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 networksIntegration of digital tracking (IoT, digital twins) for lifecycle monitoringGrowth of vehicle-as-a-service and subscription modelsSecond-life applications for EV batteries and partsIncreased 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 targetsRising consumer demand for eco-friendly vehicles and componentsCost savings from material recovery and reduced raw-material importsAdvances in recycling technologies and automated sorting

Market Challenges

High capital expenditure for advanced recycling and remanufacturing facilitiesSupply-chain complexity and inconsistent standards across member statesLimited market acceptance and pricing volatility for recycled materialsTechnical barriers in separating and processing composite and multi-material partsNeed for skilled workforce and specialized reverse-logistics infrastructure

Report Scope:

Product/Innovation Strategy: The European automotive circular economy market is segmented based on various applications, vehicle types, propulsion types, and product categories, providing valuable insights into the industry’s shift toward sustainability. The application segmentation includes a focus on vehicle components such as body parts, tires, batteries, and other key elements that are recycled, remanufactured, refurbished, and reused.

By vehicle type, the market is divided into passenger vehicles and commercial vehicles, with the latter further segmented into light commercial vehicles, trucks, and buses. Propulsion types include internal combustion engine vehicles and electric vehicles, which are sub-categorized into hybrid electric vehicles, plug-in hybrid electric vehicles, and battery electric vehicles. The market is also analyzed by end-user type, including original equipment manufacturers (OEMs), the automotive aftermarket, and others.

Additionally, the market focuses on product types such as recycled, remanufactured, refurbished, and reused products. Key components in this circular economy include batteries, tires, polymers, body parts, and brakes and suspensions. As the automotive industry seeks to reduce waste and improve resource efficiency, these circular economy practices are becoming integral to achieving sustainability goals and driving growth in the market.

Growth/Marketing Strategy: Europe’s automotive circular economy market has been growing at a rapid pace. The market offers enormous opportunities for existing and emerging market players. Some of the strategies covered in this segment are mergers and acquisitions, product launches, partnerships and collaborations, business expansions, and investments. The strategies preferred by companies to maintain and strengthen their market position primarily include product development.

Competitive Strategy: The key players in the Europe automotive circular economy market analyzed and profiled in the study include professionals with expertise in the automobile and automotive domains.

Additionally, a comprehensive competitive landscape such as partnerships, agreements, and collaborations are expected to aid the reader in understanding the untapped revenue pockets in the market.

Some of the prominent names in this market are:

UmicoreZF Friedrichshafen AGValeoRenault GroupBMW GroupAptivBosch GmbH

Key Attributes:

Report AttributeDetailsNo. of Pages96Forecast Period2024 – 2034Estimated Market Value (USD) in 2024$30.43 BillionForecasted Market Value (USD) by 2034$100.25 BillionCompound Annual Growth Rate12.6%Regions CoveredEurope

Key Topics Covered:

1 Markets
1.1 Trends: Current and Future Impact Assessment
1.1.1 Increasing Focus on Battery Recycling and Second Life Applications
1.1.2 Growth of Vehicle Remanufacturing
1.2 Supply Chain Overview
1.3 Regulatory Landscape
1.4 Impact Analysis for Key Global Events
1.4.1 Implementation of Stringent Environmental Regulations
1.4.2 Global Climate Agreements and ESG Initiatives
1.5 Market Dynamics Overview
1.5.1 Market Drivers
1.5.1.1 Stringent Government Regulations and Policies
1.5.1.2 Growing Corporate ESG and Sustainability Commitments
1.5.2 Market Restraints
1.5.2.1 Complex Supply Chains and Infrastructure Challenges
1.5.2.2 Inconsistent Global Regulations
1.5.3 Market Opportunities
1.5.3.1 Growing EV adoption Creating Substantial Opportunities in Repurposing Batteries
1.5.3.2 Expansion of Circular Supply Chains and Partnerships
1.6 Investment Landscape
1.7 Automotive Circular Economy Market Case Studies
1.8 Automotive Circular Economy Overview
1.8.1 Need for Circular Economy in the Automotive Industry
1.8.2 Sustainability and ESG Goals of Key Automotive Companies
1.8.3 Impact of Circular Economy on Various Automotive Lifecycle Stages
1.8.4 Impact of Automotive Circular Economy
1.8.4.1 Recycled Materials
1.8.4.2 Green Steel
1.8.4.3 Climate Neutral Vehicles
1.8.4.4 Sustainable Manufacturing Plants
1.8.4.5 Green Dealerships
1.8.4.6 Second-Life Batteries

2 Regions
2.1 Regional Summary
2.2 Europe
2.2.1 Regional Overview
2.2.2 Driving Factors for Market Growth
2.2.3 Factors Challenging the Market
2.2.4 Application
2.2.5 Product
2.2.6 Europe (by Country)
2.2.6.1 U.K.
2.2.6.2 Germany
2.2.6.3 Italy
2.2.6.4 France
2.2.6.5 Spain
2.2.6.6 Netherlands
2.2.6.7 Rest-of-Europe

3 Markets – Competitive Benchmarking and Company Profiles
3.1 Next Frontiers
3.2 Geographic Assessment
3.3 Recycling Companies
3.3.1 Umicore
3.4 Remanufacturing
3.4.1 ZF Friedrichshafen AG
3.4.2 Valeo
3.5 Integrated Circular Economy Solutions
3.5.1 Renault Group
3.5.2 BMW Group
3.6 Technology Providers
3.6.1 Aptiv.
3.7 Parts and Components Suppliers

For more information about this report visit https://www.researchandmarkets.com/r/flm94g

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European Automotive Circular Economy Market