VEHICLE SCRAPPING MARKET Challenges and Opportunities

The global vehicle scrapping market faces significant challenge due to lack of adequate infrastructure for vehicle dismantling and shredding activities. Most parts of the world lack proper facilities where end-of-life vehicles can be systematically dismantled to retrieve reusable spare parts. Similarly, infrastructure for responsible vehicle shredding is also missing in many regions.

Without appropriate dismantling infrastructure, it is difficult to retrieve reusable components from scrapped vehicles in an environment-friendly manner. This often leads to improper and unsafe handling of scrap vehicles. It also limits the potential of creating a circular economy around vehicle recycling. Setting up large-scale, mechanized dismantling and shredding facilities requires massive investments which many countries and local authorities are not able to afford. This infrastructure gap needs to be filled on priority for establishing an organized scrapping industry worldwide.

Market Opportunity- Growth in Organized Dismantling and Recycling Industry

One of the key opportunities for the global vehicle scrapping market is the predicted growth in organized dismantling and recycling industry. With growing policy emphasis on extending vehicle life and promoting recycling, several companies have started offering dismantling and shredding services professionally.

The ecosystem around vehicle recycling is also evolving with organized players collecting, dismantling and shredding End-of-Life vehicles. They ensure vital components and materials are extracted efficiently before responsible shredding. This helps promote a circular economy. As infrastructure and regulatory framework strengthens globally, the market share of organized dismantling players is forecast to increase substantially. Advanced decentralized shredding facilities and greater co-operation between dismantlers and recyclers can optimize resource recovery from scrapped vehicles.