7.55% year-on-year growth in aluminium scrap recycling expected in 2021

The global aluminum scrap recycling market is expected to grow by 11,782.76 thousand MT, at a CAGR of over 8% during 2021-2025. This growth is mainly impacted by the recovery of the automotive industry. According to Technavio’s latest report on the scrap recycling market, after automakers were forced to shut down their operations due to Covid-19, “the auto industry witnessed a surge in sales in Q3 2020 with the removal of lock-in restrictions and people’s inclination towards public transport and ridesharing.”

Not only the automotive industry influences this recovery forecast but also other drivers of this market: factors such as energy and environmental factors and increased adoption and construction of green buildings, the research concludes.

Among the opportunities mentioned in the report, “increasing focus on fuel efficiency and reduction in overall vehicle weight has increased the consumption of aluminum in the automotive industry. In addition, the market has witnessed a significant increase in the rate of aluminum cans. For instance, almost 50% of the aluminum produced in Europe is sourced from scrap recycling.”

On the other hand, the report states that the growing demand for recycled aluminum from the construction industry, coupled with the automotive industry and increasing imports of aluminum scrap in countries such as Hong Kong, Thailand, South Korea, Japan, and Malaysia are driving the growth of the aluminum scrap recycling market in APAC (Asia-Pacific region).

Technavio is a world leader in technology research and consulting. His research and analysis focuses on emerging market trends.