Metal Recycling Global Market Report 2022: Rising Demand for Metal Raw Materials Fuels Growth

DUBLIN, April 3, 2023 /PRNewswire/ -- The "Metal Recycling Market By Type, By Product, By Scrap, By Application, and By Region Forecast to 2030" report has been added to ResearchAndMarkets.com's offering.

The metal recycling market had a size of USD 229.12 billion in 2021 and is anticipated to experience a revenue CAGR of 5.3% over the forecast period.

The growth is propelled by several factors such as increasing awareness about sustainable waste management, rising demand for metals, reduction in greenhouse gas emissions, growing industrialization, and increased use of metal scraps in ships, railways, and cars.

Metal recycling involves converting waste metal into useful products and is advantageous as it can be done repeatedly without losing any of its original properties. The value of metal recycling is being recognized by an increasing number of industries and individuals, resulting in a surge of scrap metal being recycled in recent years. Technological advancements have made it possible to recycle many types of metal, especially aluminum and steel. To aid in sorting and processing of the material, technological advancements have been implemented in scrap metal recycling yards in recent years. X-ray technology and infrared scanning are being used to sort nonmagnetic metals, and Laser Object Detection (LOD) is used to identify and remove nonmetals before processing. Laser technology has resulted in significant savings by retaining more recyclable material in a shorter period of time.

Artificial Intelligence (AI) is expected to play a more extensive role in the recycling industry. AI-guided robots are already being used by some larger solid waste management companies to extract recyclable materials from waste streams. AMP Robotics opened automated recycling facilities in Atlanta and Cleveland in May 2022, which can economically process and aggregate low volumes of difficult-to-recycle metals, paper, and mixed plastics sourced from residue supplied by primary materials-recovery facilities and other material providers. Skrotfrag, a Swedish scrap processing business, installed a robotic scrap metal sorting line in March 2019. The sorting line includes a ZenRobotics Heavy Picker with three arms that can distinguish between metal items made of copper, brass, stainless steel, aluminum, or zinc.

Market Dynamics

Driver: Rising demand for metal raw materials

Research suggests that there will be a significant surge in demand for metal raw materials in the coming years. The aluminum industry alone is expected to require 360 million metric tonnes of raw materials over the next two decades to meet the increasing demand. Availability of light metals, such as aluminum, is crucial for industries of the future, including the Electric Vehicle (EV) sector. As a result, metal recycling is becoming increasingly important in the era of climate change and presents considerable economic opportunities. According to the American Chemical Society, recycling rare metals from electronic waste is thirteen times less expensive than extracting them from mines. Recycled steel accounts for almost 40% of global steel production and about 42% of crude steel in the United States. Moreover, the market's revenue growth is being driven by high demand for metals in various end-use industries, including electronics, automotive, and construction.

Restraint:Lack of proper framework for metal waste management

The rapid industrialization and economic expansion have led to a substantial increase in solid waste. However, ineffective implementation of waste policies and inadequate waste management alternatives pose significant challenges for the government in establishing a sustainable solid waste management system. Currently, there is no appropriate framework for managing metal waste. Due to the absence of recycling facilities, approximately USD 11.4 billion worth of recyclable materials are discarded every year in the United States. Therefore, the lack of appropriate regulation and framework is expected to limit the market's revenue growth.

Key Takeaways

Type Outlook

The ferrous segment is expected to account for the largest share of revenue due to its high demand in industries such as automotive, electronics, and construction. The recycling of ferrous metals, mainly iron and steel, can be done both internally and externally, making it a cost-effective process. Additionally, high demand for ferrous metals is driving the growth of scrap ferrous metals in the market.

Equipment Outlook
In the equipment segment, five categories have been identified:

shears, shredders, briquetting machines, granulating machines, and others. The shredders segment is expected to account for the largest revenue share due to its capability of processing a wide range of metal scrap and removing contamination from metal, thereby increasing its value and quality. For example, Lindemann EtaRip Series produced by Mesto, a Finland-based machinery manufacturing company, are efficient pre-shredders used to reduce and defuse metal waste before it is fed into shredders.

Scrap Outlook

Under the scrap category, old and new scrap segments have been identified. The old scrap segment is expected to account for the largest revenue share due to its low cost. Utilizing these more affordable raw materials lowers the cost of production, resulting in lower prices for consumer goods, including cars, appliances, furniture, and grocery packaging.

Application Outlook

Under the application category, seven segments have been identified:

automotive, packaging, building and construction, shipbuilding, equipment manufacturing, consumer appliance, and others. The building and construction segment is expected to register the fastest revenue growth rate due to rapid development of the construction industry and growing requirement for steel in renovation and remodeling projects across the globe. The automotive segment is also expected to register steady revenue growth rate as the industry heavily uses metal components in building frames, engines, and other components.

Regional Outlook

The Asia Pacific region dominates the global metal recycling market, with the largest revenue share. This is due to the increasing use of recycled metals in the construction and automotive industries in countries such as China, Japan, and India. The development of these industries has resulted in a high demand for recycled metals. China, for example, has released a development strategy for its construction industry that includes the use of digital technology, and plans to build 6.5 million rental homes by 2025. The construction industry in India is also growing, with the Indian government establishing the National Bank for Financing Infrastructure and Development to fund infrastructure projects.

The North America market is expected to grow steadily due to the rising demand for metals in the automotive industry and a trend to reduce metal waste and carbon footprint in countries such as the U.S. and Canada. Approximately 42% of crude steel production in North America comes from recycled materials. The U.S. is a significant secondary aluminum producer, and steel is primarily produced through the EAF process, which uses a significant amount of scrap material.

In Europe, the metal recycling market is expected to grow modestly due to the increasing adoption of recycled metals in the automotive industry, particularly in the UK, Germany, and France. The automobile industry is a major driver of recycled metal demand, as metal is extensively used in the development of car and truck frames, engines, and other components. Europe is home to major automotive manufacturers such as Audi AG, Volkswagen Group, and Fiat Chrysler Automobiles N.V. The European Automobile Manufacturers Association reported that commercial vehicle production in Europe expanded by 4.9% in 2021, and 13.7 million light motor vehicles were registered across Europe that same year.

Key Topics Covered:

Chapter 1. Market Synopsis

Chapter 2. Executive Summary

Chapter 3. Indicative Metrics

Chapter 4. Metal Recycling Market Segmentation & Impact Analysis
4.1. Metal Recycling Market Segmentation Analysis
4.2. Industrial Outlook
4.2.1. Market indicators analysis
4.2.2. Market drivers' analysis
4.2.2.1. Increasing awareness regarding sustainable waste management
4.2.2.2. Rising demand for metals
4.2.2.3. Reducing greenhouse gas emission
4.2.2.4. Increasing application of metal scraps in railways, ships, and cars
4.2.2.5. Growing urbanization and industrialization
4.2.3. Market restraints analysis
4.2.3.1. Unregulated movement of waste metals
4.2.3.2. Lack of scrap collection zones

Chapter 5. Metal Recycling Market By Type Insights & Trends

Chapter 6. Metal Recycling Market By Equipment Insights & Trends

Chapter 7. Metal Recycling Market By Scrap Insights & Trends

Chapter 8. Metal Recycling Market By Application Insights & Trends

Chapter 9. Metal Recycling Market Regional Outlook

Chapter 10. Competitive Landscape

Chapter 11. Company Profiles

Companies Mentioned

• Nucor Corporation
• Norsk Hydro ASA
• Kimmel Scrap Iron & Metal Co. Inc.
• Schnitzer Steel Industries Inc.
• European Metal Recycling Ltd.
• Sims Limited
• Tata Steel
• Aurubis AG
• TOTALL Metal Recycling Inc.
• Commercial Metals Company (CMC).

For more information about this report visit https://www.researchandmarkets.com/r/ajpfq7

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