manufacturers.

Automotive Plastics Recycling Market Segmentation

The market is segmented based on Type, Application, and Region.

Type Insights:

  • Polyethylene Terephthalate: Polyethylene terephthalate, or PET, is the most popular recyclable plastic in automobiles. Examples of PET plastic include beverage bottles used as washer fluid reservoirs and windshields. The use of recycled PET in textiles and even new car parts aides a circular economy.
  • Polypropylene (PP): Polypropylene (PP) is a common material used for carpets, dashboards, and bumpers. Recycled PP is a versatile material that may be made into non-woven textiles for insulation or building materials for an eco-friendly second act.
  • Polyethylene: It is used in automobile components such as wire insulation, fenders, and fuel tanks. Repurposing used PE requires less virgin plastic for flooring, pipelines, and molded components.
  • ABS: Acrylonitrile butadiene styrene (ABS) is used in instrument panels, dashboards, and interior trimmings. Recycled ABS may be made into gadgets, non-woven textiles, building components, and more, prolonging its useful life.
  • Others: Certain components employ nylons, polycarbonates (PC), and polyurethanes (PU). Although recycling systems for these are still being developed, developments in this field point to future expansion.

Application Insights:

  • Interior Components: This large section includes carpets, chairs, instrument panels, door panels, and dashboards. New interior parts and non-woven textiles made from recycled plastics show the possibility of closed-loop recycling over a vehicle's lifetime.
  • Exterior Components: Recycling efforts focus more on underbody parts, fenders, bumpers, and spoilers. By using recycled plastics for new external components or building materials, waste may be reduced, and the vehicle industry can become more sustainable.
  • Under the Hood: Recyclers are starting to discuss wire insulation, battery housings, and engine parts. The use of recycled plastics in industrial applications and new automotive components enhances resource efficiency.
  • Electrical Components: Despite their complex character, electrical components may be included inin the circular economy thanks to sorting and recycling technology developments.

Regional Insights

  • North America: Rising environmental consciousness and a growing emphasis on sustainability fuel market expansion in North America. Investments in technical breakthroughs and infrastructure are expected to strengthen its position.
  • Asia Pacific: The booming automotive recycling industry in Asia Pacific and increasing government initiatives promoting recycling create significant growth potential. Technological advancements and infrastructure development will be crucial for realizing this potential.
  • Europe: The continent leads the world in recycling automobile plastics due to strict laws and a sophisticated recycling infrastructure. It is anticipated that developments in this area will impact worldwide patterns.
  • Latin America: Though still in its infancy, the Latin American automobile plastics recycling sector is expanding due to favorable government regulations, a growing middle class, and more environmental consciousness.
  • Middle East and Africa: Due to a number of variables coming together, the MEA area is becoming a more important market for automotive plastic recycling. Plastic waste and automobile ownership increase with rapid urbanization.

Automotive Plastics Recycling Market Report Scope:

Attribute

Details

Market Size 2024

USD 49.61 Billion

Projected Market Size 2034

USD 96.05 Billion

CAGR Growth Rate

7.5%

Base year for estimation

2023

Forecast period

2024 – 2034

Market representation

Revenue in USD Billion & CAGR from 2024 to 2034

Market Segmentation

By Type - Polyethylene Terephthalate, Polypropylene, Polyethylene, ABS, and Others.

By Application - Interior Components, Exterior Components, Under the Hood, and Electrical Components.

Regional scope

North America - U.S., Canada

Europe - UK, Germany, Spain, France, Italy, Russia, Rest of Europe

Asia Pacific - Japan, India, China, South Korea, Australia, Rest of Asia-Pacific

Latin America - Brazil, Mexico, Argentina, Rest of Latin America

Middle East & Africa - South Africa, Saudi Arabia, UAE, Rest of Middle East & Africa

Report coverage

Revenue forecast, company share, competitive landscape, growth factors, and trends

Segments Covered in the Report:

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2024 to 2034. For the purpose of this study segmented the target market report based on Type, Application, and Region.

Segmentation:

By Type:

  • Polyethylene Terephthalate

  • Polypropylene
  • Polyethylene
  • ABS
  • Others

By Application:

  • Interior Components
  • Exterior Components
  • Under the Hood
  • Electrical Components

By Region:

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Russia
    • Italy
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC
    • Israel
    • South Africa
    • Rest of Middle East & Africa

Automotive Plastics Recycling Market Key Players

The key players operating in the Automotive Plastics Recycling Market include AMP Robotics, BlueAlp, Repurpose, Mura Technology, ReCircle, Plagazi, Recykal, GREENMANTRA Technologies, Plastic Energy, Novoloop, UBQ Materials, KW Plastics, and Suez Recycling & Recovery Holdings.

Automotive Plastics Recycling Market Key Players

Disclaimer: This data is only a representation. Actual data may vary and will be available in the report.

Automotive Plastics Recycling Market Key Issues Addressed

  • In May 2024, BlueAlp, a top supplier of cutting-edge recycling technology, and Recupero Etico Sostenibile S.p.A. (RES), an innovator in waste management in Italy, partnered. BlueAlp will design, source, and assemble the device in its workshop in Eindhoven, Netherlands, and provide a technological license. RES will own and operate the facility to manage and convert 20kt of mixed plastic waste annually. This factory is expected to be operational by mid-2026 and is located in Pettoranello del Molise, Italy.
  • In May 2023, AMP Robotics Corp. stated that it would provide a comprehensive line of automated systems for materials recovery facilities based on artificial intelligence. According to the Louisville, Colorado-based business, it also provides an integrated facility solution that may be used alone to increase recycling infrastructure. AMP Robotics uses automation and artificial intelligence (AI) to identify and sort items to boost recycling rates and profitably recover raw materials for the global supply chain.

Automotive Plastics Recycling Market Company Profile

  • AMP Robotics
  • BlueAlp
  • repurpose
  • Mura Technology
  • ReCircle
  • Plagazi
  • Recykal
  • GREENMANTRA Techonologies
  • Plastic Energy
  • Novoloop
  • UBQ Materials
  • KW Plastics
  • Suez Recycling & Recovery Holdings

 

FAQs

Automotive Plastics Recycling Market was valued at USD 49.61 Billion in 2024 and is expected to reach USD 96.05 Billion by 2034, growing at a CAGR of 7.5%

Automotive Plastics Recycling Market is segmented into Type, Application, and Region.

Factors driving the market include the difficulty of isolating and classifying the various polymers used in cars, the possibility of material property deterioration in recycled plastics, and the requirement for large expenditures in recycling infrastructure and technologies.

Restraints of the Automotive Plastics Recycling Market include the present battery technologies' constrained range and energy density, which limit the amount of time and distance an electric aircraft may fly.

Automotive Plastics Recycling Market is segmented by region into North America, Asia Pacific, Europe, Latin America, and the Middle East and Africa. Europe is expected to dominate the Market.

The key players operating in the Automotive Plastics Recycling Market include AMP Robotics, BlueAlp, Repurpose, Mura Technology, ReCircle, Plagazi, Recykal, GREENMANTRA Technologies, Plastic Energy, Novoloop, UBQ Materials, KW Plastics, and Suez Recycling & Recovery Holdings.