According to a new report, published by KBV research, The Global Second Life EV Battery Market size is expected to reach USD 23.54 billion by 2032, rising at a market growth of 42.6% CAGR during the forecast period.
The emergence of electric vehicles (EVs) at scale has brought about a parallel challenge and opportunity: what to do with the traction batteries once their first life in a vehicle ends. Current guidance suggests that lithium-ion battery packs become less suitable for demanding automotive duties when their remaining capacity or performance drops to around 70-80 % of original.
The Commercial & Industrial (C&I) segment is leading the Global Second Life EV Battery Market by End Use in 2024, achieving a market value of $13.70 billion by 2032, growing at a CAGR of 42.1 % during the forecast period. In the commercial and industrial (C&I) domain, the reuse of EV batteries post-traction life is gaining considerable traction. Former vehicle battery modules are being repurposed to support large-scale energy-storage installations at manufacturing plants, distribution centres and commercial campuses. These systems help organizations manage peak demand charges, integrate onsite renewable energy and provide backup power during grid outages. Automotive OEMs and energy-storage integrators are collaborating to retrieve retired EV packs from service networks, evaluate their state-of-health, and re-architect them into stationary battery-energy-storage systems (BESS) tailored for C&I customers.
The Power Backup/UPS segment is generating the maximum revenue share in the Global Second Life EV Battery Market by Application in 2024, growing at a CAGR of 42 % during the forecast period. In many cases the largest portion of demand for reused EV batteries comes from contexts where reliable, lower-cost energy-storage capability is needed to support emergency power and uninterruptible power supply (UPS) systems. In commercial buildings, data-centres, healthcare facilities and industrial sites, second-life EV battery modules are increasingly being repurposed as backup power assets to maintain operations during grid outages or power quality events.
The Asia Pacific region dominated the Global Second Life EV Battery Market by Region in 2024, and would continue to be a dominant market till 2032; thereby, achieving a market value of $10,510.2 million by 2032. Europe is experiencing a CAGR of 42.1% during (2025 - 2032). Additionally, The North America region would exhibit a CAGR of 41.4% during (2025 - 2032).
By End Use
By Application
By Geography
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