Trusted Business Insights answers what are the scenarios for growth and recovery and whether there will be any lasting structural impact from the unfolding crisis for the Metal Recycling market.
Trusted Business Insights presents an updated and Latest Study on Metal Recycling Market 2020-2029. The report contains market predictions related to market size, revenue, production, CAGR, Consumption, gross margin, price, and other substantial factors. While emphasizing the key driving and restraining forces for this market, the report also offers a complete study of the future trends and developments of the market. The report further elaborates on the micro and macroeconomic aspects including the socio-political landscape that is anticipated to shape the demand of the Metal Recycling market during the forecast period (2020-2029).
It also examines the role of the leading market players involved in the industry including their corporate overview, financial summary, and SWOT analysis.
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Report Overview: Global Metal Recycling Market
The global metal recycling market size was estimated at USD 846.7 billion in 2020 and is predicted to register a compound annual growth rate (CAGR) of 4.8% from 2021 to 2027. The increasing demand for metals coupled with rising focus on conservation of natural resources and reduction in greenhouse gas emissions is the crucial factor driving the market growth. Metal recycling allows manufacturers to procure raw materials for the production of finished goods without degrading their properties. Furthermore, it is cheaper than the primary production of metal. In addition, the environmental imperative also plays a significant role in driving industry growth. China emerged as the largest player in the global industry in 2019. According to World Steel, China is the largest producer of steel and it produced 996.3 million tons in 2019 and accounted for roughly 53% of the global crude steel production. China sources roughly 20% of the raw material required for steel making from scrap recycling.
The number of scrap processing plants and local collection centers in China are predicted to increase significantly over the coming years. The ban on the operation of small induction furnaces in China placed a significant requirement for Electric Arc Furnaces (EAFs), which rely heavily on scrap. As a result, the utilization of steel scrap in steelmaking in China increased sharply from 11% in 2016 to 20% in 2018.
The COVID-19 pandemic in 2020 caused a supply chain disruption, which resulted in a significant decline in metal production. Furthermore, there was a large contraction in demand owing to the slowdown of prominent end-use industries, such as construction and automotive. This is likely to affect the recycling industry in 2020. However, a sharp rebound is expected in 2021 as manufacturing operations are allowed to continue from the latter half of 2020.
Product Insights: Global Metal Recycling Market
Steel led the market and accounted for more than 79.0% share of the global volume in 2019. The large-scale utilization of steel in the construction, automotive, and consumer goods industries is the major factor driving the segment growth.
Aluminum is yet another product that has tremendous potential for recycling. According to the Aluminum Association, aluminum is one of the most recyclable materials in the industry today. According to the statistics provided by the association, nearly 75% of all the aluminum produced in the U.S. is still in use today.
Reutilization of copper saves 15% of the total energy used in extracting and manufacturing the same amount of virgin copper. The rising focus on energy conservation around the globe and increasing demand for copper from the electrical & electronics industry is likely to play a major role in driving the segment growth over the coming years.
Application Insights: Global Metal Recycling Market
The construction sector led the market and accounted for more than 46.0% share of the global volume in 2019. There is a considerable demand for steel and aluminum from the global construction industry. Rising urbanization owing to increasing disposable income levels in the emerging economies is likely to contribute to the growth of the construction industry, thereby driving the demand for construction metal products. This, in turn, is expected to drive the growth of the recycling industry.
The automotive industry also uses a considerable amount of metal. For instance, engine components and various other auto components, such as hoods, mufflers, basic vehicle frames for doors, and fuel tanks, are made of steel. According to the World Steel Association, about 70% of an automobiles weight is comprised of iron and steel. This represents a lucrative opportunity for industry growth.
Regional Insights: Global Metal Recycling Market
Asia Pacific led the market and accounted for more than a 67.0% share of the global revenue in 2019. This dominance can be attributed to the significant metal production in the region. In 2019, Asia Pacific produced 72% of steel and 66% of primary aluminum produced in the world. Therefore the region has a well-established recycling industry.
Metal production in Europe is considerably smaller when than Asia Pacific. However, the usage of recycled scrap for secondary metal production in Europe is relatively higher. The rising emphasis on the circular economy in Europe coupled with stricter government regulations on energy usage plays a major role in promoting market growth in Europe.
In North America, roughly 42% of crude steel is produced using recycled materials. This illustrates the massive significance of recycling in the region. The country is a major producer of secondary aluminum. Further, the U.S. produces steel mainly using the EAF process which consumes a significant quantity of scraped material.
Key Companies & Market Share Insights: Global Metal Recycling Market
The global market is fragmented and unorganized. Growing environmental concerns, increasing demand for the product from end-use industries, and rising government regulations are expected to encourage manufacturers to source their raw materials from recycling at a higher rate. In June 2019, Tata Steel made an announcement of its plan to launch its first recycling plant in the state of Haryana, India. This strategic initiative is aimed at helping the company to gain an early mover advantage in the Indian market landscape. Some of the prominent players in the metal recycling market are:
Key companies Profiled: Global Metal Recycling Market Report
- European Metal Recycling
- Norsk Hydro ASA
- Tata Steel
- GFG Alliance
- Kimmel Scrap Iron & Metal Co., Inc
- Schnitzer Steel Industries, Inc.
This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. Trusted Business Insights has segmented the global metal recycling market report on the basis of product, application, and region:
Product Outlook (Volume, Million Tons; Revenue, USD Billion, 2016 – 2027)
Application Outlook (Volume, Million Tons; Revenue, USD Billion, 2016 – 2027)
- Consumer Goods
- Industrial Goods
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