Market Size
Global Metal Recycling Market reached US$ 54.5 billion in 2022 and is expected to reach US$ 92.2 billion by 2031, growing with a CAGR of 6.8% during the forecast period 2024-2031.
Growing environmental and sustainability concerns will be a key factor in driving the growth of the global metal recycling market over the forecast period. Industries are increasing the utilization of recycled metal in order to reduce their reliance on primary extraction and reduce volatility in global metal supply chains.
Manufacturing industries in developing countries are expected to increase their utilization of recycled metal components to keep production costs down and remain competitive in face of rising industry wages and slowing global demand. For example, it is estimated that the Indian automotive industry could reduce production costs by up to 30% by increasing metal recycling of components.
Market Scope
| Metrics | Details |
| CAGR | 6.8% |
| Size Available for Years | 2022-2031 |
| Forecast Period | 2024-2031 |
| Data Availability | Value (US$) |
| Segments Covered | Metal, Scrap, Mode of Recycling, End-User and Region |
| Regions Covered | North America, Europe, Asia-Pacific, South America and Middle East & Africa |
| Fastest Growing Region | Asia-Pacific |
| Largest Region | Asia-Pacific |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Equipment Type Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
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Market Trends
Rising Production of Lithium-Ion Batteries
Global smartphone production has witnessed strong growth in the post-pandemic period, with 1.2 billion units shipped in 2022. Furthermore, global electric vehicle (EV) production has also witnessed strong growth. Lithium-ion batteries are the main power source for consumer electronics and electric vehicles.
The growth in the production of lithium-ion batteries is fueling a growing demand for lithium. Although global lithium mine output has quadrupled over the last decade, projections indicate that production must increase six-fold by 2030 to keep up with growing global demand.
Industries are therefore increasing the recycling of lithium to keep up with demand. Companies are entering into partnerships to develop and deploy lithium recycling infrastructure. For instance, in July 2023, Altilium, a UK-based recycling company with Marubeni Corp., a Japanese conglomerate to develop a new metal recycling facility for the recovery and recycling of lithium, nickel and cobalt from used lithium batteries at its facility in Devon, UK.
Increased Availability of Scrap Metal
Economic growth and urbanization has led to the rise of consumerism, with consumers demanding the latest products. Rising consumer demand for new products along with the fast-paced advancements in technology have led to shorter lifecycles for modern consumer goods, thereby contributing to a massive growth in end-of-life products. Obsolete home appliances, automobiles, consumer electronics, and industrial machinery represent a major source of various scrap metals which can be effectively recycled.
Furthermore, changes in urban landscapes also contribute to increase in scrap metal. Many developed countries are undertaking redevelopment of their cities to improve the quality of life for citizens. The demolition of old buildings for redevelopment generates a significant amount of scrap metal. The increasing availability of scrap metal leads to an increase in recycled metal production and reduces reliance on primary extraction.
Lack of Adequate Recycling Infrastructure
A key challenge for the global metal recycling market is the limited availability of recycling facilities, particularly in various developed and developing regions. The absence of recycling plants and processing centers makes it difficult to handle and recycle metal scrap effectively. Developed countries typically have high costs, which makes it unfeasible to carry out economically viable metal recycling operations.
Developed countries ship their metal scraps to various developing countries for recycling, although the high transportation costs can sometimes render it unfeasible. Furthermore, many recycling facilities in developing regions utilize outdated technology and hence cannot handle extremely large volumes of scrap metal. Lack of adequate recycling infrastructure handicaps the expansion in output of recycled and reprocessed metals.
Market Segmentation Analysis
The global metal recycling market is segmented based on metal, scrap, mode of recycling, end-user, and region.
High Value and Strategic Applications Makes Non-Ferrous Metals a Key Focus of Recycling
Due to their high value and limited supply, non-ferrous metals are the most widely recycled. Non-ferrous metals such as gold, silver, platinum, palladium, and rhodium are recycled due to their high value and wide-ranging applications. Furthermore, rare earth metals and other metals such as copper and nickel are utilized by nearly every type of industry for various applications.
Although the volume of ferrous metals recycled annually far exceeds that of non-ferrous metals, the relatively low price of ferrous metals means that they account for only minor share of the global metal recycling market by value. Furthermore, the annual production of ferrous metals exceeds that of various non-ferrous metals, thus lowering the need for recycling.
Market Geographical Share
Growing EV Production will Propel Asia-Pacific’s Recycling Industry
Asia-Pacific accounts for nearly half of the global market. Being a rapidly industrializing region and the key hub of global manufacturing, Asia-Pacific generates ever-growing demand for metals across various industries including electronics, automotive, shipbuilding and industrial machinery. The manufacturing industries in the region are highly price sensitive and therefore, make extensive use of recycled metals to keep production costs down.
Due to their relatively weak currencies and cheap labor, countries in the region have well-developed metal recycling industries. Many countries such as China are investing significantly in developing recycling capabilities for strategic, non-ferrous metals such as lithium and other rare earth metals in anticipation of growing demand over the coming years due to the rising production of electric vehicles and consumer electronics. For instance, in March 2023, China launched Lithium++, a new internet-based lithium recycling platform.
Market Companies
The major global players include Gerdau S/A, Nucor, Commercial Metals Company, Steel Dynamics, Schnitzer Steel Industries, Inc., River Metals Recycling, ArcelorMittal, Aurubis AG, Dowa Holdings Co. Ltd and Novelis Inc.
COVID-19 Impact On Market Growth
The COVID-19 pandemic created several challenges for the global metal recycling market. Lockdowns and other movement restrictions imposed by governments led to disruptions in metal industry operations, including production and recycling. A reduction in demand triggered an acute decline in global metal prices, creating further complications for the recycling industry.
Furthermore, despite decreasing cases and eventual lifting of all restrictions, supply chain disruptions still linger in the post-pandemic period. It will prove a significant challenge for metal recyclers in the short term as they look to increase recycled metal production to augment rising global demand in the aftermath of the pandemic.
Russia- Ukraine War Impact Analysis
The conflict between Russia and Ukraine has created opportunities and challenges for the global metal recycling market. Sanctions imposed upon Russia, a major exporter of key metals such as aluminum, iron, steel, and platinum, has created volatility in global metal markets. The rising prices of some metals presents a major opportunity for recyclers to ramp up production.
Europe has been experiencing an energy crisis as Russia cut off gas supplies. The end of cheap gas supplies from Russia has led to massive increase in production costs for European industries. It has significantly eroded the competitiveness of European metal recyclers in the global market. Metal recyclers in Asia-Pacific are well placed to take advantage of the crisis in Europe to increase their share in the global market.
Key Developments
- In June 2023, the metal recycling industry association of South Africa released a statement stating that the government’s decision to ban metal scrap exports to curb copper thefts has led to the formation of cartels, which is bound to have a detrimental impact on the South African metal recycling industry.
- In July 2023, GSMA, the global body of telecom operators announced plans to expand mobile phone tackback schemes by 2030. All phones collected through tack-back schemes will have their metals and other materials recycled for reuse.
- On February 2023, India announced plans to bring down the goods and services tax (GST) rate on steel scrap recycling from 18% to 5%. The cut is likely to benefit Indian steel recycling companies.
Why Purchase the Report?
- To visualize the global metal recycling market segmentation based on metal, scrap, mode of recycling, end-user, and region, as well as understand key commercial assets and players.
- Identify commercial opportunities by analyzing trends and co-development.
- Excel data sheet with numerous data points of metal recycling market-level with all segments.
- PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
- Product mapping available as Excel consisting of key products of all the major players.
The global metal recycling market report would provide approximately 64 tables, 72 figures, and 210 Pages.
Target Audience 2024
- Metal Processing Companies
- End-User Industries
- Commodity Traders
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
