Global Aluminium Scrap Market Overview
The Aluminium Scrap Market Size was estimated at 105.7 (USD Billion) in 2022. The Aluminium Scrap Industry is expected to grow from 110.38(USD Billion) in 2023 to 163.05 (USD Billion) by 2032. The Aluminium Scrap Market CAGR (growth rate) is expected to be around 4.43% during the forecast period (2024 - 2032).
Key Aluminium Scrap Market Trends Highlighted
The Aluminium Scrap Market is driven by the rising demand for aluminium in various industries, including automotive, construction, and packaging. Stringent environmental regulations have fostered the adoption of sustainable practices, leading to increased recycling and scrap utilization. Technological advancements in sorting and processing techniques have improved the efficiency and profitability of scrap recycling. The growing awareness of the environmental benefits of scrap usage, such as reduced carbon emissions and resource conservation, is further driving market growth.The market also presents opportunities for exploration, such as the development of innovative recycling technologies to enhance the quality and yield of scrap aluminium. Partnerships between scrap processors and end-users can create a stable supply chain and ensure the consistent availability of high-quality scrap. The increasing use of aluminium in electric vehicles and renewable energy applications presents significant opportunities for the aluminium scrap market.Recent trends include the adoption of digital technologies to optimize scrap collection and processing. The increasing demand for sustainable and environmentally friendly materials has led to a premium on recycled aluminium scrap. Strategic collaborations between stakeholders in the scrap value chain are fostering innovation and improving market efficiency. The growing focus on circular economy principles is expected to further drive the growth of the aluminium scrap market in the coming years.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Aluminium Scrap Market Drivers
Growing Demand for Lightweight and Sustainable Materials
A major driver of growth in the Aluminium Scrap Market is the increasing demand for lightweight and sustainable materials in a number of industries, such as automotive, aerospace, and construction. Aluminium scrap is an important source of recycled aluminium, which has a number of advantages over primary aluminium. Recycled aluminium boasts a lower carbon footprint than its primary counterpart and requires less energy to produce, while also being more affordable.The growing awareness of the environmental benefits of using recycled materials is yet another factor stimulating the demand for aluminium scrap on the global market. Many governments and international regulatory bodies are introducing a range of policies and regulations which promote the use of recycled materials and thus would have a positive impact on the demand for aluminium scrap. Consequently, it is possible to conclude that the demand for lightweight and sustainable materials is a major driver of growth in the Aluminium Scrap Market.
Expansion of the Construction Industry
The construction industry across the world is showing considerable growth, especially in developing economies. This trend is supported by numerous driving factors such as increasing urbanization, a growing number of high-paid workers, and government focus on infrastructure building. The consumption of aluminium scrap in the construction sector is also high, as it is used for various purposes, such as roofing, siding, windows, doors, etc.. The expansion of the construction industry will fuel the demand for aluminium scrap to a great extent.Therefore, it is expected that, with the growing development of the construction industry, the demand for aluminium scrap will also increase, thus driving the growth of the Aluminium Scrap Market.
Increasing Adoption of Aluminium Scrap in Transportation
The transportation sector is one of the key consumers of aluminium scrap. It is used for the production of vehicles – cars, trucks and airplanes, as it is lightweight and durable. Its use in the transportation sector is becoming more widespread, as the demand for fuel-efficient transport with low emissions is increasing. The use of aluminium scrap allows to reduce the weight of vehicles and therefore improve fuel efficiency and reduce emissions. The implementation of such vehicles is constantly increasing, which implies a growing demand for the use of this material in the transportation sector.The automotive industry continues to become the centre of the use of scrap aluminium, as in the coming years the demand for such transport will only grow, which will promote market growth.
Aluminium Scrap Market Segment Insights:
Aluminium Scrap Market Grade Insights
Pure Aluminium Scrap accounted for the largest revenue share of over 45% in 2023. Pure Aluminium Scrap is generated from pure aluminium products such as aluminium foil, aluminium cans, and aluminium extrusions. The high demand for pure aluminium scrap is attributed to its superior quality and versatility, making it suitable for a wide range of applications in various industries, including automotive, construction, and packaging. Additionally, the increasing adoption of aluminium in the automotive sector to reduce vehicle weight and improve fuel efficiency is expected to drive the demand for pure aluminium scrap in the coming years.Mixed Aluminium Scrap is the second-largest segment, accounting for a revenue share of around 30% in 2023. Mixed Aluminium Scrap includes aluminium scrap with varying compositions and is typically generated from end-of-life products and manufacturing processes. The demand for mixed aluminium scrap is driven by its cost-effectiveness and its suitability for applications where high purity is not required, such as in the production of castings and secondary aluminium products. Extrusion Scrap held a revenue share of approximately 15% in 2023. Extrusion Scrap is generated from the extrusion process, which involves shaping aluminium into various profiles.The demand for extrusion scrap is primarily driven by the growth of the construction and transportation industries, where aluminium extrusions are widely used for structural components and vehicle parts. Casting Scrap accounted for the remaining revenue share of around 10% in 2023. Casting Scrap is generated from the casting process, which involves pouring molten aluminium into a mold to create various shapes and components. The growth of the market is attributed to the increasing demand for aluminium in various industries, the growing adoption of sustainable practices, and the rising awareness of the environmental benefits of recycling aluminium.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Aluminium Scrap Market Origin Insights
The origin segment in the Aluminium Scrap Market is classified into new scrap and old scrap. New scrap refers to scrap generated during the manufacturing process of aluminium products, while old scrap refers to scrap generated from end-of-life aluminium products. In 2023, the new scrap segment accounted for a larger share of the Aluminium Scrap Market revenue, owing to the increasing production of aluminium products. However, the old scrap segment is projected to grow at a higher CAGR during the forecast period, driven by the increasing demand for recycled aluminium.
Aluminium Scrap Market Source Insights
The source segment plays a crucial role in the Aluminium Scrap Market, influencing its dynamics and growth trajectory. Manufacturing, a key source of aluminium scrap, generated a significant revenue of 34.8 billion USD in 2023 and is projected to reach 50.2 billion USD by 2032, registering a CAGR of 4.68%. Aluminium scrap from manufacturing processes constitutes a substantial portion of the overall scrap supply, owing to the extensive use of aluminium in industries such as automotive, aerospace, and electronics. Construction and Demolition (C) is another major source of aluminium scrap.In 2023, it accounted for 28.5 billion USD in revenue and is expected to expand to 41.3 billion USD by 2032, exhibiting a CAGR of 4.41%. The rising demand for aluminium in construction and infrastructure projects, coupled with the increasing focus on sustainable waste management practices, is driving the growth of this segment. Transportation, a significant user of aluminium, also contributes to the generation of aluminium scrap. This segment generated revenue of 22.1 billion USD in 2023 and is anticipated to reach 32.3 billion USD by 2032, growing at a CAGR of 4.36%.The increasing adoption of aluminium in lightweight vehicles and transportation infrastructure is fueling the growth of this segment. Consumer Goods, encompassing products such as appliances, electronics, and packaging, is another notable source of aluminium scrap. This segment generated revenue of 19.6 billion USD in 2023 and is projected to reach 29.2 billion USD by 2032, exhibiting a CAGR of 4.32%. The rising demand for durable and lightweight consumer products is driving the growth of this segment.
Aluminium Scrap Market Application Insights
The Aluminium Scrap Market is segmented by application into Automotive, Aerospace, Construction, Electrical and Electronics, and Packaging. The Automotive segment is expected to account for the largest share of the market in 2023, with a valuation of USD 25.46 billion. This is due to the increasing demand for lightweight and fuel-efficient vehicles. The Aerospace segment is also expected to witness significant growth, with a projected valuation of USD 12.89 billion in 2023, driven by the rising demand for aircraft and the need for lightweight materials.The Construction segment is expected to account for a valuation of USD 18.72 billion in 2023, owing to the increasing use of aluminium in construction applications, such as roofing, siding, and window frames. The Electrical and Electronics segment is projected to reach a valuation of USD 16.29 billion in 2023, as aluminium is widely used in electrical and electronic components, such as capacitors, conductors, and heat sinks. The Packaging segment is also expected to grow steadily, with a valuation of USD 14.98 billion in 2023, as aluminium is used in various packaging applications, such as beverage cans, food containers, and pharmaceutical packaging.
Aluminium Scrap Market Regional Insights
The Aluminium Scrap Market revenue is expected to reach USD 163.05 billion in 2032, exhibiting a CAGR of 4.43% during the forecast period. Regionally, North America held the largest market share in 2023 and is projected to maintain its dominance throughout the forecast period. The growth in the region can be attributed to the increasing demand for aluminium scrap from the automotive and construction industries. Europe is expected to witness a significant growth rate during the forecast period due to the rising demand for aluminium scrap from the aerospace and packaging industries.APAC is expected to be the fastest-growing region, driven by the increasing demand from the construction and automotive industries in China and India. South America and MEA are expected to witness a moderate growth rate during the forecast period.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Aluminium Scrap Market Key Players And Competitive Insights:
The Aluminium Scrap Market industry is fiercely competitive, with numerous established and emerging players vying for market share. Major players in the Aluminium Scrap Market include Sims Metal Management, EMR, Aleris, Novelis, and Hydro. These leading Aluminium Scrap Market players have a strong global presence, robust infrastructure, and extensive experience in the recycling and processing of aluminium scrap. They invest heavily in research and development to enhance their processes and remain at the forefront of the Aluminium Scrap Market development.Sims Metal Management is a global leader in the Aluminium Scrap Market industry, with operations in over 20 countries. The company offers a comprehensive range of recycling and processing services for ferrous and non-ferrous metals, including aluminium scrap. Sims Metal Management has a strong focus on sustainability and environmental responsibility, and it is committed to reducing the environmental impact of its operations.Novelis, another leading player in the Aluminium Scrap Market, is a global supplier of rolled aluminium products. The company has a significant presence in the recycling and processing of aluminium scrap, and it is known for its innovative recycling technologies. Novelis has a strong customer base in the automotive, aerospace, and beverage industries, and it is committed to providing high-quality products and services to its customers.
Key Companies in the Aluminium Scrap Market Include:
-
Alcoa Corporation
-
Norsk Hydro ASA
-
Rusal International PJSC
-
Hindalco Industries Limited
-
Aluminum Corporation of China Limited (CHALCO)
-
Mitsubishi Materials Corporation
-
Sims Metal Management Limited
-
Sumitomo Metal Mining Co., Ltd.
-
UACJ Corp.
-
Alumax Recycling
-
Novelis Inc
-
Aleris International, Inc.
-
Schnitzer Steel Industries, Inc.
-
Rio Tinto
-
Aurubis AG
Aluminium Scrap Market Industry Developments
The Aluminium Scrap Market is projected to reach USD 163.05 billion by 2032, exhibiting a CAGR of 4.43% during the forecast period. Growth in the construction, automotive, and packaging industries is driving demand for aluminium scrap. Increasing environmental concerns and government regulations promoting recycling are also contributing to market growth.Recent developments in the market include:In 2023, Novelis Inc. announced plans to invest USD 250 million to expand its aluminium recycling and rolling operations in China.In 2024, Hydro Aluminium signed a contract with Redux to supply low-carbon aluminium to the automotive industry.Governments in Europe and North America are implementing stricter regulations on aluminium waste, mandating recycling and promoting the use of recycled aluminium in various industries.These developments indicate a growing focus on sustainability and the increasing importance of aluminium scrap in the global economy.
Aluminium Scrap Market Segmentation Insights
Aluminium Scrap Market Grade Outlook
- Pure Aluminium Scrap
- Mixed Aluminium Scrap
- Extrusion Scrap
- Casting Scrap
Aluminium Scrap Market Origin Outlook
Aluminium Scrap Market Source Outlook
- Manufacturing
- Construction and Demolition
- Transportation
- Consumer Goods
Aluminium Scrap Market Application Outlook
- Automotive
- Aerospace
- Construction
- Electrical and Electronics
- Packaging
Aluminium Scrap Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
105.7(USD Billion) |
| Market Size 2023 |
110.38(USD Billion) |
| Market Size 2032 |
163.05(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
4.43% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Alcoa Corporation ,Norsk Hydro ASA ,Rusal International PJSC ,Hindalco Industries Limited ,Aluminum Corporation of China Limited (CHALCO) ,Mitsubishi Materials Corporation ,Sims Metal Management Limited ,Sumitomo Metal Mining Co., Ltd. ,UACJ Corp. ,Alumax Recycling ,Novelis Inc ,Aleris International, Inc. ,Schnitzer Steel Industries, Inc. ,Rio Tinto ,Aurubis AG |
| Segments Covered |
Grade ,Origin ,Source ,Application ,Regional |
| Key Market Opportunities |
Rising automobile production increasing construction activities growing aerospace industry expanding packaging industry and stringent environmental regulations |
| Key Market Dynamics |
Growing construction sector increasing automotive production rising demand for sustainable materials |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Aluminium Scrap Market is projected to reach a valuation of USD 110.38 billion in 2023 and is estimated to grow at a CAGR of 4.43% from 2023 to 2032, reaching USD 163.05 billion by 2032.
Asia-Pacific held the largest share of the Aluminium Scrap Market in 2023, accounting for approximately 40% of the total market value.
The key applications of Aluminium Scrap that are driving market growth include its use in automotive, construction, packaging, and consumer durables.
Key competitors in the Aluminium Scrap Market include Aurubis AG, Novelis Inc., Alcoa Corporation, Rio Tinto plc, and Hydro ASA.
Factors driving the growth of the Aluminium Scrap Market include rising demand from emerging economies, increasing environmental regulations promoting recycling, and technological advancements in the scrap processing industry.
The Aluminium Scrap Market is projected to grow at a CAGR of 4.43% from 2023 to 2032.
Challenges faced by the Aluminium Scrap Market include the volatility of raw material prices, stringent government regulations, and the availability of substitutes.
The automotive segment is projected to hold the largest share of the Aluminium Scrap Market by 2032 due to the increasing demand for lightweight and fuel-efficient vehicles.
The COVID-19 pandemic had a significant impact on the Aluminium Scrap Market, leading to a decline in demand for 2020. However, the market is expected to recover in the coming years as economic activities resume and demand for Aluminium Scrap increases.
The Asia-Pacific region is expected to witness the highest growth in the Aluminium Scrap Market during the forecast period due to the increasing industrialization and urbanization in the region.
