The global recycled metal market is projected to grow at a CAGR of 7% from 2022-2028. Urbanization and industrialization on the rise result in rapid economic growth, which is expected to increase the demand for the global recycled metal market. Thus, rapid urbanization results in increased government and consumer spending on residential and infrastructure construction, which significantly boosts the market growth for metal recycling.
In addition, growing concerns about the rapid depletion of natural resources have prompted governments in a number of nations to enact regulations favourable to the recycled metal industry, thereby boosting the metal recycling market.
- For instance, the Indian government and the UAE government signed the Comprehensive Economic Partnership Agreement (CEPA) in May 2022.
In addition, rising concerns about greenhouse gas emissions and rising environmental awareness among the population fuel the expansion of the global market for metal recycling.
Building and construction in end user segment are expected to gain traction
The building & construction segment is anticipated to be the recycled metal market’s one of the rapidly growing segments, as steel is one of the most durable construction materials available and Its sustainable features make recycled steel one of the best materials available for construction projects. The need to reduce the environmental impact of metal mining has prompted the building and construction industry to utilize recycled metals. The majority of recycled metals used in this industry come from demolition debris, one of the largest sources of metal waste in the US.
Iron and steel scraps are among the most recycled ferrous metals worldwide. This waste originates from both end-of-life products and manufacturing processes. The use of scrap in the steelmaking industry has become an integral component of the industry. According to the Bureau of International Recycling, 40% of steel production is composed of scraps. Ferrous metals, such as iron and steel, have numerous applications in building & construction, transportation, industrial machinery, electrical & electronics, defense, and other industries.
Its primary use in building and construction is in the production of bridges, steel building frameworks, drainage components, and other architectural frameworks, as it provides durability, strength, weather resistance, etc. Growing ferrous metal demand from the above-mentioned applications, coupled with rising government initiatives to promote metal recycling, will drive the recycled metal demand.
Laws and regulations regarding waste management are spurring the growth in Europe and Asia Pacific
In Europe, stringent regulations and laws imposed by the European Commission to reduce waste generation and its impact on the environment are likely to stimulate the reprocessed metal market over the next few years. In the Asia Pacific, increasing environmental concerns and proper waste management are driving the regional market growth of recycled metal. The construction, transportation, and electronics industries are also responsible for the region’s significant market growth as the Asia Pacific region experiences infrastructure development and construction activities.
Moreover, rising socioeconomic factors, purchasing parity, and easy loan approvals are driving the automotive industry in the region, which will have a direct positive impact on metal demand in the coming years, thereby driving the metal recycling process and the reprocessed metal market size.
During the forecast period, North America is projected to be one of the most lucrative markets. Increasing demand for advanced electronic goods and the rising popularity of electric vehicles are the major growth drivers. The electronics and automotive industries use recycled metal extensively, therefore, the growth of these industries will drive the demand for recycled metal in North America during the forecast period. The Middle East & Africa is anticipated to experience growth because countries in the region are attempting to establish a circular economy, which has spurred investment in metal recycling.
Market Structure and Competition Landscape
The key players in the recycled metal market globally are ArcelorMittal, Aurubis AG, Nucor, Sims Limited, Tata Steel, European Metal Recycling Ltd., Dowa Holdings Co., Ltd., OmniSource, LLC, CMC, Schnitzer Steel Industries, Inc., Novelis Aluminium, Norsk Hydro ASA, Tom Martin & Co Ltd., among others.
To maintain their market position, the key players in the recycled metal market focus on various growth strategies such as mergers and acquisitions, and product portfolio expansion. Some of the key developments in the recycled metal market are;
- In February 2021, Steel Dynamics Inc. acquired three metals recycling facilities in South Texas in close proximity to prime scrap-generating urban and industrial areas.
- In October 2020, ArcelorMittal and Triple M merged to form Integrated Metal Recycling Inc. to provide consumers and suppliers with support, services, and options.
- In November 2019, ArcelorMittal invested in a new sustainability program in Europe with the goal of obtaining Responsible Steel certification for all of its ArcelorMittal Europe – Flat Products sites.
- In May 2019, Nucor Corporation announced a capital expenditure that will expand the capabilities of its Darlington, South Carolina bar mill to include vacuum degassing for engineered bars. The addition of this capability will enable the mill to manufacture engineered bar products that meet the industry’s most stringent quality standards.
- In May 2019, Aurubis AG acquired the Belgian-Spanish Metallo Group to continue pursuing its multi-metal and recycling strategy aggressively. With its attractive growth potential, the acquisition strengthens the company’s portfolio of multiple metals, particularly copper, nickel, tin, zinc, and lead.
Key Market Segmentation
RationalStat has segmented the global recycled metal market based on the metal type, end user, and region.
- By Metal Type
- Iron & Steel
- Stainless Steel
- Others (Zinc, Nickel, etc.)
- By End User
- Building & Construction
- Equipment Manufacturing
- Consumer Appliances
- Home & Industrial Furniture
- By Region
- North America
- Latin America
- Rest of Latin America
- Western Europe
- Rest of Western Europe
- Eastern Europe
- Rest of Eastern Europe
- Asia Pacific
- South Korea
- ASEAN (Indonesia, Vietnam, Malaysia, etc.)
- Rest of Asia Pacific
- Middle East & Africa
- South Africa
- Rest of the Middle East & Africa
- North America
RationalStat has developed a state-of-the-art research methodology to crunch numbers and provide the best possible real-time insights to clients. We combine a varied range of industry experience, data analytics, and experts’ viewpoint to create a research methodology for market sizing and forecasting.
RationalStat combines a mix of secondary sources as well as primary research to assess the market size and develop a forecast. Key steps involved in accurately deriving the market numbers are:
- Defining the problem by understanding the type of market and data required by the client.
- Data gathering and collection through relevant paid databases, publicly available sources, company reports, annual reports, surveys, and interviews.
- Formulating a hypothesis to create market numbers, forecasts, influencing factors, and their relevance.
- Evaluating and analyzing the data by referring to data sources utilized and leveraged.
- Validating, interpreting, and finalizing the data by combining the details gathered from primary and secondary sources with the help of experienced analysts.
- Annual reports, company filings, investor presentations, product catalogs, white papers, research reports, trade fairs, and company documents.
- Available industry and market-related documents in the public domain.
- Paid databases including Bloomberg, Factiva, S&P Capital IQ, FactSet, Refinitiv Eikon, ICIS, EUWID, and Thomson Reuters, among others.
- Whitepapers, research papers, and industry blogs
Why Buy this Report?
The report is intended for metal companies, equipment manufacturers, distribution companies, logistics players, investment firms, government organizations, educational organizations, regulatory agencies, research organizations, and market research firms, among others. The report provides an in-depth analysis of market size, consumption patterns, ongoing market trends and challenges, and future market opportunities. The report will serve as a source for a 360-degree analysis of the market thoroughly delivering insights to clients to find the right answers to their business questions.