Growth and Challenges in the Construction Recycling Market - March 2002

Growth and Challenges in the Construction Recycling Market - March 2002

According to a survey by the Development Bank of Japan, the construction recycling market is expected to grow at an average annual rate of 75% between 2000 and 2010. In particular, the Construction Recycling Law, which will go into effect in May 2002, is expected to increase the recycling rate, and the market size is estimated to reach 800 to 900 billion yen annually.

This law aims to reduce waste by reusing materials such as concrete lumps, asphalt lumps, and lumber generated during construction work. The construction industry is required to shift to a resource-recycling business model, and major general contractors and small and medium-sized companies are working to develop new recycling technologies.

However, there are many challenges in developing recycling facilities and creating markets for recycled products. In particular, there is a need to establish quality standards for recycled construction materials and to strengthen the acceptance system in the general construction market. In addition, some municipalities have not yet made progress in ensuring that demolition contractors separate and dismantle materials, which means that proper operation of the law will be questioned after it comes into effect.

The growth of the construction recycling market is one of the key elements toward the realization of a resource-recycling society, and future legislation and industry initiatives will be key to market expansion.