U.S. Scrap Metal Recycling Market to Hit $18.5 Billion by 2035

SEATTLE (Scrap Monster): A new industry analysis by Fact.MR projects that the U.S. scrap metal recycling market will expand significantly over the next decade, reaching a valuation of $18.47 billion by 2035, up from the current estimate of $10.8 billion. The market is forecast to grow at a compound annual growth rate (CAGR) of 5.5%, supported by sustainability-focused policies, industrial electrification, and a strong shift toward resource efficiency.

According to the report, the surge in demand for recycled metals is being fueled by circular economy initiatives, regulatory incentives promoting recycling infrastructure, and the growing adoption of electric arc furnace (EAF) technology in steelmaking. These factors are collectively transforming the U.S. metals sector into a more sustainable and cost-effective industry.

In terms of material type, ferrous metals will continue to dominate both volume and revenue, owing to their crucial applications in manufacturing and construction. The growing use of EAF-based steel production is expected to further boost ferrous scrap consumption. Meanwhile, non-ferrous metals such as aluminum and copper are projected to see robust growth, driven by lightweighting trends, electrification, and cost optimization across multiple industries.

ALSO READ:

U.S. Aluminum Industry Urges Domestic Retention of Scrap Metal

Crews tackle scrap metal fire at recycling centre

From a process standpoint, metal shredding has emerged as the fastest-growing segment, with an expected CAGR of 6.4%, thanks to its efficiency in handling large-scale recycling operations. The construction, infrastructure, and automotive sectors will remain the key end-users of recycled metals through 2035.

Regionally, the U.S. South is anticipated to lead market growth with a projected CAGR of 6.6%, supported by expanding industrial infrastructure and strong investment in recycling capacity. It will be followed by the Western and Midwestern regions, which continue to attract new recycling projects and manufacturing expansions.

Overall, the Fact.MR report underscores the growing importance of recycling as a strategic pillar in the U.S. metals and manufacturing ecosystem, driven by both economic and environmental imperatives.