Battery, E-waste, Plastic To Be A $20bn Market: Avendus Capital Report

The entire amount of e-waste generated globally is predicted to be 59 million MT in 2022, with just around 18 per cent recycled

According to a report by Avendus Capital titled Circular Economy: Recycling Waste To Wealth, plastics, e-waste, and battery recycling are expected to collectively reach a market size worth about USD 20 billion by 2030.

The paper also addresses the concept of "circular economy," which refers to a system that is designed to be restorative and regenerative. It entails eliminating any material's 'end-of-life' and revamping the consumption and manufacturing systems to create a regenerative environment.

Koushik Bhattacharyya, Managing Director and Head, Industrials Investment Banking, Avendus Capital said, “We believe that the recycling sector is at an inflection point owing to the rising focus on sustainability and the regulatory push. Businesses are realising that being sustainable is the right thing to do and it also improves their perceived value among all stakeholders, with customers increasingly choosing brands based on their sustainability credentials and investors doubling down on their ESG mandates."

Battery Recycling Market

The battery recycling and reuse market is expected to grow exponentially to touch about USD 2 billion by FY30. Batteries, the most crucial component of EVs, account for approximately 30-50 per cent of the cost of an EV, making it the EV industry's "focal point."

Ashish Ahuja, Vice President, Industrials Investment Banking, Avendus Capital, said, “India’s plastic waste recycling industry is expected to grow at a CAGR of 24 per cent and reach USD 10.2 billion by FY30. 

This will be driven by the rising use of recyclable plastics, exponential demand in e-commerce and quick commerce packaging and use in light-weighting of products."

According to the report, India will undergo a significant energy change as it transitions to a low-carbon economy. Because of its use in automobiles to minimise pollution, lithium-ion batteries are important to this strategy. At the same time, due to a scarcity of vital raw materials, battery recycling becomes even more critical in India.

Potential of E-waste Market In India

The entire amount of e-waste generated globally is predicted to be 59 million MT in 2022, with just around 18 per cent recycled. Some of this was reused. It is estimated that this e-waste comprises USD 60 billion in raw materials. Materials such as gold, silver, copper, platinum, and other recoverable materials.

It is predicted that India created 5.8 million MT of e-waste in FY23, with the organised sector processing 15 per cent of it. Because many electronics and appliances are reconditioned and resold before being thrown as waste, calculating the total amount of e-waste generated is challenging.

The e-waste recycling business is predicted to expand by 23 per cent to USD 7.5 billion by 2030.

Size off Plastic Recycling Market

While data on plastic trash in India is not well documented, the country generates an estimated 13 million tonnes of plastic debris, 60 per cent of which is recycled. The remaining plastic garbage is disposed of in landfills or burned.

In FY23, the Indian plastic waste recycling business was predicted to be worth USD 2.3 billion. The market is predicted to increase at a 24 per cent CAGR (compound annual growth rate) to USD 10.2 billion by FY30.

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