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The European automotive circular economy market, valued at $30.43 billion in 2024, is expected to reach $100.25 billion by 2034, growing at a CAGR of 12.66%. This growth is driven by a shift towards circular economy principles such as recycling, remanufacturing, and reusing, alongside regulatory pressure to cut emissions and boost sustainability. Key trends include digital innovations and the rise of electric vehicles, supported by the EU’s Circular Economy Action Plan. Major companies like Umicore and BMW are key players. The market offers significant opportunities for innovation and strategic growth through partnerships and new product launches.
European Automotive Circular Economy Market
European Automotive Circular Economy Market
Dublin, July 01, 2025 (GLOBE NEWSWIRE) — The “Europe Automotive Circular Economy Market: Focus on Application Type, Product Type, and Country – Analysis and Forecast, 2024-2034” report has been added to ResearchAndMarkets.com’s offering.
The European automotive circular economy market was valued at $30.43 billion in 2024 and is projected to grow at a CAGR of 12.66%, reaching $100.25 billion by 2034.
The market is expanding as a result of Europe’s automotive industry’s rapid transition to circular economy concepts, which include recycling, remanufacturing, and reusing components and materials. The need for fully recyclable, remanufactured, and refurbished car components is expected to increase as European manufacturers and regulators adopt more resource-efficient and sustainable methods.
This growth is further supported by increased regulatory pressure to reduce carbon emissions, prolong vehicle lifespans, and optimise production processes. The automotive circular economy market on the continent is expected to grow significantly over the next ten years due to a number of factors, including the development of green technology, the rise in electric vehicles, and the European Union’s ambitious circular economy action plan.
Europe Automotive Circular Economy Market Trends, Drivers and Challenges
Key Market Trends
Expansion of closed-loop manufacturing and remanufacturing networks
Integration of digital tracking (IoT, digital twins) for lifecycle monitoring
Growth of vehicle-as-a-service and subscription models
Second-life applications for EV batteries and parts
Increased use of bio-based and recyclable materials
Market Drivers
Stringent EU regulations (Circular Economy Action Plan, End-of-Life Vehicle Directive)
Corporate ESG commitments and sustainability targets
Rising consumer demand for eco-friendly vehicles and components
Cost savings from material recovery and reduced raw-material imports
Advances in recycling technologies and automated sorting
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