May 31, 2017 12:30:40 PM
SEATTLE (Scrap Monster): The new research report published by Technavio forecasts firm growth prospects to global aluminum scrap recycling market over the next four years. The report predicts compounded annual growth rate (CAGR) of 7.59% during 2017 to 2021. The global recycling market of aluminum scrap is predicted to touch 32.12 million metric tons by 2021, the report notes. It must be noted that the recycling market was valued at 22.28 million metric tons in 2016.
The report segments the global aluminum scrap recycling market into the following regions-Asia Pacific (APAC), Americas and Europe, the Middle East and Africa (EMEA). According to Technavio research, APAC region offers significant growth opportunities for worldwide aluminum scrap recycling market in the secondary smelting segment. The major contributors to secondary smelting capacity include APAC countries such as Hong Kong, Thailand, South Korea, Japan and Malaysia. Kshama Upadhyay, a lead analyst at Technavio stated that APAC is likely to record fastest growth rate during the forecast period.
Incidentally, the APAC region had accounted for 57% share of global aluminum scrap recycling market in 2016. The regional market had reported sales of 12.70 million metric tons during the previous year. Also, Americas and EMEA region accounted for 21.99% and 21.01% market share of global aluminum scrap recycling market respectively.
As per the study, almost 50% of the aluminum produced in the EMEA region was obtained from recycling of scrap. The region has reported significant increase in co-location of facilities both for primary aluminum and for its recycling. The various researches to improve the quality of aluminum scrap recycling are expected to drive market growth in the region. The rising demand for aluminum casting parts in production of lightweight and fuel-efficient automobiles may also contribute to significant market growth during the forecast period. According to the report, the market in EMEA is expected to reach 6.43 million metric tons by 2021.
Technavio research forecasts 7.58% CAGR growth to Americas market. By the end of this year, the aluminum scrap recycling market in the Americas is predicted to touch 5.26 million metric tons. The big boost in manufacturing activities that make use of aluminum and alloys recovered from secondary smelting and scrap may trigger stronger market growth during the years to come. However, the decline in recycling rate of used beverage cans, especially in North America, may hinder market growth. Incidentally, the beverage can stock market stood low at 1.74 million metric tons in 2015.
The report notes that recycling of aluminum scrap consumes significantly less energy in comparison with the extraction of primary aluminum. As per estimates, the recycling process reduces energy consumption by nearly 95%. Furthermore, the introduction of latest technologies such as solid state recycling and laser induced breakdown spectroscopy (libs) has made the aluminum scrap recycling process more energy efficient, thereby causing fewer carbon footprints. In addition, recycling of aluminum scrap helps to conserve natural resources and reduce landfill waste.
Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.