by Market Overview:
Recycled metal refers to metal waste that is collected, processed, and re-introduced into the production cycle. The market for recycled metal is driven by the growing demand for sustainable materials and the need to reduce carbon emissions associated with primary metal production. Recycled metals offer various advantages, including lower energy consumption, reduced greenhouse gas emissions, and conservation of natural resources. Additionally, increasing government initiatives and regulations promoting the use of recycled materials further contribute to market growth.
The global Recycled Metal Market Size is estimated to be valued at US$ 54.48 billion 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 Key Trends:
One key trend observed in the Recycled Metal Market is the growing adoption of advanced sorting and processing technologies. These technologies enable efficient separation and purification of different types of metals from scrap, resulting in improved quality and increased value of recycled metal products. Advanced sorting technologies, such as X-ray fluorescence and laser-induced breakdown spectroscopy, offer high precision and accuracy in metal identification and separation, leading to enhanced recycling rates and reduced environmental impact. This trend is expected to drive market growth and create opportunities for market players to expand their product offerings.
Porter’s Analysis:
The recycled metal market is expected to witness high growth, exhibiting a CAGR of 8.5% over the forecast period from 2023 to 2030. This growth can be attributed to the increasing demand for sustainable solutions and the rising awareness about the environmental impact of virgin metal production.
Threat of New Entrants:
The threat of new entrants in the recycled metal market is low. This is primarily due to the high initial capital investment required to set up recycling facilities and the presence of established players with strong market positions. Additionally, strict regulations and environmental standards act as barriers to entry for new entrants.
Bargaining Power of Buyers:
Buyers in the recycled metal market have moderate bargaining power. While there is a wide range of suppliers available, buyers still need to ensure the quality and consistency of the recycled metal they purchase. This limits their ability to negotiate prices significantly.
Bargaining Power of Suppliers:
Suppliers in the recycled metal market have moderate bargaining power. While there are numerous suppliers available, the availability of high-quality recycled metal depends on the collection and sorting capabilities of the suppliers. Larger suppliers with advanced technologies and efficient processes have a stronger bargaining position.
Threat of New Substitutes:
The threat of new substitutes in the recycled metal market is low. Recycled metal offers significant cost savings compared to virgin metal, making it a preferred choice for many industries. Additionally, the increasing emphasis on sustainability and circular economy practices further supports the demand for recycled metal.
Competitive Rivalry:
The competitive rivalry in the recycled metal market is high. The market is dominated by key players such as Sims Metal Management Ltd., Schnitzer Steel Industries, Inc., and Nucor Corporation. These players have extensive recycling capabilities, strong customer relationships, and a wide geographic presence. The high level of competition drives innovation and efficiency in the market.
Key Takeaways:
The global recycled metal market is expected to experience substantial growth, primarily driven by increasing environmental concerns and the need for sustainable solutions. The market is projected to grow at a CAGR of 8.5% between 2023 and 2030, reaching a value of US$ 54.48 billion in 2023.
In terms of regional analysis, North America is expected to be the fastest-growing and dominating region in the recycled metal market. The region has stringent environmental regulations and a well-established recycling infrastructure, which drives the demand for recycled metal.
The key players operating in the recycled metal market include 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., and ELG Haniel Group. These players have established themselves as leaders in the market, with a focus on technological advancements and expanding their product portfolios to meet the evolving customer demands.
Overall, the recycled metal market presents significant opportunities for growth, driven by the increasing adoption of sustainable practices and the growing awareness about the environmental impact of traditional metal production.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
