Second-life EV Batteries Market (2024-2031)
The Second-life EV Batteries Market is expected to reach $ 28.17 billion by 2031, at a CAGR of 43.9% from 2024 to 2031.The growth of the second-life EV batteries market is driven by efforts towards mitigating the environmental impact of battery disposal, the growing adoption of renewable energy sources, and the increasing demand for electric vehicles (EVs).
- Published
- Jan 2024
- Pages
- 93
- Format
- PDF + Excel
- Report ID
- MR-1049
- Base year
- 2023
- 2031 · FORECAST
- $28.17B
- 2031
- $28.17B
- CAGR 2024–2031
- 43.9%
2023 baseline · 2024–2031 forecast at 43.9% CAGR · hover a bar for the value
Key highlights
The Second-life EV Batteries Market is expected to reach $ 28.17 billion by 2031, at a CAGR of 43.9% from 2024 to 2031.The growth of the second-life EV batteries market is driven by efforts towards mitigating the environmental impact of battery disposal, the growing adoption of renewable energy sources, and the increasing demand for electric vehicles (EVs).
The Power Backup Segment to Dominate the Second-life EV Batteries Market
The Commercial Use Segment to Dominate the Second-life EV Batteries Market
In 2024, Asia-Pacific is expected to account for the largest share of 68.7% of the global second-life EV batteries market.
However, Europe is expected to record the highest CAGR during the forecast period. The growth of this market is attributed to the rising initiatives by automakers to create second-life energy storage systems from used EV batteries.
Report summary
| Particulars | Details |
|---|---|
| Number of Pages | 93 |
| Format | |
| Forecast Period | 2024–2031 |
| Base Year | 2023 |
| CAGR (Value) | 43.9% |
| Market Size (Value) | USD 28.17 Billion by 2031 |
| Segments Covered | By Application · Power Backup · Grid Connection · EV Charging · Renewable Energy Storage · Other Applications · By End Use · Commercial · Residential · Industrial |
| Region Covered | North America, Asia-Pacific, Europe, Latin America, Middle East & Africa |
| Key Companies | B2U Storage Solutions, Inc. (U.S.), RePurpose Energy Inc. (U.S.), BeePlanet Factory SL (U.S.), ReJoule (U.S.), Cactos Oy (Finland), ECO STOR AS (Norway), Connected Energy Ltd. (U.K.), Smartville Inc. (U.S.), Lohum Cleantech Private Limited (India), and DB Bahnbau Gruppe GmbH (Germany) |
Market dynamics
3 factors across 2 forcesIncreasing Adoption of Electric Vehicles Supporting the Development of Second-life Batteries
The growing access to EV charging infrastructure, government incentives supporting EV adoption, the decreasing total cost of EV ownership, and developing countries’ focus on expanding EV charging infrastructure and phasing out fossil fuel-powered vehicles are driving the adoption of electric vehicles globally. According to the International Energy Agency, despite the COVID-19 pandemic and associated supply chain bottlenecks, EV sales reached a record high in 2021. EV sales in 2021 almost doubled compared to 2020, reaching 6.6 million units. According to IEA’s Net Zero Emissions by 2050 scenario, in 2030, there will be 300 million EVs on roads around the globe, with electric cars accounting for 60% of new car sales globally. EV batteries have a finite lifespan for vehicular use and often retain a substantial amount of their original capacities (~70%) after the end of their life (as EV batteries).
As EV batteries become unfit for mobility applications after 8–10 years, market players repurpose these batteries for other applications to extend their usefulness and prevent the generation of e-waste. For instance, second-life EV batteries are used in energy storage applications to help balance energy demand and supply, contributing to sustainable energy practices. All these factors, coupled with the increasing need for a more stable and reliable supply of energy during peak demand periods, support the development of second-life EV batteries.
Efforts to Mitigate the Environmental Impacts of Battery Disposal Supporting Market Growth
Improper battery disposal can have significant environmental impacts. Batteries contain various chemicals and metals that can be harmful to the environment if they leach into the soil or water. Efforts to address the environmental impacts of Electric Vehicle (EV) battery disposal are increasing, encompassing the implementation of robust recycling systems, exploration of alternative battery chemistries with reduced environmental footprints, and the establishment of regulations to ensure responsible disposal practices. However, certain battery materials are lost during the recycling process, necessitating the sourcing of those materials in the production of new batteries. Hence, battery refurbishing/repurposing has emerged as a new way of promoting sustainability and limiting the adverse environmental impacts of end-of-life batteries. To address the environmental repercussions of battery manufacturing, producers are actively participating in efforts to bring refurbished/repurposed batteries to the market. Also, governments are establishing regulations to promote sustainability in the battery ecosystem. For instance, in August 2022, the Government of India introduced the Battery Waste Management Rules targeting electric vehicle batteries, portable batteries, automotive batteries, and industrial batteries. These rules promote the principle of Extended Producer Responsibility (EPR), wherein battery producers bear the responsibility to collect and recycle/refurbish waste batteries. By enforcing stringent rules, governments aim to ensure a more environment-friendly and sustainable lifecycle for batteries, contributing to the overall eco-friendliness of the energy sector. These factors are driving the development of second-life batteries, supporting the growth of this market.
Table of contents
10 chapters · 76 sections · 93 pages · click to expandSegmental analysis
| Segment | Largest share (2024) | Fastest growth (2024–2031) |
|---|---|---|
| By Application | Power Backup | EV charging |
| By End Use | Commercial Use | Residential use |
By Application
- The Power Backup Segment to Dominate the Second-life EV Batteries Market
- The power backup segment is expected to account for the largest share of 55.1% of the global second-life EV batteries market.
- The large market share of this segment is attributed to the growing demand for power backup applications in the residential and commercial sectors and rising efforts towards mitigating the environmental impact of battery disposal.
- However, the EV charging segment is projected to register the highest CAGR during the forecast period.
- The rising demand for cleaner and more efficient energy systems and increasing adoption of EV charging applications in industrial, residential, and commercial sectors are expected to support the growth of this segment.
By End Use
- The Commercial Use Segment to Dominate the Second-life EV Batteries Market
- The commercial use segment is expected to account for the largest share of 51.1% of the global second-life EV batteries market.
- The large market share of this segment is attributed to the increasing use of second-life EV batteries for stationary applications, such as providing backup power for buildings, data centers, or telecommunications infrastructure.
- However, the residential use segment is also expected to record the highest CAGR during the forecast period.
- The growth of this segment is driven by increasing demand for energy storage systems in the residential sector and increasing strategic developments by market players to explore second-life EV batteries for residential and commercial use for grid-scale energy storage applications.
Geographic analysis
Asia-Pacific
Largest shareIn 2024, Asia-Pacific is expected to account for the largest share of 68.7% of the global second-life EV batteries market. Asia-Pacific second-life EV batteries market is estimated to be worth USD 1.51 billion in 2024. The large share of this market is attributed to the rising initiatives aimed at promoting the utilization of second-life batteries, addressing end-of-life EV battery concerns, and organizing the battery waste sector. In addition, the increasing initiatives to establish a comprehensive ecosystem for the reuse and life-cycle management of used EV batteries are contributing to the second-life EV battery market. For instance, in June 2023, MG Motor India, a British automobile brand with a 99-year-old legacy, collaborated with LOHUM, India’s largest producer of sustainable energy transition material, to develop second-life solutions for batteries. In 2024, Asia-Pacific Region to Dominate the Second-life EV Batteries Market
Europe
Fastest growthHowever, Europe is expected to record the highest CAGR during the forecast period. The growth of this market is attributed to the rising initiatives by automakers to create second-life energy storage systems from used EV batteries.
Competitive landscape
- September 2023
Smartville Inc. (U.S.) launched the Smartville 360 Battery Energy Storage System (BESS) during the RE+ 2023 conference. The Smartville 360™ BESS is a fully integrated, turnkey energy storage system. It combines high-quality repurposed automotive lithium-ion battery packs from multiple automotive makes and models.
- February 2023
B2U Storage Solutions, Inc. (U.S.), a leading provider of large-scale energy storage systems using second-life electric vehicle (EV) batteries, announced that 25MWh of storage capacity is now operational at its SEPV Sierra hybrid solar + storage facility in Lancaster, California. The project’s storage capacity is comprised of 1,300 reused EV battery packs sourced from Honda and Nissan.
- May 2021
ECO STOR AS (Norway) signed an agreement with Nissan Motor Co. Ltd. (Japan), a Japanese multinational automobile manufacturer, to reuse EV batteries for energy storage projects as well as recycle batteries when they reach the end of life in an EV.
- B2U Storage Solutions, Inc. (U.S.)
- RePurpose Energy Inc. (U.S.)
- BeePlanet Factory SL (U.S.)
- ReJoule (U.S.)
- Cactos Oy · Finland
- ECO STOR AS · Norway
- Connected Energy Ltd. (U.K.)
- Smartville Inc. (U.S.)
- Lohum Cleantech Private Limited · India
- DB Bahnbau Gruppe GmbH · Germany
Frequently asked questions
The second-life EV batteries market study focuses on the market assessment and opportunity analysis through the sales of second-life EV batteries across different region, and countries, this study is also focused on competitive analysis for second-life EV batteries based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies.
Cite this report
Meticulous Research. (2024). Second-life EV Batteries Market - Global Opportunity Analysis And Industry Forecast (2024-2031) (Report No. MR-1049). Meticulous Market Research Pvt. Ltd. https://www.meticulousresearch.com/product/second-life-ev-batteries-market-5732