EV Battery Swapping Market: Current Analysis and Forecast (2021-2027)
Global EV Battery Swapping Market is anticipated display a CAGR of around ~22% over the forecast period (2021-2027). The demand for electric vehicles is being fueled by rising levels of air pollution in various countries (EVs). However, for large-scale adoption of EVs, sufficient charging infrastructure is essential, as the existence of a significant number of charging facilities solves difficulties associated with EVs, such as their restricted range of mobility. This is fueling demand for battery swapping technology, which addresses the issue of slow charging at charging stations. Other factors driving EV growth include a lack of suitable public infrastructure and shorter charging times for electric vehicles, which are driving the worldwide electric vehicle battery swapping market. However, the market's growth is hampered by the expensive initial set-up and operational costs of battery swapping stations, as well as differences in battery technology and design.
Insights Presented in the Report
“Amongst Service Type, pay-per-use segment dominated the market in 2020”
Based on Service Type, based on service type, the market is segmented into Pay-per-Use and Subscription. The pay-per-use segment is expected to grow at a higher CAGR during the forecasted period. Customers can subscribe to monthly or annual battery swapping plans or can adopt pay-per-use model as per their needs. The growth of pay-per-use segment is expected to be higher as it will be due to drivers' choice to pay according to their usage, due to the absence of a fixed driving pattern. A short-distance commute, for example, does not demand frequent battery swaps, which is why most drivers will opt for the pay-per-use approach.
“Amongst Vehicle Type, Two-Wheeler segment dominated the market in 2020.”
Based on Vehicle Type, based on vehicle type, the market is segmented two-wheeler, three-wheeler, four-wheeler and others. The two-wheeler segment is expected to grow at a higher CAGR during the forecasted period. Due to less battery power capacity and more frequent use the two-wheeler segment is expected to capture the maximum share in the segment in future. As a result, they need to be charged twice or three times per day. Battery swapping technology is the ideal option to sluggish charging because it allows drivers to maximize their operational hours.
“Asia Pacific represents as the largest market.”
For a better understanding of the market adoption of EV Battery Swapping, the market is analyzed based on its worldwide presence in the countries such as North America (United States, Canada, Rest of North America), Europe (Germany, UK, France, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Rest of APAC), and Rest of World. Because of government backing for the manufacturing industry, the Asia-Pacific region has numerous developing economies with enormous natural and human resources, with China and India projected to be important investment hotspots for battery businesses over the next years. Essentially, the electric vehicle battery swapping industry will grow rapidly in the next years as the number of electric two- and three-wheelers grows, as will the demand for battery swapping as a result of a lack of suitable charging infrastructure and expensive lithium-ion battery prices. Government efforts to encourage the adoption of electric vehicles (EVs), as well as a growing interest in R&D to improve existing technologies, are propelling market expansion in APAC. Some of the major players operating in the market includes Echargeup, Numocity Technologies Pvt. ltd., Amara Raja Batteries Limited, Lithion Power Pvt Ltd., Chargemygaadi, Esmito Solutions pvt ltd, Gogoro inc, BYD Company Limited, Nio Inc and Oyika etc.
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