Recycled Metal Market Estimated To Witness High Growth Owing To Rising Demand for Sustainable Metals
Paragraph: The recycled metal market is estimated to be valued at US$ 54.48 Bn in 2023 and is expected to exhibit a CAGR of 8.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The recycled metal market deals with the collection of scrap metal waste and processing it into reusable metal materials. Recycled metals find widespread applications in the construction industry for making structural beams, girders, metal panels etc. They are also used in automotive manufacturing for parts like engine blocks, transmissions etc. With the growing emphasis on sustainability and circular economy, recycled metals are becoming increasingly popular compared to primary metals obtained from mining activities.
Market Dynamics:
One of the key drivers for the growth of recycled metal market is the rising demand for sustainable and environment-friendly raw materials from industries. Using recycled metals reduces greenhouse gas emissions and energy usage compared to primary metal production from mining. It also helps address the volatile supply and pricing of raw materials. Another driver is the implementation of stricter government regulations regarding waste management and recycling targets. Many countries and regional blocks have imposed laws to mandate minimum recycled content in products and ban disposal of certain recyclable wastes. This is promoting greater collection and processing of scrap metals.
SWOT Analysis
Strength: Recycled metal is more sustainable and environment friendly as it reduces the consumption of raw materials and energy. It helps reduce carbon footprint as production of metals from recycled feedstock causes lower emissions. Being less energy intensive than primary metal production, recycled metal provides significant cost savings to manufacturers.
Weakness: Collection and transportation of scrap metals for recycling is a complex and costly process. Presence of various impurities in recycled metals makes them less suitable for all applications.
Opportunity: Growing environmental concerns and stringent regulations have increased the demand for sustainable materials. Development of new technologies for efficient sorting and processing of scrap metals will further boost its demand.
Threats: Volatility in prices of raw materials can impact the cost of recycled metals. Dependence on external suppliers for scrap collection makes recycled metal market vulnerable to disruptions in supply chain.
Key Takeaways:
The global Recycled Metal Market Share is expected to witness high growth, exhibiting CAGR of 8.5% over the forecast period, due to increasing environmental regulations and sustainability goals. Growing awareness about green production and waste reduction is encouraging manufacturing industries and consumers to use recycled metal over virgin materials.
Regional analysis: North America dominated the market with over 30% share in 2023 owing to robust collection infrastructure and government initiatives to boost scrap recycling in the US and Canada. Asia Pacific exhibits highest growth prospects with CAGR of around 10% during the forecast period. China being the largest scrap generator worldwide is focusing on developing efficient recycling systems to meet its increasing metal demand through scrap feedstock.
Key players operating in the recycled metal market are Sims Metal Management Ltd., Schnitzer Steel Industries, Inc., Nucor Corporation, European Metal Recycling Ltd., Kuusakoski Group, Novelis Inc., OmniSource Corporation, Ferrous Processing & Trading Co. (FTP), Metal Management Inc., ELG Haniel Group. These companies are investing in advanced sorting technologies and collaborating with local collectors to ensure steady supply of quality scrap metals.
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