March 4, 2024
Recycled Metal Market

The Global Recycled Metal Market Value Driven by Growing Environmental Concerns

The global recycled metal market comprises metals that are recovered or recycled after usage. Reprocessing used items produces recycled metals such as recycled steel, iron, copper, aluminum and others. Recycled metals find applications in various end-use industries such as construction, automotive, shipbuilding, equipment manufacturing among others. Using recycled metals help reduce the energy usage and emissions generated during primary metal production. With growing environmental concerns and initiatives promoting waste reduction and circular economy, the demand for recycled metals is on the rise.

The global recycled metal market is estimated to be valued at US$ 62.77 Mn in 2024 and is expected to exhibit a CAGR of 4.7% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the key market trends witnessed in the global recycled metal industry is the increasing government support toward establishing a sustainable waste management infrastructure. Various programs and policies aimed at increasing collection and recycling rates of metals have been implemented across regions. For instance, the European Union’s Waste Framework Directive targets a minimum 50% recycling rate for iron, steel, aluminum and copper by 2020. Stringent environmental regulations regarding landfill disposal and incineration are further driving the demand for secondary metal production. Advanced sorting and processing technologies are enabling improved yields and materials recovery from complex metal scrap streams. Investments toward robotics, sensors and artificial intelligence solutions are generating opportunities for market players. The growing application scope in green building and electric vehicles production is another critical trend expected to boost recycled metal consumption over the coming years.

Porter’s Analysis

Threat of new entrants: The threat is moderate as the recycled metal industry requires significant capital investments for setting up facilities for collection, sorting and processing of scrap metals. However, opportunities exist for smaller players to enter specific niches.

Bargaining power of buyers: The bargaining power of buyers is high given the fragmented nature of buyers that include fabricators, manufacturers and other end-users. Buyers can negotiate on price and quality standards.

Bargaining power of suppliers: The bargaining power of suppliers is moderate as suppliers depend on collected scrap from various sources for running their operations. Suppliers have to compete on quantity and quality of scraps supplied.

Threat of new substitutes: The threat is low as recycled metals have established themselves as important substitutes for primary metals in various applications due to their cost competitiveness and sustainability benefits.

Competitive rivalry: The competition is high among recycled metal producers given the presence of numerous global and regional players operating across the value chain. Players compete based on price, quality, reliability of supply and services offered.

Key Takeaways

The Global Recycled Metal Market Size is expected to witness high growth. The global recycled metal market is estimated to be valued at US$ 62.77 Mn in 2024 and is expected to exhibit a CAGR of 4.7% over the forecast period 2024 to 2031.

The Asia Pacific region dominates the global recycled metal market, accounting for over 35% of the global volume share in 2023. China contributes significantly to the regional market. Other major markets include Japan and India. The Asia Pacific market is projected to exhibit the highest CAGR during the forecast period due to increasing use of recycled metal in construction as well as automotive applications.

Key players: Key players operating in the recycled metal market are Novartis AG, Mylan N.V., Astellas Pharma Inc., Dr. Reddy’s Laboratories Ltd., Pfizer Inc., Abbott, Senju Pharmaceutical Co. Ltd., Glenmark Pharmaceuticals Ltd., Lupin Limited, and Vibcare Pharma Pvt. Ltd. Novartis, Mylan and Astellas are some of the leading players in the market.

*Note:
1.      Source: Coherent Market Insights, Public sources, Desk research
2.      We have leveraged AI tools to mine information and compile it