The worldwide second-life electric vehicle battery market is expected to grow at a compound annual growth rate of 44.7% from 2022 to 2031, reaching a projected value of $9.93 billion in 2031.
According to a recent report from Transparency Market Research, the second-life EV battery market was valued at $364.9 million at the end of 2022 and is expected to grow due to the increased number of EVs on the road. The growing availability of previously used batteries combined with improved battery management and refurbishing technologies is expected to further feed into the sector’s expansion.
Second-life battery usage covers a wide range of applications beyond EV transport and allows for a cost-effective alternative to new batteries. Second-life batteries may be used in various residential, commercial, and industrial applications as energy storage, according to the report. Of the segments involved in the second-life battery market, the EV charging industry is expected to dominate in the years to come. The industrial segment is also expected to see high revenue in the market.
In terms of regional trends, Asia Pacific is experiencing the highest demand for second-life EV batteries largely because of the EV industry’s growth in the region. The report also expects demand from North America to grow at a moderate pace as various industries adopt energy storage systems.
Competitive Landscape, Improved Battery Management Systems Encourage Growth
The report describes the second-life EV battery market as consolidated and shared predominantly by a small number of large-scale vendors.
Many of these vendors have responded to car manufacturers’ sustainability initiatives aimed at giving EV batteries a purpose after use in their vehicles. For example, Nissan is currently engaged in projects that work to repurpose its EV batteries for energy storage solutions.
Because battery management systems have experienced technological innovations, monitoring and assessment of second-life batteries has improved and allows for better performance in a larger number of applications.
Another recent report from ResearchandMarkets.com revealed the EV battery recycling market is expected to grow from $8.2 billion in 2022 to $20.07 billion by 2028, also due to rising EV demand and technological improvements in the sector.
Major players named by the report include Enel X, Nissan, Fortum, Renault, Mercedes-Benz, Hyundai, and others.