TMR Report Foresees 4.8% CAGR Growth to Global Recycled Metal Market

SEATTLE (Scrap Monster): The latest research report published by Transparency Market Research forecasts 4.8% CAGR growth to global recycled metal market during the period from 2016 to 2024. The market is estimated to touch $476.2 billion by 2024. It must be noted that the global recycled metal market was estimated at $312.9 billion at the end of 2015.

According to the report, the global market was highly fragmented in 2015 with OmniSource Corporation, European Recycled Metal, Schnitzer Steel Industries, Inc., Nucor Corporation, and Sims Metal Management Ltd emerging as the leading player. The top three vendors- OmniSource Corporation, European Recycled Metal and Sims Metal Management Ltd accounted for nearly 14.5% of global market during the year. The smaller players contributed to about 78.6% of market share in 2015, the report says. The increasing number of small players is likely to keep competition high, it adds.

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The entry of new players poses big challenge. A few of the factors that deter the entry are the extremely high initial capital investment for setting up the facility and installation of state-of-the-art equipment. The difficulty in establishing easy and continuous access to raw materials are also other factors that may prevent new entrants into the market. This in turn, may benefit existing vendors to expand their market presence.

The recycled metal demand from automotive sector is likely to post strong growth during the forecast period. The increased demand for recycled steel, iron and aluminum is likely to drive 4.5% CAGR growth in the segment. High rate of industrialization and urbanization is likely to deliver strong growth in building and construction sector. Incidentally, construction-related activities have witnessed increased momentum in emerging economies. Other segments that may drive recycled metal demand growth are electrical and electronics, industrial and machinery and shipbuilding.