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.
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.
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:
By Service Type segment of the Global Battery as a service Market is sub-segmented into:
By Vehicle Type segment of the Global Battery as a service Market is sub-segmented into:
By Region segment of the Global Battery as a service Market is sub-segmented into:
Report Attribute | Details |
---|---|
Market Size Value in 2021 | US$ 142.74 Mn |
Expected Revenue in 2030 | US$ 1,097.63 Mn |
Historic Data | 2017-2020 |
Base Year | 2021 |
Forecast Period | 2022-2030 |
Unit | Value (USD Mn) |
CAGR | 25.9% (2022-2030) |
Segments covered | By Product Type, By Service Type, By Vehicle Type, By Region |
Key Companies | NIO, Epiroc, Global Technology Systems, Inc., Contemporary Amperex Technology Co., Harding Energy, Inc., and Octillion among others |
Customization Scope | Get your customized report as per your preference. Ask for customization |
Under this model, customers can lease batteries from the OEMs or battery suppliers as a separate component from cars and can also take out the discharged battery and exchange it with a fully charged one.
The Global Battery as a service Market was valued at US$ 142.7 Mn in 2021.
The Global Battery as a service Market is estimated to expand at a CAGR of 25.9% over the forecast period.
The market is majorly driven by factors such as high battery cost and growing sales of electric vehicle coupled with favorable government initiatives.
The damage to the battery due to handling coupled with lack of standardization is hindering market growth.
Growing demand of electric vehicle in Asia Pacific is creating a lucrative opportunity for market expansion.
Stationary segment dominates the market in 2021.
Passenger cars dominate the Global Battery as a service Market.
Asia Pacific dominates the Global Battery as a service Market.
The key players in the Global Battery as a service Market are NIO, Epiroc, Global Technology Systems, Inc., Harding Energy, Inc., and Octillion among others.
LOOKING FOR COMPREHENSIVE MARKET KNOWLEDGE? ENGAGE OUR EXPERT SPECIALISTS.
SPEAK TO AN ANALYST