A new report on the auto recycling sector shows that the U.S. industry generates about US$32 billion in annual sales, even as industry consolidation slows.
Caruso & Co., a New York-based investment bank serving automotive businesses, counted one announced auto recycling deal through August 2026. There were 11 deals in 2022, 11 in 2023, six in 2024 and seven in 2025.
The United States has about 9,000 auto recycling and salvage locations. The sector supports roughly 140,000 jobs.
Between 5,000 and 5,500 locations dismantle vehicles and sell their usable parts.
Full service recyclers remove, inspect and catalogue parts before selling them to bodyshops and mechanical repair facilities. Self-service yards allow customers to bring their own tools and remove parts. These yards also make money from admission fees and the sale of scrap metal.
About 23% of U.S. auto insurance claims now end with the vehicle being declared a total loss. This has increased the number of damaged vehicles available at salvage auctions.
Prices at those auctions remain high. Caruso estimates foreign buyers now account for about 45% of buyers at Copart and IAA auctions, up from 19%.
Recyclers can hold a vehicle for 12 to 18 months while selling its parts. Caruso estimates it generally takes about nine months for a recycler to recover the cost of buying the vehicle.
Shipping also affects where companies expand. Transporting an engine across the United States can cost between US$500 and US$600. Larger recyclers have therefore concentrated on buying yards close to their existing locations.
Investment firms currently own about 200 U.S. recycling yards.
Recent large transactions include Toyota Tsusho’s US$1.34-billion acquisition of Radius Recycling and LKQ’s US$410-million sale of its 61-location Pick Your Part business.
Caruso also identified recycled parts, engines and other reusable components, catalytic converters and scrap metal as important sources of revenue for recyclers.
