Ferrous Scrap Recycling Market To Reach $192.6 Million By 2030

Ferrous Scrap Recycling Market Growth & Trends

The global ferrous scrap recycling market size is estimated to reach USD 192.6 million by 2030, registering a CAGR of 5.9% from 2025 to 2030, according to a new report by Grand View Research, Inc. Leading steel manufacturers are shifting from blast furnace to electric arc furnace (EAF) to reduce CO2 impact on the environment to reach global climate goals. This in turn is anticipated to fuel the demand for ferrous scrap in coming years.

The ferrous scrap recycling process follows the melting of metal scrap with a slag material to refine steel. The scrap metals are heated to get the rich iron liquid to form a slag layer for further use. Completely melted steel is tapped into a ladle for further processing on it.

According to EUROFER, more than 48% of the steel is produced using electric arc technology, and one hundred million tons of scrap was recycled in 2021 across the region. Thus, ferrous scrap plays a vital role in the production of steel in Europe. The increasing focus on energy efficiency and reduction in carbon emissions is expected to drive market growth.

In terms of volume, Germany held the largest share of 23.2% of the market across Europe in 2024 and is anticipated to expand at a significant CAGR over the forecast period. Shifting focus toward creating a sustainable and circular economy is anticipated to drive market growth in the country over the forecast period.

Ferrous constitutes a large share of the overall scrap generation owing to the consumption of steel in various end-use industries and the recovery rate from end products. Leading players are likely to deal with significant competition. According to the Japan Iron and Steel Federation, the recycling rate of steel in vehicles in the country ranges from 97% to 89%, and for steel cans, it is as high as 90% to 93.3%.

It is a highly competitive and unorganized market. There is a huge potential for growth in the metal recycling industry over the next few years. In 2021, major steel manufacturers adopted backward integration strategies. To ensure a steady supply of raw materials, these manufacturers acquired recycling centers and companies.

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Ferrous Scrap Recycling Market Report Highlights

• On the basis of sector, the construction dominated the market, accounting for a revenue share of more than 45.0% of the global market and the automotive segment was the second-largest segment of the market in 2024.

• The consumer goods sector segment is anticipated to grow at a CAGR of 6.8% over the forecast period, owing to the large-scale collection and recycling of scrap worldwide.

• North America ferrous scrap recycling market holds the second largest regional segment globally, with a revenue share of over 29.8% in 2024.

Ferrous Scrap Recycling Market Segmentation

Grand View Research has segmented the global ferrous scrap recycling market based on sector, and region:

Ferrous Scrap Recycling Sector Outlook (Revenue, USD Million; Volume, Kilotons, 2018 - 2030)

• Construction

• Automotive

• Consumer Goods

• Industrial Goods

Ferrous Scrap Recycling Regional Outlook (Revenue, USD Million; Volume, Kilotons, 2018 - 2030)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • Germany

  • France

  • UK

• Asia Pacific

  • China

  • Japan

  • Australia

• Central & South America

• Middle East & Africa

List of Key Players in the Ferrous Scrap Recycling Market

• American Iron & Metal Company Inc.

• European Metal Recycling Ltd.

• Innovative Metal Recycling

• OmniSource, LLC

• Sims Limited

• SA Recycling LLC

• Schnitzer Steel Industries, Inc.

• Rudolf Schuy GmbH & Co. KG

• TSR Recycling GmbH & Co. KG

• Ward Recycling Ltd, Inc.