The global metal recycling market size was valued at US$ 562.87 billion in 2019 and projected to hit US$ 806.61 billion by 2027, with a CAGR of 4.6% from 2020 to 2027. Rising demand for metals across various industries, increasing focus towards conservation of natural resources, and reduction of greenhouse gas emissions are some of the crucial factors that prominently drive the market growth.
Metal recycling permits manufacturers to procure metal wastes from various end-use industries and convert them into raw metals that are further used across those end-use industries in various applications. This process of recycling cost less compared to mining of the metals as well as is an environment-friendly method that prospers the growth of metal recycling process over the upcoming years.
Additionally, increasing demand for metals and their alloys across numerous applications in automotive, industrial, consumer electronics & goods, and other various industries is the other most significant factor that thrive the market growth. Increasing urbanization and industrialization along with government initiative towards sustainable development again propel the industry growth.
Steel emerged as a dominating product segment in 2019 with a volume share of over 79% in the same year. Further, the segment expected to maintain its dominance over the forecast timeframe owing to large-scale utilization of the product in automotive, construction, and consumer goods industries. Steel is the most recycled material across the globe and contribute around 40% of the total steel production mainly attributed to the opportunity to recover large structures along with their ease of reprocessing. In addition to this, easy process of steel separation from waste stream is other benefit that drives the steel recycling process.
Aluminum is however another product that offers tremendous benefits for recycling. As per the Aluminum Association, aluminum is among the most recyclable materials across the industry today. The statistics published by the association reveal that the aluminum industry spends approximately USD 800 Million on recycled aluminum cans every year. Major source of raw material for aluminum recycling is from automotive and building parts. Approximately, 90% of the aluminum used in automotive and building parts is recycled at their end of use.
The construction segment dominated the global metal recycling market accounting for over 46% of the total volume share in 2019. Flourishing growth in urbanization because of rise in the disposable income of consumers particularly in the developing economies is the major factor that propels the demand for recycled steel and aluminum across the construction industry.
Besides this, the automotive industry is the other important segment that uses large amount of metal product in various applications. For instance, body parts, engine components, and various other components that include mufflers, hoods, basic vehicle door frame, and fuel tanks are all made from steel. As per the World Steel Association, around 70% of the weight of an automobile is mainly because of iron and steel. In addition to this, automobile industry registered an increased sale mainly across the developing nations expected to offer lucrative growth opportunities in the forthcoming years.
The Asia Pacific emerged as the global leader in the metal recycling market and accounted for over 67% of total value in the year 2019. The dominance of the region can be attributed to the high production of metal. For instance, 66% of total primary aluminum and 72% of total steel produced across the world were contributed by the region. Among other Asian countries, China is the front-runner in the global industry in the year 2019. As per the World Steel Association, China is the major producer of steel and produced nearly 1,000 million tons of steel in the year 2019 that is roughly 53% of the total crude steel production. The country sources around 20% of the raw material for steel recycling from metal scrap.
Europe follows the Asia Pacific in terms of metal production. However, the application of recycled scrap in secondary metal production is relatively higher in Europe. Growing emphasis on the circular economy in the region together with stringent government regulations related to energy usage significantly promotes the market growth in the region. Furthermore, notable growth of construction sector in the region again drives the growth of metal recycling in the region owing to high usage of recycled metals in parts and buildings.
Key Companies & Market Share Insights
The global metal recycling industry is largely unorganized and competitive in nature. Increasing emphasis towards sustainable waste management, rising environmental concern, and high demand for recycled metals across various end-use industries encourages manufacturers to sources raw materials at a higher rate compared to past years. Furthermore, growing recycling partnerships in the aluminum industry because of supportive government programs to promote the use of recycled tins and cans expected to flourish the overall market growth.
Few of the prominent players in the metal recycling market include:
Report Scope of the Metal Recycling Market
|Market Size||USD 806.61 Billion by 2027|
|Growth Rate||CAGR of 4.6% from 2021 to 2027|
|Largest Market||North America|
|Fastest Growing Market||Asia Pacific|
|Forecast Period||2021 to 2027|
|Segments Covered||Product Type, Application Type, Region Type|
|Companies Mentioned||GFG Alliance, European Metal Recycling, CMC Recycling, Kimmel Scrap Iron & Metal Co. Inc., Norsk Hydro ASA, Schnitzer Steel Industries, Inc., Tata Steel, Novelis, Utah Metal Works, and Sims Metal Management Limited|
Segments Covered in the Report
This research study comprises complete assessment of the market by means of far-reaching qualitative and quantitative perceptions, and predictions regarding the market. This report delivers classification of marketplace into impending and niche sectors. Further, this research study calculates market size and its development drift at global, regional, and country from 2016 to 2027. This report contains market breakdown and its revenue estimation by classifying it on the basis of product, application, and region:
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