July 20, 2024
Home Appliance Recycling Market

Home Appliance Recycling Market Estimated To Witness High Growth Due To Increased Environmental Concerns

The Home Appliance Recycling Market is estimated to be valued at US$ 18.46 Billion in 2022 and is expected to exhibit a CAGR of 7.3% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Home appliances include devices such as refrigerators, washing machines, dishwashers, air conditioners, etc. that are used for household or domestic purposes. Home appliance recycling refers to the process of recovering materials from used home appliances and redirecting them back into the manufacturing process. It helps reduce the use of new raw materials and provides environmental benefits such as reduction in greenhouse gas emissions and waste disposal. The rising environmental concerns and growing awareness about the circular economy are driving more consumers and businesses to participate in home appliance recycling programs.

Market Dynamics:

The home appliance recycling market is expected to witness significant growth over the forecast period, driven by growing environmental concerns regarding proper disposal of electronic waste and scarcity of precious metals. According to the United Nations, around 50 million tons of e-waste is produced globally each year, contributing to about 2% of total solid waste. Improper disposal of electronic waste from old appliances can release toxic chemicals into the environment. Thus, recycling helps reduce environmental pollution and diversion of e-waste from landfills. Moreover, recycled materials retrieved from old appliances such as steel, aluminum, copper, etc. serve as valuable resources for the manufacturing industry. They provide an affordable and sustainable alternative to virgin raw materials thereby supporting the circular economy model. Growing awareness about the importance of recycling and recycling programs launched by governments as well as electronics manufacturers are further expected to propel the growth of home appliance recycling market over the forecast period.

Segment Analysis

The Home Appliance Recycling Market is dominated by the refrigerator segment which accounts for over 25% share of the total market. Refrigerators contain harmful gases like CFCs in their insulation foam and refrigerators contribute significantly to the overall waste generated from household appliances. Due to stringent regulations regarding management and safe disposal of appliances containing such harmful gases, there is a growing focus on recycling old refrigerators which is driving the growth of this segment.

PEST Analysis

Political: Regulations regarding the disposal of appliances containing harmful gases like CFCs and proper treatment of electronic waste have been strengthened in various countries. This is encouraging the growth of organized home appliance recycling.
Economic: Rising disposable incomes have increased overall appliance purchases. However, higher adoption of new technologies has also led to faster appliance replacement, driving up volumes available for recycling.
Social: Growing environmental consciousness among consumers and push for sustainable consumption is raising awareness about responsible end-of-life appliance management.
Technological: Advancements in material recovery processes like automated sorting and separation are improving recycling efficiencies while reducing costs of recycling for businesses.

Key Takeaways

The global home appliance recycling market is expected to witness high growth, exhibiting CAGR of 7.3% over the forecast period of 2023-2030, due to increasing environmental concerns about improper waste disposal from growing appliance sales and shortening product life cycles. North America currently dominates the market and is expected to maintain its lead, supported by stringent regulations and awareness campaigns promoting recycling in the region. Europe is another major market driven by EU directives targeting high recycling rates for different categories of e-waste. Key players operating in the home appliance recycling market are ARCA Recycling, Canadian Appliance Recycling Inc, A2Z Home Appliances, UK Appliance Recycling Ltd, Energy Star, Morningside Recycling, Jingdong, A1 Appliances, GE Appliances, Best Buy, IKEA, Johnson Controls, ARCA Advanced Processing, LG Electronics, Samsung Electronics, Arc Recycling, DART Appliance Recycling, Godwin Appliance Recycling, UNTHA Recycling Technology, Mitsubishi Materials Eco-Recycle.

The global home appliance recycling market size for 2023 is estimated at US$ 18.46 Billion. Regional analysis shows Europe to be the second largest market driven by stringent regulations around e-waste management in the EU. Countries like Germany and UK are actively promoting recycling schemes for household appliances to achieve high waste diversion rates from landfills.

Key players in the market are focusing on expanding collection networks and developing more efficient material recovery systems to handle growing volumes. Adopting advanced sorting technologies allows higher recovery of materials like ferrous and non-ferrous metals, plastics and Glass which find applications in new appliance manufacturing, benefiting the circular economy.

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