Second-life EV Battery: Introduction
- Electric vehicle batteries are often used in harsh environments. As a result, these batteries lose their original capacity by 20% to 30% after a few years. Electric vehicle batteries cannot be used in electric vehicles again due to stringent governmental norms.
- Electric vehicle batteries need to be reused or recycled owing to the increase in environmental awareness and presence of stringent governmental regulations. Thus, various companies across the globe are seeking effective ways to use these batteries in various applications (including stationary energy storage).
Key Drivers and Restraints of Global Second-life EV Battery Market
- Increase in demand for electric vehicles across the globe is estimated to be a key driver of the global second-life EV battery market during the forecast period. Significant development has taken place in the electric vehicle sector over the last decade. As a result, the sales of electric vehicles have increased. This trend is expected to continue during the forecast period. Rise in sale of vehicles boosts the usage of batteries that need to be treated after the completion of their lifecycle. Thus, growth in demand for electric vehicles is estimated to propel the global second-life EV battery market in the near future.
- Rise in number of renewable energy projects is also estimated to drive the global second-life EV battery market. These renewable projects require batteries that store the energy produced by solar, wind, or other renewable sources. Electric vehicle batteries can be employed in energy storage functions, as these batteries have the working capacity of 70% to 80%.
Global Second-life EV Battery Market: Segmentation
- The global second-life EV battery market can be segmented in terms of vehicle type and end-use
- In terms of vehicle type, the global second-life EV battery market can be divided into passenger car, light commercial vehicle, heavy commercial vehicle, bus, and others. The passenger car segment is anticipated to account for major share in the global second-life EV battery market in the near future, as there is significant demand for private electric vehicles. This is expected to generate more number of used batteries in the next few years. Thus, the segment is anticipated to expand at a faster pace in the near future.
- Based on end-use, the global second-life EV battery market can be segregated into reuse, recycle, and disposal. Reuse and recycle segments are expected to expand at rapid CAGR during the forecast period. Second-life EV battery can be used in energy storage. Furthermore, 80% to 90% these batteries can be recycled and reused in manufacture of new batteries.
Global Second-life EV Battery Market: Regional Segmentation
- In terms of region, the global second-life EV battery market can be classified into North America, Asia Pacific, Europe, Latin America, and Middle East & Africa
- North America dominated the global second-life EV battery market in 2020 owing to the presence of large numbers of manufacturers of these batteries in the region. Furthermore, demand for battery operated vehicles is considerably high in North America. The U.S. is a major player in the global electric vehicle market, led by the high adoption of electric vehicles in the country. The country is estimated to dominate the second-life EV battery market in the region during the forecast period.
- The second-life EV battery market in Europe and Asia Pacific is anticipated to expand significantly during the forecast period. High acceptance of electric vehicles is a key factor boosting the demand for electric vehicles in these regions. Europe and Asia Pacific are key regions in terms of renewable energy projects, and these project need batteries that store electricity. Thus, demand for second-life EV battery is anticipated to remain high in Europe and Asia Pacific during the forecast period.
COVID Impact on Global Second-life EV Battery Market
- Demand for second-life EV battery is significantly high for stationary energy storage. However, the outbreak of the COVID-19 pandemic has disrupted the supply chain and availability of manpower due to implementation of lockdowns in various countries. This has adversely impacted the second-life EV battery market.
- Concerns about energy security are compelling governments of various countries across the world to invest significantly in renewable energy projects. These projects require energy storage systems. Second-life EV batteries are likely to play a vital role in energy storage. Thus, demand for second-life EV batteries is projected to be high in the next few years.
Key Players Operating in Global Market
- R Energy Co., Ltd
- BeePlanet Factory
- General Motors
- Groupe Renault
- BMW AG
- Mitsubishi Motors Corporation
- Daimler AG
Global Second-life EV Battery Market: Research Scope
Global Second-life EV Battery Market, by Vehicle Type
- Passenger Car
- Light Commercial Vehicle
- Heavy Commercial Vehicle
Global Second-life EV Battery Market, by End-use
Global Second-life EV Battery Market, by Region
- North America
- Russia & CIS
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa
This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.
Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:
- Customer Experience Maps
- Insights and Tools based on data-driven research
- Actionable Results to meet all the business priorities
- Strategic Frameworks to boost the growth journey
The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.
The following regional segments are covered comprehensively:
- North America
- Asia Pacific
- Latin America
- The Middle East and Africa
The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.
Below is a snapshot of these quadrants.
1. Customer Experience Map
The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.
2. Insights and Tools
The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.
3. Actionable Results
The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.
4. Strategic Frameworks
The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.
The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:
1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?
6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?
7. Which government regulations might challenge the status of key regional markets?
8. How will the emerging political and economic scenario affect opportunities in key growth areas?
9. What are some of the value-grab opportunities in various segments?
10. What will be the barrier to entry for new players in the market?
Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.