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The metal machining scrap equipment market is estimated to grow at a CAGR of 3.49% between 2022 and 2027. The size of the market is forecast to increase by USD 319.08 million. The growth of the market depends on several factors, including increasing demand for metal scrap in various application industries, rising demand for housing projects globally, and stringent government legislation to reduce environmental pollution.
This report extensively covers market segmentation by application (machine shops and foundries), type (baler press, shredders, shears, and others), and geography (APAC, Europe, North America, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The reports categorize the global metal machining scrap equipment market as a part of the global industrial machinery market. The parent, the global industrial machinery market, covers companies engaged in manufacturing industrial machinery and components covering presses, machine tools, compressors, pollution control equipment, elevators, escalators, insulators, pumps, roller bearings, and other metal fabrications. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The increasing demand for metal scrap in various application industries is notably driving the market growth, although factors such as an increase in tariffs for metal imports may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Metal Machining Scrap Equipment Market Driver
The increasing demand for metal scrap in various application industries is notably driving market growth. The demand for metal scrap is increasing in various application industries due to various factors such as the need for raw materials, cost-effectiveness, and environmental concerns. In the construction industry, metal scrap is used as a raw material for the production of steel and other metals, which are used in the construction of buildings and infrastructure. The automotive industry is also a significant consumer of metal scrap. Automotive companies use scrap metal to manufacture new cars, which reduces the need for virgin materials and lowers the overall cost of production.
In addition to these industries, the demand for metal scrap is also increasing in the electrical and electronic industries. These industries use scrap metal to manufacture various electronic products, such as smartphones, laptops, and televisions. Therefore, the increasing demand for metal scrap in several industries increased the demand for metal scrap equipment and is expected to boost the growth of the market during the forecast market.
Significant Metal Machining Scrap Equipment Market Trend
Automation of metal scrap equipment is the primary trend in the market. Automating metal machining scrap equipment significantly impacts the market by improving efficiency and accuracy, reducing waste, and lowering labor costs. Automated equipment can operate 24/7 without the need for human intervention, which reduces downtime and increases productivity. Additionally, automated systems are designed to optimize the processing of metal scraps, which results in higher recovery rates and improved product quality.
Another key benefit of automation is the reduction of waste, as automated systems are designed to minimize scrap and improve material utilization. This leads to more efficient use of resources and a reduction in the environmental impact of metal machining. Therefore, automation will help boost market growth.
Major Metal Machining Scrap Equipment Market Challenge
An increase in tariffs for metal imports is the major challenge impeding the market. The imposition of tariffs on the import of metal for usage in end industries such as construction, automotive, etc., declines the demand for metal machining scrap equipment. For instance, 25% and 10% tariffs on steel and aluminum scrap imports by the US in March 2018 resulted in uncertainty in the metals industry. The imposition of tariffs was primarily expected to impact China the most, as the North American Free Trade Agreement (NAFTA) and the European Union member countries such as Canada, Mexico, and Germany were excluded. The decision to increase import tariffs was taken primarily to promote the domestic production of steel and aluminum.
Similarly, Turkey is also facing a 20.2% year-on-year fall in steel production in July 2022 and a 40.9% year-on-year slump in steel scrap imports in July 2022. These trends have repercussions for scrap merchants all across the world. Thus, the uncertainty in the trade of steel and aluminum among leading countries will negatively affect the market during the forecast period.
Key Metal Machining Scrap Equipment Market Customer Landscape
The 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 Metal Machining Scrap Equipment Market Customer Landscape
Vendors 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.
Advance Hydrau Tech Pvt. Ltd. - The company offers metal machining scrap equipment that allows one to make the most out of each cut, getting uniform shredded pieces altogether. The company offers balers, box shears, nibblers, shearers, and others.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth of the machine shops segment will be significant during the forecast period. Machining shop equipment, such as chip conveyors, coolant filtration systems, and scrap granulators, is used in machine shops to collect, transport, and dispose of the metal chips and debris produced during the machining process. These systems help to keep the shop floor clean and free of debris, improve the efficiency of the machining process, and reduce the cost of disposing of scrap material. Additionally, they can be used to recycle scrap material and reuse it in the production process.
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The machine shops segment was valued at USD 1,019.83 million in 2017 and continued to grow until 2021. The machine shops in the machining scrap equipment market are mostly utilized for recycling and to reduce the consumption of raw materials. And this machinery is quite useful for producing a variety of components in a small quantity. It is also utilized for a variety of additional applications, such as the disposal of scrap items. Overall, the use of machine scrap equipment in machine shops helps to improve the productivity, safety, and profitability of the operation. Thus, the machine shops segment contributes towards the growth of the market during the forecast market.
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APAC is estimated to contribute 53% 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.
Construction equipment had better demand in APAC as compared with MEA, South America, and North America during 2023-2027. This can be attributed to various infrastructure projects in APAC, which kept the demand for construction equipment strong, thus making a healthy market environment for metal machining scrap equipment as these projects use a significant amount of metal such as steel, copper, aluminum, etc.
Many public-private partnerships (PPP) infrastructure projects, such as the construction of roads, rail lines, airports, and power plants, have been planned in India. The Government of India has planned to invest billions of dollars in its smart cities project, which is aimed at building 100 new smart cities across the country. The power sector will attract investments of billions of dollars in terms of PPP. A considerable number of Foreign Direct Investment (FDI) policies related to construction and infrastructure development were relaxed by the Government of India in the last five years, which is expected to attract foreign investments for construction and housing projects. These factors can increase the demand for metal scrap recycling and the growth of the market in the region during the forecast period.
COVID-19 negatively impacted the growth of the regional metal machining scrap equipment market. However, the lifting of lockdowns and the resumption of business and industrial operations in end-user industries such as automotive and construction, has increased the demand for machining scrap equipment in the region. Hence, the market in the region is expected to grow during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Metal Machining Scrap Equipment Market Scope
Report Coverage |
Details |
Page number |
157 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.49% |
Market growth 2023-2027 |
USD 319.08 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.29 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 53% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Advance Hydrau Tech Pvt. Ltd., Applied Recovery Systems Inc., Brentwood RM Pty Ltd, Caterpillar Inc., CP Manufacturing Inc., Fornnax Technology Pvt Ltd., Gensco Equipment Inc., Granutech Saturn Systems, Green Machine, Iron Ax, Lefort, MAYFRAN INTERNATIONAL, Metso Outotec Corp., PRAB Inc., Rapid Granulator, SP Industries Inc., Vaner Machinery Co. Ltd., WEIMA America Inc., Wendt Corp., and Wiscon Envirotech Inc. |
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, and Market condition analysis for the forecast period. |
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. |
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