Metal Recycling Market

Market Overview

The global metal recycling market size was valued at USD 229.6 billion in 2021 and is expected to expand at a CAGR of 5.85% from 2022 to 2030 and reach around USD 384 billion. The recovery and processing of scrap metals at the end of a product's or structure's lifecycle to be used as a raw material in the production of new goods can be closely related to metal recycling. Recent years have seen a rise in demand for additional metal ores due to the rapid industrialization and urbanization that has taken place, particularly in developing economies. Because of this, manufacturers in the metals and minerals industry are having trouble keeping up with the rapidly growing demand for their products due to the diminishing availability of natural resources and the increasing regulations placed on mining activities. These manufacturers are placing a significant emphasis on adopting a variety of technologies that will enable them to recycle and reuse scrap metals, which is contributing to the expansion of the market. However, the growing environmental concerns and demand for energy conservation across the globe have led to an increase in the use of environmentally friendly materials, such as starch-based biomaterials and plant-based biomaterials, in the packaging industry and food beverage industry.

This has hampered the expansion of the global market for metal recycling. The most critical factor in the market's growth is the rising demand for metals, which, in conjunction with a growing emphasis on the preservation of natural resources and the reduction of emissions of greenhouse gases, is the primary factor. Recycling metal gives manufacturers the ability to acquire raw materials to produce finished goods without degrading the properties of the raw materials themselves. In addition to this, it is more cost-effective than the primary production of the metal. Additionally, the environmental imperative is also a significant factor in playing an essential role in driving the industry's growth.

Market Dynamics

Metal Recycling Market Drivers

• Steel Will be the Driving Force Behind Significant Growth in the Magnetite Segment

Steel continues to have an extremely high overall recycling rate all over the world; as a result, the ferrous segment is being driven by this. Steel's properties, which include its ability to withstand repeated melting, are primarily responsible for the high recycling rate achieved by the metal. In addition, scraps of steel can be repurposed into new steel products, which enables manufacturers to keep up with the rising demand for new steel and contributes to a reduction in the overall amount of carbon dioxide emissions produced. This provides the metal recycling industry in the regional markets with an additional impetus to grow.

• The Quasi Segment is to Grow Fastest Due to Aluminium Use and Recycling

In the global metal recycling market, the quasi segment is anticipated to be the segment that will be the largest and the segment that will grow at the fastest rate during the forecast period. This expansion of the market is primarily attributable to the exceptional physical characteristics of aluminium, which make it possible for the material to be processed and recycled in any manner that may be desired. In the category of quasi metals, aluminium has the highest recycling rate out of all the other metals that are present.

As a result, the market is experiencing increased demand for more recycled aluminium.

Metal Recycling Market Restraints

• Concerns About the Diminishing Availability of Natural Resources Are Increasing

The environment on a global scale is suffering as a result of human activities. since improvements in people's financial situations have helped lift millions of people out of poverty. On the other hand, it has been made worse by rising population levels and human consumption of natural resources.

A rise in demand to satisfy the requirements of people worldwide has resulted in a transformation of land use and the generation of previously unimaginable levels of pollution, which harms biodiversity, forests, wetlands, water bodies, soils, and the quality of the air. Human activity is likely depleting more natural resources than the planet's capacity to replenish them. These factors are what are preventing the market from expanding even further.

Metal Recycling Market Opportunities

• Augmenting the Construction Phase Directly Results from an Increase in the Amount of Waste Generated by Buildings

The production of waste by human societies is not a recent phenomenon. "Ever since humans have inhabited the earth, they have generated, produced, manufactured, excreted, secreted, discarded, and otherwise disposed of various wastes in various ways." Since the beginning of civilization and the development of cities, human beings have occupied themselves with the task of coming up with solutions to the problems posed by the waste produced by their societies. The quantity of waste generated by human societies, particularly industrial societies. The ever-increasing number of people on Earth is undoubtedly a contributing factor. More people will result in more waste being produced. But ever since the industrial revolution and the rise of a consumer-based culture and economy around the world, the amount of waste produced has increased exponentially.

There was a significant reduction in the amount of waste produced, and every opportunity to repurpose available materials was investigated before anything was thrown away. Because of this, there will be lucrative opportunities available in the market.

Regional Analysis

North America includes the United States of America, Canada, and Mexico.

Europe, which includes Germany, France, the United Kingdom, and the rest of Europe; Asia-Pacific, which includes China, Japan, India, Australia, and the rest of Asia-Pacific.

Latin America, the Caribbean, and Central America, including LAMEA (Latin America, the Middle East, and Africa). The Asia-Pacific region will produce the highest revenue for the market overall.

The Asia-Pacific market will have the largest share of the global metal recycling market and is anticipated to be the region with the highest growth rate during the period covered by the forecast. Increasing demand for metals such as iron, steel, and aluminium due to rapid industrialization and urbanization in developing markets such as China, India, Indonesia, Vietnam, and Malaysia are the primary factor driving the market for metal recycling in Asia-Pacific. Other factors contributing to the growth of this market include government initiatives to recycle metals and environmental concerns. Additionally, China and India, two of the world's most populous and dynamic economies, both call this region of the world their home. They will continue to experience an increase in their population rate, which will result in Asia becoming the region with the highest number of births anywhere in the world.

This rise in population across the regional market has further generated the requirement for an increase in the number of residential and commercial buildings across the market, consequently leading to a rise in the demand for metals used in constructing these buildings. Furthermore, in recent years, the need for ferrous and non-ferrous metals from end-use industries such as automotive, packaging, and food & beverage production has increased due to improvements in lifestyle and the expansion of industrialization. The region is the largest producer of most metal ores and manages to keep an adequate supply and demand of the raw materials. However, the growing demand for metal from various end-use industries and the depleting natural resources have compelled manufacturers and governmental organizations to adopt metal recycling. Consequently, it contributes to the expansion of the market.

Segmental Analysis

The market for recycling metal is segmented according to the type of metal being recycled, the kind of scrap being recycled, the end-user, and the region.

The market is divided into two categories based on the type of traded scrap: old scrap and new scrap. The market will be dominated by the segment dealing in old junk.

The market is segmented into ferrous and non-ferrous metals based on the type of metal involved. The ferrous sector was the most important part of the market.

The following categories constitute the market's segmentation, determined by the end-user: building and construction, packaging, automotive, shipbuilding, electronics and electrical equipment, and other applications. The automotive sector will contribute the most revenue. However, electronic devices typically contain significant quantities of metals with high market values, such as lead, copper, gold, and aluminium; recycling these items helps to ensure that natural resources are conserved. As a result, the electronics and electrical equipment industry is expected to be the sector with the highest growth rate during the period under consideration.

Recent Developments

In April, ArcelorMittal acquired a majority stake in voestalpine’s state-of-the-art HBI facility in Texas.

In March, ArcelorMittal established a strategic renewable energy partnership with Greenko Group in India.