ELV(end-of-life vehicle) Market
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Market Status
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The global automotive recycling market reached a size of $72.3 billion in 2022. It is projected to reach $160.2 billion by 2028, representing a compound annual growth rate (CAGR) of 15.19% from 2023 to 2028.
Automotive recycling refers to the process of dismantling vehicles to recover and recycle spare parts, fuel, and scrap metals. It involves processes such as dismantling, shredding, crushing, and material recovery, capturing components such as auto parts, sheet metals, seats, wheels, and other components. Non-ferrous metals are separated from other materials using separation technologies like laser, infrared, eddy current, and flotation methods, and then sent for remelting. Additionally, reusable components undergo cleaning, testing, and refurbishment processes for resale, while fluids are drained and stored for future use.
The automotive recycling market is expected to experience rapid growth globally, driven by increasing numbers of vehicles and end-of-life vehicles. This entails the dismantling of vehicles for spare parts. Automotive recyclers primarily focus on the recyclability of steel and iron components. Other significant components considered for recycling are polymers, fluids, and natural materials, which can be sold or reused. Globally, over 27 million vehicles reach the end of their life each year, with older and collision-induced models representing a significant portion of vehicles sent for recycling.
Market size of around 600 billion Korean Won. As of 2022, the total number of registered vehicles in South Korea exceeded 24.5 million, and the average lifespan from new car purchase to scrapping is approximately 12-15 years. With the continuous increase in the number of vehicles reaching the end of their life cycle each year, the average annual scrappage volume in the country is about 830,000 units, contributing to a market size of approximately 60 billion Korean Won per year.
Furthermore, the COVID-19 pandemic has led to the rise of contactless mobile-based services as a trend in South Korea. Starting with delivery apps and real estate intermediation apps, various Online-to-Offline (O2O) platforms have emerged in different sectors. In this context, online platforms for used car trading and vehicle scrappage services are also entering the market.
