April 12, 2024
Home Appliance Recycling Market

The Rising Adoption Of Energy-Efficient Home Appliances Is Driving The Home Appliance Recycling Market

The home appliance industry has witnessed significant growth in the adoption of energy-efficient appliances over the past decade. Consumers are increasingly replacing their old energy-intensive appliances such as refrigerators, washing machines, and air conditioners with newer energy-efficient models to save on energy costs. However, disposal of obsolete appliances has emerged as a major issue. Many countries and local governments have implemented policies and regulations mandating manufacturers and retailers to setup home appliance recycling programs.

The global Home Appliance Recycling Market is estimated to be valued at US$ 21.27 Mn in 2024 and is expected to exhibit a CAGR of 3.9% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Home appliances such as refrigerators, air conditioners, washing machines contain several materials such as plastics, metals, glass, and chemicals that require proper recycling and disposal. Appliance recycling helps recover these recyclable materials and prevents environmental pollution. It also creates jobs at recycling centers and plants for sorting recyclables. The rising concerns about e-waste pollution and sustainable material management have accelerated adoption of home appliance recycling programs across regions.

Market key trends:

One of the major trends in the home appliance recycling market is growing partnerships between manufacturers and recyclers. Many appliance makers have collaborations with local recyclers to setup take-back programs for obsolete products. For instance, LG Electronics has partnered with various recycling vendors in Europe and the U.S to collect and dismantle old LG appliances through its recycling programs. Similarly, appliance rental companies are also actively involved in reuse and recycling of returned rental appliances through tie-ups with certified recyclers. Such partnerships ensure strict compliance to recycling regulations and proper treatment of hazardous materials from end-of-life appliances. Growing alliance between different stakeholders is expected to further boost sustainable recycling practices in the industry over the forecast period.

Porter’s Analysis

Threat of new entrants: Low barriers to entry allows new companies to enter the market easily. However, established players havestrong brand reputation and relationships which is difficult for new entrants to match.

Bargaining power of buyers: Buyers have high bargaining power as there are many players offering recycling services. Buyers can negotiate on price and quality of services.

Bargaining power of suppliers: Suppliers of scrap materials have moderate bargaining power. Being a fragmented industry, established recyclers are dependent on regular supply of scrap materials from various sources.

Threat of new substitutes: Substitution threat is low as recycling is the most environment friendly way of handling waste. Landfill and incineration options are being regulated strictly.

Competitive rivalry: The market is competitive with players focusing on expanding collection networks and upgrading recycling facilities. Strategic partnerships are common to strengthen recycling infrastructure.

Key Takeaways

The Global Home Appliance Recycling Market Demand is expected to witness high growth. The growing environmental consciousness among consumers and regulations supporting e-waste recycling are driving the market. The global Home Appliance Recycling Market is estimated to be valued at US$ 21.27 Mn in 2024 and is expected to exhibit a CAGR of 3.9% over the forecast period 2024 to 2031.

Regional analysis: North America dominates the market currently due to stringent e-waste laws and active recycling programs run by manufacturers in the region. Asia Pacific is expected to grow at a high rate owing to rising energy costs and implementation of new regulations in major countries like China and India.

Key players operating in the home appliance recycling market are Club Car, LLC, Yamaha Golf-Car Company., E-Z-GO, EverGreen Electrical Vehicles, Columbia ParCar Corp, Hitachi Chemical Co., Ltd. Key players are focusing on collaborative take-back programs and expanding collection infrastructure to handle increasing volumes of scrap materials efficiently. They are also investing in upgrading recycling facilities to recover more resources from waste through advanced sorting and segregation techniques.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it