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The battery recycling market size is estimated to grow by USD 11.35 billion at a CAGR of 11.53% between 2023 and 2028. The market is witnessing notable growth due to several key factors. First, the expanding supply-demand gap for lithium, an essential component in battery production, is increasing the need for effective recycling solutions. Second, growing legislative support for battery recycling across various regions is establishing a regulatory framework that facilitates market development. Lastly, urbanization in emerging markets is driving the demand for reliable and advanced energy storage solutions, such as advanced energy storage systems, particularly in densely populated areas. These trends are expected to persist, positioning battery recycling as a promising sector for investment and innovation.
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The battery recycling market report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The automotive segment is estimated to witness significant growth during the forecast period. The automotive segment comprises lead-acid batteries utilized in passenger cars, commercial vehicles, and two-wheelers. The automobile industry requires lead-acid batteries for starting, lighting, and ignition (SLI) in internal combustion engine (ICE) vehicles, as well as for start/stop applications in both traditional vehicles and electric vehicles (EVs).
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The automotive segment was the largest segment and was valued at USD 6.91 billion in 2018. The improving economic conditions and changing lifestyles, along with increased consumer confidence, have led to a rising demand for new, fuel-efficient, and technologically advanced vehicles. This demand for motor vehicles is fueled by steady economic growth, industrialization, infrastructure development, and higher disposable incomes.
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APAC is estimated to contribute 43% to the growth of the global market during the market forecast period. Technavio's analysts have detailed the regional trends and factors influencing the market throughout the forecast period. The Asia-Pacific (APAC) region leads the global battery recycling market, driven by the presence of numerous large battery manufacturers and facilities producing battery-powered equipment and vehicles. As the most populous region worldwide, APAC is also the largest consumer of secondary batteries.
Furthermore, the increasing demand for consumer electronics and vehicles is linked to rising household incomes and enhanced living standards in the area. Heightened environmental concerns regarding improper battery disposal further contribute to the growth of the regional battery recycling market. With significant battery consumption across consumer electronics, automotive, and energy storage sectors, recycling has become essential. Many countries in the region are actively working to address these challenges and mitigate the pollution associated with improper battery disposal.
The market plays a vital role in reducing environmental impact by complying with EPA guidelines for sustainable practices in managing spent batteries from electric vehicles and uninterruptible power supply (UPS) systems. Advances in battery technologies that improve energy density and charging capabilities are essential, as recycling helps address maintenance needs and the safe disposal of hazardous materials, including acids and heavy metals such as mercury and lead, while preventing chemical leakage and toxic substance release. Companies are innovating in battery waste disposal, optimizing costs and supply chain efficiency while enhancing yield through advancements in chemistry, plastics extrusion, and nickel metal manganese recovery. The battery recycling market is increasingly important in the context of renewable energy industries and technological innovations.
As the demand for electric vehicles (EVs) rises, especially with the growth of plug-in hybrid electric vehicles (PHEVs), the need for efficient battery recycling solutions has become critical. Lithium-ion batteries (Li-ion batteries) are widely used in electric vehicles and electronic gadgets due to their high energy density and charging capabilities. However, the lifecycle of these batteries raises concerns about spent batteries and their impact on the environment. Recycling lithium-ion batteries not only helps reduce waste but also enables the recovery of valuable materials, such as lithium, cobalt, and nickel, which are essential for new battery production. The battery recycling market is integral to sustainable resource management and supports circular economy principles in the global shift toward greener technologies.
Our researchers have analyzed the data with 2023 as the base year, focusing on key drivers, trends, and challenges. A comprehensive examination of these drivers will enable companies to refine their marketing strategies and secure a competitive edge.
Legislative support for battery recycling is a significant factor driving growth in the battery recycling market. Batteries, particularly those in electronic devices, contain toxic substances such as iron and other hazardous chemicals. When these batteries are improperly disposed of, harmful materials can leach into soil and water, posing health risks to both humans and wildlife. Battery recycling facilitates the safe extraction and disposal of these hazardous materials.
The battery recycling market is experiencing rapid expansion, especially in the sector of secondary battery recycling, as the demand for sustainable and environmentally friendly energy solutions continues to rise. This practice helps businesses and industries adhere to regulations, thereby avoiding legal penalties and ensuring responsible waste management. Moreover, effective management of e-waste, including battery recycling, reduces health and safety risks for workers in waste management and disposal processes, as well as for communities living near landfill sites. These considerations are anticipated to significantly contribute to the growth of the battery recycling market throughout the forecast period.
The increasing support from governments for electric vehicles (EVs) is a significant trend in the market. In response to growing environmental concerns and rising greenhouse gas emissions, many countries are re-evaluating their reliance on fossil fuels in the transportation sector. Electric vehicles represent the primary alternative to fossil fuel-powered vehicles. Numerous nations are establishing targets and regulations to facilitate the transition from diesel and gasoline vehicles to EVs.
Additionally, the rising demand for battery-operated EVs and hybrid electric vehicles (HEVs) will drive the need for battery recycling, as this is a critical component of battery management. Governments worldwide are implementing measures to encourage EV adoption, and a reduction in carbon emissions is anticipated to propel the growth of the battery industry. This expansion is expected to, in turn, stimulate the battery recycling market during the forecast period.
The low yield of battery recycling presents a significant challenge for the market. Despite extending their shelf life, batteries do not generate efficient or cost-effective output once recycled. Original equipment manufacturers (OEMs) provide two primary methods for reusing batteries. If an appliance reaches the end of its life before the lithium battery is fully depleted, the battery can be repurposed in another appliance.
The recycling process includes shredding, separating non-metallic and metallic materials, smelting, neutralizing hazardous substances, and purifying the recovered metals. In comparison to the larger battery industry, recycling remains a relatively small sector. This limitation is anticipated to impede the growth of the battery recycling market throughout the forecast period.
The battery recycling market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the battery recycling market research and growth report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Accurec Recycling GmbH - The company offers battery recycling services for Nickel Cadium batteries, Nickel Metal hybride batteries and Lithium batteries.
The battery recycling market trends and forecasting report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The battery recycling market plays a crucial role in supporting the renewable energy sector by reclaiming valuable resources from various battery types, including lithium-ion, acid, and sodium-sulfur batteries utilized in solar and wind power applications. Companies are addressing challenges such as the lack of technologies for efficiently recycling cobalt and other essential minerals by innovating in portable battery collection and logistics. This optimization enhances energy storage and clean fuel energy solutions. The market primarily focuses on recycling lithium-ion batteries and lead-acid batteries from automotive and electronic devices, facilitating the growth of plug-in hybrid electric vehicles (PHEVs) and electric cars while ensuring sustainability in the recovery of hydride batteries and cathode-active materials. With advancements in the recycling of graphite and lithium-iron phosphate, the industry is integral to implementing circular economy practices within the renewable energy and electric vehicle sectors.
Element Resources and Redwood Materials are two companies leading the charge in battery recycling, developing innovative processes to reclaim materials from spent batteries. These initiatives align with Environmental Protection Agency (EPA) guidelines, ensuring that recycling practices minimize the environmental impact of battery disposal. In contrast to traditional lead-acid batteries, which have their own recycling processes, lithium-ion batteries present unique challenges and opportunities. The recycling of these batteries is not only essential for sustainability but also for supporting the growing market of electric vehicles. As the battery recycling market continues to evolve, advancements in battery technologies and improved maintenance requirements for existing systems will play a crucial role in enhancing the efficiency and effectiveness of the recycling process. By addressing the lifecycle of batteries, the industry can better support the transition to renewable energy and reduce reliance on hydrocarbons.
Additionally, the battery recycling market is vital for managing the environmental impact of various battery types, including lithium-ion, acid, automotive, and lead-acid batteries. As the renewable energy sector expands, the demand for efficient battery recycling becomes increasingly important, particularly concerning solar and wind energy applications. The energy storage market is growing; however, this growth presents challenges related to spent batteries, which contain hazardous materials such as heavy metals, mercury, and lead. Improper disposal of these batteries can lead to chemical leakage and the release of toxic substances. Battery recycling addresses concerns regarding energy density, charging capabilities, and maintenance requirements while also reducing logistics costs and complying with EPA regulations. The market continues to face obstacles, including a lack of advanced technologies and the necessity to manage toxic substances such as acids and cobalt, along with other elemental resources.
Market Scope |
|
Report Coverage |
Details |
Page number |
178 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 11.53% |
Market growth 2024-2028 |
USD 11.34 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
10.45 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 43% |
Key countries |
China, US, Germany, Japan, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accurec Recycling GmbH, Aqua Metals Inc., Battery Solutions LLC, Call2Recycle Inc., Contemporary Amperex Technology Co. Ltd., East Penn Manufacturing Co. Inc., Ecobat LLC, EnerSys, ENGITEC TECHNOLOGIES SPA, Exide Industries Ltd., Fortum Oyj, GEM Co. Ltd., Gopher Resource LLC, Gravita India Ltd., Li Cycle Holdings Corp., Onto Technology LLC, Raw Materials Co. Inc., SungEel Hi-Tech Co. Ltd., Terrapure Environmental, and Umicore SA |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our battery recycling market forecast report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Source
7 Market Segmentation by Battery Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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