The high degree of competition among established players in the global battery recycling market indicates the increasing adoption of battery recycling. Although battery recycling is a niche market, technological developments for recovering complex materials have extended immense potential to the battery recycling market, observes Transparency Market Research (TMR). Despite the high initial capital requirement of setting up battery recycling units, small players and new entrants have been able to capitalize on opportunities, thanks to extensive support from government bodies and environmental agencies.
“Companies in the battery recycling market are not only focused on innovation but also mergers and acquisitions for business growth and to maintain consistency in services and products delivered to customers,” states a TMR analyst. An excellent example is EnerSys. The company entered into an alliance with PowerGenix in March 2012 for the production of rechargeable and recyclable nickel-zinc batteries. The increasing trend of battery recycling is not only providing growth opportunities for players in this market, but also entities in the lead extraction and reselling market.
The global battery recycling market is expected to rise at a CAGR of 10.9% between 2016 and 2024 for the market to increase from US$7.8 bn in 2015 to US$19.9 bn by 2024.
Automotive Sector Extends Large-scale Growth Opportunities to Market
The segment of lead acid battery dominated the market with a share of close to 45% in the overall market based on battery chemistry. This is due to the relatively easy extraction and less operational excellence required for lead acid batteries. The automotive industry generates a large volume of lead acid batteries that can be recycled or can have a second life.
The automotive spent battery source is anticipated to dominate the battery recycling market owing to the increasing number of vehicles for the transportation needs of the increasing global population. This is expected to register the highest growth at a CAGR of 11.01% from 2016 to 2024.
On the basis of end-use, extraction of material accounts for the largest share in the global battery recycling market; the end-use segment is expected to hold a share of close to 50% in the global market by 2024.
Region-wise, North America contributes significantly to the global battery recycling market; the region is expected to rise at a CAGR of 10.9% from 2016 and 2024. The U.S. leads the region followed by Canada and Mexico.
Environmental Concerns of Used Batteries Fueling Action
A TMR analyst says, “Rising environmental hazards of used batteries is one of the major factors driving the global battery recycling market.” Due to the presence of toxic materials in batteries that have an adverse impact on disposal in landfills, governments and companies have been compelled to take up battery recycling in an organized manner.
Battery recycling services are also being offered by non-governmental organizations as well as profit-making organizations by working jointly with leading automobile manufacturers. This has been instrumental in driving the global battery recycling market to new heights, the analyst adds.
Although battery recycling has been gaining momentum at the industrial level with automotive and electronic appliances companies setting up their own in-house recycling centers, the degree of awareness regarding battery recycling among the end-users continues to remain low. The lack of adequate awareness about battery recycling is posing a challenge to the growth of this market.
However, the increasing opportunities to secondary markets such as lead extraction and reselling is offering new growth prospects for the battery recycling market.
The review presented is based on the findings of a TMR report, titled “Battery Recycling Market - Global Industry Analysis, Size, Share, Growth Trends, and Forecast 2016 - 2024.”
The global battery recycling market is segmented as follows:
Global Battery Recycling Market, by Battery Chemistry
- Lithium Ion
- Lead Acid
- Nickel Cadmium
Global Battery Recycling Market: By Spent Battery Source
- Electronic Appliance
Global Battery Recycling Market: By End-use
- Extraction of Material
- Repackaging, Reuse, and Second Life
Global Battery Recycling Market: By Region
- North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa
- South America
- Rest of South America
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