According to the new research report titled "E-scrap Recycling Market Forecast to 2028 - COVID-19 Impact and Global Analysis," published by The Insight Partners, the market is expected to reach US$ 8,199.04 million by 2028, registering a CAGR of 14.3% from 2021 to 2028.
The telecommunications industry primarily deals with transmitting voice, data, text, sound, and video, requiring a vast number of electronic and electrical components such as transmitters, receivers, antennas, cables, satellites, and various devices like phones, routers, and modems. These devices can be broken down into recyclable commodities, and proper administration is crucial to ensure regulatory compliance and secure data erasure, regardless of their operational status. Disposing of e-waste from telecommunications equipment can cause severe environmental damage, with harmful compounds like lead, cadmium, and mercury, responsible for 70% of landfill pollution. Such chemicals can contaminate groundwater, soil, and the food chain, posing significant risks to people's health, including respiratory issues and neurological, reproductive, and developmental system problems. As a result, the growing necessity to recycle telecommunications equipment is driving the expansion of the e-scrap recycling market.
White goods, which are household appliances like washing machines, refrigerators, and air conditioners, are now available in different colors, but they are still called white goods. Recycling white goods is an excellent way to repurpose scrap or items that might otherwise end up in landfills. The process involves repairing or deconstructing the white goods to recover recyclable materials and dispose of non-recyclable elements in an eco-friendly manner. The recycling process involves removing any hazardous substances like heavy metals, chemicals, or gases from the device. White-goods metal can be recycled multiple times to produce new items, such as copper, steel, and polymers. These factors have driven the growth of the e-scrap recycling market for white goods.
In addition, glass is commonly used in electronics like smartphones, laptops, and televisions, leading to a rise in glass e-waste worldwide. This increase in the generation of glass e-waste poses a danger to those handling the waste and can have harmful effects on the environment if disposed of in landfills. Private companies are investing in glass e-waste recycling, contributing to the growth of the e-scrap recycling market.
COVID-19 Impact on E-Scrap Recycling Market
The COVID-19 pandemic has severely impacted North America, with the US, Canada, and Mexico witnessing a significant increase in COVID-19 cases. Manufacturing businesses in the region have been negatively affected by the pandemic in four critical areas: supply chain/operations, workforce, 2020 investments, and product offerings. Overhead costs for various providers, including sales, research and development, and administration expenses, decreased in the first 9 months due to severe measures taken during the pandemic.
However, post-lockdown, the demand for digital devices in the E-scrap recycling market has increased. North America has a favorable infrastructure that supports high-speed internet services, making it the leading region for adopting smart or IoT-based devices. Although the production capacities of electronics manufacturing facilities were lowered during the COVID-19 outbreak, the demand for electronics remained constant, which helped the E-scrap recycling market recover. Due to rapid technological advancements that encourage the production of new goods and the replacement of obsolete equipment, electronic waste is one of North America's fastest-growing waste sources. The increased use of electronic devices during the pandemic is expected to drive the rapid growth of the North America e-scrap recycling market during the forecast period.
Major challenges are being faced by Saudi Arabia, the UAE, Egypt, Morocco, and Kuwait, which are the key countries in the Middle East and Africa (MEA) that are experiencing the economic consequences of COVID-19. The pandemic has had a devastating impact on the local recycling economy, leading to the closure of many small businesses. While some enterprises resumed operations in May 2021 when the national lockdown was at Level 4, others only opened in June or July 2021. Some larger corporations had to cut down on employees and salaries by up to 35%.
The e-scrap recycling market is a high-cost, low-margin, and high-volume enterprise. Due to the pandemic's supply-side impact, the volume of companies decreased, leading to a decrease in their margins. The UAE government is encouraging the adoption of advanced technology across various industries to improve their efficiency. Therefore, the increasing initiatives across the region to reduce the impact of COVID-19 on the service industry are expected to have a medium to low impact on the e-scrap recycling market in the coming years.
The global e-scrap recycling market is segmented based on product type and processed material, and geography. Based on product type, the e-scrap recycling market is segmented IT & telecom equipment, small household appliances, large white goods, consumer electronics, and others. Based on processed material, the e-scrap recycling market is segmented metal, glass, plastic, and others. Based on geography, the global e-scrap recycling market is segmented into North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and South America (SAM). Aurubis AG, Umicore, Boliden Group, Stena Metal AB, and Tetronics Environmental Waste Treatment, are among the top five market players operating in the global e-scrap recycling market.
The e-scrap recycling market size has been determined using both primary and secondary research sources. The initial phase of the research process involved extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative information pertaining to the e-scrap recycling market size. This step also helped to provide an overview and forecast of the e-scrap recycling market size for all its segments. Subsequently, multiple primary interviews were conducted with industry participants to validate data and gain further 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 such as valuation experts, research analysts, and key opinion leaders with specialized knowledge of the e-scrap recycling market.