The global recycled metal market demand was estimated at 787.5 million tons in 2018 and is expected to grow at a compound annual growth rate (CAGR) of 4.1% from 2019 to 2025. The market growth is driven by increasing emphasis on the secondary production of metals owing to environmental concerns such as energy consumption and scrap disposal.
Metal recycling is an important aspect as metals can be recycled several times without any alterations in their characteristics. As a result, scrap metal possesses major significance for use as a raw material for secondary production.
Based on the product, the market has been segmented into steel, aluminum, copper, and others. Steel is the most recycled metal in the world, as a result, it accounted for the largest share of the global recycled metal market in 2018. The growing consumption of steel in construction, automotive, electronics, and consumer goods industries is projected to result in increased demand over the forecast period.
Factors including the utilization of non-renewable resources, consumption of a large amount of energy, fluctuation in raw material prices, and regulations about mining ores have compelled manufacturers to adopt the Electric Arc Furnace (EAF) process over the Basic Oxygen Furnace (BOF) process for its utilization in crude steel production. This has led to an increased demand for recycled steel across the world. The production of crude steel by the EAF process increased by 10.1% in 2018 in comparison to 2017, whereas the increase in total crude steel production was 7.04%.
Aluminum was the second-largest recycled metal segment in 2018 in the global market. Aluminum is consumed at a large scale and holds high value as scrap material. The demand for aluminum is anticipated to increase rapidly over the forecast period owing to its increasing demand in the automotive and consumer goods industries. This is a positive sign for the recycled aluminum market as more demand for aluminum leads to its increased production.
The secondary production of aluminum is gaining popularity over primary as recycling aluminum saves over 90% energy compared to primary production. Scrap aluminum constitutes a share of more than 90% in the raw material composition to produce one ton of aluminum by the secondary process.
In terms of revenue, North America market for the recycled metal is expected to register a growth rate of 4.5% over the forecast period. The presence of various recycling facilities and scrap dealers in the region has boosted the consumption of recycled metal. The U.S. is a leading producer of steel that is produced via the EAF process. The country is also the largest producer of secondary aluminum. Increasing production of these metals due to their high demand from construction, automotive, and consumer goods industries is anticipated to drive the market for recycled metal over the forecast period.
Europe held the second-largest volume share of the market in 2018. Scrap metal holds significant importance in the region. The region is a major consumer of recycled steel and recycled copper. Copper carries high significance owing to its high recyclability rate and utilization in various end-use industries in the region. According to the International Copper Study Group, around 50% of copper utilized in Europe comes from recycling.
According to a 2019 report by World Steel Association, Europe produced 210.1 million tons of crude steel in 2018, out of which 46.7% was produced by the EAF process. In 2017, EU-28 consumed over 93 million tons of steel scrap for crude steel production, which is more than 5.6% compared to consumption in 2016. Steel packaging is an important industry in Europe. As per APEAL, as of 2016, 79.5% of steel packaging was recycled in Europe. The percentage is expected to reach 80% by 2020. The growing consumption of recycled steel and copper is anticipated to augment market growth over the forecast period.
Asia Pacific market for the recycled metal is expected to grow at a CAGR of 4.6%, in terms of volume, over the forecast period. A growing emphasis on environmental concerns and proper waste management are the major factors triggering the growth of the market in the region. India is a lucrative market for recycled metal. The growing manufacturing sector in the country is leading to increasing metal production and high demand for scrap. However, despite being among the top scrap generating countries, the country emerged as the second-largest importer of scrap, as of August 2019. As a result, the government has put forth certain policies to encourage and boost the metal recycling activities. For example, on June 28, 2019, a Draft Steel Scrap Policy was introduced to increase the country’s steel production to 300 million tons by 2030 with the EAF process having a share of 35% to 40%. Such government initiatives across the world are anticipated to have a positive impact on the growth of the global market.
The global market is unorganized and fragmented. CMC, European Metal Recycling, Norsk Hydro ASA, GFG Alliances, Novelis, and Tata Steel are among the key recycled metal players. The presence of various small and large players, increasing demand for scrap, growing environmental concerns, and related regulations have compelled new entrants and existing players to venture into the market and explore new regions for business growth.
For example, in June 2019, Tata Steel announced its plan to set up India’s first recycling plant in Haryana. This initiative is aimed at helping the company gain an early mover advantage in the Indian market. Some of the prominent players in the recycled metal market include:
CMC
European Metal Recycling
Norsk Hydro ASA
GFG Alliances
Novelis
Tata Steel
Report Attribute |
Details |
The market size value in 2020 |
USD 969 million |
The revenue forecast in 2025 |
USD 1,275 million |
Growth Rate |
CAGR of 5.5% from 2019 to 2025 |
The base year for estimation |
2018 |
Historical data |
2014 - 2017 |
Forecast period |
2019 - 2025 |
Quantitative units |
Revenue in USD million and CAGR from 2019 to 2025 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Product, region |
Regional scope |
North America; Europe; Asia Pacific; Central & South America; Middle East & Africa |
Country scope |
U.S.; Germany; Russia; Turkey; China; India; Japan; Brazil |
Key companies profiled |
CMC; European Metal Recycling; Norsk Hydro ASA; GFG Alliances; Novelis; Tata Steel |
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts revenue growth at the global, regional & country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For this study, Grand View Research has segmented the global recycled metal market report based on product and region:
Product Outlook (Volume, Million Tons; Revenue, USD Million, 2014 - 2025)
Steel
Aluminum
Copper
Others
Regional Outlook (Volume, Million Tons; Revenue, USD Million, 2014 - 2025)
North America
The U.S.
Europe
Germany
Russia
Turkey
Asia Pacific
China
India
Japan
Central & South America
Brazil
Middle East and Africa
b. The global recycled metal market size was estimated at USD 922 million in 2019 and is expected to reach USD 969 million in 2020.
b. The global recycled metal market is expected to grow at a compound annual growth rate of 5.5% from 2019 to 2025 to reach USD 1,275 million by 2025.
b. Steel dominated the recycled metal market with a share of 34.1% in 2019. This is attributable to growing consumption of steel in construction, automotive, electronics, and consumer goods industries.
b. Some key players operating in the recycled metal market include CMC, European Metal Recycling, Norsk Hydro ASA, GFG Alliances, Novelis, and Tata Steel.
b. Key factors that are driving the market growth include increasing emphasis on the secondary production of metals owing to environmental concerns such as energy consumption and scrap disposal.
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The mining industry accounts for a vital share of the global economy and is responsible for supplying key raw materials for several applications and end-use industries, thus being a key sector of focus amidst the ongoing pandemic outbreak. Mining industries in China are expected to return to normal operations by Q3 of 2020 as enterprises indicated towards the returning of their workers soon. Moreover, Iron ore producers are known to be the least impacted. Major players such as BHP and Vale reported experiencing no major influence on their operations due to the COVID-19 virus. The iron ore prices reached above USD 90 per ton amidst the pandemic situation which may negatively impact the end-use industries. The report will account for Covid19 as a key market contributor.
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