LONDON--(BUSINESS WIRE)--Technavio analysts forecast the global scrap metal recycling market to grow to 997.9 million metric tons by 2021, at a CAGR of more than 3% over the forecast period, according to their latest report.
The research study by Technavio on the global scrap metal recycling market for 2017-2021 provides a detailed industry analysis based on the scrap type (ferrous scrap metal and non-ferrous scrap metal) and geography (APAC, EMEA, and the Americas).
APAC is the leading market segment, projected to generate both the highest revenue and maximum incremental growth over the forecast period. The dominant steel industry in the region is responsible for producing enormous quantities of scrap metal every year, which is responsible for the impressive performance of APAC in the market.
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Technavio analysts highlight the following three factors that are contributing to the growth of the global scrap metal recycling market:
- Growing demand for commodities in developing countries
- Benefits of scrap metal recycling
- Transition in automobile sector
Growing demand for commodities in developing countries
Globally, there has been a continuous increase in the demand for automobiles and consumer electronics, which has increased the amount of scrap metal that is generated due to stamping, clippings, borings, and tunings termed commonly as prime scraps.
“The prime scraps account for more than half of the ferrous scrap supply, which by volume is the highest scrap recycled globally. These scraps drive the growth of the scrap metal recycling market,” says Thanikachalam Chandrasekaran, a lead analyst at Technavio for water and waste management research.
Benefits of scrap metal recycling
The scrap metal industry is one of the oldest recognized environment-friendly industries, responsible for bringing both economic and environmental benefits to a nation. Scrap metal recycling prevents pollution, creates and supports jobs at higher income levels, has a positive impact on the social and economic activities, and provides innumerable environmental benefits. Scrap metal recycling also helps in creating a sustainable environment and enables a reduction in the amount of ore mined to produce fresh metals. These benefits gained from scrap metal recycling is encouraging recycling activities across the world.
Transition in automobile sector
“The automotive sector is shifting towards manufacturing cars that are cleaner, safer, and lighter to reduce the carbon emissions from the sector. The compliance to environmentally friendly manufacturing procedures is driving the adoption of scrap metal recycling in the industry,” says Thanikachalam.
The growing popularity of electric vehicles and rising adoption of light-weight vehicles are two important factors that are positively impacting the adoption of scrap metal recycling in the automobile sector. The MITSUBISHI MOTORS concept XR-PHEV II is a lightweight SUV concept vehicle, which is lightweight, compact, and highly fuel efficient.
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