A recent research report titled "E-scrap Recycling Market Forecast to 2028 - COVID-19 Impact and Global Analysis," released by The Insight Partners, indicates that the market is projected to achieve a value of US$ 8,199.04 million by 2028, with a compound annual growth rate (CAGR) of 14.3% from 2021 to 2028.
The telecommunications sector is heavily involved in the transmission of voice, data, text, sound, and video, necessitating a wide array of electronic and electrical components such as transmitters, receivers, antennas, cables, satellites, and various devices including phones, routers, and modems. These devices can be dismantled into recyclable materials, and effective management is essential to ensure compliance with regulations and secure data deletion, irrespective of their operational condition. Improper disposal of e-waste from telecommunications equipment can lead to significant environmental harm, as toxic substances like lead, cadmium, and mercury contribute to 70% of landfill pollution. These hazardous materials can leach into groundwater, soil, and the food chain, posing serious health risks, including respiratory ailments and issues affecting the neurological, reproductive, and developmental systems. Consequently, the increasing demand for recycling telecommunications equipment is propelling the growth of the e-scrap recycling market.
White goods, which refer to household appliances such as washing machines, refrigerators, and air conditioners, are now available in various colors but are still commonly referred to as white goods. Recycling these appliances is an effective method to repurpose scrap or items that might otherwise be discarded in landfills. The recycling process involves repairing or dismantling white goods to recover recyclable materials while responsibly disposing of non-recyclable components. This process includes the removal of hazardous substances like heavy metals, chemicals, or gases from the appliances. The metals from white goods can be recycled multiple times to create new products, including copper, steel, and polymers. These factors have significantly contributed to the growth of the e-scrap recycling market focused on white goods.
Moreover, glass is a prevalent material in electronics such as smartphones, laptops, and televisions, leading to an increase in glass e-waste globally. The rise in glass e-waste generation poses risks to those handling it and can have detrimental effects on the environment if improperly disposed of in landfills. Private enterprises are investing in glass e-waste recycling, further fueling the growth of the e-scrap recycling market.
Impact of COVID-19 on the E-Scrap Recycling Market
The COVID-19 pandemic has had a profound effect on North America, with the US, Canada, and Mexico experiencing a notable surge in COVID-19 cases. The manufacturing sector in this region has faced significant challenges due to the pandemic, affecting supply chains, operations, workforce availability, investments made in 2020, and product offerings. Overhead costs for various providers, including sales, research and development, and administrative expenses, saw a decline in the first nine months due to stringent measures implemented during the pandemic.
However, following the lockdowns, there has been an uptick in demand for digital devices within the E-scrap recycling market. North America boasts a robust infrastructure that supports high-speed internet services, positioning it as a leader in the adoption of smart or IoT-based devices. Although the production capacities of electronics manufacturing facilities were reduced during the COVID-19 crisis, the demand for electronics remained steady, aiding the recovery of the E-scrap recycling market. Rapid technological advancements that promote the creation of new products and the replacement of outdated equipment have made electronic waste one of the fastest-growing waste streams in North America. The increased reliance on electronic devices during the pandemic is anticipated to drive significant growth in the North American e-scrap recycling market in the coming years.
Countries such as Saudi Arabia, the UAE, Egypt, Morocco, and Kuwait in the Middle East and Africa (MEA) are facing considerable challenges due to the economic repercussions of COVID-19. The pandemic has severely impacted the local recycling economy, resulting in the closure of numerous small businesses. While some companies resumed operations in May 2021 when the national lockdown was at Level 4, others only reopened in June or July 2021. Larger corporations had to implement workforce reductions and salary cuts of up to 35%.
The e-scrap recycling market operates on a high-cost, low-margin, and high-volume basis. The pandemic's impact on supply chains has led to a reduction in the number of companies, which in turn has decreased their profit margins. The UAE government is promoting the adoption of advanced technologies across various sectors to enhance efficiency. Consequently, the initiatives being implemented across the region to mitigate the effects of COVID-19 on the service industry are expected to have a moderate to low impact on the e-scrap recycling market in the future.
The global e-scrap recycling market is categorized based on product type, processed material, and geography. In terms of product type, the market includes IT & telecom equipment, small household appliances, large white goods, consumer electronics, and others. Regarding processed materials, the market is segmented into metals, glass, plastics, and others. Geographically, the global e-scrap recycling market is divided into North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and South America (SAM). Key players in the global e-scrap recycling market include Aurubis AG, Umicore, Boliden Group, Stena Metal AB, and Tetronics Environmental Waste Treatment.
The size of the e-scrap recycling market has been determined through both primary and secondary research methodologies. The initial phase involved extensive secondary research using both internal and external sources to collect qualitative and quantitative data related to the e-scrap recycling market size. This step also provided an overview and forecast of the market size across all segments. Following this, multiple primary interviews were conducted with industry participants to validate the data and gain additional analytical insights. The primary interviewees included industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders with specialized knowledge of the e-scrap recycling market.