Automotive Industry to Account for 3/5th of Scrap Metal Recycling Applications: Fact.MR Study
Published : 17 Sep 2021 Industry: Industrial Goods
As per the latest intelligence report published by Fact.MR- demand for scrap metal recycling is likely to be valued at US$ 103 Bn by the end of the 2021-2031 assessment period, clocking a CAGR of 5.5%. Considering short-term prospects, the industry is likely to reach US$ 60 Bn by 2021.
From 2016 to 2020, scrap metal recycling services surged at a CAGR of 5% to be valued at US$ 57.1 Bn by the end of the said historical period. Prospects took a backseat amidst the novel coronavirus pandemic, particularly in H1 2020. Global industrial shutdowns, especially across key industries as construction and automotive, largely stalled demand.
In spite of these recessionary pressures, the building & construction industry is estimated to account for major scrap metal recycling activities by 2031, likely to expand at a CAGR of 6.1% over the forecast period. Mounting environmental concerns associated with disposing obsolete metal is prompting construction companies to invest in scrap metal recycling solutions.
Key Takeaways from the Market Study
- The global scrap metal recycling market is anticipated to add 1.8x value by 2031 as compared to 2021.
- Ferrous scrap metal recycling to account for 2/5th of the global revenue share
- By industry, automotive scrap metal recycling to capture 60% of market revenue
- Recycling for new scrap metal to expand at over 5% value CAGR
- U.S to generate US$ 25 Bn in value for scrap metal recycling by 2021 end
- China to account for 55% of scrap metal recycling in East Asia
“Scrap metal recycling method conserves 60% energy for mining new metal and saves valuable raw materials; reducing greenhouse gas emissions, thereby augmenting its popularity worldwide,” comments a Fact.MR analyst
Prominent players are embracing innovative approaches such as ground-breaking marketing tactics, technological advancements, mergers, and acquisitions.
- Technological advancements in metal recycling market have revolutionised the whole process. The use of XRF, or x-ray fluorescence, creates immense value for scrap metal recyclers. This technology can positively identify numerous alloy grades and rapidly analyse their chemical composition at material transfer points and thus help guarantee the quality of the product.
- In October 2020, ArcelorMittal Long Products Canada and Triple M Metal formed Integrated Metal Recycling Inc. as a joint venture that will combine “many of the recycling activities of the two partners” in Quebec. This venture is likely to offer effective recycling of scrap metal and deliver better services to consumers.
More Insights Available
Fact.MR, in its new offering, presents an unbiased analysis of the Scrap Metal Recycling Market, presenting historical demand data (2016-2020) and forecast statistics from 2021 to 2031.
The study divulges essential insights on the market based on metal type (ferrous and non-ferrous), scrap type (new scrap and old scrap) and industry (building & construction, industrial, electricals, shipbuilding, consumer electronics and others) across seven major regions (North America, Latin America, Europe, East Asia, South Asia, Oceania and Middle East & Africa).
About the Industrial Division at Fact.MR
Expert analysis, actionable insights, and strategic recommendations of the highly seasoned Industrial team at Fact.MR helps clients from across the globe with their unique business intelligence needs. With a repertoire of over thousand reports and 1 million-plus data points, the team has analyzed the Industrial-goods across 50+ countries for over a decade. The team provides unmatched end-to-end research and consulting services. Reach out to explore how we can help.
For more information, refer to our market research report or contact the PR author.
Shambhu Nath Jha
Sr. Consultant –Retail & Industrial goods