The global electric vehicle battery swapping market size was accounted at USD 1.80 billion in 2022 and is forecasted to reach around USD 49.70 billion by 2032 with a compound annual growth rate (CAGR) of 39.40% during the forecast period 2023 to 2032.
This market segment mainly deals with the exchange of the discharged battery of an electric vehicle with completely charged battery unit immediately without wasting much time in recharging the old battery of the electric vehicle. The time which is wasted in this recharging process costs a great deal pertaining to the fast services which are demanded by the modern world. This procedure of exchanging and old battery which is discharged with a new fully charged unit is known as swapping of battery in the electric vehicle segment which provides quicker solutions in order to deal with anxiety. This working of a battery in the electric vehicle requires around 10 minutes or less and demands or smaller area in order to perform in the entire process of exchanging or swapping. It requires a much smaller space as compared to the charging stations.
BaaS has also shown a considerable alteration in the way these processes work by individualizing the entire concept of owning an electric vehicle and owning a battery individually. This new process helps to reduce the total cost of the electric vehicle which helps to boost the market for the batteries as well as electric type of vehicles. The owner of the electric vehicle and sub only for the machine and not for the energy which is required for functioning of the vehicle. In the energy required for the functioning of the vehicle is rented separately depending upon the needs of the consumer.
The rapid increase in the demand of electric vehicles has not matched the availability of the charging stations which are supplied for the public. This increases the total time which is required to charge a single battery of the vehicle as there are a large number of consumers and a very few number of charging stations. Manufacturers on the other hands are striving hard to reduce the total charging time of a single battery of the electric vehicle. The rapid increase of e-mobility has also boosted the demand for battery swapping services which helps to save a considerable amount of time of the consumers. This market of battery swapping has been segmented according to the service type, region and vehicle type.
The occurrence of the covid 19 pandemic made a great impact on the automotive industry worldwide which showcased a declining market for the old and new vehicles. The demand and supply chain of the used vehicles was hampered immensely. The business and revenue return of the key market players were impacted directly as a result of the decline in demand and supply chain which was hampered by the weak economic conditions worldwide. On the other hand, the pandemic helped to accelerate numerous beneficial trends the market even after the presence of a number of challenges for the startups. Rapid need for electrification has also help to increase the demand and supply of the segment full stop the concept of shared mobility has also helped to boost the market to a great extent. The presence of two wheelers and three wheelers in the market has supported this segment greatly. The recent trend of rentals and delivery has also boosted the sales and demand of the old and used vehicles. With the preparation for the upcoming market a concrete understanding of the altered mindset and strategies will help the stakeholders to upgrade their systems in the electric vehicle battery working market.
The rapid demand for major steps by the leading manufacturers and market players towards the global climate change and alterations in the environment has increased the demand for battery swapping services which are majorly required by the electric vehicle consumers who required quick charging facilities without wasting much time. The increasing awareness towards global warming and high carbon emissions in the environment has boosted the market for battery swapping services for the electric vehicle segment. The time which is required for recharging a totally exhausted battery is for more as compared to the time which is taken for swapping a fully charged battery unit into the electric vehicle of the consumer. Depending upon the demands and requirements of the consumers, the manufacturers have introduced a variety of electric vehicles into the market. The need for fast charging has increased as a result of the busy lifestyle which is followed by the working class of people. Rapid urbanization has increased the demand for power supply and quick services in the market.
The entire process of battery swapping hardly takes 10 minutes which is very beneficial for the consumers. Increased use of e-mobility has also boosted the market for the electric vehicle battery swapping market and services. Another initiative which is taken up by the manufacturers is separating the ownership of the batteries from the ownership of the electric vehicles. This has helped to boost the market for the electric vehicle segment to a great extent. The owner of the electric has to spend only for the ownership of the vehicle and not the battery unit which is usually provided as a part of the electric vehicle. A fully charged battery is supplied by the company as a part of its service to the customer which helps the consumer to receive a prompt delivery and service from the company. In case the battery of the electric vehicle gets fully discharged, a fully charged battery is supplied to the consumer immediately within 10 minutes which does not occupy much space as that of a charging station. The battery shop in services requires very less space and time to provide accurate service to the consumers.
Additionally, the maintenance and care of a battery is also taken away from the consumer which makes it easy for the user to carry on with an electric vehicle in the long run. The entire maintenance and care of a battery unit is taken up by the service provider of the battery swapping services. Hence, the total cost of maintaining an electric vehicle is reduced by a tremendous amount. The occurrence of the pandemic showed a negative impact on the battery swapping services as a result of the restricted movement and lockdowns which were imposed by the government. Hence, the demand for quick services was hampered directly. The demand for battery swapping services had increased in the health care sector where the need for a fully charged battery is very important in order to provide accurate service to the individuals.
The household sector has also shown a considerable increase in the demand for the battery swapping services. The rapid demand for electric vehicles pertaining to the increasing prices of the petroleum products has helped to boost the market size of the electric vehicle battery swapping market. People are looking forward to electric vehicles as an option for long distance travel. The electric vehicle battery swapping services is a very reliable backup for the long-distance travels where time is considered to be precious.
Report Scope of the Electric Vehicle Battery Swapping Market
|Market Size by 2032||USD 49.70 Billion
|Growth Rate from 2023 to 2032||
CAGR of 39.40%
|Asia Pacific Market Share in 2022||44%|
|Subscription Segment Market Share in 2022||68%|
|Forecast Period||2023 to 2032|
|Segments Covered||Vehicle Type, Service Type, Geography|
|Companies Mentioned||Numocity, BAIC, ChargeMyGaadi, NIO, KYMCO, Amplify Mobility, Gogoro, Sun Mobility, Lithion Power, Ample, ECHARGEUP, Amara Raja, Aulton New Energy Automotive Technology, Others|
Service Type Insights
On the basis of service type, the market has been divided into two categories where the subscription variety has shown a tremendous growth pertaining to its easy accessibility. The affordable prices that are offered by the companies and manufacturers have boosted the market during the forecast period. The lower cost that has to be paid during every swap of a battery imposed lesser pressure on the consumer of the electric vehicle. The battery is leased to the consumer as per requirement depending upon the needs of the business.
The pay per use design has formed the next sector where a higher demand is expected from the market during the forecast period. The private vehicle users prefer this design more as compared to the former one. The consumers who do not require a vehicle very often and wish to avoid heavy expenses opt for this facility where the needs are fulfilled without spending a heavy amount from the pocket of the user.
Vehicle Type Insights
On the basis of vehicle type, the market has been divided into three categories. The two wheeler category has shown the maximum sales and demand as a result of the high number of daily commuters in the society. The next sector which is covered under the segment is the three wheeler vehicles which are used as public transport mainly in the Asia Pacific regions. The three wheeler vehicles are expected to show a better revenue return during the forecast period as a result of its high sales and demand along with new brands. The battery swapping services offers better time management and durability. The battery swapping services are very useful for the three wheeler owners who usually have a low social economic status.
The Asia Pacific region is leading the market overall as a result of the high sales it experiences. It is the largest market for the electric vehicle segment and hence it supports the batteries swapping services to a great extent. The huge working class which resides in this region desires for cheaper transport facilities which provide a great opportunity for the electric vehicle segment.
Since the battery swapping services reduces the maintenance cost of the electric vehicle, it is preferred by the working class of people. The next region which is expected to show considerable growth is the European market. The strict regulations of the North American market regarding carbon emissions have helped to boost the electric vehicle battery swapping market.
Key market players
Segments covered in the report
By Vehicle Type
By Service Type
PROCEED TO BUY :
ASK FOR SAMPLE
No cookie-cutter, only authentic analysis – take the 1st step to become an Precedence Research client