SCRAPPING MARKET
Market Status
Global Market
The global automotive recycling market size reached $72.3 billion in 2022 and is expected to reach $160.2 billion by 2028, with a growth rate of 15.19% (CAGR) from 2023 to 2028. Automotive recycling involves dismantling vehicles for spare parts, fuel, and scrap metal recovery, including processes like disassembly, crushing, shredding, and material recovery. Advanced separation techniques like laser, infrared, eddy current, and flotation methods are utilized to separate non-ferrous metals for remelting. Reusable components are restored for resale after cleaning, testing, and refurbishing, and fluids are drained onto waterproof surfaces for later use.
The automotive recycling market is expected to grow rapidly due to the increasing number of vehicles and end-of-life vehicles worldwide. Annually, over 27 million vehicles reach the end of their life, mainly due to old age or collisions.
In the domestic (Korean) market,
about 830,000 vehicles are scrapped annually, with a market size of approximately 600 billion KRW. With over 24.5 million vehicles registered in 2022 and an average vehicle lifecycle of 12-15 years, the demand for scrapping is continually rising. Additionally, the trend towards non-face-to-face, mobile-based services due to COVID-19 is strengthening, leading to the rise of various Online to Offline (O2O) platforms, including used car brokerage and scrap car brokerage services, shaping the market.
Last updated