The global battery leasing service market size is slated to gain significant growth during the forecast period from 2023 to 2033. According to the research report published by Future Market Insights, the global market is projected to surpass a valuation of USD 137.6 million in 2023. It is expected to hit a valuation of USD 684.3 million by 2033. The market is poised to showcase a staggering CAGR of 17.4% from 2023 to 2033.
Growing support from various government and international organizations to popularize the use of electric vehicles by common people as the primary mode of transport is expected to boost the market for battery leasing services. Energy storage batteries are an indispensable part of any off-grid power-supplying unit.
With the growing trend of harnessing renewable energy sources, lithium-ion batteries have emerged to be the best energy storage units adopted by almost every type of appliance and vehicle. But, modern-day electric vehicles running on rechargeable batteries face the central problem of time and source to plug in their hybrid vehicles once exhausted of stored energy.
Battery rental for electric cars can be a life-saving approach during such situations that are getting popular these days in the most environmentally concerned regions of the world. All the famous manufacturers of electric vehicles are focusing on developing and leasing electric battery cars to improve their products' user experience. In the coming days, this service sector is anticipated to grow exponentially in different parts of the world.
| Attributes | Details |
|---|---|
| Battery Leasing Service Market Share (2022) | USD 127.4 million |
| Battery Leasing Service Market Share (2023) | USD 137.6 million |
| Battery Leasing Service Market Share (2033) | USD 684.3 million |
| Battery Leasing Service Market Share (2023 to 2033) | 17.4% |
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In 2017, the global battery leasing service market size stood at USD 95.7 million. From 2017 to 2022, the market witnessed considerable growth, accounting for USD 127.4 million in 2022. The market expanded at a substantial CAGR of 5.9% from 2017 to 2022.
Electric vehicle demand has substantially increased in recent years. The development of improved batteries that provide a long-range and higher efficiency is shaping the market. The favorable government subsidies on purchasing electric vehicles are driving the market growth.
The rising emphasis on sustainability and reducing dependence on fossil fuels is amplifying market growth. In coming years, the growing launches of improved and advanced electric vehicles are likely to foster market growth.
Owing to an increased number of electric bases and electric utility vehicles on the urban roads of developed as well as developing countries, the demand for electric car battery leases has increased significantly in recent years. Growing urbanization and rising pollution levels in cities have forced several national and international authorities to implement green fuel technologies in all the prime sectors of the economy.
National governments provide sufficient subsidies for the growth of any business entities commercializing sustainable methods and technologies. Battery leasing for electric cars is a growing market favored by government regulations for the rapid commercialization of electric and hybrid vehicles.
The growing number of electric cars for personal and public use is anticipated to be the prime driving factor for the growth of the battery leasing market in the coming days.
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Higher prices associated with the battery devices and the complexity of processes involved in replacing batteries in electric vehicles are the main limiting factors for the expansion of the battery leasing services to new regions of operation. Also, the skilled workforce's unavailability required for the establishment of battery replacement centers is anticipated to hamper the market growth for many years ahead.
The unavailability of the necessary infrastructure to establish battery leasing services centers owing to a high proportion of electric vehicles without battery leasing facilities is anticipated to remain as a challenging factor for the growth of the global market in all regions. In developing countries, the market for electric and hybrid vehicles is still in its initial implementation stage with insufficient demand for the proper establishment of the battery leasing services market.
The automotive and transport sector is the prime end-user of the battery leasing service market creating huge traction in the growth and popularity of the market. Most of the customers leasing batteries for electric cars prefer to get a subscription service for swapping batteries.
The subscription service segment occupied up to 70 percent of the global market share against the pay-per-use segment of the global market in 2022. With the high frequency of requirements to replace batteries of electric cars, battery rental service providers offer various discount benefits for their customers with a subscription.
Lithium-ion batteries (Li-ion) are the dominant segment of the global battery leasing service market, holding a significant share of the total revenue generated. Until 2022, the lithium-ion batteries used for leasing batteries for electric cars accounted for almost 72% percent of the business transactions conducted by service providers.
The other product, the Nickel-metal hybrid (NiMh) type, is a recent development in the battery industry with significantly less use in electronic vehicles. Given the numerous advantages of Nickel-metal hybrid batteries over Lithium-ion batteries, it is expected to gain popularity in the coming days sharing a dominant place in the global market.
Among the vehicle types that use electric batteries as a fuel source, passenger vehicles are the leading users of battery leasing services available in their vicinity. In 2022, the passenger cars segment captured 61.0% shares in the global market. The market analysis report predicts that this segment is anticipated to remain a prime contributor to the global battery leasing service expanding by a CAGR of 25%.
The performance of the commercial vehicle segment has remained limited during the earlier decade but is expected to gain significant traction from 2023 to 2033.
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Asia Pacific is predicted to dominate the global market during the forecast period. China is the leading country in Asia Pacific region. In 2022, China occupied nearly 19.7% of market shares India promises supreme growth for the global battery leasing service market in Asia Pacific. In 2022, India captured 18.8% of market shares globally.
The market value for the electric cars’ battery lease is predicted to reach a value of over USD 150 million by 2028. Increased government spending to adopt electric cars to achieve the target of zero-emission and the establishment of sustainable transportation methods is the driving factor for such growth during the forecast years.
Canada battery leasing subscription services accounted for more than 70 percent of the revenue generated in North America. The United States captured a 6.3% market share in 2022. North America follows Europe in the electric car battery rental service market. This region is also predicted to grow consistently during the forecast years and is predicted to hold a market size of more than USD 80 million by the end of the year 2028.
Germany captured nearly 6.3% percent of the total revenue generated by the battery leasing service business in Europe market in 2022.
The leading players in the market are Bounce Infinity, Contemporary Amperex Technology Co., Ltd., E-Charge Up Solutions Private Limited, NIO NextEV Limited, Numocity Technologies Private Limited, Ocotillo Power Systems, Oyika Pte Ltd., Renault Group, Sun Mobility Private Limited, VoltUp.
The global market is getting highly competitive with many new local electric car battery lease service companies in different parts of the world. All the leading companies in the global market are stressing strategic partnerships and collaboration to open new service points in as many places as possible.
Famous electric vehicle manufacturers such as Groupe Renault Tesla and Inc., KIA Motors, Leo Motors Inc, and others also plan to start leasing electric cars to make the global market competitive and challenging for the existing players.
Recent Developments in the Battery Leasing Service Market:
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2017 to 2022 |
| Market Analysis | USD million for Value |
| Key Regions Covered | North America; Latin America; Europe; East Asia; South Asia & Pacific; The Middle East & Africa (MEA) |
| Key Countries Covered | The United States, Canada, Germany, The United Kingdom, Nordic, Russia, BENELUX, Poland, France, Spain, Italy, Czech Republic, Hungary, Rest of EMEAI, Brazil, Peru, Argentina, Mexico, South Africa, Northern Africa, GCC Countries, China, Japan, South Korea, India, ASIAN, Thailand, Malaysia, Indonesia, Australia, New Zealand, Others |
| Key Segments Covered | Business Model, Battery Type, Vehicle Type, Region |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, Trend Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
The battery leasing service market is valued at USD 3.2 billion in 2023.
In the historical period 2018 to 2022, the market grew at a CAGR of 3%.
The market is estimated to secure a valuation of USD 4.74 Billion in 2033.
Through 2033, the market is projected to continue to expand at a CAGR of 4%.
Costly treatment to limit market growth.
North America is expected to gain a market share of about 40%.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Business Model 5.1. Subscription Service 5.2. Pay-Per-Use Model 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Battery Type 6.1. Lithium-ion (Li-ion) 6.2. Nickel Metal Hybrid 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Vehicle Type 7.1. Passenger Vehicle 7.2. Commercial Vehicle 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 8.1. North America 8.2. Latin America 8.3. Europe 8.4. South Asia 8.5. East Asia 8.6. Oceania 8.7. MEA 9. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. South Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Oceania Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. Key Countries Market Analysis 17. Market Structure Analysis 18. Competition Analysis 18.1. Easymile 18.2. BlueSG 18.3. Mahindra Electric 18.4. Ampere Vehicles 18.5. Ather Energy 18.6. Hero Electric 18.7. Bolloré Group 18.8. HOP Energy 18.9. Eneco eMobility 18.10. Go Electric 19. Assumptions & Acronyms Used 20. Research Methodology
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Battery Leasing Service Market
