The global battery recycling market was valued at around $10 billion in 2017 and is anticipated to expand at a CAGR of nearly 11 percent from 2018 to 2026, according to a new report by Transparency Market Research titled: Battery Recycling Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2018-2026.
Battery recycling prevents used batteries from ending up in municipal wastes and landfills. It enables the reuse of battery materials. Almost every type of battery such as household batteries, laptop batteries, mobile phone batteries, power tool batteries, and car batteries can be recycled.
Batteries are manufactured from hazardous and heavy metals such as lead, mercury, nickel, zinc and cadmium. These metals may leach into the soil if not disposed properly, thus contaminating the soil and polluting underwater and surface water sources.
Battery recycling ensures the continuous flow of hazardous materials and prevents them from entering the environment, thereby protecting the environment from degradation. Battery recycling activities also help prevent potential health hazards.
Increase in environmental concerns about potential threats from unsafe disposal of used batteries is expected to be a key driver of the battery recycling market. Major raw materials used in batteries such as lead, cadmium, nickel, and mercury are highly hazardous and can cause severe damage to the ecosystem. Battery manufacturing companies have recognized these potential hazards. Several government and non-profit organizations have taken steps toward battery recycling by spreading awareness about it or by entering into agreements with consumers for spent batteries. Raw materials used for manufacturing batteries are of high commercial value. The recycling process can yield these raw materials in a cost effective way vis-à-vis their fresh counterparts. Using recycled products for manufacturing can lower manufacturing costs of various products, thereby making the manufacturing process more economical and environment friendly.
Rise in demand for portable consumer electronics is also likely a key factor augmenting the market. Batteries are used in portable electronic products as their power source. These batteries have a lifespan of around two to five years. They need to be replaced with new batteries post their lifespan. The amount of spent batteries is rising with the increase in demand for portable electronic products.
This, in turn, is boosting the demand for battery recycling. However, low end-user awareness about battery recycling is projected to hamper the market. Small-scale end-users of batteries dispose them in garbage dumps instead of giving them to recyclers. Governments and various organizations across the globe have taken steps to increase awareness about battery recycling among end-users in order to prevent batteries from ending up in landfills or garbage dumps.
The battery recycling market can be segmented based on battery chemistry, spent battery source, and end-use. In terms of battery chemistry, the battery recycling market can be classified into lithium-ion, lead-acid, nickel-cadmium, and others. Lead-acid was the dominant segment, accounting for more than 45 percent share in terms of value in 2017. It is expected to continue its dominance during the forecast period. However, the lithium-ion battery chemistry segment is anticipated to expand at a fast pace during the forecast period. In terms of spent battery source, the battery recycling market can be segmented into automotive, electronic appliances, and others. Automotive was the dominant segment of the market in 2017. However, the electrical appliances segment is estimated to expand at a significant pace during the forecast period.
Based on end-use, the battery recycling market can be divided into extraction of material; repackaging, reuse, & second life; and disposal. The extraction of material segment dominated the global battery recycling market with more than 45 percent share in 2017. This trend is projected to continue during the forecast period. Furthermore, the segment is likely to expand at a significant pace in the near future, primarily due to the high profitability of recycled products owing to their usage as raw materials in the manufacturing process of various other products. This lowers their cost of production.
In terms of region, the battery recycling market can be split into North America, Latin America, Europe, Asia Pacific, and Middle East and Africa. Europe held the leading share (more than 40 percent) of the global battery recycling market in 2017. This can be ascribed to the implementation of stringent environmental regulations regarding battery recycling across the region. However, the market in Asia Pacific is expected to expand at a significant pace during the forecast period, primarily due to the presence of developing economies such as China and India, wherein the demand for batteries is rising rapidly. This, in turn, is propelling the demand for battery recycling.
Transparency Market Research is a global market intelligence company, providing global business information reports and services. Our data repository is continuously updated and revised by a team of research experts, so that it always reflects the latest trends and information.
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