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The Aluminum Scrap Recycling Market size is estimated to grow at a CAGR of 8.9% between 2022 and 2027 with the market size forecast to increase by USD 2,988.79 million.
This aluminum scrap recycling market report extensively covers market segmentation by End-user, Type, and Geography. The end-user segment is bifurcated into casting and downstream. The type segment is classified into old scrap and new scrap. The geography segment includes key regions such as APAC, North America, Europe, Middle East and Africa, and South America. Our report examines historic data from 2017 to 2021, besides analyzing the current market scenario.
The growth of the market depends on several factors, such as the growing concerns over energy consumption and environmental pollution, the increasing use of aluminum in the automobile industry, and the Increased adoption and construction of green buildings.
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Aluminum scrap recycling refers to the process in which aluminum scrap is recycled for reuse in a range of applications and products. The process of recycling aluminum scrap involves the remelting of aluminum scrap to produce secondary aluminum.
The casting segment is expected to experience significant growth in the forecast period. Casting is widely used in industries like automotive, aerospace, construction, and consumer goods for producing aluminum ingots and slabs. Technological advancements in melting and alloying techniques have further improved the casting process, enabling the production of high-quality cast aluminum products using recycled aluminum scrap. The segment's growth is driven by the easy availability of aluminum scrap as raw material, a growing focus on sustainability, and compliance with environmental regulations. Aluminum scrap can be obtained in-house from various sources like billets, rolling slabs, frozen spilled ingots, and foundry alloy ingots.
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The casting segment was the largest segment and was valued at USD 2,390.83 million in 2017. However, the segment is facing challenges due to the closure of aluminum smelting plants because of unfavorable market conditions. These conditions include declined demand for aluminum scrap by the automotive and construction sectors are challenges due to the COVID-19 pandemic. However, vendors are focusing on tackling these issues by implementing new technologies and investing significant amounts into R&D. Hence such factors are expected to propel segment growth during the forecast period.
The aluminum scrap recycling market based upon the type segment is categorized as old scrap and new scrap.
APAC is estimated to contribute 57% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The APAC region offers significant opportunities in the global aluminum scrap recycling market, particularly in secondary smelting, with countries like Hong Kong, Thailand, South Korea, Japan, and Malaysia contributing to the secondary smelting capacity for aluminum globally. China dominates the aluminum casting market in the region, driven by growth in construction and automobile industries. China's ban on bauxite imports increased the demand for aluminum scrap recycling. Several countries in the region are imposing new standards for aluminum scrap, boosting the demand for recycling. India's packaging segment is the largest consumer of aluminum, driven by rising disposable income and demand for beverage cans and foils. In Japan, the demand for aluminum from the automobile industry and green car incentives will fuel market growth.
The increasing use of aluminum in automobile industry is a major driver propelling the market growth. The automobile industry is increasingly adopting aluminum due to its benefits in fuel economy, emissions reduction, and overall vehicle performance. Aluminum's use in manufacturing vehicles, from luxury cars to mass-market ones, enhances durability and safety while reducing weight and increasing dent resistance. Automakers are focusing on using secondary aluminum to address global warming concerns, with techniques like solid-state recycling and LIBS supporting the growth of aluminum scrap recycling. Government's efforts to promote electric vehicles, such as subsidies in India and Germany, are further driving the demand for aluminum scrap recycling. Additionally, automotive manufacturers' expansions, like Toyota's investment in US plants, will boost the demand for recycling during the forecast period.
Advancements in furnaces used for aluminum scrap recycling is a key trend shaping the market. The global aluminum scrap recycling market has seen improvements in the type of furnaces used for melting aluminum scrap. These advanced scrap recycling furnaces are tailored to the type, quality, and condition of the aluminum scrap being recycled. One such furnace is the tilting barrel furnace, which is used for melting foundry castings, scrap die castings, and trimmings from the casting process. Another type is the multi-chamber furnace, designed to address the physical properties of the aluminum scrap being recycled. These advancements in furnace technology are expected to enhance the efficiency of the recycling process, driving the growth of the global aluminum scrap recycling market in the forecast period.
Environmental issues related to recycling of aluminum scrap is a major challenge hindering the market growth. While aluminum recycling requires only 5% of the energy needed for primary aluminum production, it comes with environmental challenges. The recycling process produces toxic chemicals released into the air and generates a hazardous waste called dross. Proper containment of dross is necessary to prevent groundwater contamination. Moreover, the recycling process involves energy-intensive machines running on fossil fuels, contributing to air pollution with toxic gases and particulate matter. Inhaling these pollutants can lead to health issues. The lack of advanced technologies for dross recovery also hinders the market. These environmental concerns pose a threat to the global aluminum scrap recycling market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Stld.steeldynamics- The company offers aluminum scrap recycling product and services such as Non ferrous metals, ferrous metals, aluminum, alloys and alloy wheels, and heavy machinery.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Alcoa Corp., CASS Inc., Chiho Renewable Development Ltd., Commercial Metals Co., Constellium SE, Crestwood Metal Corp., European Metal Recycling Ltd., Hindalco Industries Ltd., Koch Enterprises Inc., Kuusakoski Oy, Metal Exchange Corp., Nucor Corp., Real Alloy, RETHMANN SE and Co. KG, Rio Tinto Ltd., Sims Ltd., Steel Dynamics Inc., Triple M Metal LP, Ye Chiu Metal Recycling China Ltd., and Norsk Hydro ASA
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Aluminum Scrap Recycling Market Customer Landscape
The APAC aluminum scrap recycling market was adversely affected by the COVID-19 outbreak in 2020, with India, Pakistan, Bangladesh, and China experiencing significant impact. Lockdown measures led to temporary shutdowns of recycling facilities by vendors like Rio Tinto and Hindalco Industries. However, with large-scale vaccination drives and reopening of recycling units, the market regained momentum in H1 2021. End-user industries like automotive and construction resuming operations further supported growth in 2021 and 2022. Additionally, countries like China aimed to increase aluminum production capacity. Rapid industrialization, urbanization, infrastructure development, and demand from packaging industries are expected to boost the regional aluminum scrap recycling market during the forecast period.
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Aluminum Scrap Recycling Market Scope |
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Report Coverage |
Details |
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Page number |
161 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 8.9% |
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Market growth 2023-2027 |
USD 2,988.79 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
8.54 |
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Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 57% |
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Key countries |
US, China, India, South Korea, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Alcoa Corp., CASS Inc., Chiho Renewable Development Ltd., Commercial Metals Co., Constellium SE, Crestwood Metal Corp., European Metal Recycling Ltd., Hindalco Industries Ltd., Koch Enterprises Inc., Kuusakoski Oy, Metal Exchange Corp., Nucor Corp., Real Alloy, RETHMANN SE and Co. KG, Rio Tinto Ltd., Sims Ltd., Steel Dynamics Inc., Triple M Metal LP, Ye Chiu Metal Recycling China Ltd., and Norsk Hydro ASA |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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