SAN FRANCISCO, Aug. 10, 2020 /PRNewswire/ -- The global ferrous scrap recycling market size is anticipated to reach USD 111.9 million by 2027, according to a new report by Grand View Research, Inc., expanding at a CAGR of 1.7% from 2020 to 2027. Increasing secondary metal production is anticipated to augment market growth.
Crude steel is produced through basic oxygen converter and electric arc furnace (EAF), where the former follows the conventional method of production that includes raw materials, such as iron ore, metallurgical coal, limestone, and very less amount of scrap. However, in the EAF, scrap is the key raw material along with less energy consumption. According to the World Steel Association, crude steel production through the EAF process increased by 10.1% from 2017 to 2018. Growing steel production through the EAF process is a key driving factor for the market.
Key suggestions from the report:
- Asia Pacific anticipated registering the highest growth rate of 2.6%, in terms of revenue, across the forecast period, owing to increasing developments in scrap recycling in developing economies, like India
- Europe held the largest volume share of 42.5% in 2019 owing to rapid development in the recycling industry of the region
- The construction sector held the largest revenue share of more than 46.0% in 2019 due to increasing consumption of ferrous materials, such as steel, in the industry owing to its phenomenal properties
- The consumer goods sector is anticipated to register the fastest growth rate of 2.1% in terms of revenue, during the forecast period, owing to rapid production of electronics and their short lifespan
- The market is hit by the covid-19 pandemic, which can be indicated with low demand and declining prices of scrap because of restricted manufacturing and transportation across the globe as of 2020.
Read 120 page research report with ToC on "Ferrous Scrap Recycling Market Size, Share & Trends Analysis Report By Sector (Construction, Automotive, Consumer Goods, Industrial Goods), By Region, And Segment Forecasts, 2020 - 2027" at: https://www.grandviewresearch.com/industry-analysis/ferrous-scrap-recycling-market
Ferrous scrap recycling is a market with lots of growth potential owing to increasing concerns over sustainability and depleting non-renewable resources. As a result, recycling is the most viable and efficient option to continue the production of metals owing to rapidly accelerating demand and at the same time causing minimal impact on the environment.
The recycling process involves certain steps, which are, scrap metal collection at yards, sorting, passing through radiation detector, shearing, shredding, separation of ferrous materials, media separation, and baling. After passing through all processing steps, the obtained blocks of ferrous scrap are transported to steel mills for further processing and are used in production.
Ferrous scrap is collected through various sources, where the key markets include construction, automotive, consumer goods, and industrial goods. The construction industry is the major contributor towards scrap generation as ferrous products recovered from the sector can be used directly if the quality is not impacted or else are sent for recycling.
Automotive is the second major sector in the market, as the recovery rate of scrap from vehicles often lies between 95-100%. Over 25 million vehicles are recycled across the world annually generating a large amount of scrap. The car recycling industry is a large market as it not only helps in reducing carbon footprint but also provides thousands of jobs and generates revenue for the economy. Over 80% of materials in a vehicle are recyclable, of which, metal is most accessible. In the U.S., around 18 million tons of steel is reused that helps in reducing air pollution by 86% and water pollution by 76%.
Based on region, Europe held the largest share in the market owing to the technological advancements, coupled with the presence of various recyclers in the region. As a result, the region is the largest exporter of ferrous scrap in the world, helping developing nations, which are still under the process to organize their scrap and recycling markets.
The competitive scenario of the market is high owing to the extremely unorganized nature of the market. Integration across various stages of the value chain is witnessed, for instance, automotive players setting up their own shredding units. In 2019, Maruti Suzuki and Toyota Tshusho Group announced a joint venture to set up a vehicle dismantling and recycling unit in Noida, Uttar Pradesh, India by 2020-21.
Grand View Research has segmented the global ferrous scrap recycling market on the basis of sector and region:
- Ferrous Scrap Recycling Sector Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)
- Construction
- Automotive
- Consumer Goods
- Industrial Goods
- Ferrous Scrap Recycling Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- U.K.
- France
- Asia Pacific
- China
- Japan
- Australia
- Central & South America
- Middle East & Africa
- List of Key Players of the Ferrous Scrap Recycling Market
- Sims Metal Management Inc.
- OmniSource Corp.
- Ward Recycling
- American Iron & Metal Co. Inc.
- SA Recycling
- Schuy Recycling
- Innovative Metal Recycling
- TSR Recycling GmbH & Co. KG
Find more research reports on Advanced Interior Materials Industry, by Grand View Research:
- Non-ferrous Scrap Recycling Market - Global non-ferrous scrap recycling market size was valued at USD 246.9 million in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 2.8% from 2020 to 2027.
- Metal Recycling Market - Global metal recycling market size was estimated at USD 957.8 billion in 2019 and is predicted to register a compound annual growth rate (CAGR) of 4.9% from 2020 to 2027.
- Recycled Lead Market - global recycled lead market size was valued at USD 15.61 billion in 2019 and is expected to register a compound annual growth rate (CAGR) of 2.4% from 2020 to 2027.
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Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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