Battery as a service Market - Industry Dynamics, Market Size, And Opportunity Forecast To 2030

Market Scenario

Across the globe, economies and companies are focusing on climate change, sustainability, ESG goals, circular economy, etc. with renewed vigor, especially in the post-pandemic world. To combat climate change, automotive companies across the world are focusing on cleaner energy. The Global Battery as a service Market was valued at US$ 142.7 Mn in 2021 and is estimated to reach US$ 1,097.6 Mn by the end of 2030. The market is registering a compound annual growth rate of 25.9% over the forecast period 2022-2030. Growing fuel prices, rising pollution levels and climate concerns are driving the growth of electronic vehicles. But the concern about their high cost is also weighing heavy on everyone’s mind. So, to address this concern, the battery-as-a-service model was born. Under this model, customers can lease batteries from the OEMs or battery suppliers as a separate component from cars. In addition, the customers can also take out the discharged battery and exchange it with a fully charged one. Thus, Battery-as-a-service model helps customers save money at the time of purchase. 

The market is majorly driven by factors such as high battery cost and growing sales of electric vehicle coupled with favorable government initiatives. Electric vehicles (EVs) have lower operating costs than conventional automobiles, but their purchase price is higher. The major share of this cost is due to the high price of batteries used in these vehicles. Battery-as-a-Service model allows customers to lease batteries as a separate component from cars. Leasing the battery saves the upfront purchase cost of an electric vehicle. This new service provides battery swapping options that offer a solution to address shorter range issues of an EV. Further, governments of several countries promote the adoption of electric vehicle, which in turn is expected to propel market growth. Furthermore, countries like the U.S., France, Germany, and China have implemented stringent government laws and regulations regarding vehicular emission, under which it is mandatory for the automobile manufacturers to use advanced technologies that help to combat high-emission levels emitted by vehicles. They have promoted the growth in this segment by offering incentives, imposing tax rebates, and preferential policies, among others. For instance, in India, state of Maharashtra declared its EV policy in 2021. This policy provides incentives of Rs. 5,000 per kilowatt-hour of battery capacity to all types of electric vehicles buyers. Moreover, several European governments have made long term pledges with compliance targets within a specific timeframe such as ZEV (Zero-Emission Vehicles) mandates and the phase out of internal combustion engine vehicle sales. However, the damage to the battery due to handling coupled with lack of standardization is hindering market growth. 

Report Insights of the report: 

• Latest study published by Astute Analytica analyzes the Global Battery as a service Market for the study period of 2017-2030; where historical years are 2017-2020, base year is 2021 and forecast period is 2022-2030.
• The research report offers detailed study of market determinants including market drivers, restraints, opportunities, and trends; along with attractive presentation in the form of impact analysis to gain a simpler and easy comparison view of all market determinants.
• The research study is a compilation of 9 chapters distributed across 134 pages with 27 list of tables and 58 list of figures.
• The various segmentations considered to analyze the market are based on product type, service type, vehicle type and region.
• The market estimates are presented in terms of value (US$ Mn)
• Along with market estimations, the market study was conducted on the basis of various economic models such as PESTLE analysis and Porter’s five force models.
• A detailed value chain analysis of the industry was conducted. It includes technology developers, integrators, service providers, and end users.
• The competitive dashboard section includes analysis on the basis of Concentration Ratio (CR), based on market size and market presence of key companies.

Key Takeaways from the Global Battery as a service Market Report:

• Based on product type, the stationary segment has the highest share in the Global Battery as a service Market in 2021 and is projected to continue its dominance over the projection period. Stationary segment refers to swapping stations where batteries that are constantly charged have been put in a strategic location. An EV driver can find a charging station, swap out the depleted battery for a charged one, charge the empty battery, and return to work. However, the mobile/portable segment holds the highest CAGR over the forecast period.
• In terms of service type, the subscription (rental) segment dominates the market in 2021 and registers the highest CAGR over the forecast period. The substantial share of subscription models can be attributed to factors such as affordability, low cost per swap, and battery leasing alternatives.
• Based on vehicle type, passenger cars have the highest share in the battery as a service market in 2021 and records the highest CAGR over the projection period. This is due to rising sales of electric passenger cars in both developed and developing countries.
• Asia Pacific is the highest shareholder region in the Global Battery as a service Market in 2021 and will continue its dominance over the forecast period. China, being the world's top EV producer and user, has a stranglehold on the region's EV market. Furthermore, Japan and South Korea have both seen rapid growth in their electric vehicle market as their governments have aided the increase of EV demand by providing EV charging stations, establishing pollution standards, and establishing deadlines for switching from ICE vehicles to full or hybrid EVs, among other things.

Competitive Landscape:

The key players in the Global Battery as a service Market are NIO, Epiroc, Global Technology Systems, Inc., Contemporary Amperex Technology Co., Harding Energy, Inc., and Octillion among others. Through extensive research, it is found that big players have adopted various competitive strategies such as merger & acquisition in order to have a grip in the stabilized market scenarios. Furthermore, leading companies are expanding their geographical boundaries by acquiring small brands and domestic companies.

Segmentation Overview

The following are the different segments of the Global Battery as a service Market

By Product Type segment of the Global Battery as a service Market is sub-segmented into:

• Stationary
• Mobile/Portable

By Service Type segment of the Global Battery as a service Market is sub-segmented into:

• Subscription (Rental)
• Pay Per Use

By Vehicle Type segment of the Global Battery as a service Market is sub-segmented into:

• 2 & 3-Wheeler
• Passenger Car
• Light Commercial Vehicle (LCV)
• Heavy Commercial Vehicle (HCV)
• Others (Telehandler, forklifts and others)

By Region segment of the Global Battery as a service Market is sub-segmented into:

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • Western Europe
    • The UK
    • Germany
    • France
    • Italy
    • Spain
    • Rest of Western Europe
  • Eastern Europe
    • Poland 
    • Russia
    • Rest of Eastern Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia & New Zealand
  • ASEAN
  • Rest of Asia Pacific
• Middle East & Africa (MEA)
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA
• South America
  • Argentina
  • Brazil
  • Rest of South America