The lead-acid industry is set to continue to claim the lion’s share of the battery recycling sector in terms of value as the market grows at a projected CAGR of 6.1% from 2020 to 2025.
The battery recycling market is projected to grow from $17billion this year to $23 billion in the next five years, according to analysts Reportlinker.
The ‘Battery Recycling Market by Chemistry, Source, Region – Global forecast to 2025’ report suggests growth will be driven by rising concerns over depleting precious and rare earth metals, growing demand for recycled batteries and other materials, and stringent government regulations and EPA (Environmental Protection Agency) guidelines.
By chemistry, the lead-acid segment accounted for the largest share of the battery recycling market last year— unsurprising as it is the most recycled consumer product in the US and Europe.
However, the report predicts the Asia Pacific region will lead the battery recycling market up to 2025 in terms of value as demand for electric vehicles grows and increasing environmental regulations are administered.
Automotive batteries accounted for the largest share of the battery recycling market, by source, stated the report.
Reportlinker attributed the segment’s growth to the simpler, cost-effective, and energy-efficient recycling of lead-acid batteries in comparison to others, such as lithium-based and nickel-based chemistries.
The report stated: “By source, the automotive batteries segment accounted for the largest share of the battery recycling market in 2019. 54This large share is mainly attributed to the rising use of automobiles and the growing number of government regulations related to battery recycling.
“Moreover, the demand for automobile batteries is particularly high in emerging regions, such as Asia Pacific, thereby augmenting the growth of the automotive batteries segment.”
The report was complied with information from Tier 1,2 and 3 suppliers from across the globe including: North America (20% of respondents), Europe (30%) Asia Pacific (40%), South America (3%) and Middle East & Africa (7%).