Japan Vehicle Recycling Market

Japan Vehicle Recycling Market Insights Forecasts to 2035

• The Japan Vehicle Recycling Market Size Was Estimated at USD 5593.2 Million in 2024
• The Market Size is Expected to Grow at a CAGR of Around 13.82% from 2025 to 2035
• The Japan Vehicle Recycling Market Size is Expected to Reach USD 23240.5 Million by 2035

According to a research report published by Decisions Advisors, The Japan Vehicle Recycling Market Size is Anticipated to Reach USD 23240.5 Million by 2035, growing at a CAGR of 13.82% from 2025 to 2035. The vehicle recycling market in Japan is driven by green steel policies, strengthened EPR regulations, and industry–government–academia collaborations that enhance recycled material integration.

Market Overview

The vehicle recycling market deals with the processing of end-of-life vehicles through disassembly for usable parts and materials such as steel, aluminum, and plastics. It is a multi-step operation that involves salvaging usable mechanical components, separating hazardous materials, and then crushing and shredding the remaining car body for the recovery of reusable materials. Japan encourages vehicle recycling through the Automobile Recycling Law, which requires properly recovering airbags, fluorocarbons, and shredder residue. The Japanese government generally mandates that automakers retrieve and recycle these items, and in exchange, they collect a recycling fee when a vehicle is purchased and/or during the vehicle's inspection. Although there are differences in recycling rates and scope, Japan's system can achieve over 95% vehicle recycling rates, while greatly reducing waste to landfills and environmental impacts. The market opportunities for high-value metal recovery, EV-battery reuse, and the supply of recycled materials to automakers are growing rapidly. Recent developments in the market involve OEM partnerships to develop recycled plastics and green steel in two new phased vehicle generations.

Report Coverage

This research report categorizes the market for the Japan vehicle recycling market based on various segments and regions, and forecasts revenue growth and analyses trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Japan vehicle recycling market. Recent market developments and competitive strategies, such as expansion, product launch, development, partnership, merger, and acquisition, have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Japan vehicle recycling market.

Driving Factors

The vehicle recycling market in Japan is driven by the strict environmental regulations the country has in place under the Automobile Recycling Law, which obliges a due diligence framework for the recovery of airbags, fluorocarbons, and metals for recycling. The growing emphasis on circular economy initiatives, rising metal prices, and an increase in sales of electric and hybrid vehicles also add to the demand for recycling. Industry players are making more efficient use of their operational resources due to improved dismantling technologies and government oversight, and there are growing opportunities for the exportation of recycled auto parts to sustain stable market growth in Japan.

Restraining Factors

The vehicle recycling market in Japan is mostly constrained by the costs of operations and updating technology, the difficulty in finding labour to work in facility dismantling, and the challenges that come with handling EV batteries. Scrap metal prices can fluctuate, and there are further economic areas of consideration when account must be made for thorough and sometimes complex regulatory compliance for recyclers.

Market Segmentation

The Japan vehicle recycling market share is classified into vehicle type and material.

• The passenger cars segment accounted for the largest revenue market share in 2024 and is expected to grow at a significant CAGR during the forecast period.  

The Japan vehicle recycling market is segmented by vehicle type into passenger cars and commercial vehicles. Among these, the passenger cars segment accounted for the largest revenue market share in 2024 and is expected to grow at a significant CAGR during the forecast period. This is a result of Japan's high rate of passenger car ownership and the country's stringent Shaken inspection regulations, which lead a significant number of cars to approach the end of their useful lives every year.

• The steel segment accounted for the largest revenue share in 2024 and is expected to grow at a significant CAGR during the forecast period.  

The Japan vehicle recycling market is segmented by material into iron, aluminium, steel, rubber, copper, glass, plastic, and others. Among these, the steel segment accounted for the largest revenue share in 2024 and is expected to grow at a significant CAGR during the forecast period. Steel is the most recovered and commercially important material because it makes up the majority of a vehicle's weight. It's great recyclability, consistent market pricing, and robust demand in Japan's construction and automotive sectors.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Japan vehicle recycling market, along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborate analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Kaiho Sangyo Co., Ltd.
• MATEC Inc.
• Keiaisha Co., Ltd.
• Toyotsu Recycle Corporation
• Akemi Recycling Center
• Mitsubishi Materials Corporation
• Toyota Metal Co., Ltd.
• Daihatsu
• USS / ARBIZ
• Sumitomo
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments:

•  In September 2025, the Japan Automobile Recycling Corporation (JARC) announced, for November, a large recycling conference that would deal with plastic and glass recycling from ELVs.
• In June of 2025, a Commentary noted the shrinking of the ELV market due to Japan’s population falling, vehicles staying on the road longer, and the export of used vehicles going up.
• In January 2025, the Automobile Recycling Law turned 20 years old, and a resource recovery incentive system was planned to launch in April 2026.

Market Segment

This study forecasts revenue at the Japan, regional, and country levels from 2020 to 2035. Decisions Advisors has segmented the Japan vehicle recycling market based on the below-mentioned segments:

Japan Vehicle Recycling Market, By Vehicle Type

• Passenger Cars
• Commercial Vehicles

Japan Vehicle Recycling Market, By Material

• Iron
• Aluminium
• Steel
• Rubber
• Copper
• Glass
• Plastic
• Others