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The Aluminum Scrap Recycling Market size is estimated to increase by USD 4.35 billion, growing at a CAGR of 11.37% between 2023 and 2028. The surge in aluminum usage within the automotive sector emerges as a pivotal catalyst propelling market expansion. With the industry gravitating towards aluminum due to its advantageous attributes, such as bolstering fuel efficiency, curbing emissions, and elevating vehicle performance, the demand for this versatile metal escalates. Its widespread integration throughout vehicle manufacturing, spanning from high-end automobiles to mass-market models, augments durability and safety while concurrently trimming weight and fortifying resilience against dents. This shift underscores a transformative trend reshaping automotive engineering paradigms, where aluminum emerges as a cornerstone material driving innovation and sustainability across the automotive landscape.
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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 ingots and slabs. Technological advancements in melting and alloying techniques have further improved the casting process, enabling the production of high-quality cast products using recycled scrap. The segment's growth is driven by the easy availability as raw material, a growing focus on sustainability, and compliance with environmental regulations. It 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 2.59 billion in 2018. However, the segment is facing challenges due to the closure of smelting plants because of unfavorable market conditions. However, companies 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.
APAC is estimated to contribute 58% to the growth of the global market during the forecast period. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period.
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The APAC region offers significant opportunities in the global market, particularly in secondary smelting, with countries like Hong Kong, Thailand, South Korea, Japan, and Malaysia contributing to the secondary smelting capacity globally. China dominates the casting market in the region, driven by growth in the construction and automobile industries. China's ban on bauxite imports increased the demand. Several countries in the region are imposing new standards, boosting the demand. India's packaging segment is the largest consumer, driven by rising disposable income and demand for beverage cans and foils. In Japan, the demand from the automobile industry and green car incentives will fuel market growth.
The market is expanding due to the abundance of aluminum (Al) in the Earth's crust and its key properties like malleability and ductility. This nonferrous metal, listed on the periodic table in Group 13 (IIIa, or boron group), is essential in various industries. Major Aluminum Scrap Recycling Market Players include Guidetti, Glencore, China Metal Recycling, IMS Metal Management, and Kuusakoski. Companies like TOMRA Sorting Solutions and Gelting enhance efficiency through advanced sorting and purifying technologies. However, challenges persist, such as ensuring the purity of scrap aluminum to protect flora and animals from contaminants. Despite these challenges, advancements in recycling technologies, such as those developed by Edoma Recycling, drive market growth. The role of solidifying and utilizing silicon in the recycling process is also significant. The relays market significantly impacts the sorting of nonferrous metals like aluminum and silicon. Companies such as TOMRA Sorting Solutions and Kuusakoski utilize advanced relays for efficient separation of metallic elements in the boron group. This technology aids in processing minerals and solidifying their value.
The surge in aluminum utilization within the automotive sector emerges as a pivotal force energizing market expansion. With the automobile industry increasingly favoring aluminum, propelled by its advantageous traits in enhancing fuel efficiency, curbing emissions, and augmenting overall vehicle performance, the demand for this versatile metal escalates. Its incorporation across vehicle manufacturing, spanning from high-end automobiles to mass-produced models, amplifies durability and safety while concurrently reducing weight and bolstering resistance against dents.
Furthermore, automakers are actively embracing secondary aluminum to address environmental concerns associated with global warming, leveraging innovative techniques such as solid-state recycling and LIBS. Government initiatives aimed at promoting electric vehicles manifested through subsidies in key markets like India and Germany, add further impetus to the demand. Notably, expansions by automotive giants like Toyota, evidenced by investments in U.S. production facilities, are poised to intensify demand dynamics throughout the forecast horizon.
Advancements in furnaces used is a key trend shaping the market. The global market has seen improvements in the type of furnaces used for melting. These advanced furnaces are tailored to the type, quality, and condition of the 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 being recycled. These advancements in furnace technology are expected to enhance the efficiency of the process, driving the growth of the global in the forecast period.
Environmental issues related to recycling is a major challenge hindering the market growth. While recycling requires only 5% of the energy needed for primary 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 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 during the forecast period.
Companies are implementing various market trends and analysis strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market and result in market growth analysis.
Steel Dynamics Inc.- 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 market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 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., Norsk Hydro ASA, Nucor Corp., Real Alloy, RETHMANN SE and Co. KG, Rio Tinto Ltd., Sims Ltd., Steel Dynamics Inc., Triple M Metal LP, and Ye Chiu Metal Recycling China Ltd.
The market analysis and report of 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.
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The market forecasting 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 market growth and forecasting growth strategies.
Global Market Customer Landscape
The market is driven by the demand for materials like copper, nickel, tin, and zinc due to their corrosion resistance and wide applications in cars, railcars, marine vessels, airplanes, trucks, and consumer durables. Urbanization and industrialization boost aluminum recycling practices, particularly with the demolition of buildings. However, supply chain disruptions and labor shortages challenge the market. Despite these hurdles, recycled alumina from scrap metal recycling yards and aluminium foil scrap contribute to sustainability. Packing, electronics, and mining industries benefit from alumina and aluminium ingot scrap. Advances in sensors improve sorting in the waste stream, while supply chain interruptions necessitate innovative solutions. Natural resources conservation remains a priority in recycling efforts.
Market Scope |
|
Report Coverage |
Details |
Page number |
167 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 11.37% |
Market growth 2024-2028 |
USD 4.35 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
9.27 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 58% |
Key countries |
China, India, US, Germany, and South Korea |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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., Norsk Hydro ASA, Nucor Corp., Real Alloy, RETHMANN SE and Co. KG, Rio Tinto Ltd., Sims Ltd., Steel Dynamics Inc., Triple M Metal LP, and Ye Chiu Metal Recycling China Ltd. |
Market dynamics |
Parent market analysis, Market forecasting 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 |
Customization purview |
If our market 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 Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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