Published Year: 2025
Automotive Circular Economy Market - A Global and Regional Analysis: Focus on Application Type, Prod
The global automotive circular economy market was valued at $153.63 billion in 2024 and is...
Market Research Report
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Table of Contents
1.1 Trends: Current and Future Impact Assessment
1.1.1 Increasing Focus on Battery Recycling and Second Life Applications
1.1.2 Growth of Vehicle Remanufacturing
1.2 Supply Chain Overview
1.3 Regulatory Landscape
1.4 Impact Analysis for Key Global Events
1.4.1 Implementation of Stringent Environmental Regulations
1.4.2 Global Climate Agreements and ESG Initiatives
1.5 Market Dynamics Overview
1.5.1 Market Drivers
1.5.1.1 Stringent Government Regulations and Policies
1.5.1.2 Growing Corporate ESG and Sustainability Commitments
1.5.2 Market Restraints
1.5.2.1 Complex Supply Chains and Infrastructure Challenges
1.5.2.2 Inconsistent Global Regulations
1.5.3 Market Opportunities
1.5.3.1 Growing EV adoption Creating Substantial Opportunities in Repurposing Batteries
1.5.3.2 Expansion of Circular Supply Chains and Partnerships
1.6 Investment Landscape
1.7 Automotive Circular Economy Market Case Studies
1.8 Automotive Circular Economy Overview
1.8.1 Need for Circular Economy in the Automotive Industry
1.8.2 Sustainability and ESG Goals of Key Automotive Companies
1.8.3 Impact of Circular Economy on Various Automotive Lifecycle Stages
1.8.3.1 Manufacturing
1.8.3.2 Retail
1.8.3.3 Aftermarket
1.8.4 Impact of Automotive Circular Economy
1.8.4.1 Recycled Materials
1.8.4.2 Green Steel
1.8.4.3 Climate Neutral Vehicles
1.8.4.4 Sustainable Manufacturing Plants
1.8.4.5 Green Dealerships
1.8.4.6 Second-Life Batteries
2.1 Regional Summary
2.2 Europe
2.2.1 Regional Overview
2.2.2 Driving Factors for Market Growth
2.2.3 Factors Challenging the Market
2.2.4 Application
2.2.5 Product
2.2.6 Europe (by Country)
2.2.6.1 U.K.
2.2.6.1.1 Application
2.2.6.1.2 Product
2.2.6.2 Germany
2.2.6.2.1 Application
2.2.6.2.2 Product
2.2.6.3 Italy
2.2.6.3.1 Application
2.2.6.3.2 Product
2.2.6.4 France
2.2.6.4.1 Application
2.2.6.4.2 Product
2.2.6.5 Spain
2.2.6.5.1 Application
2.2.6.5.2 Product
2.2.6.6 Netherlands
2.2.6.6.1 Application
2.2.6.6.2 Product
2.2.6.7 Rest-of-Europe
2.2.6.7.1 Application
2.2.6.7.2 Product
3.1 Next Frontiers
3.2 Geographic Assessment
3.3 Recycling Companies
3.3.1 Umicore
3.3.1.1 Overview
3.3.1.2 Top Products/Product Portfolio
3.3.1.3 Top Competitors
3.3.1.4 Target Customers/End Users
3.3.1.5 Key Personnel
3.3.1.6 Analyst View
3.3.1.7 Market Share, 2023
3.4 Remanufacturing
3.4.1 ZF Friedrichshafen AG
3.4.1.1 Overview
3.4.1.2 Top Products/Product Portfolio
3.4.1.3 Top Competitors
3.4.1.4 Target Customers/End Users
3.4.1.5 Key Personnel
3.4.1.6 Analyst View
3.4.1.7 Market Share, 2023
3.4.2 Valeo
3.4.2.1 Overview
3.4.2.2 Top Products/Product Portfolio
3.4.2.3 Top Competitors
3.4.2.4 Target Customers/End Users
3.4.2.5 Key Personnel
3.4.2.6 Analyst View
3.4.2.7 Market Share, 2023
3.5 Integrated Circular Economy Solutions
3.5.1 Renault Group
3.5.1.1 Overview
3.5.1.2 Top Products/Product Portfolio
3.5.1.3 Top Competitors
3.5.1.4 Target Customers/End Users
3.5.1.5 Key Personnel
3.5.1.6 Analyst View
3.5.1.7 Market Share, 2023
3.5.2 BMW Group
3.5.2.1 Overview
3.5.2.2 Top Products/Product Portfolio
3.5.2.3 Top Competitors
3.5.2.4 Target Customers/End Users
3.5.2.5 Key Personnel
3.5.2.6 Analyst View
3.5.2.7 Market Share, 2023
3.6 Technology Providers
3.6.1 Aptiv.
3.6.1.1 Overview
3.6.1.2 Top Products/Product Portfolio
3.6.1.3 Top Competitors
3.6.1.4 Target Customers/End Users
3.6.1.5 Key Personnel
3.6.1.6 Analyst View
3.6.1.7 Market Share, 2023
3.7 Parts and Components Suppliers
3.7.1 Bosch GmbH
3.7.1.1 Overview
3.7.1.2 Top Products/Product Portfolio
3.7.1.3 Top Competitors
3.7.1.4 Target Customers/End Users
3.7.1.5 Key Personnel
3.7.1.6 Analyst View
3.7.1.7 Market Share, 2023
4.1 Data Sources
4.1.1 Primary Data Sources
4.1.2 Secondary Data Sources
4.1.3 Data Triangulation
4.2 Market Estimation and Forecast
Table 1: Market Snapshot
Table 2: Opportunities across Region
Table 3: Competitive Landscape Snapshot
Table 4: Trends Overview
Table 5: Regulations for Automotive Circular Economy
Table 6: Investment Landscape in the Automotive Circular Economy Market
Table 7: Sustainability and ESG Goals of Key Automotive Companies
Table 8: Automotive Circular Economy Market (by Region), $Million, 2023-2034
Table 9: Europe Automotive Circular Economy Market (by Vehicle Type), $Million, 2023-2034
Table 10: Europe Automotive Circular Economy Market (by Propulsion Type), $Million, 2023-2034
Table 11: Europe Automotive Circular Economy Market (by End-User Type), $Million, 2023-2034
Table 12: Europe Automotive Circular Economy Market (by Process Type), $Million, 2023-2034
Table 13: Europe Automotive Circular Economy Market (by Component Type), $Million, 2023-2034
Table 14: U.K. Automotive Circular Economy Market (by Vehicle Type), $Million, 2023-2034
Table 15: U.K. Automotive Circular Economy Market (by Propulsion Type), $Million, 2023-2034
Table 16: U.K. Automotive Circular Economy Market (by End-User Type), $Million, 2023-2034
Table 17: U.K. Automotive Circular Economy Market (by Process Type), $Million, 2023-2034
Table 18: U.K. Automotive Circular Economy Market (by Component Type), $Million, 2023-2034
Table 19: Germany Automotive Circular Economy Market (by Vehicle Type), $Million, 2023-2034
Table 20: Germany Automotive Circular Economy Market (by Propulsion Type), $Million, 2023-2034
Table 21: Germany Automotive Circular Economy Market (by End-User Type), $Million, 2023-2034
Table 22: Germany Automotive Circular Economy Market (by Process Type), $Million, 2023-2034
Table 23: Germany Automotive Circular Economy Market (by Component Type), $Million, 2023-2034
Table 24: Italy Automotive Circular Economy Market (by Vehicle Type), $Million, 2023-2034
Table 25: Italy Automotive Circular Economy Market (by Propulsion Type), $Million, 2023-2034
Table 26: Italy Automotive Circular Economy Market (by End-User Type), $Million, 2023-2034
Table 27: Italy Automotive Circular Economy Market (by Process Type), $Million, 2023-2034
Table 28: Italy Automotive Circular Economy Market (by Component Type), $Million, 2023-2034
Table 29: France Automotive Circular Economy Market (by Vehicle Type), $Million, 2023-2034
Table 30: France Automotive Circular Economy Market (by Propulsion Type), $Million, 2023-2034
Table 31: France Automotive Circular Economy Market (by End-User Type), $Million, 2023-2034
Table 32: France Automotive Circular Economy Market (by Process Type), $Million, 2023-2034
Table 33: France Automotive Circular Economy Market (by Component Type), $Million, 2023-2034
Table 34: Spain Automotive Circular Economy Market (by Vehicle Type), $Million, 2023-2034
Table 35: Spain Automotive Circular Economy Market (by Propulsion Type), $Million, 2023-2034
Table 36: Spain Automotive Circular Economy Market (by End-User Type), $Million, 2023-2034
Table 37: Spain Automotive Circular Economy Market (by Process Type), $Million, 2023-2034
Table 38: Spain Automotive Circular Economy Market (by Component Type), $Million, 2023-2034
Table 39: Netherlands Automotive Circular Economy Market (by Vehicle Type), $Million, 2023-2034
Table 40: Netherlands Automotive Circular Economy Market (by Propulsion Type), $Million, 2023-2034
Table 41: Netherlands Automotive Circular Economy Market (by End-User Type), $Million, 2023-2034
Table 42: Netherlands Automotive Circular Economy Market (by Process Type), $Million, 2023-2034
Table 43: Netherlands Automotive Circular Economy Market (by Component Type), $Million, 2023-2034
Table 44: Rest-of-Europe Automotive Circular Economy Market (by Vehicle Type), $Million, 2023-2034
Table 45: Rest-of-Europe Automotive Circular Economy Market (by Propulsion Type), $Million, 2023-2034
Table 46: Rest-of-Europe Automotive Circular Economy Market (by End-User Type), $Million, 2023-2034
Table 47: Rest-of-Europe Automotive Circular Economy Market (by Process Type), $Million, 2023-2034
Table 48: Rest-of-Europe Automotive Circular Economy Market (by Component Type), $Million, 2023-2034
Table 49: Market Share
Table 50: Developments (by Company)
Figure 1: Europe Automotive Circular Economy Market (by Scenario), $Million, 2024, 2028, and 2034
Figure 2: Automotive Circular Economy Market (by Region), $Million, 2023, 2027, and 2034
Figure 3: Europe Automotive Circular Economy Market (by Vehicle Type), $Million, 2023, 2027, and 2034
Figure 4: Europe Automotive Circular Economy Market (by Propulsion Type), $Million, 2023, 2027, and 2034
Figure 5: Europe Automotive Circular Economy Market (by End-User Type), $Million, 2023, 2027, and 2034
Figure 6: Europe Automotive Circular Economy Market (by Process Type), $Million, 2023, 2027, and 2034
Figure 7: Europe Automotive Circular Economy Market (by Component Type), $Million, 2023, 2027, and 2034
Figure 8: Key Events
Figure 9: Projected Battery Recycling Capacity (by Region), 2023-2030
Figure 10: Supply Chain
Figure 11: Impact Analysis of Market Navigating Factors, 2023-2034
Figure 12: Renault Group’s Flins Refactory
Figure 13: Michelin and Enviro (MSMR Chile)
Figure 14: LyondellBasell and Audi AG (Germany-Automaker)
Figure 15: U.K. Automotive Circular Economy Market, $Million, 2023-2034
Figure 16: Germany Automotive Circular Economy Market, $Million, 2023-2034
Figure 17: Italy Automotive Circular Economy Market, $Million, 2023-2034
Figure 18: France Automotive Circular Economy Market, $Million, 2023-2034
Figure 19: Spain Automotive Circular Economy Market, $Million, 2023-2034
Figure 20: Netherlands Automotive Circular Economy Market, $Million, 2023-2034
Figure 21: Rest-of-Europe Automotive Circular Economy Market, $Million, 2023-2034
Figure 22: Strategic Initiatives, January 2022-March 2025
Figure 23: Share of Strategic Initiatives, 2023
Figure 24: Data Triangulation
Figure 25: Top-Down and Bottom-Up Approach
Figure 26: Assumptions and Limitations
Europe Automotive Circular Economy Market Report Coverage
|
Europe Automotive Circular Economy Market |
|||
|
Base Year |
2023 |
Market Size in 2024 |
$30.43 Billion |
|
Forecast Period |
2024-2034 |
Value Projection and Estimation by 2034 |
$100.25 Billion |
|
CAGR During Forecast Period |
12.66% |
|
|
Key Market Players and Competition Synopsis
The companies that are profiled in the Europe automotive circular economy market have been selected based on inputs gathered from primary experts who have analyzed company coverage, product portfolio, and market penetration.
Some of the prominent names in this market are:
• Umicore
• ZF Friedrichshafen AG
• Valeo
• Renault Group
• BMW Group
• Aptiv.
• Bosch GmbH
How can this report add value to an organization?
Product/Innovation Strategy: The Europe automotive circular economy market is segmented based on various applications, vehicle types, propulsion types, and product categories, providing valuable insights into the industry's shift toward sustainability. The application segmentation includes a focus on vehicle components such as body parts, tires, batteries, and other key elements that are recycled, remanufactured, refurbished, and reused. By vehicle type, the market is divided into passenger vehicles and commercial vehicles, with the latter further segmented into light commercial vehicles, trucks, and buses. Propulsion types include internal combustion engine vehicles and electric vehicles, which are sub-categorized into hybrid electric vehicles, plug-in hybrid electric vehicles, and battery electric vehicles. The market is also analyzed by end-user type, including original equipment manufacturers (OEMs), the automotive aftermarket, and others.
Additionally, the market focuses on product types such as recycled, remanufactured, refurbished, and reused products. Key components in this circular economy include batteries, tires, polymers, body parts, and brakes and suspensions. As the automotive industry seeks to reduce waste and improve resource efficiency, these circular economy practices are becoming integral to achieving sustainability goals and driving growth in the market.
Growth/Marketing Strategy: The Europe automotive circular economy market has been growing at a rapid pace. The market offers enormous opportunities for existing and emerging market players. Some of the strategies covered in this segment are mergers and acquisitions, product launches, partnerships and collaborations, business expansions, and investments. The strategies preferred by companies to maintain and strengthen their market position primarily include product development.
Competitive Strategy: The key players in the Europe automotive circular economy market analyzed and profiled in the study include professionals with expertise in the automobile and automotive domains. Additionally, a comprehensive competitive landscape such as partnerships, agreements, and collaborations are expected to aid the reader in understanding the untapped revenue pockets in the market.
Introduction to Europe Automotive Circular Economy Market
The Europe automotive circular economy market was valued at $30.43 billion in 2024 and is projected to grow at a CAGR of 12.66%, reaching $100.25 billion by 2034. The market is expanding as a result of Europe's automotive industry's rapid transition to circular economy concepts, which include recycling, remanufacturing, and reusing components and materials. The need for fully recyclable, remanufactured, and refurbished car components is expected to increase as European manufacturers and regulators adopt more resource-efficient and sustainable methods. This growth is further supported by increased regulatory pressure to reduce carbon emissions, prolong vehicle lifespans, and optimise production processes. The automotive circular economy market on the continent is expected to grow significantly over the next ten years due to a number of factors, including the development of green technology, the rise in electric vehicles, and the European Union's ambitious circular economy action plan.
Market Introduction
The automobile circular economy market in Europe is undergoing a radical change as resource efficiency, sustainability, and regulatory compliance become crucial to the development of the sector. Automotive manufacturers around Europe are adopting the circular economy principles—which emphasise recycling, remanufacturing, reusing, and prolonging the life cycle of vehicle components—in response to growing pressure to lessen their impact on the environment and their dependency on virgin raw materials.
This shift is being significantly shaped by the robust legislative framework of the European Union, which includes the End-of-Life Vehicle (ELV) Directive and the Circular Economy Action Plan. These regulations stimulate eco-design, support sustainable production practices, and set greater recovery and reuse goals. Industry adoption of circular techniques is also being accelerated by rising consumer demand for ecologically friendly automobiles and parts.
Digital technology breakthroughs like IoT, digital twins, and AI-powered material tracking are improving the circular supply chain's efficiency and transparency. Furthermore, new prospects for closed-loop recycling systems and second-life battery applications have been brought about by the growth of electric vehicles. The industry is expected to grow steadily in spite of obstacles such high upfront costs, material complexity, and disparate member state implementation norms. Europe is a global leader in automotive circular economy initiatives because of its robust governmental support, capacity for innovation, and cooperative public-private efforts.
Market Segmentation:
Segmentation 1: by Vehicle Type
• Passenger Vehicles
• Commercial Vehicles
• Light Commercial Vehicles
o Trucks
o Buses
Segmentation 2: by Propulsion Type
• Internal Combustion Engine Vehicles
• Electric Vehicles
o Hybrid Electric Vehicles
o Plug-In Hybrid Electric Vehicles
o Battery Electric Vehicles
Segmentation 3: by End-User Type
• Original Equipment Manufacturers (OEMs)
• Automotive Aftermarket
• Others
Segmentation 4: by Process Type
• Recycled Products
• Remanufactured Products
• Refurbished Products
• Reused Products
Segmentation 5: by Component Type
• Battery
• Tire
• Polymers
• Body Parts
• Brakes and Suspensions
• Others
Segmentation 6: by Region
• Europe: U.K., Germany, Italy, France, Spain, Netherlands, and Rest-of-Europe
Europe Automotive Circular Economy Market Trends, Drivers and Challenges
Trends
• Expansion of closed?loop manufacturing and remanufacturing networks
• Integration of digital tracking (IoT, digital twins) for lifecycle monitoring
• Growth of vehicle-as-a-service and subscription models
• Second-life applications for EV batteries and parts
• Increased use of bio?based and recyclable materials
Drivers
• Stringent EU regulations (Circular?Economy Action Plan, End?of?Life Vehicle Directive)
• Corporate ESG commitments and sustainability targets
• Rising consumer demand for eco?friendly vehicles and components
• Cost savings from material recovery and reduced raw?material imports
• Advances in recycling technologies and automated sorting
Challenges
• High capital expenditure for advanced recycling and remanufacturing facilities
• Supply?chain complexity and inconsistent standards across member states
• Limited market acceptance and pricing volatility for recycled materials
• Technical barriers in separating and processing composite and multi?material parts
• Need for skilled workforce and specialized reverse?logistics infrastructure
Europe Automotive Circular Economy Market
Focus on Application Type, Product Type, and Country - Analysis and Forecast, 2024-2034
Some Faq's
Frequently Asked Questions
The Europe automotive circular economy market was valued at $30.43 billion in 2024 and is projected to grow at a CAGR of 12.66%, reaching $100.25 billion by 2034.
Key public-private initiatives include the EU Circular Economy Action Plan and End?of?Life Vehicle Directive under Horizon Europe projects, the European Battery Alliance, EIT RawMaterials’ Circular Plastics Alliance, and collaborative consortia like ALISEI and REMADE. OEM partnerships through CLEPA and national circular-economy platforms further jointly drive automotive circularity across member states.
The EU Circular Economy Action Plan imposes mandatory eco?design criteria, recyclability targets, and CE labeling, driving OEMs toward sustainable materials and closed?loop supply chains. The End?of?Life Vehicle Directive mandates 95% recovery and reuse rates, stimulating investment in advanced recycling infrastructure and secondary resource markets across member states.
The following are some of the USPs of this report:
• A dedicated section focusing on the trends adopted by the key players operating in the Europe automotive circular economy market
• Competitive landscape of the companies operating in the ecosystem offering a holistic view of the Europe automotive circular economy market landscape
• Qualitative and quantitative analysis of the Europe automotive circular economy market at the region and country level and granularity by application and product segments
• Supply chain and value chain analysis
Automobile manufacturers, suppliers, aftermarket parts companies, recyclers, sustainability-focused businesses, and technology integrators should buy this report.
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