The global ferrous scrap recycling market size is expected to reach USD 192.6 million by 2030, expanding at a CAGR of 3.8% from 2022 to 2030, according to a new report by Grand View Research, Inc., Leading steel manufacturers are shifting from blast furnace to electric arc furnace (EAF) to reduce CO2 impact on the environment to reach global climate goals. This in turn is anticipated to fuel the demand for ferrous scrap in coming years.

The ferrous scrap recycling process follows the melting of metal scrap with a slag material to refine steel. The scrap metals are heated to get the rich iron liquid to form a slag layer for further use. Completely melted steel is tapped into a ladle for further processing on it.

According to EUROFER, more than 48% of the steel is produced using electric arc technology, and one hundred million tons of scrap was recycled in 2021 across the region. Thus, ferrous scrap plays a vital role in the production of steel in Europe. The increasing focus on energy efficiency and reduction in carbon emissions is expected to drive market growth.

In terms of volume, Germany held the largest share of 23.3% of the market across Europe in 2021 and is anticipated to expand at a CAGR of 4.5%, in terms of revenue, between 2022 and 2030. Shifting focus toward creating a sustainable and circular economy is anticipated to drive market growth in the country over the forecast period.

Ferrous constitutes a large share of the overall scrap generation owing to the consumption of steel in various end-use industries and the recovery rate from end products. Leading players are likely to deal with significant competition. According to the Japan Iron and Steel Federation, the recycling rate of steel in vehicles in the country ranges from 97% to 89%, and for steel cans, it is as high as 90% to 93.3%.

It is a highly competitive and unorganized market. There is a huge potential for growth in the metal recycling industry over the next few years. In 2021, major steel manufacturers adopted backward integration strategies. To ensure a steady supply of raw materials, these manufacturers acquired recycling centers and companies.

Ferrous Scrap Recycling Market Report Highlights

• Based on sector, the construction segment held a revenue share of more than 46.0% in 2021 in the global market. The sector contributes a large amount of scrap generation through ongoing demolition and renovation activities across the globe
• In terms of revenue, the automotive segment is anticipated to register a CAGR of 4.0% over the forecast period. Initiatives by auto manufacturers to recycle old vehicles and generate usable scrap are propelling segment growth
• Based on region, Asia Pacific is expected to register the fastest growth rate of 4.2% in terms of revenue from 2022 to 2030. Government policies to support the recycling industry are expected to augment segment growth
• The market is characterized by intense competition, owing to the presence of several players opting for operational cost optimization through business restructuring

Ferrous Scrap Recycling Market Segmentation

Grand View Research has segmented the global ferrous scrap recycling market based on sector and region:

Ferrous Scrap Recycling Sector Outlook (Volume, Tons; Revenue, USD Million, 2017 - 2030)

• Construction
• Automotive
• Consumer Goods
• Industrial Goods

Ferrous Scrap Recycling Regional Outlook (Volume, Tons; Revenue, USD Million, 2017 - 2030)

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • France
  • UK
• Asia Pacific
  • China
  • Japan
  • Australia
• Central South America
• Middle East Africa

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