Industry: Industrial Automation
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Report Type: Ongoing
Report ID: PMRREP24745
The global market is estimated to reach a valuation of US$1.3 Bn by the year 2031, at a CAGR of 4%, during the forecast period of 2024 to 2031.
Key Highlights of the Market
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Attributes |
Key Insights |
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Scrap Metal Shredder Market Size (2024E) |
US$0.9 Bn |
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Projected Market Value (2031F) |
US$1.3 Bn |
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Forecast Growth Rate (CAGR 2024 to 2031) |
4.0% |
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Historical Growth Rate (CAGR 2019 to 2023) |
3.8% |
The scrap metal shredder market systems are essential equipment for both manufacturers and recycled metal purchasers, with a primary focus on the automotive and steel manufacturing industries, because of the growing environmental concerns.
Consequently, the increasing cost of metal and the strict regulations regarding pollution are compelling organizations to enhance their efficiency and allocate resources to the acquisition of a scrap metal shredder, which enhances the revenue generation of the global market.
The manufacturers of scrap metal shredders have developed a design that processes material in a minimal number of turns, resulting in high torques and fuel efficiency.
Special steels are utilized in the blades of the scrap metal shredder to guarantee extended lifespans and reduced component costs. Growing focus on sustainable practices is a growing trend in the global market.
As a result of shifting environmental rules and an increased emphasis on environmentally responsible business operations, the market for scrap metal shredders is undergoing a dynamic transformation.
Cutting-edge technologies include intelligent automation and improved shredder designs along with the integration of artificial intelligence, and machine learning techniques.
These technologies are becoming key trends as industries strive to improve their efficiency and reduce their impact on the environment.
Furthermore, the market for scrap metal shredders is getting increasingly innovative due to the growing need for recycled materials. This demand is shaping the future of the industry with solutions that are environmentally friendly and operational excellence.
Historical Growth and Course Ahead
The scrap metal shredder market has witnessed a surge in market demand owing to rapid industrialization and the growing demand for waste processing. The market has seen a stupendous growth from US$0.6 Bn in the year 2020, to grow to US$0.9 Bn in the year 2023.
The major factor for this growth is the rapid pace with which the industries are growing globally and the need for a more sustainable approach towards waste management.
The growth of the said market segment is primarily attributed to the growing ecological concerns of metal wastes, whereas the drastic environmental impacts.
With governments globally trying to implement stringent rules and regulations over the metal scrapping and waste management industries, the market is said to witness a subtle growth during the forecast period 2023 to 2033.
Increased Demand for Automation
The increasing levels of industry and urbanization in developing countries like India, China, and Brazil are the main drivers behind the growing need for metal shredder machines.
Furthermore, the emerging economies in Asia Pacific, Latin America, and Africa will offer the most attractive opportunities for international competitors and contribute to the expansion of the scrap metal shredder market.
Moreover, the increasing demand for extracting metal from slag residue would offer additional opportunities in the metal shredder industry. The primary end users employ metal shredders to pulverize automotive and other discarded metals for use as raw materials.
Rapid Industrialization
In addition, governments are enacting new legislation that will be advantageous for the metal shredding industry. Government efforts to promote the use of recycled metal for economic and environmental reasons are indirectly benefiting the metal shredder industry.
Several governments, especially those in poor countries, organize auctions to sell metal trash that has been utilized in industrial facilities. These auctions attract participation from both small and large industrial groups seeking to purchase metal scrap at a discounted price.
Governments worldwide are thus diligently striving to mitigate the environmental impact of heavy industrial sectors, a factor that will persistently shape the global scrap metal shredder market.
Reduced Scrap Demand
The metal shredding and recycling industry has been particularly affected by the unfavourable market conditions, which include reduced recycled metal prices and tighter profit margins.
The recycling sector is perpetually dependent on scrap metal pricing, and metal companies encounter financial difficulties when recycling rates decline concurrently with the decline in prices over an extended period, which eventually hampers their profit margin as well.
The Chinese economy has had a substantial impact on metal exports. Scrap metal prices have plummeted due to the overabundance and sluggish demand in China.
Additionally, the reduction in refuse export flows is more likely due to the availability of shipping containers and vessels, rather than a decrease in demand.
Several nations reported that it was difficult to obtain shipping containers for international shipments. Consequently, the metal shredding industry is confronted with a variety of additional challenges.
Nevertheless, prominent organizations are making every effort to preserve their market position and stability.
Evolution of Waste Management Techniques
With the evolution of new-age technologies including artificial intelligence and modern mechanical equipment used in the industry, the development of waste management solutions is facilitating metal shredding operations and creating a pool of opportunities for the key contenders in the global market.
Considering the development of the recycling industry, new techniques employed have revealed that the quality of mineral commodity ores is decreasing and is proportional to the quantity of debris generated at the extraction sites.
Apart from this, the demand for waste management and recycling operations has increased and companies are now accommodating new strategies for recycling and meeting the demand of increased urbanization globally.
Furthermore, the need for recycling operations has seen a steep rise which is directly influenced by the quantity of waste generated at the mining sites, which is most probably dependent on the quality of ore being extracted.
Following this, the ore grades that are mined have deteriorated as most mines have reached their potential, resulting in the rise of trash which is collected and needed to be shredded through metal scrap shredders.
Considering these factors, industries are using updated technologies that would help them reduce the operational costs of treatment, membrane separation and metal recovery, which is eventually contributing to the overall growth of the market.
Mechanical Shredders Surge Ahead
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Market Segment by Type |
Market Value Share |
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Mechanical Shredder |
>40% |
The global scrap metal shredder market is primarily segmented based on type and application. Based on type, the market is further sub-segmented into mechanical shredder, and shockwave shredder, out of which the mechanical shredder dominates the market share during the forecast period.
Mechanical shredder machines are most widely used in scrap yards and metal recycling plants to reduce the debris to standard sizes so that it can be separated and processed easily.
Apart from this, the mechanical shredding machines can efficiently process white goods, home appliances, sorted light scrap and end-of-life cars which are ferrous and non-ferrous metals as it helps break down the scrap in bits and make the disposal procedure easier.
Considering all these factors, the mechanical shredder machine segment is said to witness a surge in demand and eventually aid the market.
Iron & Steel Shredding at the Forefront
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Market Segment by Application |
Market Value Share |
|
Iron & Steel |
>52% |
Based on application, the global scrap metal shredder market is further divided into iron & steel, aluminium & copper and non-ferrous materials. Among these, the iron and steel segment is said to witness the highest demand and own the major market share.
The iron & steel sub-segmentation in the by-application segment is said to witness the highest growth rate during the forecast period, being the most recycled and reused materials on the planet.
Another major reason for the iron and steel sub-segment to dominate is its accessibility and ease of reprocessing, as these materials can be easily separated from garbage through magnets.
Apart from this, the aluminium & copper segment is said to have a considerable growth rate owing to being one of the most cost-effective and ecologically friendly shredding processes.
The North American region is estimated to dominate the market share during the forecast period, owing to the presence of global leading automotive OEMs, and Tier 1 & Tier 2 manufacturing companies operating from the region.
Along with this, the stringent regulations from governments focussing on reducing metal waste are eventually aiding the scrap metal shredder market growth in the North American region, particularly in the US.
Owing to all these facts, the North American region is estimated to have stupendous growth during the said forecast period that ends in the year 2033. Apart from this, the industrial sector operating in the US has decided to minimise its metal waste considering its ecological factors.
Owing to this, there has been a spike in the establishment of recycling process facilities in the nation, which is helping the growth of the scrap metal shredder market.
Followed by the North American region, the Asia Pacific region is said to dominate the market share owing to the fast-paced economic development and the growing population in the region.
Along with this, the favourable government policies and laws supporting the waste management industry are making the Asia Pacific region earn significant revenue over the forecast period.
With the presence of major emerging economies like India, China, and Japan, the Asia Pacific region is expected to sustain its growth rate over the forecast period that ends in the year 2033.
Europe on the other hand is estimated to showcase rapid growth in the years to come. Being the automotive hub of the world where several key automotive manufacturers are having their manufacturing facilities.
Furthermore, the increased demand for metal scraps is keeping the revenue generation stable for the European region, as nations like Italy, and Spain are anticipated to witness substantial growth owing to the increased demand for metal shredder machines from the automotive industry in the region.
May 2024
NuCycle LLC, a leading recycling and shredding company globally, signed a partnership deal with Danieli Auto Shredder to expand its business in South Carolina and increase the facility's capacity to process scrap metal.
October 2022
SSI Shredding Systems, a leading company in the industry launched its new product called SSI PRI-MAX Primary, which is designed to compress the volume of heavy materials while processing 150 tons per hour, which may be used as a primary shredder process in a standalone equipment as well as in a system.
November 2021
Metso Outotec, a leading company in the market announced its collaboration deal with India, where it will start its production capacity of mobile track-mounted crusher and screening equipment production capacity.
The major competitors in the global scrap metal shredder market are primarily evaluated based on their product or service offerings, their financial statements, developments and the approaches implemented, the company's position in the global market scenario and its geographical reach.
Besides, the key competitors studied have also been accessed through the SWOT analysis to understand their strengths, weaknesses, opportunities and threats.
Besides, the key competitors in the industry employ crucial strategies like partnership deals, mergers and acquisitions, and business expansion deals to strengthen their hold on a particular region or a particular service offering.
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Attributes |
Details |
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Forecast Period |
2024 to 2031 |
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Historical Data Available for |
2019 to 2023 |
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Market Analysis |
US$ Billion for Value |
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Key Countries Covered |
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Key Market Segments Covered |
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Key Companies Profiled |
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Pricing |
Available upon Request |
By Type
By Application
By Region
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