The world has witnessed various developments in the last two decades. One notable advancement has been in the automobile industry that has made this era…
The world has witnessed various developments in the last two decades. One notable advancement has been in the automobile industry that has made this era truly power-driven. Today, electric vehicles are not just a notion but a living reality. They are the new pro mode of transportation that can be spotted easily in many parts of the world.
An increased number of car manufacturers are declaring a shift towards offering only electric vehicles in the coming years. They surely have a huge demand to cater to, besides it shall also create more opportunities in its complementary businesses, such as EV battery manufacturing and recycling. Without batteries, their products would not function. With the rising number of investments in making EVs, the demand for batteries will continue to grow substantially.
However, the applications of batteries aren’t just limited to the automotive sector. It is widely utilized in household and consumer goods, medical, industrial, marine and other domains as well. They are employed to power devices such as remote controls, hearing aids, video games, digital cameras, radar communications, ECG monitors, metal detectors, etc.
Owing to its diverse applications, many companies are now planning to enter the battery recycling market to reap the maximum benefits in the years to come. Researchers at Infinium Global Research predict this market to grow at a CAGR of 8.6% by 2027.
What Drives the Battery Recycling Market?
Battery recycling is the process of reusing and refining previously used batteries, to decrease the disposal of used batteries as material or municipal waste. Some batteries such as Lithium-Ion & Nickel-Cadmium are 100% recyclable, and some can be recycled partially to turn into different objects. Individually, they all carry a number of toxic chemicals and substances, which if disposed of through municipal trash raises health and environmental concerns.
Many governments and non-profit organizations have taken measures to raise awareness regarding the damaging outcomes of the disposal of batteries in the trash. They are encouraging businessmen to step forward and manage this operation for society’s welfare. Many factors are driving this market, such as:
- Environmental Concerns: The deadly elements inside the batteries, if not disposed of properly, can be discharged into the environment and shall pose hazardous threats to the health of people and other living organisms as well as the environment. If disposed of in garbage dumps, the toxic substances can leak into the soil, which eventually disrupts our water supply, causing water pollution. Additionally, if they are burned in masses, poisonous fumes are produced, which results in air pollution.
- Growing demand for batteries from application industries: Researchers recognize the digitalization happening around the world and predict most of the manual operations to become mechanical soon, creating the need for a portable power supply source: batteries. The applications of the use of batteries are wide, ranging from the automotive sector to the medical and healthcare sector. The demand for this power supplying mode will continue to rise owing to the technological advancements globally.
- Stringent government regulations for the management of batteries’ initial and second life: The governments all around the world are encouraging entrepreneurs and battery manufacturers to also look after battery life management, to ensure the growing demand of batteries is met keeping the best interest for environmental concerns. Many nations around the world have also introduced objectives to reduce transportation emissions by the year 2050. They have commenced favoring the development of electric vehicles to support such causes, for instance, Europe offered huge incentives and subsidies, which is why it dominates this market and has a high sales rate of electric vehicles.
- Rising concerns regarding depleting precious and rare earth metals: There’s the fundamental concern that one day, lithium and other required reserves will dry out. The consumption value will be too much, our reliance on it will be too much, and before we can anticipate it, we’ll have a scarcity of these natural resources. The batteries used in EVs contain explosive metals such as cobalt and lithium, which need to be recycled, else it’ll lead us to keep mining the planet for extra ones. This is one of the major factors to start recycling batteries, to extend the time these products can be made without exhausting the natural resources.
- Growing demand for recycled products and materials: Today’s generation firmly believes in preserving nature as much as possible. Millennials have initiated the trend of choosing sustainable and eco-friendly alternatives over fancy-looking, nature-depleting products. The latest trends such as decreasing plastic consumption, adopting vegan lifestyles, choosing plant-based leather, etc are all examples of how people today value the resources and support recycling. This is being seen in the battery market as well, providing opportunities for new and existing market players.
Which Regions are Suitable for Implementing the Battery Recycling Business?
Among the geographies, Europe dominates this market due to stringent governmental laws such as battery directives. According to the European Commission, this directive contributes to the protection, preservation, and improvement of the quality of the environment.
However, the market in the Asia Pacific is projected to expand at a significant pace owing to the increase in the demand for batteries in developing countries such as India and China.
On the other hand, the recycling rate of used lead-acid batteries is more in the North American regions. Over 20 states in the United States have state recycling requirements in effect and around eight states have authorized battery producers to offer battery recycling.
Planning to Invest in the Battery Recycling Market?
If you’re planning to invest in the battery recycling market, having the capital and a good team isn’t enough, getting in-depth market insights is a must. Request a sample of this premium report here: Battery Recycling Market and accelerate your business for the long run. Connect with the IGR research analysts at email@example.com to customize your business strategy.
The market research reports by Infinium Global Research include qualitative as well as quantitative information. This information is then blended using forecasting models to project future market demand. Additionally, the IGR Growth Matrix helps identify the key investment areas in the market. It does not only help the companies understand the competitive landscape but also make strategic decisions to capture the most lucrative markets in the near future.
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