What if the cars didn’t have to finish their lives at a garbage farm? What if instead of scrapping it, it would have been reborn – again and again? This is no longer a futuristic ideal, but a rapidly developing reality. THE automotive economy It attracts towing globally as the industry rethinks the construction, use and disposal of vehicles.
At the center of this transformation, the convention of the traditional “Take-Make-index” model to the circular approach, which keeps the materials as long as possible. This includes planning the durability of vehicles, recover valuable parts from vehicles (principle) at the end of life, and re -integrate them into the manufacturing cycle Recycling, rebuilding, renovation and reuseOr
According to a new BIS research report, a automotive circular economic market is expected to be more than three in the next decade – $ 153.63 billion $ 2024 – $ 455.33 billion to 2034It increases in 11.48%Cagr.
Why now? The perfect storm to take circular adoption
Why does this change happen now? A combination of environmental urgency, economic encouragement and regulatory pressure accelerates movement towards circles. The automotive industry is one of the main contributions of global carbon dioxide emissions and resource consumption. At one time, Lack of raw materials and increasing production costs Manufacturers are forced to rethink traditional supply chains.
With governments, especially in Europe and in the Asia-Pacific region, for the tightening of the vehicle and recycling at the end of life, the circular community will no longer be the choice of compliance.
What does a circular car really look like?
In a circular system, you get almost every second life in a car from battery to bumper. Materials such as aluminum, steel, plastics and lithium recovered, processed and reusedOr
So it is:
- Recycling Metals and plastics from scrapped vehicles.
- Renovation Used engines, transmission and EV batteries.
- Renovation seats, electronics and parts for modern standards.
- Reuse Everything from seat belts to pipelines in new or existing vehicles.
Meet the Circular Champions: Companies leading the prize
Global car manufacturers are already embedded in their business models:
- Renault groupWith Suez’s partner, he launched the “Neutral” closed loop ecosystem for recycling the car, supported by an investment of € 140 million.
- German start -up business CylibWith the support of Porsche and Bosch, it builds a plant that is recycling 30,000 tons of EV element each year.
- Ventricularthrough Maintenance By 2038, the program aims to net-zero carbon dioxide emissions through large-scale re-resistance and reuse.
These are not only experimental programs, but also strategic rotors that shape the future of mobility.
More than green-the economic and climate winner
Let’s talk about the blow. In the EU alone, the automotive re -renovation saved in 2020 800 000 tons of CO, Equivalent to 120,000 citizens’ annual emissions. It’s huge.
Financially, the circularity helps manufacturers Reduce raw material costs, reduce the risk of supply chainand even create new sources of revenue through certified renovated parts and materials.
This is particularly important in the EV era, where rare earth metals used in batteries are expensive and geopolitically sensitive. Circular strategies reduce addiction and increase resistance.
What holds us back?
Despite the momentum, the challenges remain. Fragmented regulations, inconsistent recycling infrastructure and lack of global standards make the scale more difficult. In fact, recycling parts must meet high security and power standards – the demands of requesting Investment in technology, traceability and quality controlOr
But progress is made. The development of AI selection, digital twin tracking and blockchain-based material control promotes the modernization of these processes.
The previous road: the circular is the new normal
THE automotive economy not just a sustainability initiative; This is a business revolution in motion. As the industry is confronted with increasing pressure to reduce emissions, lower costs and safe supply chains, the circular community offers a rare winning win: economic value and environmental responsibility together.
But here’s the bigger picture. It’s not just about cars. About to think about how we create, consume and preserve– Every recycled battery, a recycled engine and recycled component bring us closer to a future where innovation and sustainability are inseparable.
With the development of vehicles, the systems behind them are also. And in this evolution, circularity is not just the destination; This is the engine that drives us forward.
About the publisher: BIS Research is a global market intelligence, research and consulting company that focuses on emerging technological trends that are likely to interfere with the market. In his team, industrial veterans, experts and analysts have various backgrounds in the field of consulting, investment banking, government and academy.