Automotive sector growth fueled by adoption of sustainable practices
The global automotive circular economy market, valued at $153.63 billion in 2024, is projected to reach $455.33 billion by 2034, growing at a CAGR of 11.48%. This growth is fueled by increasing adoption of sustainable practices such as recycling, remanufacturing, and parts reuse. Key drivers include stringent government regulations, carbon footprint reduction goals, and the rise of electric vehicles (EVs). North America leads the market due to strong policies, technological innovation, and investment in recycling infrastructure. While complex supply chains and inadequate infrastructure present challenges, the surge in EV adoption offers major opportunities—particularly in battery repurposing for energy storage. OEMs and passenger vehicles dominate the market by end-user and vehicle type, respectively. Recycled products and non-body components (like tires, plastics, and electronics) are central to future growth. Leading companies are investing in partnerships and advanced technologies to strengthen their positions and drive sustainable transformation across the automotive value chain. Learn more about this impact in the automotive sector.
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