Battery Recycling Market Report

Battery Recycling Market Analysis By Chemistry (Lithium-ion, Lead Acid, Nickel), By Application (Transport, Consumer Electronics, Industrial), By Region, And Segment Forecasts, 2014 - 2025

Published: September 2017  |  100 Pages  |  Format: PDF  |  Report ID: GVR-1-68038-624-0

Industry Insights

The global battery recycling market size was valued at USD 8.74 billion in 2016. Stringent government regulations and the growing end-use industries including transportation, consumer electronic, and industrial applications are expected to elevate the demand.

The resources for new battery production are limited in comparison to the projected demand from various end-use industries. Battery recycling is important not only for the recovery of valuable materials and metals but also for efficient waste management in a bid to eliminate hazardous environmental impacts. The use of recovered metal for recycled battery production can also help in the reduction of CO2 emissions to a large extent and energy requirements related to mining.

China battery recycling market revenue, by application, 2014 - 2025 (USD Million)

China battery recycling market

The consumption of primary resources such as lead and lithium is expected to grow in the coming years due to the expanding population. This necessitates the need for the recycling of utilized materials in order to conserve natural resources and reduce environmental footprint. Lead acid batteries are among the world’s most recycled product and account for over 80.0% of the worldwide lead usage with high recycling rate across the globe.

The production of lead and other raw materials through the recycling method is an energy efficient process as compared to the production of lead through mining. Moreover, the energy saving process also helps in reducing carbon emission. These factors in turn are expected to increase the recycling of lead acid batteries over the forecast period.

The technological and infrastructural developments in the developed economies of Europe and North America are expected to increase electric vehicles demand. This is anticipated to increase the demand for lithium-ion batteries, thereby fueling the industry growth over the next nine years.

Stringent regulations in the U.S. and an increase in the battery recycling activities have led to the stable growth of the battery market in North America. In February 2017, Johnson Controls formed a technology license agreement with Aqua Metals, California, U.S. The agreement included the licensing of the latter’s Aqua Refining technology for battery manufacturing & recycling.

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.

Chemistry Insights

The lead acid segment dominated the market with a share of 61.2% in 2016 on account of cost efficiency, reliability, high capacity, safety, and wide application scope. Lead acid batteries are highly recyclable in nature and over 95.0% lead can be recycled during the process. These advantageous properties of lead acid battery recycling are anticipated to drive the demand in the coming years.

The lithium-ion battery segment is anticipated to display a significant growth in the market owing to benefits in comparison to other chemistries. The use of lithium-ion batteries in portable devices, electric vehicles, and energy storage system due to low maintenance and higher efficiency is expected to increase its growth rate. Moreover, the growing demand for rechargeable products in the automotive sector is expected to augment the demand over the coming years.

The global battery recycling market revenue by chemistry, 2016 (%)

Global battery recycling market

Lithium-ion batteries are majorly used in electric vehicles. The growing automotive and transportation industries and increasing use of these batteries in numerous applications are expected to increase the consumption of recycled batteries over the coming years.

Nickel metal hydride batteries are key substitutes to nickel cadmium, which pose environmental hazards due to the presence of cadmium heavy metal. These batteries are ideally suitable for use in electric vehicles and portable devices such as mobile handsets, cameras, and other consumer electronics appliances. The improper disposal of nickel cadmium batteries can result in the leak of toxic materials into landfills and underground water. Such environmental concerns are expected to boost the battery recycling market over the forecast period.

Regional Insights

Europe accounted for the major market share of 36.8% in 2016. The recycling efficiency targets set by the European government is expected to increase battery recycling rate in the region. About 65.0%, 75.0%, and 50.0% weight of batteries must be recovered as recycled material for lead acid, nickel cadmium, and other chemistries.

The recycling rate of spent lead acid batteries in North America is about 100.0%. In the U.S., around 99.0% of lead is reclaimed from spent products. Moreover, the increasing demand for UPS system in commercial infrastructure, growing demand for electric vehicles, and the presence of key recyclers including Call2Recycle; Aqua Metals; Enersys; and Battery Solutions, Inc. are anticipated to drive the demand over the forecast period.

Central and South America is expected to demonstrate considerable market growth due to the rise in foreign investments in the region. For instance, in 2017, GS Yuasa Corporation installed a large-scale lithium-ion battery storage system in the Cochrane Coal-fired Power Plant, Chile. Large-scale passenger, as well as commercial car production in Latin America, is expected to drive the consumption of lithium batteries over the forecast period.

Asia Pacific is the fastest-growing market and is expected to denote a CAGR of 11.7% from 2017 to 2025. Countries such as China, India, and Japan are expected to witness high growth rates owing to the rising demand from end-use industries such as automotive.

Competitive Insights

The industry is highly competitive in nature with the presence of a large number of multinational recyclers operating their businesses through high production volumes. The companies in the global market are highly integrated from the collection of spent batteries to the sales and distribution in various locations.

The companies such as Call2Recycle, ECOBAT, Aqua Metals, Exide Technologies, G&P Batteries, and EnerSys operate business through extremely high recycling capacities spread across the globe. Collection, recycling location, and distribution channels cater to the local as well as global demands and the market witnesses cross-border trade of used batteries.

Report Scope

Attributes

Details

Base year for estimation

2016

Actual estimates/Historical data

2014 - 2015

Forecast period

2017 - 2025

Market representation                                                 

Revenue in USD Million and CAGR from 2017 to 2025

Regional scope

North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa

Country scope

U.S., Germany, UK, China, Japan, India, and Brazil

Report coverage             

Revenue forecast, competitive landscape, growth factors and trends

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Segments Covered in the Report

This report forecasts revenue growth at global, regional & country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the battery recycling market on the basis of chemistry, application, and region:

  • Chemistry Outlook (Revenue, USD Million; 2014 - 2025)

    • Lithium-ion

    • Lead acid

    • Nickel

    • Others

  • Application Outlook (Revenue, USD Million, 2014 - 2025)

    • Transportation

    • Consumer electronics

    • Industrial

  • Regional Outlook (Revenue, USD Million; 2014 - 2025)

    • North America

      • U.S.

    • Europe

      • Germany

      • UK

    • Asia Pacific

      • China

      • Japan

      • India

    • Central & South America

      • Brazil

    • Middle East & Africa

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