Growing Automotive and Machinery Sectors Bolster Saudi Arabia Scrap Materials Market Growth
According to our latest study on " Saudi Arabia Scrap Materials Market Size and Forecast (2021–2035), Country Growth Opportunity Analysis – by Scrap Type and End-Use Industry," in terms of volume, the market is expected to grow from 13.48 million tons in 2024 to 24.23 million tons by 2035; it is estimated to register a CAGR of 6.5% from 2025 to 2035. The Saudi Arabia scrap materials market report highlights key factors driving the market growth and prominent players along with their developments in the market.
Saudi Arabia is actively investing in non-oil industries under its Vision 2030 strategy, which aims to transform the economy by localizing manufacturing and encouraging foreign investments. As a part of this strategy, the automotive sector is witnessing significant growth, with a rising focus on electric vehicles, local assembly plants, and supply chain development. The government is working to establish a domestic automotive manufacturing base, leveraging its strategic location, access to raw materials, and favorable business environment. As per the Saudi Arabian government reports, Lucid Motors is one of the largest US investments by Saudi Arabia’s Public Investment Fund, targeting peak production of ~155,000 cars a year. Ceer Motors, a joint venture between PIF and Hon Hai Precision Industry Co, is the first Saudi automotive brand that aims to design, manufacture, and sell an innovative portfolio of EVs. The company plans to become a leader in providing e-mobility, connectivity, and autonomous driving technologies. The Saudi Arabian government aims to have 3–4 OEMs producing over 400,000 passenger vehicles in the country by 2030, with a target of achieving a local gross value add (LGVA) of 40%.
Saudi Arabia Scrap Materials Market Breakdown – By Country
Saudi Arabia Scrap Materials Market Size and Forecast (2021-2035), Country Share, Trend, and Growth Opportunity Analysis Report Coverage: By Scrap Type (Heavy Iron, Light Iron, Aluminum, Copper, Plastics [Polyethylene, Polypropylene, Polyethylene Terephthalate, Polyvinyl Chloride, and Others], Batteries, Tires, Glass, Wood, Large Vehicles, Small Vehicles, and Gas Cylinder), End-Use Industry (Building and Construction, Automotive, Electrical and Electronics, Packaging, Consumer Goods, Aerospace and Defense, and Others), and City
Saudi Arabia Scrap Materials Market Size and CAGR by 2035
Download Free Sample
The machinery industry is growing significantly, driven by large-scale infrastructure projects; increased industrial automation; and demand for heavy equipment in construction, mining, and energy sectors. Saudi Arabia’s giga-projects—such as NEOM and the Red Sea Project—require different types of machinery, driving the demand for imports and local production. The Saudi Industrial Development Fund provides incentives for manufacturers to set up operations in the country. Old machinery, construction equipment, and worn-out industrial tools generate a steady flow of scrap metals such as iron, copper, and stainless steel. The development of the local automotive industry involving electric vehicle production and traditional automobile assembly generates a significant amount of scrap metal, including aluminum, steel, and copper. These materials are generated from waste, defective parts, and end-of-life vehicles. The country’s growing focus on sustainability and circular economy has encouraged companies to prioritize recycling automotive scrap. Thus, the growing automotive and machinery sectors boost the Saudi Arabia scrap materials market growth.
The Saudi Arabia scrap materials market analysis has been performed by considering the following segments: scrap type and end-use industry. Based on scrap type, the market is segmented into heavy iron, light iron, aluminum, copper, plastics, batteries, tires, glass, wood, large vehicles, small vehicles, and gas cylinder. The plastics segment is further segmented into polyethylene, polypropylene, polyethylene terephthalate, polyvinyl chloride, and others. The plastics segment is expected to register a significant CAGR from 2025 to 2035. By end-use industry, the market is segmented into building and construction, automotive, electrical and electronics, packaging, consumer goods, aerospace and defense, and others. The building and construction segment is anticipated to hold a significant Saudi Arabia scrap materials market share.
In terms of scrape type, the light iron segment is expected to contribute significantly to the market growth. Light iron includes thin-gauge ferrous materials such as sheet metal and automotive body parts and appliances. It is generated from end-of-life vehicles, refrigerators, dryers, and washing machines. Light iron scrap is processed through shredding facilities, where it is sorted and supplied to steel manufacturers and foundries. The recycling of light iron helps reduce waste disposal costs and lowers production costs for steel plants.
In terms of revenue, Riyadh dominated the Saudi Arabia scrap materials market share in 2024. Riyadh, the primary hub for scrap trading and recycling, supports extensive construction projects. The city generates a significant volume of steel, aluminum, and nonferrous wastes. According to Saudi Arabia’s National Center for Waste Management, Riyadh generates ~21% of Saudi Arabia’s total waste. The report also showed that a total of ~13,300 metric tons of waste is dumped in the landfills of Riyadh regularly, making it the highest waste-generating city in Saudi Arabia. The waste generated from construction activities forms the highest proportion of the waste collected by scrap dealers in Riyadh. This waste generated includes nonhazardous materials such as wood, plastics, and tires, as well as oil, chemicals, asbestos, and other harmful materials. The presence of major recycling companies and government-backed initiatives make the city one of the major players in the scrap materials market.
Jeddah, a port city, is an important hub for scrap imports and exports. The city’s industrial activities generate high amounts of ferrous and nonferrous metal scrap and paper and plastic wastes. It is expected to register a significant CAGR in the Saudi Arabia scrap materials market from 2025 to 2035. The automotive and marine industries in Jeddah contribute to significant vehicle scrap. In June 2024, Reviva, a subsidiary of the Saudi Investment Recycling Company Group, signed an agreement to establish a plant for recycling marine and industrial waste at Jeddah Islamic Port. The project was valued at US$ 8 million for the development of an area of 10,000 sq. m. The collaboration between Mawani (Saudi Ports Authority) and Reviva is expected to boost the country’s waste management efforts as part of Saudi Vision 2030 in the coming years.
The Saudi Arabia scrap materials market trends include the growing emphasis on battery recycling. Saudi Arabia’s transition toward sustainability and environmental protection drives the need for battery recycling. As the country is enhancing its manufacturing base, the demand for electric vehicles, renewable energy storage, and consumer electronics is rising, leading to an increased consumption of lithium-ion and lead-acid batteries. However, this rising demand has raised concerns over battery waste and its environmental consequences. Battery recycling reduces reliance on raw material imports, especially for critical minerals such as lithium, cobalt and nickel, essential for batteries used in electric vehicles. Creating a circular supply chain by recycling the raw materials of batteries will help reduce the component’s environmental impact. Many automakers are focusing on achieving a closed-loop process for recovering raw materials from lithium-ion batteries. Saudi Arabia is promoting circular economy principles such as reducing waste, recycling materials, and reusing valuable components from old batteries. The Ministry of Environment, Water, and Agriculture is focused on initiatives that align with global standards for battery recycling to help mitigate the harmful effects of hazardous materials on the environment. In 2022, the Saudi Arabian government launched various initiatives aimed at enhancing recycling infrastructure, including e-waste collection points and awareness campaigns to encourage citizens to recycle batteries and other electronic waste. Thus, the growing emphasis on battery recycling is expected to bring new trends in the Saudi Arabia scrap materials market in the coming years.
The Saudi Arabia scrap materials market forecast can help stakeholders plan their growth strategies. SCG International Corp Co Ltd, Aboura Metals FZCO, Four Season FZE, SJ Iron and Metals Co, Bissan Co Ltd, PGI Group, Gulf Union Trading Co, Sohum Steel Scrap, Arab Recycling Co, and Middle East Scrap Co are among the prominent players profiled in the Saudi Arabia scrap materials market report. These market players are focusing on providing high-quality products to fulfill customer demand. They are adopting strategies such as new product launches, capacity expansions, partnerships, and collaborations to stay competitive in the market. For instance, in March 2024, Veolia and the Saudi Investment Recycling Company (SIRC) signed a Memorandum of Understanding (MoU) to manage organic, industrial, and hazardous waste at a regional and national level in accordance with the Vision 2030 program.
The Saudi Arabia scrap materials market is segmented on the basis of scrap type, end-use industry, and city. Based on scrap type, the market is segmented into heavy iron, light iron, aluminum, copper, plastics, batteries, tires, glass, wood, large vehicles, small vehicles, and gas cylinder. The plastics segment is further segmented into polyethylene, polypropylene, polyethylene terephthalate, polyvinyl chloride, and others. By end-use industry, the market is segmented into building and construction, automotive, electrical and electronics, packaging, consumer goods, aerospace and defense, and others. Geographically, the Saudi Arabia scrap materials market is broadly segmented into Riyadh, Jeddah, Dammam, Jubail, Madinah, Al Kharj, Mecca, and the Rest of Saudi Arabia.