"Battery Rebuild Service Market is in Trends due to Increased Usage of Lithium-Ion Batteries"

 

A battery rebuild service involves complete reengineering and rebuilding of used lead-acid batteries to restore their performance levels near to that of a new battery. Battery rebuild services help in recovering about 80-90% of battery life through mechanical and electrical reconditioning procedures including plate cleaning, recharging, cell-by-cell inspection and testing. Battery rebuild services offer cost savings of up to 60% as compared to replacement with new batteries. The global battery rebuild services market caters to various industries including automotive, UPS systems, telecommunication systems, grid-level energy storage, household batteries among others.

The Global Battery Rebuild Service Market is estimated to be valued at US$ 3.90 Bn in 2024 and is expected to exhibit a CAGR of 6.8% over the forecast period 2023 to 2030.

Key Takeaways

Key players operating in the Battery Rebuild Service are 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, Battery Recyclers of America, Relectrify Pty Ltd., Battery-Biz Inc., Enertec Batteries Pty Ltd., Stryten Manufacturing LLC, Allied Battery Co. Key players focus on expanding their network of service centers to cater to the growing demand.

The growing demand for lead-acid batteries from automotive, UPS systems and telecommunication sectors is expected to drive the growth of the battery rebuild services market. The increasing usage of EVs and hybrid vehicles is also propelling the demand.

The battery rebuild service providers are expanding their global footprint to capitalize on opportunities across geographies. The market players are focusing on developing regions in Asia Pacific and Latin America with growing industrialization and automotive sectors.

Market key trends

One of the key trends driving the battery rebuild service market is the increased usage of lithium-ion batteries across various applications. Rebuild of used lithium-ion batteries is gaining traction as it helps recover residual battery life at lower costs relative to replacement. The service players are focusing on developing capabilities for safe handling, testing and rebuilding of lithium-ion battery packs. This is expected to open new growth avenues for battery rebuild service providers over the forecast period.

Porter's Analysis
Threat of new entrants: Low establishment and operational cost make it easy for new players to enter the market but established players benefit from brand reputation and strong distribution networks.
Bargaining power of buyers: Buyers have high bargaining power as battery rebuild services have many substitutes and buyers can easily switch to alternatives.
Bargaining power of suppliers: Established suppliers have strong bargaining power due to their dominance and economies of scale while new suppliers have low power.
Threat of new substitutes: Threat from new substitutes like new battery manufacturing is moderate as rebuild services provide cheaper alternatives to new batteries.
Competitive rivalry: Intense competition exists among existing players to capture more market share by expanding service networks and through innovations.

The Battery rebuild services market in North America is currently the largest, valued at over US$ 1.30 Bn in 2022. Easy availability of used batteries and awareness among consumers and commercial sectors about cost benefits of rebuild services are major factors driving high demand.

The Asia Pacific region is expected to witness the fastest growth during the forecast period. Rapid industrialization and growing electric vehicles market are increasing the need for battery maintenance and rebuild services in countries like China and India. Supportive government policies for battery waste recycling are also encouraging market expansion across Asia Pacific.

 

About Author:

Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials,  etc

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it