The global Secondary Aluminium Market valued at USD 97 billion and is set for significant expansion, projected to reach USD 161 billion by 2030, with a robust CAGR of 7% from 2025-2030. The market’s growth is fueled by the increasing emphasis on sustainability, government policies promoting recycling, and rising demand across industries such as automotive, construction, and packaging.

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Market Overview

Secondary aluminium is produced through recycling aluminium scrap, including discarded products and industrial waste, instead of being extracted from bauxite ore. This process involves melting the scrap in a furnace, removing impurities, and creating recycled aluminium products. As an eco-friendly alternative to primary aluminium, secondary aluminium offers several benefits, including lower carbon emissions, waste reduction, and efficient resource utilization, contributing to a circular economy.

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Market Drivers and Trends

Governmental Efforts Towards Sustainability

Governments worldwide are enforcing stringent regulations to reduce carbon emissions, encouraging industries to integrate recycled materials into their operations. Initiatives such as the Global Recycling Foundation (GRF), launched by the Bureau of International Recycling in February 2024, are leveraging artificial intelligence (AI) to enhance recycling efficiency. AI-driven processes improve sorting and processing of secondary aluminium, ensuring better sustainability and resource conservation.

Growing Demand in Automotive & Transportation Sectors

The automotive industry is increasingly adopting secondary aluminium for manufacturing lightweight vehicle components, enhancing fuel efficiency and reducing emissions. According to the International Aluminium Institute (IAI), aluminium has a Recycling Efficiency Rate (RER) of 76%, with the transportation sector accounting for 86% of total aluminium materials recycled. This strong recycling trend further strengthens the market for secondary aluminium in the automotive industry.

Challenges and Opportunities

Despite its advantages, secondary aluminium faces challenges from alternative materials like steel and plastic, which may hinder market expansion. However, the integration of robotics and automation in recycling facilities is creating new growth opportunities. Automation enhances operational efficiency, reduces labor costs, and improves workplace safety, thereby driving the adoption of secondary aluminium.

Market Segmentation

The Secondary Aluminium Market is categorized based on the following segments:

• By Source of Aluminium: Post-Consumer Scrap, Industrial Scrap
• By Alloy Type: Cast Aluminium Alloys, Wrought Aluminium Alloys
• By Purity Level: High Purity Aluminium, Standard Purity Aluminium
• By End-User: Automotive, Aerospace & Defense, Building & Construction, Packaging, Electrical Utilities, and Other Industries
• By Region: North America, Europe, Asia-Pacific, and Rest of the World

Geographical Insights

Asia-Pacific: Leading the Market

Asia-Pacific currently holds the dominant share in the secondary aluminium market, driven by the growing production of recycled aluminium in countries like China, India, and Japan. The Japan Aluminium Association reported that secondary aluminium production in Japan reached 669.8 thousand metric tons in 2023, marking a 0.8% increase from 2022. Additionally, China’s automotive industry, the world’s largest, is expected to reach 35 million vehicles by 2025, further boosting secondary aluminium demand.

North America: Fastest-Growing Region

North America is emerging as the fastest-growing market due to its strong focus on metal recycling. The International Aluminium Institute (IAI) states that 57% of aluminium produced in North America originates from scrap materials, the highest Recycling Input Rate (RIR) globally. Additionally, companies like Novelis Inc. and Alcoa Corporation are investing heavily in expanding secondary aluminium production. In October 2022, Novelis Inc. announced a USD 2.5 billion investment in a new secondary smelter in Alabama, capable of producing 600,000 tons of aluminium annually, reinforcing the region’s leadership in aluminium recycling.

Competitive Landscape

The secondary aluminium market is highly competitive, with major players focusing on partnerships, investments, and technological advancements. Key industry leaders include:

• Constellium
• Hindalco Industries Limited
• Norsk Hydro ASA
• Rio Tinto
• Speira GmbH
• AMAG Austria Metall AG
• Alcoa Corporation
• Audubon Metals LLC
• State Metal Industries
• Superior Aluminum Alloys
• Eccomelt
• Romco Group
• Stemin S.p.A
• Tennessee Aluminum Processors
• STEINERT

Recent Developments

• Alcoa & MMG Aluminium Collaboration (April 2022): Alcoa partnered with MMG Aluminium to recycle scrap aluminium chips and briquettes. The company installed an induction furnace to efficiently melt these materials, blending them with low-carbon aluminium to produce high-quality alloys.
• Novelis’ USD 2.5 Billion Investment (October 2022): Novelis Inc. invested in a new aluminium recycling facility in Alabama, set to be the first fully integrated aluminium mill in the U.S.
• Bureau of International Recycling’s GRF Initiative (February 2024): The Global Recycling Foundation introduced AI-powered sorting and processing systems to enhance secondary aluminium recycling worldwide.

Conclusion

The global Secondary Aluminium Market is poised for significant growth, driven by sustainability initiatives, increasing adoption in key industries, and technological advancements in recycling processes. As governments and businesses worldwide prioritize eco-friendly practices, secondary aluminium is set to play a crucial role in the future of sustainable manufacturing.