Electronic scrap recycling market is estimated to witness high growth owing to stringent environmental regulations and rising precious metal recovery
The Electronic Scrap Recycling Market is estimated to be valued at USD 32.56 Billion in 2024, exhibiting a CAGR of 7.1% over the forecast period (2024-2031). Furthermore, increasing consumer awareness about the hazardous impact of e-waste on the environment is driving the market growth.
The growth of the electronic scrap recycling market is driven by stringent environmental regulations regarding proper e-waste disposal and increasing precious metal recovery. Strict e-waste disposal norms by regulatory bodies like the EPA have mandated producers to set up take-back programs for recycling discarded electronic products. This is resulting in increased recycling volumes and pushing e-waste managers and recyclers to explore innovative solutions. Precious metals like gold, silver, palladium, etc. used in electronics have high recovery value. Nearly 70% of the world's gold supply is consumed by electronics manufacturing. The recycling process recovers these valuable metals and brings them back into the supply chain, offering economic benefits. Rising gold and metal prices are further encouraging scrap yards and recyclers to develop advanced recycling technologies to boost metal recovery rates from e-waste.
Increasing Environmental Concerns Among Consumers is Driving Growth in the Electronic Scrap Recycling Market
As environmental awareness and sustainability initiatives gain traction globally, consumers are increasingly interested in reducing electronic waste. Old or obsolete electronics contain heavy metals and toxic chemicals that pollute the environment if not disposed of properly. Electronic scrap recycling helps extract valuable materials from e-waste and prevents them from ending up in landfills. Many consumers now research a company's recycling and sustainability policies before purchasing electronic products. They are willing to pay higher prices for goods from manufacturers that offer free and convenient recycling programs. This growing consumer demand is a major driver for the electronic scrap recycling market.
Rising Production of Electronic Goods Generates a Large and Consistent Supply of E-waste
With technological advancement and planned obsolescence, consumers continuously upgrade to the latest electronic devices. This rapid churn leads to a growing mountain of e-waste every year that requires proper handling. Recycling electronics is the most viable way to dispose of this waste sustainably. The huge and consistent volumes of e-waste from consumer electronics, IT equipment, and other appliances provide a steady supply of raw materials for the recycling industry. This reliable supply of feedstock helps recycling businesses operate at large scales economically.
Stringent Regulations on E-waste Management Pose Compliance Challenges
While regulations aim to promote sustainability, complying with different disposal and recycling norms across jurisdictions increases costs for recycling companies. Multiple regional and national laws govern how electronics must be repaired, reused, and disposed of responsibly. Obtaining the necessary permits and certifications is a complex process. Strict penalties for non-compliance also introduce regulatory risks. Small recyclers find it especially difficult to keep up with the changing regulatory landscape. Harmonizing norms and making compliance simpler could help stimulate greater recycling activity.
Collection and Transportation of Bulky E-waste Adds to Operating Expenses
Used electronics contain many components that must be disassembled and separated manually. This labor-intensive process drives up recycling costs. Additionally, collecting and transporting large volumes of bulky e-waste like CRT monitors and TVs requires special equipment. The geographical dispersion of collection points and processing facilities increases transportation expenses. Setting up affordable collection infrastructure, especially in remote areas, remains a challenge. Limited government support for covering collection and handling costs restricts profitability.
Advancements in Material Recovery Technologies Open New Market Prospects
Emerging recycling techniques unlock value from an ever-widening array of electronic components and scrap. Technologies such as cloud robotics, artificial intelligence, and machine learning aid in faster and more efficient disassembly, sorting, and extraction of valuable materials. Precious metals, rare earth elements, plastics, and other recyclables find growing industrial demand. Investments in advanced processing facilities to recover materials like cobalt, lithium, and indium from lithium-ion batteries and solar panels open new promising verticals. As recycling methods progress, they will make recycling smaller electronics and recovering lower-value fractions economically viable as well.
Growth of the Circular Economy Creates Synergies for Recyclers
Circular business models promote reuse, refurbishment, remanufacturing, and material recovery to maximize resource efficiency. As leading manufacturers adopt circular economy principles, collaborations will emerge across the value chain to close material loops. Recyclers can gain access to production waste, take-back programs, and even develop ancillary services like repair and remarketing. partnerships. There are synergies to be tapped through integration with OEMs, retailers, reverse logistics firms and other stakeholders promoting sustainability. The circular economy trend bodes well for creating a thriving secondary materials market.
Link - https://www.coherentmarketinsights.com/market-insight/electronic-scrap-recycling-market-4822
Key Developments
- In March 2024, Recyclekaro is set to launch India's first plasma furnace, a groundbreaking initiative that aims to enhance e-waste recycling capacity to 75,000 metric tons per year.
- In March 2024, the U.S. Department of Energy (DOE) launched the Electronics Scrap Recycling Advancement Prize (E-SCRAP) competition. The DOE will award up to US$4 million in prizes to competitors who can significantly increase the recovery and utilization of critical materials extracted from electronic scrap, commonly known as e-scrap.
- In 2022, DOWA HOLDINGS CO., LTD. entered into a collaboration agreement with Tohoku University to advance their joint research efforts in resource recycling. The partnership aims to develop and provide superior technology and materials. The purpose of this collaborative research is to create innovative solutions that will contribute to resource recycling and the delivery of advanced materials and technologies. Additionally, the partnership seeks to address sustainability challenges, such as achieving carbon neutrality and adapting to population declines.
- In 2021, Umicore, a multinational materials technology company based in Brussels, Belgium, announced an equity investment in Solid Power, a leading developer of next-generation solid-state batteries. Through this investment, Umicore aims to expand its product offerings in the electronics market.
Key Players
Umicore N.V., Dowa Holdings Co. Ltd., Ultromex Ltd., LS-Nikko Copper Inc., Glencore Xstrata PLC., Enviro-Hub Holdings Ltd., Outotec Oyj, JX Holdings Inc., Mitsui & Co. Ltd., Boliden Group, Quantum Lifecycle Partners, Stena Technoworld AB, Tetronics International Limited, Electronics Recyclers International Inc., Sims Limited, Aurubis AG, Attero Recycling Pvt. Ltd (India), Great Lakes Electronics Corporation, E-Parisaraa Private Limited, and Veolia Environment SA
