International market research institution Allied Market Research recently released an electric vehicle battery recycling market research report that the global electric vehicle battery recycling market size will reach 2.27 billion US dollars by 2025, during which the compound annual growth rate will reach 41.8%.
The report revealed that market growth was further complemented by increasing demand for zero-emission vehicles, recycled products and materials, coupled with the availability of limited metal resources and the surge in middle-class employment.
On the other hand, the high cost of initializing recycling plants and the increasing use of electric vehicle batteries have hindered market growth. Nonetheless, increased subsidies that encourage battery recycling and high recycling gaps will provide lucrative opportunities for emerging market participants in the near future.
It is expected that by 2025, electric buses will become the largest market segment in the field of battery recycling, accounting for about half of the total share. This is due to the increasing adoption of alternative fuel technologies in commercial vehicles such as buses, which provide zero emissions, better acceleration and quiet operation. However, due to the remanufacturing of lithium-ion batteries to provide a second life with 70-80% charge capacity, the Energy Storage Systems Division is expected to reach a highest CAGR of 47.8% between 2018 and 2025.
From the perspective of the market area, due to the high adoption rate of advanced electric vehicle systems in commercial vehicles, LAMEA (South America, Latin America) is expected to grow at the fastest compound annual growth rate of 46.1% during the forecast period. In addition, increased vehicle emission standards in the region and growing demand for energy-saving and environmentally friendly technologies are also complementing this market growth.
However, by 2025, the Asia-Pacific region will still dominate the region, accounting for nearly half of global revenue. This is due to the high adoption rate of smart mobile services, increased government regulations, rising fuel prices, and rising trends in the use of non-fossil fuel vehicles.