Aluminum Scrap Recycling Market By Scrap Type (New Scrap, Old Scrap) , By Alloy Type (Wrought Alloy, Casting Alloy) By End-Use Industry (Automotive, Aerospace and Defense, Building and Construction, Electrical and Electronics, Packaging, Others) : Global Opportunity Analysis and Industry Forecast, 2024-2033
The aluminum scrap recycling market was valued at $5.4 billion in 2023, and is projected to reach $11.7 billion by 2033, growing at a CAGR of 8% from 2024 to 2033.
Aluminum scrap recycling is a method that involves the recovering and reprocessing of aluminum waste and discarded materials into usable raw forms. This practice involves collecting aluminum scrap, sorting it, melting it down, and casting it into new shapes or products. Aluminum is one of the most recyclable materials, and its recycling process is highly efficient, requiring only a fraction of the energy needed to produce primary aluminum from raw ore.
The global aluminum scrap recycling market is witnessing robust growth due to factors such as increase in global emphasis on sustainability and the reduction of carbon footprints as well as implementation of stringent government policies aimed at reducing landfill waste, conserving natural resources, and lowering emissions to encourage the recycling of aluminum scrap as an eco-friendly alternative. According to The Aluminum Association, recycling a single aluminum can save 1.56 megajoules of energy, equivalent to 98.7 grams of CO? emissions. Furthermore, widespread use of aluminum cans in the beverage industry, coupled with high recycling rates of cans, bolsters the supply of aluminum scrap for recycling. The Aluminum Association states that recycling all aluminum cans in the U.S. could power up to 4.1 million homes for a year. Moreover, rapid pace of urbanization and increase in construction activities boost the demand for recycled aluminum in building materials and infrastructure projects. The Aluminum Association estimates that in industrial markets like automotive and building, recycling rates for aluminum exceed 90%. In addition, the active international trade of aluminum scrap creates a robust supply chain, enabling recycling industries to thrive and meet global demand. However, contamination of scrap aluminum with other materials such as plastic, steel, or paint can affect the quality of the recycled product and require additional sorting or processing, thus hampering the market growth. Setting up advanced recycling facilities with the necessary equipment for sorting, cleaning, and melting aluminum scrap requires substantial initial investment, which can further deter new entrants into the market. On the contrary, innovations in sorting, shredding, and remelting technologies have improved the efficiency, quality, and cost-effectiveness of aluminum scrap recycling. Such developments are expected to offer lucrative opportunities for the expansion of the global market during the forecast period.
The global aluminum scrap recycling market is segmented into scrap type, alloy type, end-use industry, and region. By scrap type, the market is bifurcated into new scrap and old scrap. On the basis of alloy type, it is classified into wrought alloy, and casting alloy. Depending on end-use industry, it is categorized into automotive, aerospace & defense, building & construction, electrical & electronics, packaging, and others. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Key FindingsBy scrap type, the old scrap segment held the highest market share in 2023, and is expected to maintain its leadership status from 2024 to 2033.On the basis of alloy type, the wrought alloy segment was the major shareholder in 2023, and is anticipated to continue the same trend during the forecast period.
Depending on end-use industry, the automotive segment garnered the largest share in 2023, and is projected to continue to follow a similar trajectory over the upcoming years.
Region wise, Asia-Pacific was the major revenue contributor in 2023.
Competition AnalysisThe major players operating in the global aluminum scrap recycling market include Matalco Inc., Novelis Inc., Speira GmbH, Norsk Hydro ASA, Alcoa Corporation, AMAG Austria Metall AG, Constellium, REAL ALLOY, Stena Metall AB, and Ye Chiu Group. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships to sustain the intense competition and gain a strong foothold in the global market.
Key Market SegmentsBy Scrap TypeNew Scrap
Old Scrap
By Alloy TypeWrought Alloy
Casting Alloy
By End-Use IndustryAutomotive
Aerospace and Defense
Building and Construction
Electrical and Electronics
Packaging
Others
By RegionNorth America
U.S.
Canada
Mexico
Europe
France
Germany
Italy
Spain
UK
Rest of Europe
Asia-Pacific
China
Japan
India
South Korea
Australia
Rest of Asia-Pacific
LAMEA
Brazil
South Africa
Saudi Arabia
Rest of LAMEA
Key Market PlayersMatalco Inc.
Novelis Inc.
Speira GmbH
Norsk Hydro ASA
Alcoa Corporation
AMAG Austria Metall AG
Constellium
REAL ALLOY
Stena Metall AB
Ye Chiu Group