A report on the use of recycled materials in mobility applications by MarketsandMarkets forecasts the market size to grow from $2.5 billion in 2022 to $3.9 billion by 2027, at an average annual growth rate of 8.6%. Recycled materials for mobility applications are witnessing significant growth because of growing demand for sustainable materials for the development of automotive parts and components, according to the report.
The majority of recycled plastic found in vehicles are sourced from plastic bottles and caps. Recycled materials are increasingly conforming to the standards of the automotive industry.
Recycled polymers are used in numerous applications including automotive fabrics, splash guards, radiator shrouds, and dashboards. Chrysler, Ford, Honda, General Motors, Nissan, and Toyota are some of the major automakers that use recycled polymers in their vehicles. Recent advances in recycled materials and recycling technology have resulted in a rapid increase in the use of recycled plastics.
Recycled materials are used by OEMs as well as in aftermarket applications. The OEM segment is the major user of recycled materials, according to the report.
The European Union has set ambitious targets to increase the use of recycled materials, and many countries in Europe have implemented policies and regulations to encourage recycling. The plastic recycling market is also growing in Europe. The EU has set a target of recycling 55% of all plastic by 2030, which is driving investment in new recycling technologies and infrastructure.