Scrap Metal Recycling Market Size, Share, and Growth Analysis, By Metal Type (Ferrous Metals, Non-Ferrous Metals), By Scrap Source (Industrial Scrap, Post-consumer Scrap), By End-use Industry, By Region - Industry Forecast 2025-2032

Global Scrap Metal Recycling market size was valued at USD 323.8 Billion in 2023 and is poised to grow from USD 335.78 Billion in 2024 to USD 449.04 Billion by 2032, growing at a CAGR of 3.7% in the forecast period (2025-2032).

The global scrap metal recycling industry is experiencing a significant transformation, fueled by heightened environmental awareness, stringent regulations on mining and waste management, and a growing need for sustainable materials in key sectors. In 2023, over 30% of the total steel production, approximately 630 million tons, utilized recycled steel, which considerably reduced carbon emissions due to the 75% energy savings from recycling compared to virgin production. Government policies, such as the EU's Circular Economy Action Plan and China's dual-carbon goal, are enhancing recycling efforts. The automotive and construction sectors lead demand, with companies like Ford incorporating recycled metals for sustainability. However, the industry faces challenges from fragmented collection systems, particularly in developing nations, complicating quality control and traceability.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Scrap Metal Recycling market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Scrap Metal Recycling Market Segments Analysis

Global Scrap Metal Recycling Market is segmented by Metal Type, Scrap Source, End-use Industry and region. Based on Metal Type, the market is segmented into Ferrous Metals and Non-Ferrous Metals. Based on Scrap Source, the market is segmented into Industrial Scrap, Post-consumer Scrap, Construction & Demolition Scrap and Others. Based on End-use Industry, the market is segmented into Automotive, Aerospace & Defense, Construction, Electrical & Electronics, Manufacturing & Industrial Sectors, Consumer Appliances and Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.

Driver of the Global Scrap Metal Recycling Market

In 2023, global steel production reached an impressive 1.89 billion metric tons, as reported by the World Steel Association, significantly boosting the demand for cost-effective and sustainable secondary raw materials, particularly scrap metal. With scrap constituting over 40% of the inputs used in steel manufacturing worldwide, the focus on recycling has intensified. A notable instance of this trend is ArcelorMittal's USD 300 million investment in enhancing its North American recycling operations, aimed at increasing scrap processing capabilities. This strategic shift within the industry underscores the urgent need for circular steel production methods to mitigate emissions and reduce overall costs.

Restraints in the Global Scrap Metal Recycling Market

The global scrap metal recycling market faces significant challenges due to the volatility of scrap metal prices, which disrupts the revenue stability for recyclers. Recent data from the London Metal Exchange (LME) indicates a sharp decline in ferrous scrap prices, plummeting nearly 28% from the first to the third quarter of 2023, primarily driven by decreased demand from key markets like China and Turkey. This trend has had tangible repercussions; for instance, Sims Limited, a major player in the recycling sector, disclosed a 24% decrease in revenue for FY2023 in its annual report, attributing this downturn primarily to fluctuating scrap prices and diminished export margins.

Market Trends of the Global Scrap Metal Recycling Market

The Global Scrap Metal Recycling market is witnessing a significant trend towards integrating AI and automation within recycling facilities, driven by the need for enhanced operational efficiency and metal purity. Major industry players, such as Schnitzer Steel Industries, have begun implementing innovative technologies like AI-powered robotic sorting systems, which have demonstrated remarkable results, including a 20% increase in throughput and reduced contamination rates. This shift not only streamlines processing but also addresses the growing demand for high-quality recycled materials, positioning the industry for sustainable growth in the face of evolving environmental regulations and the push for a circular economy.