VEHICLE SCRAPPING MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Key Takeaways from Analyst

The mandatory vehicle scrappage policy being introduced in various countries will be a key driver as it will increase the number of ELVs being scrapped every year. Moreover, the rising vehicle population combined with aging fleet will boost the volume of ELVs requiring proper disposal. Stricter emissions norms making old polluting vehicles obsolete will further propel the market.

However, lack of organized and formal scrapping infrastructure in many developing nations may pose a challenge for market growth. High costs associated with setting up organized automated dismantling and shredding facilities can also deter investment. On the regulatory front, the absence of clear guidelines regarding the scrappage process in some regions remains a concern.

The Asia Pacific region, led by China and India, is expected to dominate the global vehicle scrapping market owing to the presence of sizeable vehicle parc and implementation of vehicle scrappage policies. North America and Europe will also present lucrative opportunities due to stringent emissions regulations. Meanwhile, growing vehicle ownership in Middle Eastern and African countries is likely to drive future demand.

With the implementation of mandatory vehicle scrappage policies and tighter emissions norms, proper vehicle dismantling, material recovery, and recycling are poised to evolve into a regulated industry worldwide.