Global Aluminum Recycling Market 2023-2030

Global Aluminum Recycling Market 2023-2030

Global Aluminum Recycling Market Size, Share & Trends Analysis Report by Aluminum Scrap Type (Cast Aluminum, Aluminum Cans, and Sheet Aluminum), by Application (Building & Construction, Automotive, Electronics, and Machinery & Equipment), and by End-User (Casting and Downstream), Forecast Period (2023-2030)

The global aluminum recycling market is anticipated to grow at a CAGR of 7.0% during the forecast period (2023-2030). Aluminum recycling is the process of reusing leftover scrap metal to create new products. It is a highly energy-efficient method, as it uses only 5% of the energy required to produce new aluminum from raw ore. The market expansion is expected to be driven by two main factors including the increased use of aluminum in the vehicle industry and a rise in the adoption of aluminum recycling procedures. Recycling businesses primarily obtain aluminum scraps from building demolitions. For instance, in March 2023, Glencore joined forces with scrap dealer Zeb Metals to promote aluminum recycling at a new facility in South Carolina, USA. The facility will include two rotating furnaces for recycling industrial scrap and aluminum dross, serving local needs and promoting sustainable practices in the industry.

Segmental Outlook

The global aluminum recycling market is segmented on the aluminum scarp type, application, and end-user. Based on the aluminum scarp type, the market is segmented into cast aluminum, aluminum cans, and sheet aluminum. Based on application the market is segmented into Building & construction, automotive, electronics, and machinery & equipment packaging. Furthermore, on the basis of end users the market is segmented into casting and downstream. Among the end-user, the downstream sub-segment is anticipated to hold a considerable share of the market owing to the rising development of engaging and innovative technologies in aluminum recycling.

The Machinery & Equipment Sub-Segment is Anticipated to Hold a Considerable Share of the Global Aluminum Recycling Market

Among the application, the machinery & equipment packaging sub-segment is expected to hold a considerable share of the global aluminum recycling market. aluminum is one of the most desired basic metals in machinery structures owing to its light weight, toughness, resistance to corrosion, and thermal impact. Compared to other metals, aluminum is simpler to process. aluminum exhibits a higher resistance to corrosion as it forms a thin, hard coating of oxide (aluminum oxide) when exposed to air or oxidizing agents. This property contributes to its durability and longevity in various applications. Hence, widely being adopted by machinery manufacturers for development of new machines. For instance, in October 2022, Hindalco introduced all- aluminum freight train rakes, which were developed to modernize freight transportation and promote significant carbon savings for Indian Railways. These aluminum rakes are 180 tonnes lighter than existing steel rakes, have a payload capacity of 5-10% more, consume less energy, and cause relatively little wear and tear to rails and rolling stock.

Regional Outlook

The global aluminum recycling market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia), and the Rest of the World (the Middle East & Africa, and Latin America. Among these, North America is anticipated to hold a prominent share of the market across the globe.

Global Aluminum Recycling Market Growth by Region 2023-2030

Source: OMR Analysis

The Asia-Pacific Region is Expected to Grow at a Significant CAGR in the Global Aluminum Recycling Market

Among all regions, the Asia-Pacific region is anticipated to grow at a considerable CAGR over the forecast period. In the Asia-Pacific region, aluminum recycling involves reusing scrap aluminum in new products after its initial production. The recycling of scrap aluminum consumes only 5% of the energy required to produce new aluminum from raw ore. Moreover, recycling aluminum saves up to 26% on CO2 emissions and uses about 90% less energy than producing new aluminum from raw ore. Scrap aluminum is often 20–30% less expensive as it is readily available from various sources, including broken-down cars, used beverage containers, and other products. The demand for recycled aluminum is on the rise in the Asia-Pacific area due to the increasing number of automobiles being produced and the growing adoption of recycled aluminum in electric vehicles, owing to its numerous benefits.

Market Players Outlook

The major companies serving the global Caluminum recycling market include Dowa Holdings Co., Ltd. ArcelorMittal S.A., REAL ALLOY, Commercial Metals Company, Aurubis AG, TRIMET aluminum SE, Nupur Recyclers, Arfin India Ltd. and others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers and acquisitions, partnerships, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in January 2023, Emirates Global Aluminum partnered with leading beverage can and waste management companies to establish the Aluminum Recycling Coalition. The primary aim of this coalition is to make a substantial impact by increasing aluminum recycling in the country.

The Report Covers

Market value data analysis of 2022 and forecast to 2030.

Annualized market revenues ($ million) for each market segment.

Country-wise analysis of major geographical regions.

Key companies operating in the global aluminum recycling market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

Analysis of market-entry and market expansion strategies.

Competitive strategies by identifying ‘who-stands-where’ in the market.