Metal Recycling Market Overview
The Metal Recycling Market size is estimated to grow at a CAGR of 5.1% during the forecast period 2022-2027 and reach US$327.6 billion by 2027. Metal Recycling can be done over and over again without the metal changing its properties. Some of the major metal that is extensively recycled include aluminum, steel, silver, copper, brass, gold and others. There are over a thousand metal recyclers in the market under various trade associations such as ISRI (Institute of Scrap Recycling Industries Inc), BMRA (British Metals Recycling Association), Australian Metal Recycling Industry Association, Canadian Associations of Recycling Industries and others. The recovery of precious metals including platinum, palladium, gold and other valuable metals such as lead, silver and copper from electronic waste provides the end users with an economical approach. In 2020, the surge in the COVID-19 pandemic negatively impacted construction activities. However, a steady recovery in construction activities has been witnessed since 2021, which in turn, is driving the demand for Metal Recycling. For instance, according to the World Steel Association, global steel production reached up to 1,911.9 million tons in 2021, an increase of 3.6% in comparison to 2020. Thus, an increase in construction activities along with the surging demand from the aerospace industry is expected to drive the growth of the Metal Recycling Market size in the forecast period.
Metal Recycling Market Report Coverage
The "Metal Recycling Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Metal Recycling Market.
- The ferrous metal segment in Metal Recycling Market held a significant share in 2021. In 2020, over 30% of crude steel produced worldwide was made using recycled materials and in the U.S. over 65% of recycled materials are used to produce crude steel.
- Asia-Pacific dominated the Metal Recycling Market in 2021, owing to its increasing demand from the construction sector of the region. For instance, according to Volvo CE, the construction sector saw an increase in construction activities, in the fourth quarter of 2020, mainly in Asia by 39% and China by 28%.
- Iron and steel are the most recycled materials, globally, as it provides the opportunity to recover huge structures and are easier of reprocessing compared to other materials. Thus, this is expected to create a major opportunity for the end users of the Metal Recycling Industry to procure larger quantities at cheaper rates.
Figure: Metal Recycling Market Share, By Type, 2021 (%)
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Metal Recycling Market Segment Analysis – by Type
The Ferrous metal segment held a significant Metal Recycling Market share of over 60% in 2021, owing to its high usage across various major industries such as construction, automotive and shipbuilding. Carbon steel, alloy steel, cast iron and wrought iron are some of the major ferrous metals that are recycled. The usage of these metals in the construction industry along with the growing construction activities and investments is expected to boost the market of the Metal Recycling Industry in the coming years. For instance, in 2020, the Ho Chi Minh City Committee in Vietnam started the development of a new commercial center in the Tan Phu District which is scheduled to be completed by the fourth quarter of 2022.
Recycling Market Segment Analysis – by End-user
The construction segment held the largest Metal Recycling Market share of over 35% in 2021, owing to the increasing construction activities and investment across the globe. For instance, in 2021, the construction of two mixed-use towers including commercial towers began in Australia. The project is scheduled for completion in the fourth quarter of 2025. Furthermore, the government of China approved 695 building and construction projects with an overall investment of US$ 471 billion in January 2022. Thus, such construction activities are expected to boost the demand for recyclable metals in the coming years.
Metal Recycling Market Segment Analysis – by Geography
Asia-Pacific held a dominant Metal Recycling Market share of over 40% in the year 2021. The consumption of Metal Recycling particularly in the construction industry is increasing the demand for recyclable metals in the region. For instance, according to Invest India, around 115 future construction projects are planned in India by 2023. The total investment in these construction projects is around US$ 11.63 million. Thus, this surge in construction activities and investments is expected to drive the growth of the Metal Recycling Market size during the forecast period.
Metal Recycling Market Drivers
Increasing Construction Industry Demand
New metals manufacturing is a complicated and conventional process for every building and construction company. Turning huge amounts of old scrap metals into reusable and comparatively new metals have been adopted by companies currently to expand the exponential turnover and meet the demand of the global population increasing rapidly. The recycling of aluminum requires a negligible amount of energy consumption (5%) and greenhouse gas emission (5%). The construction industry is leading the metal recycling industry for profitable and healthy market growth. According to the Institute of Civil Engineers, global construction is projected to gain a market revenue of US$ 8.0 trillion by 2030, which is mainly driven by China, the U.S., and India.
Eco-friendly Industrial Initiatives
The recycling of aluminum requires a negligible amount of energy consumption (5%) and greenhouse gas emission (5%). Copper recycling avoids 85% of energy wastage, reducing 65% of carbon dioxide released into the atmosphere. Moreover, recycled metals contribute to 40% of overall copper consumption globally. Moreover, recycling metal waste is an alternative to landfills that serve as a solution for a considerable amount of environmental degradation. Industries are considering effective eco-friendly processes of manufacturing metals with minimal cost and with low energy expenditure for better profit margins. For instance, during aluminum recycling, 95% less energy waste occurs which is enough power to glow a 100-watt bulb for four hours by recycling one aluminum can.
Metal Recycling Market Challenge
Low Recyclable Rate and Unrecovered Metals
The design of the product plays an important role in the recyclability of the metals that the product is composed of. The growing complexity of numerous modern products and the material mixes used to make those products make them increasingly difficult for recycling. For instance, a mobile phone or computer contains more than 60 different elements. Thus, extracting each material from a mobile phone or computer and reusing them in the production of new products makes it challenging. Moreover, rare earth metals are essential for modern industrial and commercial sectors induced into the wide applications of almost every industrial sector. However, only a negligible percentage of rare earth elements can be recycled while the rest cannot be recovered leading to expansive metal wastage. Thus, the increasing exhaustion of rare earth elements will lead to a complete void and scarce for these elements imposing a serious threat to the electronics, automotive and other industries. Thus, these factors are expected to hinder the market in the coming years.
Metal Recycling Industry Outlook
Technology launches, acquisitions and increased R&D activities are key strategies adopted by players in the Metal Recycling Market. The top 10 companies in Metal Recycling Market are:
- Nucor Corporation
- ArcelorMittal S.A.
- Commercial Metals Company
- Aurubis AG
- China Baowu Steel Group Corp., Ltd.
- Tata Steel Limited
- Dowa Holdings
- European Metal Recycling Limited
- TOTALL Metal Recycling, Inc.
- In August 2022, Nucor Corporation. has announced it will add a new melt shop at its bar mill in Kingman, Arizona. It will have the capacity to produce 600,000 tons of raw steel annually.
- In February 2022, ArcelorMittal acquired Scottish recycling business John Lawrie Metals Ltd, which would increase the use of scrap steel to lower CO2 emissions from steelmaking and increase the supplies of scrap.
- In October 2021, Nucor Corporation announced the addition of these new recycling locations (Missouri and Florida), representing a 10% growth in recycling capacity.
Report Code: CMR 21517
Report Code: CMR 1296
Report Code: CMR 52597
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