The Global Battery Recycling Market Anticipated to Generate a Revenue of $20,407.7 Million, Growing at a CAGR of 9.3% from 2021 to 2028 - Research DiveDownload Sample Reports Overview
The global battery recycling market is estimated to be valued at $20,407.7 million by 2028, surging from $9,748.7 million in 2020 at a noteworthy CAGR of 9.3%.
Impact Analysis of COVID-19 on the Battery Recycling Market
COVID-19 outbreak led to the lack of staff and raw materials; hence, the majority of factories remained closed or were unable to reach full production capacity. These actions have had a negative impact on global battery recycling market, across the world. On the other hand, government authorities of developing nations such as China are coming up with effective policies, amid the COVID-19 chaos. For example, in January 2020, the Chinese government announced new regulations for recycling of used new energy vehicle (NEV) power batteries. These regulations are predicted to raise the supplies of battery metals such as nickel, lithium, manganese, and cobalt. Such government initiatives may help uplift the battery recycling industry, during the pandemic.
Global Battery Recycling Market Analysis
Europe has a strong battery recycling market. As the use of electric vehicles (EVs) grows, the market for EV batteries presents an opportunity for European players. With the advent of electromobility and the subsequent increase in EV production, the market for EV batteries has consistently experienced high growth rates in recent years. Above-stated factors may exponentially increase the demand of advanced batteries, which may enhance the global battery recycling market, during the forecast period. Also, Asian countries such as China are focusing mainly on the material recycling opportunity rather than the re-use opportunity. This is due to a desire to reduce reliance on imported lithium. Such elements may also drive the global battery recycling market, in the coming years.
However, COVID-19 economic crisis, political risks, upcoming battery recycling regulations, and the volatility of market price of virgin materials are some factors obstructing the global battery recycling market growth.
Due to the rising demand for electric vehicles (EVs), battery producers, vehicle manufacturers, consumers, governments, and regulatory authorities are working in cohesion. The battery and vehicle manufacturers have been pushing forward EV battery recycling and reuse. This is being reinforced by progressive government regulations, such as the recent updates to battery reuse and recycling regulations in Europe. China, Europe and Japan have clear regulatory frameworks for lithium battery recycling. There are ongoing federal efforts in the United States to facilitate the reuse of EV batteries. Certain states regulate the disposal and recycling of EV batteries, while others have made battery manufacturers responsible for waste management. Several states, including California, Texas, and Wisconsin, have laws requiring battery disposal and recycling, and others, including New York, Florida, New Jersey, and Minnesota, have enacted laws requiring extended producer responsibility, which shifts the cost of waste management and recycling back to the battery producer.
Global Battery Recycling Market, Segmentation
The global battery recycling market is segmented based on chemistry, source, application. and region.
The chemistry segment is further classified into lead-acid battery, lithium-based battery, nickel-based battery, and others. The lead-acid battery sub-segment is expected to have the largest market share, with revenues exceeding $13,882.8 million by 2028, up from $6,613.2 million in 2020. The market is expected to grow as a result of rising demand for lead-acid batteries in automobiles and uninterruptible power source (UPS) systems, as well as innovations in manufacturing techniques. Lead-acid battery units have large electrolyte reserves, corrosion resistance, and a low discharge rate, which contributes to their market position. All these aspects are expected to benefit the lead-acid battery sub-segment, during the forecast period.
The source is further classified into automotive batteries, industrial batteries, and consumer &electronic appliance batteries. The industrial batteries sub-segment is expected to have a dominant market share of $10,327.2 million by 2028, up from $5,010.7 million in 2020. The development, production, and use of batteries are critical steps toward a climate-neutral economy, given their importance in the deployment of zero-emission mobility and the storage of intermittent renewable energy and this factor has the greatest impact when evaluating economic efficiency. Some of the key factors driving the market are rising demand from server farms and the telecom sector, as well as rising sustainable power combination around the world. Furthermore, factors such cost-effectiveness and the availability of raw materials such as cobalt, lead, and lithium are likely to surge market development during the forecasted time frame.
The application sub-segment is further divided into transportation, consumer electronics, industrial, others. The transportation sub-segment will have a dominating market share and it is expected to surpass $8,746.4 million by 2028, up from $4,248.1 million in 2020. Although batteries have already demonstrated to be a commercially feasible energy storage technology, their high costs and low round-trip efficiencies have prevented their widespread use. However, as the use of lithium-ion batteries grows in consumer devices and electric cars, worldwide manufacturing capacity expands, resulting in considerable cost reductions that are likely to continue in the future years. . Batteries play an important role in powering the growing digital economy and the ever-increasing number of portable electronics. Global battery demand is expected to rise as a result of electrification of transportation and the deployment of batteries in power grids.
The battery recycling market for the Europe region is projected to have the largest share. The market in Europe generated a revenue of $3,493.0 million in 2020 and is projected to reach up to $7,210.0 million by 2028. The era of electric vehicles is imminent, and batteries are poised to become a key source of mobility power. Hence, battery cell manufacturers operating in the European countries are adding massive amounts of production capacity in order to gain market share and achieve economies of scale. Furthermore, increasing environmental concerns particularly across the U.K., Germany, and France are also creating remarkable impact on the European battery recycling market.
Key Players in the Global Battery Recycling Market
Some of the leading global battery recycling market players are –
- Call2Recycle, Inc.
- Battery Solutions, LLC
- Exide Technologies
- Contemporary Amperex Technology Co., Limited
- GEM Co., Ltd.
- Johnson Controls International plc
- Fortum OYJ
- Aqua Metals, Inc.
Along with the company profiles of the key players in the market, the report includes the Porter’s five forces model that gives deep insights into the competitive environment of the market.
Porter’s Five Forces Analysis for the Global Battery Recycling Market
- Bargaining Power of Suppliers: Suppliers in the battery recycling market are few, and product dependence, availability of raw materials, and pricing give suppliers significant bargaining power.
As a result, the bargaining power of suppliers is high.
- Bargaining Power of Buyers: The initial cost of battery recycling necessitates large capital investments. Buyers are eligible for tax credits and subsidies for choosing a clean energy source.
As a result, the bargaining power of buyers is low.
- Threat of New Entrants: Startups entering this market face high capital investment costs, labor costs, and must adhere to government regulations.
As a result, the threat posed by new entrants is low.
- Threat of Substitutes: There are alternative renewable energy sources such as wind power, hydro power, and others but the energy produced by these sources is low and it is under the development stage. The fossil fuel dependency is reducing due to harmful emission of greenhouse gases and government regulations on carbon emission.
Therefore, the threat of substitutes is low.
- Competitive Rivalry in the Market: To stay ahead of the competition, companies in the global battery recycling market are focusing on strategies such as business expansion, technological innovations, and product advancements.
As a result, the market's competitive rivalry is moderate.