(MENAFN- Muscat Daily) A study has found that the GCC countries have the potential to recover 0.9mn tonnes of metal by 2020 as a result of the booming sales in the region. The findings of the study could encourage End of Life Vehicle (ELV) recycling, looking at the large number of vehicles in the region.
The Frost and Sullivan report points out that vehicles that are 15 years old or more will double by 2020 from 3.5 per cent to six per cent in GCC, which means a massive number of vehicles will near the end of their life.
''Almost 1.17mn vehicles will be reaching the End of Life (EOL) state by 2020 in GCC, which makes these countries highly important for ELV recycling,'' said Subhash Joshi, senior consultant, automotive & transportation practice, Middle East and North Africa, Frost & Sullivan.
The report states that vehicle sales in GCC are expected to grow at a compound annual growth rate (CAGR) of five per cent between 2014 and 2020 and currently, Saudi Arabia and UAE are leading with a combined market share of 76.5 per cent. ‘Oman is at the fourth spot in GCC with a CAGR of 6.75 per cent in this regard. As many as 0.84mn vehicles were running on the sultanate's roads last year, according to the report.
The report estimates that globally 58mn tonnes of metal can be recovered from ELV recycling by 2020. ‘Vehicle ownership has already crossed the 1bn mark worldwide and has hence led to increase in generation of ELV,' the report stated.
Since ELV consists of 73-75 per cent metal, it has been traditionally traded as valuable secondary resource and is easily recyclable.
‘The auto recycling industry plays an important role in conservation of natural resources through recycling and reuse of vehicle parts, automotive fluids and scrap metal. By utilising the recycled material for the production of new cars the recyclable gap has been reduced,' it stated.
''ELV offers a sustainable business model for recyclers and part re-manufacturers, which is presently very limited in the region,'' said Joshi.
Efforts to pay attention to ELV recycling in GCC are negligible and needs attention. ‘In GCC, Mercedes-Benz has made an effort on this front by developing its own recycling management system,' the report stated.
However, challenges like lack of unified regulations and infrastructure, limited attention to ecological impact of ELV disposal and minimal vehicle assembly and manufacturing in the region are hindering growth of ELV recycling market in GCC.
Automobiles are one of the highest recyclable engineered goods produced, with recovery rates of almost 90 per cent.
‘The Middle East in general and the GCC in particular is a fast growing market for automobile industry.
‘A number of factors have contributed to the trend like higher standard of living, auto financing programme and lack of public transportation system and growing population in the region,' the rep
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