by The Battery Rebuild Service Market is estimated to be valued at US$ 3.90 billion in 2023 and is expected to exhibit a CAGR of 6.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Battery rebuild services involves complete repairing or rebuilding of old or damaged batteries to restore or improve their performance. Batteries are used widely in automotive, electronics, uninterrupted power supply and motive power applications. The increasing adoption of electric vehicles as well as the declining life of batteries has augmented the need for repairing and rebuilding battery services to reduce solid waste and extract remaining life from old batteries.
Market key trends:
One of the key trends driving the battery rebuild service market is the increasing adoption of electric vehicles globally. As per the report, the global electric vehicle stock exceeded 10 million in 2020, growing by over 40% from 2019. The depleting battery health and shorter life of lithium-ion batteries used in electric vehicles is fueling the need for battery rebuild services. The battery rebuild process involves disassembling the battery pack, testing and sorting individual battery cells, replacing weak or bad cells and then reassembling the battery pack. This helps in restoring the lost battery capacity at a much lower cost than replacing the battery pack. The rebuilt batteries can further provide 20-40% of the life of new batteries, thus providing a more sustainable and cost-effective option for electric vehicle owners.
Porter’s Analysis:-
- Threat of new entrants: The threat of new entrants is moderate as significant investments are required to set up the necessary infrastructure and processes to rebuild batteries at scale. However, regional players can enter the market with lower costs.
- Bargaining power of buyers: The bargaining power of buyers is high as batteries are available from multiple rebuilders and new battery manufacturers. Buyers can negotiate on price and demand value-added services.
- Competitive rivalry: Intense as rebuilders compete on quality, pricing, and turnaround time.
- Threat of new substitutes: Moderate threat from new battery technologies that offer better performance but high for older vehicle applications.
- Bargaining power of suppliers: Suppliers of battery components and recycling have moderate power as rebuilders depend on them for raw materials.
SWOT Analysis:-
- Strengths: Established rebuilders have scale, technical expertise, and brand recognition. The service extends lifecycle of batteries and is more sustainable than disposing of them.
- Weaknesses: Quality issues can damage reputation. New technologies may make some applications obsolete over time.
- Opportunities: Growing demand for electrified vehicles and energy storage increases need for rebuilt batteries. Collaboration with OEMs offers new revenue streams.
- Threats: Stricter regulations make entry costly. Battery-as-a-service model from OEMs/startups bypass rebuilders.
Key Takeaways:-
The Global Battery Rebuild Service Market Growth is expected to witness high, exhibiting CAGR of 6.8% over the forecast period, due to increasing demand for electrified vehicles and focus on recycling. The US market currently dominates due to large vehicle parc and establishes rebuilders; however, China and European markets are growing rapidly.
Regional analysis: The US battery rebuild service market holds the highest share currently valued at US$ 1.50 billion in 2023 owing to presence of key industry players and large automotive manufacturing base. China and European markets are growing at over 8% annually due to strong EV sales and supportive regulations promoting battery second-life applications.
Key players: Key players operating in the battery rebuild service market include Battery Solutions LLC, Battery Builders Inc., Battery Service Hub, The Battery Medic LLC, Interco Trading Company, Interstate Batteries Inc., Johnson Controls International plc, Tesla Inc., Battery Universe LLC, and Battery Recyclers of America. Players are focusing on collaboration, digital solutions, and battery-as-a-service to gain share.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
