Dublin, July 15, 2025 (GLOBE NEWSWIRE) — The “Asia-Pacific 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 Asia-Pacific automotive circular economy market was valued at $48.25 billion in 2024 and is projected to grow at a CAGR of 10.70%, reaching $133.31 billion by 2034.
The Asia-Pacific (APAC) automotive circular economy market is growing as a vital component of the region’s overall sustainability agenda, fuelled by fast industrial growth and rising environmental concerns. In the automotive industry, a circular economy is the continuous cycle of designing, producing, utilising, and reprocessing automobiles and their parts in order to reduce waste and maximise resource efficiency. This method covers remanufacturing, recycling, reusing, refurbishment, and second-life uses, especially of electric vehicle (EV) batteries, in Asia-Pacific, which is home to some of the biggest automakers in the world as well as the fastest-growing customer bases.
Tighter emission standards, initiatives to increase vehicle lifespans, and production process optimisation all contribute to this momentum. The automotive circular economy market in Asia-Pacific is expected to expand significantly over the next ten years due to national circular economy initiatives throughout the area, growing usage of electric vehicles, and advancements in green technologies.
Policies that require end-of-life recycling, impose extended producer responsibility, and encourage environmentally friendly manufacture are being implemented by governments in China, India, Japan, and Southeast Asia. Automakers, suppliers, and aftermarket service providers are now able to engage in closed-loop supply chains because to these regulations and the growing demand from consumers for green mobility solutions. Remanufacturing auto parts, recycling composite materials, repurposing EV batteries for energy storage, and vehicle-as-a-service models that prolong product lifespans are important market areas.
Notwithstanding the market’s encouraging development potential, obstacles include a lack of adequate recycling infrastructure, the complexity of modern material processing technology, and differing regulatory maturity levels. However, it is anticipated that the automotive circular economy sector in Asia will grow significantly over the next ten years due to continued developments in green technologies, government incentives, and growing EV usage.
How can this report add value to an organization?
Product/Innovation Strategy: The APAC 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: The APAC 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 APAC 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.
Key Market Players and Competition Synopsis
The companies that are profiled in the Asia-Pacific automotive circular economy market have been selected based on inputs gathered from primary experts who have analyzed company coverage, product portfolio, and market penetration.
APAC Automotive Circular Economy Market Trends, Drivers and Challenges
Trends
Rise of remanufacturing and reverse logistics for automotive components.Growing reuse and second-life applications of EV batteries for energy storage.Increased adoption of closed-loop recycling for automotive plastics.Expansion of green manufacturing initiatives by major automakers.
Drivers
Implementation of stricter environmental regulations across APAC.Advancements in technologies such as battery management systems (BMS).Rising consumer demand for eco-friendly and sustainably produced vehicles.
Challenges
Technical complexity and cost of recycling automotive plastics and composites.Difficulty in scaling circular practices and generating consistent demand.Risk of economic and labor displacement during the circular transition.Higher upfront costs for circular materials and production processes.
Key Attributes:
Report AttributeDetailsNo. of Pages85Forecast Period2024 – 2034Estimated Market Value (USD) in 2024$48.25 BillionForecasted Market Value (USD) by 2034$133.31 BillionCompound Annual Growth Rate10.7%Regions CoveredAsia Pacific
Market Dynamics
Trends: Current and Future Impact Assessment
Increasing Focus on Battery Recycling and Second Life ApplicationsGrowth of Vehicle Remanufacturing
Market Drivers
Stringent Government Regulations and PoliciesGrowing Corporate ESG and Sustainability Commitments
Market Restraints
Complex Supply Chains and Infrastructure ChallengesInconsistent Regulations
Market Opportunities
Growing EV adoption Creating Substantial Opportunities in Repurposing BatteriesExpansion of Circular Supply Chains and Partnerships
Impact Analysis for Key Events
Implementation of Stringent Environmental RegulationsClimate Agreements and ESG Initiatives
Investment Landscape
Automotive Circular Economy Market Case Studies
Automotive Circular Economy Overview
Need for Circular Economy in the Automotive IndustrySustainability and ESG Goals of Key Automotive CompaniesImpact of Circular Economy on Various Automotive Lifecycle StagesManufacturingRetailAftermarketImpact of Automotive Circular EconomyRecycled MaterialsGreen SteelClimate Neutral VehiclesSustainable Manufacturing PlantsGreen DealershipsSecond-Life Batteries
Supply Chain Overview
Regulatory Landscape
Some of the prominent names in this market are:
Sims Metal (Sims Limited)TOYOTA MOTOR CORPORATION.Marelli Holdings Co., Ltd.
Market Segmentation:
Vehicle Type
Passenger VehiclesCommercial VehiclesLight Commercial VehiclesTrucksBuses
Propulsion Type
Internal Combustion Engine VehiclesElectric VehiclesHybrid Electric VehiclesPlug-In Hybrid Electric VehiclesBattery Electric Vehicles
End-User Type
Original Equipment Manufacturers (OEMs)Automotive AftermarketOthers
Process Type
Recycled ProductsRemanufactured ProductsRefurbished ProductsReused Products
Component Type
BatteryTirePolymersBody PartsBrakes and SuspensionsOthers
For more information about this report visit https://www.researchandmarkets.com/r/ielzam
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Asia-Pacific Automotive Circular Economy Market
