Global Recycled Metal Industry to Flourish Owing to the Increasing Urbanization and Industrialization

Published By : 22 Jul 2016 | Published By : QYRESEARCH

Metal recycling market has gained much prominence over years due to the shifting focus towards environmental sustainability. Recycling metals decrease the amount of natural resources (such as petroleum, natural gas, and water) and energy required to produce virgin metal. Industries using a large amount of metal as raw materials such as automotive, building and construction, and machinery manufacturing are convinced with recycled metal. Moreover, it allows reuse of metal, successively reducing the greenhouse gas emissions.

  • Rapid Industrialization in APAC Surges the Demand for Recycled Metal from End-use Industries: Countries such as India, Singapore, Malaysia, China, South Korea, Indonesia, and Thailand are some of the emerging economies in the APAC region. Rapid industrialization and urbanization in these countries have resulted in increased demand for recycled metal. A positive growth chart of automotive, industrial machinery, and construction in these countries have rendered a remarkable boost to the recycled metal market in Asia Pacific.
  • Environmental Awareness to Keep Recycled Metal Market on Growth Track in Developed Countries: In Europe, the growth of the recycled metal market can be accredited to growing awareness for environment conservation in both manufacturers and customers. Countries such as Italy and Germany have some stringent government regulations and policies that can potentially augment the recycling of metal in the region. Other than developed countries, developing countries in MEA and Latin America have also registered high demand for recycled metal owing to the growing consumer and manufacturer awareness regarding the impact of greenhouse gasses and the benefits of recycled metal.
  • High Exit Barriers Hamper the Entry of New Players: It takes a lot of capital to invest the recycled metal market. Setting up of expensive and efficient machinery for revamping and recycling makes it difficult to exit the market. Furthermore, the degree of market profitability is rather low, which creates intense competition amongst the established players.

The metals with the highest application in day-to-day life are recycled the most. In the ferrous metal category, Iron and Steel are recycled the most due to their applications in construction materials, electrical devices, vehicles, and industrial machinery and equipment. Among non-ferrous metals, Aluminum is the highest recycled metal.

Back To Top