Revenue is expected to grow more strongly than the previous period, as the US economy strengthens and state battery recycling legislation gains further traction
Los Angeles, California (PRWEB) November 08, 2011
The Battery Recycling industry will be positively charged over the five years to 2016, according to IBISWorld, the nation’s largest publisher of industry research. Revenue is expected to grow more strongly as the US economy strengthens and recent state battery recycling legislation gains further traction. In addition, growing demand for rechargeable batteries in consumer products and the widening electric and hybrid car market will increase the amount of recyclable batteries that industry operators will handle. Finally, growing demand for scrap metals in manufacturing as the market price for nonferrous metals continues to escalate will raise demand for materials recovered from recycled batteries, increasing revenue and profit margins. In 2012 alone, revenue is expected to increase 9.6%; and through 2016, IBISWorld forecasts revenue will grow at an average annual rate of 8.6% to $994.8 million.
In 2011, IBISWorld estimates that 48.2 million pounds of batteries will be collected for recycling in the United States, demonstrating strong demand for the Battery Recycling industry. The industry, which includes battery collectors and sorters and firms that process and recover raw materials from recycled batteries, depends on demand from automobile manufacturers and the total batteries purchased by consumers. When the automobile sector faltered and consumers cut back on purchases of electronics during the recession, the volume of batteries collected for recycling fell and the rates achieved for sales of recovered materials also sank. Industry revenue increased by a meager 0.8% in 2008 and fell 11.0% in 2009, compared with double-digit growth in the prior years. Since then, conditions have improved, with revenue expected to surpass its pre-recession level and grow 5.4% to $657.9 million in 2011, marking average annualized growth of 3.2% since 2006.
The growth in battery recycling over the past two decades can be traced back to environmental regulations. These laws have sought to reduce the amount of toxic batteries that make their way into the municipal solid waste (MSW) stream. The Battery Act, passed by the US Congress in 1996, sought to phase out the use of mercury in batteries and facilitate the collection and recycling of rechargeable batteries so that heavy metals can be properly recovered rather than being released into the environment and leaching into water systems. According to the Environmental Protection Agency (EPA), more than 350.0 million rechargeable batteries are purchased annually, and that number is expected to rise as consumers buy more portable handheld devices for work and entertainment use.
According to IBISWorld analyst, Brian Bueno, the Battery Recycling industry will remain positively charged over the five years to 2016. “Revenue is expected to grow more strongly than the previous period, as the US economy strengthens and state battery recycling legislation gains further traction,” says Bueno. In addition, growing demand for rechargeable batteries in consumer products and the widening electric and hybrid car market will increase the number of recyclable batteries that industry operators will handle. In 2012 alone, revenue is expected to increase 9.6%; and through 2016, IBISWorld forecasts revenue will grow at an average annual rate of 8.6% to $994.8 million.
For more information, download the full report from IBISWorld on the Battery Recycling industry
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