Automotive to become Key Target Segment of Companies in Recycled Metal Market 2024

The top three vendors of recycled metal, namely, Sims Metal Management Ltd., European Recycled Metal, and OmniSource Corporation, together account for a mere 14.5% of the global market in 2015, with smaller players making up for an incredible 78.6%. This clearly indicates the high level of fragmentation in the recycled metal market.

Transparency Market Research has observed that given the presence of a number of players of various shares and sizes in the global market, the intensity of competition among established vendors is likely to remain high. “Large capital investments and fixed costs made at initial stages have rendered exiting this market extremely difficult,” a TMR analyst states. “Moreover, the degree of market profitability is rather low. These factors have resulted in the intense competition in the recycled metal market.”

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In addition to high exit barriers, the entry of new players is just as challenging owing to the same reasons. “High initial capital investment for the setting up of new recycling facilities, for the installation of equipment and machinery, and for access to raw material and appropriate technologies mean that new entrants in the recycled metal market are not likely to pose much of a threat to existing vendors,” the analyst observes.

Demand for Recycled Metal Surges with Rapid Pace of Urbanization and Industrialization

Recycled metals find application in several end-use industries such as building and construction, electrical and electronics, industrial machinery, automotive, and shipbuilding. The building and construction sector is the leading consumer of recycled metals, followed by the automotive industry.

“The demand for recycled metal in the building and construction industry has risen owing to the surge in construction-related activities, especially in emerging economies,” the author of the study notes. “This can be attributed to the rapid pace of urbanization and industrialization in these developing regions and the surge in infrastructure development.”

The demand for recycled metals in the automotive sector is likely to increase at the fastest pace from 2016 to 2024. The segment is anticipated to register a 4.5% CAGR during the forecast period, driven by the rising demand for recycled steel, iron, and aluminum.

Steady Growth in Store for Global Market by Volume and Value

The market for recycled metals is a massive one. The market is estimated to be worth US$476.2 bn by the end of the forecast period, increasing from US$312.9 bn in 2016 at a 4.8% CAGR therein. The global demand stands to grow at a 4.1% CAGR from 2016 to 2024. Asia Pacific is the largest regional market for recycled metals enjoying a volume share of 45.2% in 2015. By product, ferrous metals are estimated to continue leading the recycled metals market in terms of volume, registering a 4.1% CAGR during the forecast period.

This review is based on the findings of a TMR report titled “Recycled Metal Market: Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2015-2023.”

The recycled metal market has been divided into the following segment

Recycled Metal Market – Product Segment Analysis
Ferrous
Non-ferrous
Others (Including Precious Metals, etc.)

Recycled Metal Market – End-user Analysis
Building & Construction
Automotive
Electrical & Electronics
Shipbuilding
Industrial Machinery
Others (Including Household Appliances, etc.)

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This release was published on openPR.