With the growing interest in reducing metal waste and carbon footprint across various industries, the scrap metal recycling market is expected to reach a valuation of around $ 60 billion in 2021.
According to the recent report from the market research and consulting agency Fact.MR, the global market for scrap metal recycling, is projected to register a CAGR of 5.5% between 2021 and 2031. The market has been forecast to reach a valuation of US$ 103 Bn by 2031.
Some of the prominent players operating in the scrap metal recycling market include American Iron & Metal, ArcelorMittal, Aurubis AG, DBW Metals Recycling, Kuusakoski, Metallon Recycling, Nucor Corporation, OmniSource, Sims, TKC Metal Recycling and K-Swiss.
The gradual depletion of natural resources, increasing demand for metals across various industries such as automotive and construction, and rapid industrialisation are key factors driving the scrap metal recycling market.
With soaring demand for metals such as steel, aluminium and iron, manufacturers have shown keen interest towards recycling scrap metals. As this process is simple and more cost-efficient than new metal manufacturing, the market is expected to witness robust growth during the forecast period, the report said.
Growing concerns pertaining to mounting metal waste has presented a conducive environment for the growth of the market. As a result, some leading companies have been expanding their online presence to strengthen their footprint.
According to Fact.MR, the automotive industry has emerged as the leading end-user. The segment is projected to account for 60% of the total scrap metal recycling sales between 2021 and 2031. North America dominates the scrap metal recycling market due to the presence of leading players. However, Asia Pacific is anticipated to register growth at a higher pace during the forecast period.
An analyst from Fact.MR said the focus on expanding online presence will present lucrative opportunities for the market's growth. Besides this, market players are expected to focus on strategic collaborations as them aim for capacity expansion.
Key Takeaways
The Asia Pacific will dominate the scrap metal recycling market during the forecast period. The US market is estimated to total $ 25 billion in 2021. With soaring demand for metals across the automotive and construction sectors, the US market is set to register 5.5% CAGR between 2021 and 2031.
China has emerged as the most lucrative market for scrap metal recycling. Increasing steel and crude steel production will continue supporting growth in China.
The automotive scrap metal recycling segment is projected to account for 60% of the total metal recycling market through 2031. The research firm said that the ferrous scrap metal recycling segment is expected to hold around 2/5th of the scrap metal recycling market during the forecast period.
Key Drivers
Increasing focus on sustainability in the automotive and construction sectors will spur the demand for scrap metal recycling. In addition, innovations in countries like Japan, where scrap metal is used to produce gold, silver, and bronze, will create attractive opportunities for the growth of the market, Fact.MR said.
However, difficulty in extracting some metals and unorganised metal waste collection in low and middle economies also impacts the market growth, the report said.
Competitive Landscape
Key players operating in the scrap metal recycling market are expanding their presence by establishing new facilities. In addition, they are adopting various growth strategies such as mergers, acquisitions, advanced product development and collaborations to strengthen their presence in the global market.
Courtesy: Fact.MR. NB: Photo is representational; courtesy: TKC Metal Recycling.