금속 가공 산업용 대체 연료 및 원료(AFR) 시장 : 시장 점유율 분석, 산업 동향 및 통계 데이터, 성장 예측(2026-2031년)

According to Mordor Intelligence, the alternate fuel and Raw Materials Market For Metal Processing Industry size is expected to increase from USD 1.68 billion in 2025 to USD 1.89 billion in 2026 and reach USD 2.69 billion by 2031, growing at a CAGR of 7.31% over 2026-2031.

This report is Segmented by Fuel Types (RDF, SRF, and Others), Raw Material Types (Fly Ash, Foundry Sand, and Others), Application (Steelmaking, Ironmaking and Blast Furnaces, Electric Arc Furnaces and Other Applications), and Geography (North America, Europe, Asia-Pacific, South America, and the Middle East and Africa). The Market Forecasts are Provided in Terms of Value (USD).

Insights and Trends of Alternate Fuel and Raw Materials (AFR) Market For Metal Processing Industry

Industrial Decarbonization and Fossil-Fuel Substitution

The alternate fuel and raw materials market benefits from pressure on steel and metal processors to reduce fossil fuel use. Scrap electric arc furnace routes can offer lower-cost emissions reductions than conventional routes in some regions . This supports near-term use of recovered fuels and secondary materials where full process replacement is not practical. As electric arc furnace capacity grows, buyers need more bio-carbon carriers and slag-conditioning materials. Voestalpine approved EUR 100 million of additional investment for its Donawitz Greentec steel expansion in June 2026 . That investment indicates that suppliers with certified low-carbon inputs can benefit from new furnace capacity.

Rising Demand for Low-Carbon Reducing Agents in Steelmaking

The alternate fuel and raw materials market is supported by demand for reducing agents with lower embedded carbon. A 2026 review found that biochar can work as a foaming slag agent and auxiliary reducing agent in electric arc furnace steelmaking. Biochar and coke blends can widen operating conditions for slag foaming while lowering electricity use. The University of Minnesota Natural Resources Research Institute is preparing a commercial-scale electric arc furnace biocarbon demonstration in 2026. ArcelorMittal Espana completed a pilot and techno-economic evaluation of SRF gasification for synthesis gas applications in steelmaking . These projects make biomass, SRF, and related reducing inputs more relevant to operational steelmaking decisions.

Inconsistent AFR Quality and Contaminant Loads

The alternate fuel and raw materials market faces a material quality challenge because recovered streams vary in moisture, calorific value, and chlorine content. These changes can affect furnace stability and lead operators to set conservative substitution rates. Metal applications also require strict control of lead, zinc, copper, and other trace metals. This is especially important for electric arc furnaces producing flat products with narrow chemistry limits. Digital sorting and batch certification can improve visibility, but they do not remove the need for physical segregation. Suppliers that consistently meet furnace-grade specifications can command a more defensible position than processors selling mixed material.

Other drivers and restraints analyzed in the detailed report include:

1. Tightening Landfill Diversion and Circular-Economy Requirements
2. Integration of Waste-Derived Feedstocks into Existing Furnace Systems
3. High Logistics Costs for Low-Density Waste Streams

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

Solid Recovered Fuel held 31.2% of the alternate fuel and raw materials market size in 2025, supported by standardized specifications and developed sorting networks. CEN and ISO methods help processors document the relevant characteristics of solid recovered fuels. SRF provides a consistent option for co-processing where material preparation is mature. RDF remains a lower-cost option, although its broader composition can limit furnace use. Waste plastics can provide secondary carbon in selected ironmaking and electric arc furnace applications. The fuel choice depends on carbon content, contamination risk, local availability, and the receiving process. Suppliers must balance a buyer's emissions objectives with its requirements for consistent performance. The alternate fuel and raw materials industry, therefore, needs processing systems that separate fuel grades rather than treating all waste-derived fuels as interchangeable. Mature European markets retain an advantage because the collection and sorting infrastructure is already connected to industrial users.

Biomass is projected to record a 9.2% CAGR through 2031, the fastest rate among fuel types. Biochar can support slag foaming and auxiliary reduction within electric arc furnace operations. The same material can be valuable when buyers need documented biogenic carbon content. The Natural Resources Research Institute's 2026 commercial-scale demonstration will test this route under operating conditions relevant to North American producers. Non-forest feedstocks can also widen the available supply base. Mazda completed trials involving bamboo-waste briquettes for cupola furnace use in April 2026. The alternate fuel and raw materials market can therefore gain from regional biomass streams that meet quality and traceability requirements. Biomass suppliers still need to manage storage, moisture, transport density, and seasonal collection conditions. These operating constraints will determine whether strong growth translates into broad commercial adoption.

Complete Report Scope:

• By Fuel Type
  • Refuse-Derived Fuel (RDF)
  • Solid Recovered Fuel (SRF)
  • Biomass
  • Waste Plastics
  • Other Fuel Types
• By Raw Material Type
  • Fly Ash
  • Blast Furnace Slag
  • Foundry Sand
  • Steel Slag
  • Other Raw Material Types
• By Application
  • Steelmaking
  • Ironmaking and Blast Furnaces
  • Electric Arc Furnaces
  • Non-Ferrous Metal Smelting
  • Ferroalloy Production
  • Other Applications
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
  • Europe
    • Germany
    • France
    • Italy
    • Spain
    • United Kingdom
    • Poland
    • Russia
    • Rest of Europe
  • Asia-Pacific
    • China
    • India
    • Japan
    • South Korea
    • Australia
    • Indonesia
    • Vietnam
    • Thailand
    • Rest of Asia-Pacific
  • South America
    • Brazil
    • Argentina
    • Chile
    • Rest of South America
  • Middle East and Africa
    • Saudi Arabia
    • United Arab Emirates
    • Egypt
    • South Africa
    • Morocco
    • Rest of Middle East and Africa

Geography Analysis

Europe held 36.2% of the alternate fuel and raw materials market size in 2025. Its leading position rests on waste regulation, collection infrastructure, industrial processing capacity, and carbon-cost exposure. The European Commission's 2025 Waste Framework Directive update reinforces prevention, separate collection, and improved recycling obligations. Regulation (EU) 2024/1252 also strengthens interest in recovering materials from extractive and legacy waste. Germany, the Netherlands, and Belgium remain central to regional SRF and secondary-material supply chains. These countries have dense waste sorting networks and established industrial users. European processors are therefore better placed to offer specified material grades. The alternate fuel and raw materials market in Europe will continue to depend on policies that direct materials away from landfill and toward verified recovery routes.

Asia-Pacific is forecast to grow at a 9.6% CAGR through 2031, the highest regional rate. The region combines steel capacity expansion with national efforts to reduce emissions intensity. This increases demand for low-carbon inputs in electric arc furnace and direct reduced iron routes. The alternate fuel and raw materials market has a larger supply-chain development opportunity in Asia-Pacific than in mature European systems. Regional buyers need dependable collection, preprocessing, and certification systems. Agricultural residues may provide a local source of biomass-derived reducing material where collection can be organized. The strongest opportunity lies where steel capacity, residue availability, and industrial logistics overlap. Suppliers that establish local processing networks can avoid the transport penalty associated with low-density materials.

North America, South America, and the Middle East and Africa are earlier-stage opportunity areas for the alternate fuel and raw materials market. The US Department of Energy published a 2026 technical report on methane-pyrolysis-driven direct reduced iron as a route toward lower-carbon steel production. Such projects can widen the need for compatible recovered inputs as steel assets are upgraded. Holcim reported that Geocycle managed 12.6 million tonnes of waste globally in 2025 and supported nearly 40% of Holcim thermal energy needs with circular waste-derived sources. The same collection and preparation model can inform industrial co-processing where metal-sector demand develops. South America and the Middle East and Africa face more fragmented waste handling and longer transport routes. Investment in sorting and local preparation will be necessary before these regions can scale supply reliably.

1. Airex Energy Inc.
2. Averda International Limited
3. Befesa S.A.
4. Biffa Limited
5. Blue Phoenix Group B.V.
6. EEW Energy from Waste GmbH
7. Enva Group Limited
8. Fomento de Construcciones y Contratas, S.A.
9. Geocycle SA
10. Holcim AG
11. Indaver NV
12. N+P Group B.V.
13. PreZero International GmbH
14. Ragn-Sells AB
15. REMONDIS SE & Co. KG
16. Renewi plc
17. SARIA SE & Co. KG
18. Sembcorp Environment Pte. Ltd.
19. SUEZ S.A.
20. Veolia Environnement S.A.
21. Viridor Limited

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

TABLE OF CONTENTS

1 INTRODUCTION

• 1.1 Study Assumptions and Market Definition
• 1.2 Scope of the Study

2 RESEARCH METHODOLOGY

3 EXECUTIVE SUMMARY

4 MARKET LANDSCAPE

• 4.1 Market Overview
• 4.2 Market Drivers
  • 4.2.1 Industrial Decarbonization and Fossil-Fuel Substitution
  • 4.2.2 Tightening Landfill Diversion and Circular-Economy Requirements
  • 4.2.3 Rising Demand for Low-Carbon Reducing Agents in Steelmaking
  • 4.2.4 Integration of Waste-Derived Feedstocks into Existing Furnace Systems
  • 4.2.5 Digital Quality Certification for Heterogeneous AFR Streams
  • 4.2.6 Monetization of Embedded Mineral and Carbon Value in Industrial Residues
• 4.3 Market Restraints
  • 4.3.1 Inconsistent AFR Quality and Contaminant Loads
  • 4.3.2 High Logistics Costs for Low-Density Waste Streams
  • 4.3.3 Furnace-Specific Feeding and Emissions Compatibility Constraints
  • 4.3.4 Competition from Higher-Value Recycling and Secondary-Material Uses
• 4.4 Value Chain Analysis
• 4.5 Regulatory Landscape
• 4.6 Technological Outlook
• 4.7 Porter's Five Forces Analysis
  • 4.7.1 Bargaining Power of Suppliers
  • 4.7.2 Bargaining Power of Buyers
  • 4.7.3 Threat of New Entrants
  • 4.7.4 Threat of Substitutes
  • 4.7.5 Competitive Rivalry

5 MARKET SIZE AND GROWTH FORECASTS

• 5.1 By Fuel Type
  • 5.1.1 Refuse-Derived Fuel (RDF)
  • 5.1.2 Solid Recovered Fuel (SRF)
  • 5.1.3 Biomass
  • 5.1.4 Waste Plastics
  • 5.1.5 Other Fuel Types
• 5.2 By Raw Material Type
  • 5.2.1 Fly Ash
  • 5.2.2 Blast Furnace Slag
  • 5.2.3 Foundry Sand
  • 5.2.4 Steel Slag
  • 5.2.5 Other Raw Material Types
• 5.3 By Application
  • 5.3.1 Steelmaking
  • 5.3.2 Ironmaking and Blast Furnaces
  • 5.3.3 Electric Arc Furnaces
  • 5.3.4 Non-Ferrous Metal Smelting
  • 5.3.5 Ferroalloy Production
  • 5.3.6 Other Applications
• 5.4 By Geography
  • 5.4.1 North America
    • 5.4.1.1 United States
    • 5.4.1.2 Canada
    • 5.4.1.3 Mexico
  • 5.4.2 Europe
    • 5.4.2.1 Germany
    • 5.4.2.2 France
    • 5.4.2.3 Italy
    • 5.4.2.4 Spain
    • 5.4.2.5 United Kingdom
    • 5.4.2.6 Poland
    • 5.4.2.7 Russia
    • 5.4.2.8 Rest of Europe
  • 5.4.3 Asia-Pacific
    • 5.4.3.1 China
    • 5.4.3.2 India
    • 5.4.3.3 Japan
    • 5.4.3.4 South Korea
    • 5.4.3.5 Australia
    • 5.4.3.6 Indonesia
    • 5.4.3.7 Vietnam
    • 5.4.3.8 Thailand
    • 5.4.3.9 Rest of Asia-Pacific
  • 5.4.4 South America
    • 5.4.4.1 Brazil
    • 5.4.4.2 Argentina
    • 5.4.4.3 Chile
    • 5.4.4.4 Rest of South America
  • 5.4.5 Middle East and Africa
    • 5.4.5.1 Saudi Arabia
    • 5.4.5.2 United Arab Emirates
    • 5.4.5.3 Egypt
    • 5.4.5.4 South Africa
    • 5.4.5.5 Morocco
    • 5.4.5.6 Rest of Middle East and Africa

6 COMPETITIVE LANDSCAPE

• 6.1 Market Concentration
• 6.2 Strategic Moves
• 6.3 Market Share Analysis
• 6.4 Company Profiles (includes Global Level Overview, Market Level Overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share, Products and Services, Recent Developments)
  • 6.4.1 Airex Energy Inc.
  • 6.4.2 Averda International Limited
  • 6.4.3 Befesa S.A.
  • 6.4.4 Biffa Limited
  • 6.4.5 Blue Phoenix Group B.V.
  • 6.4.6 EEW Energy from Waste GmbH
  • 6.4.7 Enva Group Limited
  • 6.4.8 Fomento de Construcciones y Contratas, S.A.
  • 6.4.9 Geocycle SA
  • 6.4.10 Holcim AG
  • 6.4.11 Indaver NV
  • 6.4.12 N+P Group B.V.
  • 6.4.13 PreZero International GmbH
  • 6.4.14 Ragn-Sells AB
  • 6.4.15 REMONDIS SE & Co. KG
  • 6.4.16 Renewi plc
  • 6.4.17 SARIA SE & Co. KG
  • 6.4.18 Sembcorp Environment Pte. Ltd.
  • 6.4.19 SUEZ S.A.
  • 6.4.20 Veolia Environnement S.A.
  • 6.4.21 Viridor Limited

7 MARKET OPPORTUNITIES AND FUTURE OUTLOOK

• 7.1 White-Space and Unmet-Need Assessment