by Recycled metal refers to scrap metal that is processed and reused in various applications. Common types of metals that are recycled include steel, iron, aluminum, copper, nickel, zinc, and precious metals such as gold and silver. These metals are widely used in the construction industry for pipes, cables, window frames, roofing, and siding. They also find applications in transportation for vehicles bodies, motor parts, and engine blocks. Recycling metals helps reduce energy usage and pollution associated with mining and primary metal production.
The global recycled metal market is estimated to be valued at US$ 260 billion in 2023 and is expected to exhibit a CAGR of 4.7% over the forecast period 2023 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Increased Demand for Sustainable Metal Products: With growing awareness about sustainability and circular economy, there is a significant increase in demand for metal products made from recycled content across industries. Recycled metals require far less energy to produce than primary metals extracted through mining. For example, recycling aluminum cans reduces related energy use by 95% as compared to primary aluminum production. This growing preference for eco-friendly products made with recycled metals is a major driver for the market.
Rising Environmental Regulations: Stringent environmental regulations in developed regions like North America and Europe regarding sustainable waste management and carbon emission reduction are also fueling the recycled metal market growth. The legislations encourage businesses to use recycled metals wherever possible and implement recycling practices to reduce industrial waste. This regulatory push is driving higher production of recycled metals globally.
Segment Analysis
The recycled metal market can be segmented based on metal type, source, application and region. Based on metal type, the market is segmented into ferrous and non-ferrous metals. Ferrous metals like steel dominates the market with over 60% share due to high demand from the construction sector. These metals are cost effective when compared to non-ferrous metals like aluminum and lead. Based on source, scrap metals segmented into old scrap and new scrap accounts for the major share as they are readily available and collection and segregation is easier.
PEST Analysis
Political: Regulatory policies by governments across regions favoring recycling and reuse of metal scrap to reduce environmental impact has been a major driver. Economic: Volatility in prices of virgin metals drives profitability of recycled metal producers. Social: Increasing awareness among public regarding sustainability and reducing carbon footprint boosts metal scrap collection programs. Technological: Advanced sorting and processing technologies enable higher quality recyclables with less contamination improving revenues for recyclers.
Key Takeaways
The Global Recycled Metal Market Size is expected to witness high growth over the forecast period. Asia Pacific dominates the market with over 40% share led by China. Abundant scrap availability due to rapid industrialization and urbanization along with growth in end-use industries like construction boosts metal recycling.
Key players operating in the recycled metal market are Schnitzer Steel Industries, Sims Metal Management, Steel Dynamics, Novelis, European Metal Recycling.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
