EV Battery Swapping Market Share, Growth, Opportunities 2031

Report Description

The global EV battery swapping market size was valued at around USD 124.65 Million in 2022 and is estimated to reach USD 889.36 Million by 2031, expanding at a CAGR of around 24.4% during the forecast period, 2023-2031. The growth of the market is attributed to the rising levels of pollution and the increasing popularity of electric vehicles.

An electric vehicle (EV) refers to a vehicle, which operates on an electric motor rather than an engine that is powered by burning a combination of fuel and gases. An electric vehicle battery is usually a rechargeable battery that is used to power electric motors in electric vehicles. Individuals need to charge their vehicles, in either a private charging station or a public charging station, to use them for their daily commute.

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Electric vehicle batteries are expensive, and they increase the upfront cost of any electric vehicle. The scarcity of public battery charging stations makes it difficult for individuals to drive their electric vehicles further than their designated routes.

Battery swapping presents itself as an innovative solution to the electric vehicle battery charging problem. An electric vehicle owner visits a battery swap station to replace the discharged battery with a newly charged one. The owner can lease the charged battery and submit the discharged battery to the swapping station. The swapping stations purchase charged batteries in bulk and set up charging stations to charge the discharged batteries. Swapping the discharged batteries takes less time than charging them.

Market Trends, Drivers, Restraints, and Opportunities

• Growing adoption of shared e-mobility is expected to drive the market during the forecast period.

• Increasing adoption of the battery-as-a-service model, which aids in reducing the total cost of the vehicle and eliminating risks of owning batteries, boosts the market.

• Rising demand for large battery capacity and advanced charging equipment is estimated to fuel the market in the coming years.

• Lack of public electric vehicle charging facilities drives the market.

• Difference between battery designs and technology hampers the growth of the market.

• High cost for initial set up and operating EV battery-swapping station restrains the growth of the market.

• Technological advancements and decreasing battery prices offer growth opportunities to the market players.

• Cloud-based battery swapping system is one of the major emerging trends, which is anticipated to spur the market in the coming years.

Scope of the Report

The report on the global EV battery swapping market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

Subscription segment expands rapidly

Based on service types, the market is bifurcated into subscription and pay-per-use segments. The subscription segment is expected to hold a key market share during the forecast period, owing to the affordability of subscription models for battery swapping.

The pay-per-use segment is anticipated to register a significant CAGR during the forecast period, due to the increasing adoption of the pay-per-view battery swapping model among EV users who use their vehicles occasionally and want to avoid upfront capital expenditure.

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Two-wheelers segment holds a key market share

In terms of vehicle types, the market is divided into two-wheelers, three-wheeler passenger vehicles, three-wheeler light commercial vehicles, four-wheeler light commercial vehicles, buses, and others. The two-wheeler segment held a large share in the global EV battery swapping market in 2020, and it is expected to expand during the forecast period.

Increasing demand for electric two-wheelers, rising adoption of excellent modular designs, and growing government support are some of the key factors boosting the growth of the segment. The three-wheeler passenger vehicles segment is estimated to expand during the forecast period, due to increasing sales of three-wheeler passenger vehicles around the globe, especially in countries such as India and China.

The introduction of domestic brands of electric three-wheeler passenger vehicles and reduced cost of vehicle ownership are some of the major factors driving the three-wheeler passenger vehicles segment.

Asia Pacific dominates the market

On the basis of regions, the market is segmented into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market in Asia Pacific is expected to register a high CAGR during the forecast period, due to the introduction of advanced and innovative battery swapping services by market players in the region.

In Japan, automotive manufacturers collaborated with domestic battery manufacturers to develop and commercialize integrated modular designs for batteries and vehicles. The battery swapping model has increased significantly in China, as a complementary solution to cable charging stations.

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