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According to the study published by Astute Analytica, the Global Battery as a Service Market is projected make a major rise in its revenue from US$ 142.7 Mn in 2021 to US$ 1,097.6 Mn by the end of 2030. The market is registering a growth at a CAGR of 25.9% over the forecast period 2022-2030. Across the globe, economies and companies are focusing on climate change, sustainability, ESG goals, circular economy, etc. with a renewed vigor, especially in the post pandemic world. To combat climate change, automotive companies across the world are focusing on cleaner energy. Growing fuel prices, rising pollution level 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.
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. Through battery as a service 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 help customers to save money at the time of purchase. 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 US$ 65.20 (INR 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.
Stationary type dominates the Global Battery as a Service Market in 2021
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.
Subscription service has the highest market share in 2021
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.
Passenger cars leads the Global Battery as a Service Market in 2021
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 leads the Global Battery as a Service Market in 2021
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.
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:
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