Global Automotive Circular Economy Growth Opportunities

Automakers Adopt Sustainable Materials, Recycling, Remanufacturing, and Product Life Extension Strategies in Race to Meet National Decarbonization Goals and Create Green Supply Chains

RELEASE DATE
14-Dec-2021

REGION
Global

Deliverable Type
Market Research

Research Code: MG32-01-00-00-00

SKU: AU02263-GL-MT_26079

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SKU

AU02263-GL-MT_26079

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Description

Traditional manufacturing centers on the process of generating new resources for production whereas a circular economy model aims to minimize the use of virgin materials in the manufacturing process, making the value chain sustainable. The focus is on reclaiming, reusing, and remanufacturing components and materials from end-of-life (EOL) products. A linear economy puts additional pressure on the environment when creating new materials, making the value chain unsustainable in the long term, but in a circular economy companies recycle EOL products into new items, reducing the burden on landfills. The benefits derived from a circular economy model fall into three broad areas: environment, business, and economy.

This study analyzes circular economy practices in the automotive industry. It identifies and explores the most essential practice areas and derives meaningful conclusions about the industry. OEMs and Tier I companies are embracing circular practices to meet regulators’ decarbonization goals and make supply chains and manufacturing practices sustainable and cost-effective in the long run. Circular economy practices will lead to burning less scrap from end-of-life vehicles (ELVs), which can reduce greenhouse emissions, pollution, and the burden on landfills and oceans.

Frost & Sullivan has segmented the circular economy in automotive into 4 key practice areas. The first is remanufacturing, where used components are restored to their original state for reuse in vehicles. These remanufactured components are primarily adopted in used cars and targeted at aftermarket sales. The next area is recycling, where components are broken down into their most basic form for use as raw materials in new vehicles and other industries. The third practice area is product life extension, where the goal is to proactively service the parts of a vehicle before they develop any faults, to extend their life. This practice applies to vehicles in operation. The fourth practice area is the use of eco-friendly sustainable materials in cars, such as vegan leather and bioplastics, to make the production process more environment-friendly and sustainable. These materials are usually used in new car production.

The scope of this study is global and covers the study period 2015 to 2030.

Author: Joe Praveen Vijayakumar

Table of Contents

Strategic Imperatives

Why Is It Increasingly Difficult to Grow?

The Strategic Imperative 8™

The Impact of the Top Three Strategic Imperatives on the Automotive Circular Economy

Growth Opportunities Fuel the Growth Pipeline Engine™

Growth Opportunity Analysis

The Influence of the Circular Economy on the Automotive Industry

Growth Drivers for the Automotive Circular Economy

Growth Restraints for the Automotive Circular Economy

The Circular Economy—Introduction

The Circular Economy—Benefits

Need for a Circular Economy in the Automotive Industry

The Automotive Circular Economy—Central Practices

Circular Economy Roadmaps of Select OEMs

Volvo Cars’ Circular Economy Concept

Nissan’s Circular Economy Concept—The Nissan Green Program 2022

Renault Group’s Circular Economy Concept

BMW Group’s Circular Economy Concept

Toyota Group’s Circular Economy Concept

Ford’s Circular Economy Practices

Automotive Circular Economy Ecosystem—Select Companies

Remanufacturing

Remanufacturing—Introduction

Remanufacturing—Benefits

Select Remanufacturing Companies

Remanufacturing—Select OEM Activity

Remanufacturing—Select OEM Activity (continued)

Nissan—Use Case

Select Components Commonly Remanufactured

Recycling

Recycling in the Automotive Industry—Introduction

Recycled Automotive Scrap

Commonly Recycled Automotive Parts

Plastic Recycling

Plastic Recycling Use Case—Lavergne

Plastic Recycling—Select OEM Activity

Aluminum Recycling

Aluminum Recycling Use Case—Novelis

Aluminum Recycling—Select OEM Activity

Steel Recycling

Green Steel

Green Steel Initiatives of Automakers

TIre Recycling

Tire Recycling Use Case—Wastefront

Tire Recycling Use Case—Bridgestone

Tire Recycling Use Case—Michelin

Recycling Trend—Closed-loop Recycling

The 2021 Nissan Rogue—Closed-loop Recycling Use Case

Product Life Extension

Automotive Product Life Extension Practices

Tire Life Extension—Retreading

Servicing of Electronic Components—Faurecia

Predictive Maintenance—Pitstop

Battery Life Extension—Twaice

Vehicle Model Life Extension—Various Models

Extending the Life of Used EV Batteries through Repurposing

EV Battery Repurposing—Select OEM Activity

EV Battery Repurposing—Toyota Stationary Energy

EV Battery Repurposing—Nissan

Stationary Energy Storage Systems—Beeplanet Factory

Stationary Energy Storage Systems—Batteryloop

Battery Diagnostics—Rejoule

Sustainable Materials

Sustainable Materials in Cars—Introduction

Select Futuristic Eco-Friendly Materials in Cars

Select Futuristic Eco-Friendly Materials in Cars (continued)

Vegan Leather—Vegea and AppleSkin

Vegan Leather—Mirum

Recycled Polyester Microfibers—Dinamica

Compressed Wood Composite—Karuun

Natural Fiber Materials—Amplitex

Bioplastics—Overview

Sustainability in the Tire Industry

Technology Trends—Sustainable Material Usage by OEMs

Technology Trends—Sustainable Material Usage by OEMs (continued)

Benefits of Select Eco-Friendly Materials—Summary

Circular Cars—Use Cases

BMW I3

Daimler S-Class

Nissan Leaf

Ford Focus

Hyundai Ioniq 5

The Technical University of Eindhoven’s Noah

Government Initiatives

The European Union’s ELV Directive—A Factor Driving the Circular Economy

Regulations and Incentives—Select EU Member States

Countries with Legislation to Achieve Net-zero Emissions

Decarbonization Initiatives of Select US States

ELV Initiatives Use Case—India

Case Study—Mahindra & Mahindra

Growth Opportunity Universe, Circular Economy in Automotive

Growth Opportunity 1—Organized Scrapyards will Create Opportunities for OEMS

Growth Opportunity 1—Organized Scrapyards will Create Opportunities for OEMS (continued)

Growth Opportunity 2—New Revenue Streams from End-of-Life Electric Vehicle Batteries

Growth Opportunity 2—New Revenue Streams from End-of-Life Electric Vehicle Batteries (continued)

Growth Opportunity 3—Investments in Eco-friendly Sustainable Materials

Growth Opportunity 3—Investments in Eco-friendly Sustainable Materials (continued)

Next Steps

Your Next Steps

Why Frost, Why Now?

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Details

Traditional manufacturing centers on the process of generating new resources for production whereas a circular economy model aims to minimize the use of virgin materials in the manufacturing process, making the value chain sustainable. The focus is on reclaiming, reusing, and remanufacturing components and materials from end-of-life (EOL) products. A linear economy puts additional pressure on the environment when creating new materials, making the value chain unsustainable in the long term, but in a circular economy companies recycle EOL products into new items, reducing the burden on landfills. The benefits derived from a circular economy model fall into three broad areas: environment, business, and economy. This study analyzes circular economy practices in the automotive industry. It identifies and explores the most essential practice areas and derives meaningful conclusions about the industry. OEMs and Tier I companies are embracing circular practices to meet regulators’ decarbonization goals and make supply chains and manufacturing practices sustainable and cost-effective in the long run. Circular economy practices will lead to burning less scrap from end-of-life vehicles (ELVs), which can reduce greenhouse emissions, pollution, and the burden on landfills and oceans. Frost & Sullivan has segmented the circular economy in automotive into 4 key practice areas. The first is remanufacturing, where used components are restored to their original state for reuse in vehicles. These remanufactured components are primarily adopted in used cars and targeted at aftermarket sales. The next area is recycling, where components are broken down into their most basic form for use as raw materials in new vehicles and other industries. The third practice area is product life extension, where the goal is to proactively service the parts of a vehicle before they develop any faults, to extend their life. This practice applies to vehicles in operation. The fourth practice area is the use of eco-friendly sustainable materials in cars, such as vegan leather and bioplastics, to make the production process more environment-friendly and sustainable. These materials are usually used in new car production. The scope of this study is global and covers the study period 2015 to 2030. Author: Joe Praveen Vijayakumar

More Information

More Information
Deliverable Type	Market Research
No Index	No
Podcast	No
Author	Joe Praveen Vijayakumar
Industries	Automotive
WIP Number	MG32-01-00-00-00
Is Prebook	No
GPS Codes	9800-A6,9AF6-A6

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Global Automotive Circular Economy Growth Opportunities

Automakers Adopt Sustainable Materials, Recycling, Remanufacturing, and Product Life Extension Strategies in Race to Meet National Decarbonization Goals and Create Green Supply Chains