The global battery recycling market is expected to reach USD 21.04 billion by 2025, growing at a CAGR of 10.4%, according to a report by Grand View Research, Inc. The presence of stringent government regulations is expected to have a positive impact on the market growth over the next eight years.
Transportation application is expected to witness rapid growth in the battery recycling market. Growing demand for lithium-ion battery in electric vehicles and portable devices on account of its high efficiency, long life, and low maintenance is expected to positively impact the demand for recycled products.
The industry is price driven, which in turn is expected to restrain the market growth over the forecast period. Price becomes a key differentiating factor as most recyclers make use of more or less the same technology. High competition among the players does not allow large variation in the prices, thereby reducing the profitability of recycling firms.
Companies are making efforts to improve the competitiveness by setting up new collection centers and recycling plants. Moreover, new processes are being developed to bring down cost & combat environmental pollution. ECOBAT has developed its own collection system to collect spent batteries.
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Application Insights
The transportation segment accounted for a share of 41.7% in 2016. Battery is widely used in an automobile owing to its ability to deliver high power to start an engine. The global automotive industry recorded a worldwide sale of 95.0 million vehicles in 2016, a 4.6% growth from the previous year. Rising income levels across the globe, rapid urbanization, growing demand for electric vehicles, and consistent advancements in technology are expected to drive the demand over the coming years.
Various government regulatory agencies have implemented policies to support the rising electric vehicle market. Environmental issues such as increasing pollution, energy depletion, global warming, and biological hazards are expected to facilitate a shift in consumer preferences toward electric vehicles, thereby augmenting the demand for recycled batteries.
The industrial segment is expected to register a CAGR of 10.4% from 2016 to 2025. Lead acid batteries find application in Uninterruptible Power Supply (UPS) systems as they provide high power density and enhanced life expectancy. The UPS market is expected to witness considerable growth over the forecast period on account of growing demand for high power range systems. The increasing adoption of UPS systems as an essential power backup device is projected to impact the market growth over the forecast period.
Rapid infrastructural development coupled with the expansion of commercial sectors such as IT, solar UPS systems, retail, and hospitality is anticipated to drive the demand for UPS systems, which is anticipated to further increase the utilization of the recycled products over the forecast period.
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