Examining battery leasing service market landscape: A regional overview

Author: Global Market Insights

Over the recent years, numerous battery leasing service market contenders have adopted an array of corporate strategies such as acquisitions, mergers, partnership agreements, etc. The adoption of such tactics is purely carried out in a bid to establish a strong industry foothold.

Some of the latest developments comprise:

·         In July 2021, Nio Inc., announced plans for the addition of at least 3,700 battery swap stations until 2025. The disclosures came amid the company’s intentions to further the adoption of EVs in the globally largest auto market. At the time, the Chinese company already had around 300 battery swap stations in place.

·         In December 2021, Bounce launched its e-2wheeler with a unique offering whereby a person could simply lease a battery and not make any payment for it as part of upfront price. The introduction of the battery-as-a-service mode enabled the user to pay for the battery during the usage and swap (via a subscription) with fully charged ones.

These advancements bear evidence to the appreciable growth of battery leasing service market share, which is expected to surpass USD 400 million by 2028, according to Global Market Insights Inc. Some of the prominent industry players comprise Contemporary Amperex Technology Co., Ltd., Lithion Power Private Limited, Ample, Inc., Octillion Power Systems, E-ChargeUp Solutions Private Limited, Oyika Pte Ltd., Sun Mobility Private Limited, NIO NextEV Limited, and others.

Growing capacity expansion initiatives to drive business scenario in Europe

Europe battery leasing service market is anticipated to cross a revenue of USD 90 million by 2028. This can be attributed to the growing inclination of industry players towards the establishment of their units in the region.

Citing an example, in November 2021, Ample secured an investment of USD 30 million from Banco Santander and The Blackstone Group. In early 2021, the company had inked a collaboration with Uber for using its battery swapping stations at a few places in the Bay Area. Under this agreement, both companies had agreed for the extension of their partnership to Europe.

Asia Pacific battery leasing services market: Favorable regulatory policies to drive regional expansion

The APAC countries are focusing on the adoption and formulation of policies that are expected to be favorable for regional expansion.

For instance, in February 2022, NITI Aayog, the Indian federal think tank, hit the headlines for plans to hold a consultation on the upcoming EV (electric vehicle) battery swapping policy. BaaS (Battery-as-a-service) is being considered as a viable charging alternative. Considering such advancements, the APAC market size is expected to foresee commendable expansion through 2028.

Debut of numerous players in the North America battery leasing service industry

Numerous battery leasing companies are centered on the launch of products on the U.S. market, creating favorable opportunities for business expansion in the region of North America. For example, in March 2022, Vinfast disclosed plans for the roll out of electric sport utility vehicles along with its battery leasing business models across the U.S. market. Additionally, the company also announced plans for the development of its Gigafactory in the country.

In line with similar developments, North America battery leasing market share is poised to grow at an appreciable CAGR through 2028.

To sum up, rising interest of venture capitalists in EV technology, owing to the vast potential for impacting the automotive sector, is slated to drive battery leasing service industry growth across various regions.