Recycled Materials for Mobility Applications Market Forecasts to 2030 – Global Analysis By Material Type (Polymer Materials, Composite Materials and Other Material Types), Vehicle Type (Passenger Cars and Commercial Vehicles), Component Type (Interiors, E

Recycled Materials for Mobility Applications Market Forecasts to 2030 – Global Analysis By Material Type (Polymer Materials, Composite Materials and Other Material Types), Vehicle Type (Passenger Cars and Commercial Vehicles), Component Type (Interiors, Exteriors and Other Component Types), Application and By Geography

According to Stratistics MRC, the Global Recycled Materials for Mobility Applications Market is accounted for $2.77 billion in 2023 and is expected to reach $5.61 billion by 2030 growing at a CAGR of 10.6% during the forecast period. Recycled materials are being increasingly used in mobility applications, such as in the manufacturing of vehicles, parts, and components. The use of recycled materials in mobility applications offers several benefits, including reduced environmental impact, reduced energy consumption, and cost saving. The use of recycled materials in the mobility industry has been gaining traction as companies and consumers are becoming more conscious about their environmental impact.

According to the International Organization of Motor Vehicle Manufacturers (OICA), global automobile production reached 77.6 million units in 2020, a decrease of 16.2% compared to 2019 due to the COVID-19 pandemic.

Market Dynamics

Driver

Increasing government responses and awareness of energy efficiency

Utilizing recycled materials reduces the need to create new materials, which conserves a significant amount of energy. Any sort of virgin material production, including the extraction, transportation, and refinement of natural resources, requires a significant amount of work and energy. Examples of such materials are polymers and carbon fiber. Thus, using recycled materials rather than new ones enables producers to produce the same goods with a lot less energy. Therefore, during the projection period, increased awareness of energy conservation is projected to positively impact the demand for recycled plastics.

Restraint

The use of virgin materials poses strong competition.


Virgin plastics compete strongly with recovered plastics in terms of applicability and quality. For high-end items, where the chemical makeup of the plastic must be precise, only virgin materials may be used. Although virgin plastics have historically been more expensive than recovered plastics, the situation has lately altered as a result of the announcement of the Chinese scrap ban. Additionally, the US's discovery of shale gas has opened up a new source for the production of fossil fuels like natural gas, which is a significant supplier of virgin plastics. As a result, the market's supply of cheap virgin plastic materials has increased significantly.

Opportunity

Government policies governing the usage of environmentally friendly goods

Developed nations like Germany, the US, and Japan are emphasizing expanding the usage of environmentally friendly products rather than those made from petroleum. Recycled carbon fiber is being used in more and more car models, according to the automotive industry. The usage of recycled carbon fiber is anticipated to rise as a result of regulatory regulations enforced by the EU and other nations like the US, India, and Japan, particularly in the automotive and transportation sectors. For enhancements in fuel efficiency and decreases in CO2 emissions, the EU legislation establishes required emission reduction targets for new cars.

Threat

Recycled plastics are very expensive

The main basic materials needed to produce virgin plastics are petrochemicals, like oil and natural gas. Recycling plastics includes R-polyethylene terephthalate (PET). Professor of mechanical engineering Tim Gutowski claims that the problem with recycling plastic is the creation of a pure stream of recycled material. Plastic products are created using a variety of additives, such as fillers and colorants. Recycling businesses frequently are unaware of the substances added to plastic that affect the creation of items made of recycled plastic.

Covid-19 Impact

The COVID-19 pandemic has had a devastating impact on every industry. The collection, processing, and distribution of recycled materials have been hampered by transportation restrictions, occasional closures of recycling plants, and a shortage of labor force capability. Consumer behavior has changed as a result of the pandemic, and individuals are now more cautious about hygiene and safety. The demand for recycled-materials-based mobility applications may have been impacted by this change. For instance, due to worries about possible virus transmission over shared surfaces, there may have been a decline in demand for shared mobility services like car or bike sharing.

The Polymer materials segment is expected to be the largest during the forecast period

Polymer materials derived from recycled plastics offer excellent strength-to-weight ratios, making them ideal for lightweight applications in the mobility sector. They can be used to replace traditional materials like metal, reducing the overall weight of vehicles, bicycles, scooters, and other mobility devices. This, in turn, can lead to improved fuel efficiency, extended battery life in electric vehicles, and enhanced performance. Recycled polymer materials are engineered to withstand harsh environmental conditions, including exposure to UV radiation, temperature fluctuations, and mechanical stress. This makes them well-suited for outdoor applications such as vehicle exteriors, bike frames and components.

The Passenger cars segment is expected to have the highest CAGR during the forecast period

The use of recycled materials in passenger cars is gaining momentum as the automotive industry strives for sustainability and environmental responsibility. In interior parts like seats, carpets, headliners, door panels, and dashboard trimmings, recycled materials are used. Plastics, textiles, and other materials that have been recycled can be used to create these components. The manufacture of exterior parts, such as body panels, bumpers, and trim, also makes use of recycled materials. Recycled plastics are used in these components, which promotes sustainability as well as weight reduction, increased fuel efficiency, and lower carbon emissions.

Region with largest share

Asia Pacific is expected to be the fastest-growing region in terms of population and economic growth. The region has experienced significant growth in the last decade, accounting for over a third of the world’s GDP. The high economic growth, coupled with the mounting population, is expected to boost the industrial sector in the region, which will increase the need for recycled materials such as recycled plastic polymers and recycled composites from industries. Continuous and easy availability of recycled materials, low-cost labor, a lower price, and environmental benefits drive the recycled materials for mobility applications market in the region.

Region with highest CAGR

Europe is anticipated to experience considerable growth during the projection period as a result of growing concerns about sustainability and circular frugality. European governments have implemented stringent regulations and initiatives to promote the use of recycled materials in various industries, including mobility applications. Policies such as the Circular Economy Action Plan and the European Green Deal prioritize sustainable practices and encourage the adoption of recycled materials. These initiatives provide a supportive framework for the growth of the market.

Key players in the market

Some of the key players in Recycled Materials for Mobility Applications market include Toray Industries, Inc, Solvay, Faurecia, Continental AG, Neste, Unifi, Inc, Celanese Corporation, Custom Polymers, Inc, Procotex, Carbon Fiber Recycling, SGL Carbon, Wellman Advanced Materials and Vartega Inc.

Key Developments

In March 2022, Faurecia, a company of the Group FORVIA, and Veolia have signed a cooperation and research agreement to jointly develop innovative compounds for automotive interior modules, aiming to achieve an average of 30% of recycled content by 2025. Through this partnership, the two companies will accelerate the deployment of breakthrough sustainable interior solutions implemented in instrument panels, door panels, and center consoles in Europe

In October 2021, Vartega Inc. and Aditya Birla signed an MoU to develop the recycling value chain for Recyclamine based composites

In November 2020, SGL Carbon and Koller Kunststofftechnik partnered to manufacture novel recycled carbon fiber profiles for windshields for a future high-volume model of the BMW Group. This helped SGL Carbon improve its automobile product applications and increase the demand for recycled carbon fiber

Material Types Covered
• Polymer Materials
• Composite Materials
• Other Material Types

Vehicle Types Covered
• Passenger Cars
• Commercial Vehicles

Components Covered
• Interiors
• Exteriors
• Other Components

Applications Covered
• OEMs
• Aftermarket
• Other Applications

Regions Covered
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026 and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances