Japan’s ferrous scrap recycling market is projected to reach USD 14.5 million by 2034, with a growth rate of 4.82%. The 2025 market size is currently estimated at USD 9.5 million, and future developments are attracting attention.
According to a report by IMARC Group, Japan’s ferrous scrap recycling market is expected to reach USD 14.5 million by 2034, with a CAGR of 4.82% from 2026 to 2034. In 2025, the market size was reported as USD 9.5 million, not 9 million units.
In 2026, the market is expected to become strategically important as the steel industry transitions from a blast-furnace-centered model to electric arc furnaces (EAFs) using scrap as feedstock. Ferrous scrap will become an important input for decarbonisation, increasing the value of quality, traceability and a stable supply. Nippon Steel Corporation is advancing its transition to electric arc furnace steel, including plans for a new plant in Kyushu.
Advances in recycling technology are also supporting the market. The use of AI-based sorting machines, optical sensors and magnetic separators is improving the accuracy of separating ferrous and non-ferrous metals, while robotics and smart monitoring are increasing the efficiency of yard operations. End users span a wide range of industries, including construction, automotive, shipbuilding and consumer electronics, while efforts to promote the circular economy and reduce carbon emissions are providing further momentum.
In terms of investment trends, Toyota Tsusho has formulated a plan to invest ¥1.2 trillion by March 2028, with the aim of becoming one of the world’s largest metal scrap recycling companies. The Japanese government has pledged ¥1 trillion in combined public- and private-sector investment by 2030, supporting efforts to strengthen domestic recycling capacity.