Electric Vehicle Battery Swapping Market - Industry Dynamics, Market Size, And Opportunity Forecast To 2030

Global electric vehicle battery swapping market is projected to reach a valuation of US$ 901.71 million by 2030 at a CAGR of 24.9%. This would offer a revenue growth opportunity of US$ 749.54 million during the forecast period 2022–2030.

The explosive growth of the global electric vehicle battery swapping market is attributed to a range of factors such as reduced to no charging time, shortage of adequate charging facilities, and rapidly expanding number of EVs on the road.

The rise in crude oil prices and the growing awareness of the harmful effects of emissions from internal combustion engine (ICE) vehicles are some of the other factors driving the demand for EVs. However, the high cost of EVs and the lack of comprehensive charging infrastructure are restraining the growth of this market.

The demand for electric vehicle battery swapping market is also being driven by advancements in battery technology. Lithium-ion batteries are widely used in EVs due to their high energy density, which allows for longer ranges and faster charging. However, these batteries are expensive and have a limited life span. Wherein, battery swapping is an alternative solution that can address some of these challenges. In battery swapping, a depleted battery is replaced with a fully charged one at a swap station. This helps to reduce downtime and extend the range of EVs.

Key Dynamics of Global Electric Vehicle Battery Swapping Market 

Drivers

Charging Time for Electric Vehicles is Reduced

Under the long-haul operations of electric cars, the charging time becomes one of the most crucial factors. The battery charging process often becomes time-consuming method, which can take up to eight hours to get fully charged with a regular charger. 

However, the electric vehicle battery swapping market plays a major role in overcoming such situations and helps to resolve these difficulties. Unlike the conventional charging techniques, battery swapping takes less than three minutes, which proves to be highly popular among consumers as they don’t have to think much about charging and the life of the battery. 

Shortage of Requisite Infrastructure for Public Charging Facilities

As per an estimate from International Energy Agency (IEA), global sales of electric cars increased to over 3 million in 2021 from 2.1 million in 2019, thereby gaining by almost 40% in the year 2020-21.

The year 2020 was set as the target year for emission limits, particularly in Europe. For example, in 2021, a target of 95g of CO2 per kilometer was set. Additionally, the standards will be stricter in 2025 and 2030, with a 15% and 37.5% reduction in average tailpipe emissions for corporate fleets, respectively. 

To accomplish these objectives, electric vehicles are essential. To promote the purchase of electric vehicles and associated equipment, several governments, including those in Germany, France, and the United Kingdom, have increased buying incentives. 

On the other side, there are a number of limitations on how far an electric vehicle may travel with a single charge. Depending on how often it is used, a battery may require charging twice in a day, which may take 6–10 hours. To reduce downtime, these considerations encourage the use of battery-swapping technology for electric vehicles.

Current Trends in Global Electric Vehicle Battery Swapping Market 

Increasing Adoption of Micro-Mobility Vehicles

These types of vehicles are usually deployed for shorter routes and are lightweight, which help in navigating clogged places. The micro-mobility vehicles industry has bought a change in the automobile market by introducing more electric vehicles. Major companies are collaborating to promote the widespread promotion of micro-mobility vehicles such as eScooters and eBikes.

Gogoro, a Taiwanese start-up that started its main operations in 2015 with the debut of the Smartscooter, made the first significant breakthrough in electric vehicle battery swapping market. By the beginning of 2022, Gogoro had 450,000 users spread across 2,276 Go Stations, with a daily average of 250,000 e-scooter battery swaps. The idea served as inspiration for a number of businesses in APAC, including Yamaha, which is currently collaborating with Gogoro to create its second e-scooter. 

The possibility of buying e-scooters without batteries seemed to be one of the technology's main advantages, saving drivers a significant amount of money. After starting its European campaign in late 2021, Nio, a Chinese electric vehicle maker, intends to expand its operations in Norway and China's electric vehicle battery swapping market.

Factors Restraining Market Growth

Installation of Electric Vehicle Charging Station & Availability of Charging Hardware 

Battery charging is significantly more practical than battery switching over the long term because of all the technical benefits it offers. Given the number of electric vehicles on the market and the established charging connector standards, the distribution of the EV charging infrastructure is sufficient in the electric vehicle battery swapping market. In fact, all EVs can be charged from regular household power outlets, indicating that charging equipment and infrastructure are now widely accessible, which is a significant issue—possibly the most important one.

Also, battery design is one of the major difficulties that battery-swapping technology encounters. The amount of range a battery can deliver after each charge decreases as the battery ages. In order to satisfy customers, battery packs with inferior performance will need to be replaced more frequently, which will result in shorter battery life and higher costs.

Market Segmentation

By Services

By services, the global electric vehicle battery swapping market is bifurcated into a subscription (rental) and pay-per-use. Wherein the pay-per-use services is projected to grow at a CAGR of 24.1%, while subscription (rental) services are predicted to grow at a CAGR of 25.2%.

Battery swapping entails customers purchasing an electric vehicle (EV) without the battery, greatly reducing upfront costs and paying a recurring subscription (weekly and monthly) to service providers for battery services over the course of the vehicle's lifetime.

By Vehicle Type

In terms of vehicle type, the global electric vehicle battery swapping market can be categorized into 2-Wheeler, 3-Wheeler, Passenger car, and commercial vehicles. 

The passenger cars segment is projected to dominate the market and is likely to grow at a CAGR of 25.3% in the years to come. Global EV sales increased by 108% from 2020 to 6.75 million units in 2021. Passenger cars, light trucks, and light commercial vehicles are all included in this volume.

The commercial vehicle segment, the second-largest electric vehicle battery swapping market, is anticipated to grow at a CAGR of 24.7% and generate around 29.5% of revenue in 2021. However, the segment is projected to lose its market share 29.0% by 2030.

Sales of two-wheeled electric vehicles have increased significantly in the last couple of years. E-autos are also increasingly being employed for short-distance goods transportation across metro cities like Delhi, India. As a result, they are widely utilized in Asia, particularly in Bangladesh, Thailand, and India.

Regional Analysis:

As per our study, North America holds the second prominent share of the global electric vehicle battery swapping market. The region was responsible for sales revenue of 25.3% revenue in 2021. On the other hand, Taiwan, China, and Indonesia are among the dominating countries in the Asia Pacific region that account for the highest share of the market. 

There are over 2,487 gas stations in Taiwan. As Gogoro works to build new stations in farther-flung locations, it is anticipated that the number of battery exchange stations will surpass that of gas stations by the end of 2022.

The North America electric vehicle battery swapping market is estimated to grow at a CAGR of 24.8% over the forecast period. In the US, the battery-swapping industry is gaining attention. Major automakers and battery swapping companies such as Ample are collaborating on making new EV compatible with swapping, promoting further growth in the regional market. 

In Europe, only Norway has made significant development in setting up battery swapping facilities; however, the other countries have still not made any significant efforts in this regard. Norway has the highest rate of EV adoption in the world thanks to its low EV taxes, broad EV charging infrastructure, and other encouraging benefits, including free public parking, access to bus lanes, and exemption from tolls.

List of Key Companies Profiled:

• Amara Raja
• Amplify Mobility
• BattSwap Inc.
• BYD Co. Ltd.
• ChargeMYGaadi
• EChargeUp solutions pvt Ltd
• Esmito Solutions Pvt Ltd.
• Gogoro Inc.
• Kwang Yang Motor Co. Ltd. (KYMCO)
• Leo Motors Inc.
• Lithion Power Private Limited
• NIO Inc.
• Numocity
• Oyika Pte Ltd.
• Panasonic Corporation
• SUN Mobility Private Limited
• Tesla Inc.
• Beijing Automotive Group Co., Ltd.
• Other Prominent Players

The global electric vehicle battery swapping market is dominated by top 5 players, namely, NIO Inc., Gogoro, Inc., BAIC, KYMCO, and Honda, among others. These five players are collectively accounting for over 56% market share. 

Recent Developments:

• NIO Inc: It is a leading Shanghai-based Chinese multinational automobile manufacturer that specializes in the design and development of electric vehicles. The company’s key strategy includes the advancement of its capability in the US Market with the deployment of its first battery swap station in 2022.
• Gogoro: A battery-swapping refueling platform for electric scooters, mopeds, and motorbikes in urban settings was developed by the Taiwanese company Gogoro. Additionally, it produces its own electric scooters and offers inventions for new types of vehicles to companies like Hero, Yamaha, Aeonmotor, PGO, eReady, and eMOVING.
• BAIC Group: It is one of the leaders in the global electric vehicle battery swapping market. The company also rolled out its battery-swapping vehicle, including battery swap taxis in large numbers with elaborated infrastructure such as swap stations. It has specialized capabilities under car sharing and car hailing, which will boost its battery swap business.
• KYMCO: It is a major company occupying a leading position in the electric vehicle battery swapping market. Scooters, motorcycles, ATVs, and utility vehicles are among their key offerings, with operations across more than 100 countries. In the year 2021, the company developed the world's first personalized energy replenishment service for electric scooters and motorcycles, which offers on-demand battery delivery and battery switching.

Segmentation Overview

Global electric vehicle battery swapping market is sub-segmented into:

(Note*: We also provide granular level reports, made to sub-segment level or only for niche segments. Contact us, if you require more details.)

By Service

• Subscription (Rental)
• Pay Per Use

By Vehicle Type

• 2 Wheeler
• 3 Wheeler
• Passenger Car
• Commercial Vehicle

By Region segment of the Global Electric Vehicle Battery Swapping Market is sub-segmented into: 

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • The U.K.
  • Germany
  • France
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific 
  • China
  • India
  • Japan
  • Australia & New Zealand
  • South Korea
  • ASEAN
  • Rest of Asia Pacific
• Latin America
  • Argentina
  • Brazil
  • Rest of Latin America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Egypt
  • Rest of Middle East & Africa