Battery as a Service (BaaS) Market - Forecasts from 2024 to 2029

Battery as a Service (BaaS) Market - Forecasts from 2024 to 2029

The battery as a service (BaaS) market is estimated to grow at a CAGR of 23.75% throughout the forecast period, reaching a market size of US$993.722 million by 2029, representing a substantial increase from US$223.527 million recorded in 2022.

The Battery as a Service (BaaS) idea enables businesses to acquire energy storage solutions without having to pay for battery use as a service. It offers flexibility, scalability, and cost savings, particularly in the areas of renewable energy and electric cars. The battery as a Service (BaaS) market is propelled by the expansion of electric cars and the growing need for energy storage in the integration of renewable energy sources. BaaS eliminates upfront capital requirements and provides enterprises with cost savings, scalability, and flexibility. The industry is expanding because of the emphasis on sustainable practices and developments in battery technology. A policy was announced by the NITI, which supports batteries that have performance that is on par with or better than EV batteries supported under the FAME-II scheme, and that use Advanced Chemistry Cells (ACC).

Growth in electric vehicle sales propels the BaaS market.

The batteries as a service (BaaS) market is greatly impacted by the rise in EV sales, which raises the need for adaptable and scalable energy storage technologies. BaaS is essential for controlling battery costs as the EV industry grows because it offers consumers and companies a viable way to access the newest battery technology without having to make the first financial commitment. As per the International Energy Agency, in the transportation sector, there were over 26 million electric vehicles on the road in 2022, a 60% increase from 2021 and a five-fold increase over the number of vehicles in 2018. Electric solutions are gradually gaining traction in the bus and heavy-duty categories as well. With 220 new bus and truck models hitting the market in 2022, there were an increasing number of electric vehicles available. Over 80% of all sales of heavy-duty vehicles are now based in China, where the majority of the deployment takes place. Additionally, sales of this sector in Europe and North America were more than quadrupled in 2022 compared to 2021. Furthermore, according to PIB, In India, in 2022, there were 27,81,69,631 non-electric vehicles in operation and 13,34, 385 electric vehicles. In addition, the Dubai Water and Electricity Authority (DEWA) projects that by 2025, there will be 12,852 electric vehicles operating in Dubai, up from an anticipated 7,331 in 2023. This is in line with Dubai's Green Mobility Strategy 2030, which stipulates that by 2030, 10% of all new vehicle purchases and 30% of all public sector vehicles must be electric or hybrid. Another Emirate driving the UAE's green mobility goal is Abu Dhabi. 9,412 CNG and natural gas cars, 2,441 EVs, and 4,138 hybrids are present

It is projected that the global BaaS market in the Asia Pacific will grow steadily.

The battery as a service industry in India has grown rapidly due to several factors. The country is experiencing a surge in electric vehicle adoption, both in passenger and commercial vehicles. As EVs are set to gain more popularity among users in upcoming years, it is expected to have a significant impact on the BaaS industry. This is because they provide the most cost-effective solutions to reduce the upfront cost for consumers as well as fleet operators in the country. For instance- as per Economic Survey 2023, India’s domestic market for electric vehicles will see a compound annual growth rate (CAGR) of 49% between the years 2022 and 2030, with a record of 10 million sales by 2030. Moreover, the industry will result in 50 million direct and indirect jobs by the year 2030. Additionally, as per the estimates from Niti Aayog, the EV adoption rates will propel in India with 10-12% by the year 2026 and 30-35% by 2030. Furthermore, the positive intervention of the government is projected to create a conducive environment for Baas models to thrive with increasing demand for sustainable transport. For instance- as per Invest India, in the 2023-24 Union Budget, the government announced its target to support battery energy storage systems with a capacity of 4,000 MWH through viability gap funding. Additionally, with advancements in battery technology, the network of charging infrastructure is anticipated to expand till the forecast period. This is also supported by a series of initiatives for enhancing the capacity of electric vehicle manufacturers in India such as the Faster Adoption of Manufacturing of Electric Vehicles Scheme – II (FAME – II) and the Production Linked Incentive Scheme (PLI) among others. As per the PIB, to boost the penetration of renewable energy in the country, in 2023, the government launched a brand-new EV-Ready India Dashboard. It is anticipated that annual sales of EVs will increase from annual sales of 6,90,550 electric two-wheelers (E2Ws) in 2022 to 1,39,36,691 E2Ws by 2030. The dashboard will provide real-time information related to battery demand and changing density in India, contributing to the growth of battery manufacturing and storage infrastructure.

Market Key Developments
December 2023, Yamaha Motor Co., Ltd. announced the founding of ENYRING GmbH, a new business that will provide subscription-based services for swappable batteries for small urban electric cars. ENYRING will be able to establish a complete loop in which recycled materials are used as resources for the creation of new goods by providing such services and reusing and recycling batteries in collaboration with European circularity leaders.
December 2023, a legally binding agreement was signed by Stellantis and Ample to form a cooperation in the field of electric vehicle (EV) battery charging technology, to provide a fully charged EV battery in under five minutes. The goal of the two companies’ collaboration is to include Ample's Modular Battery Swapping system into Stellantis electric cars.

Segmentation:

By Vehicle Type:

Two-Wheeler
Three-Wheeler
Passenger Vehicle
Commercial Vehicle
By Service:

Vehicle-Battery Seperation
Battery Subscription
Chargeable
Swappable and Upgradable Batteries
By Geography
North America
United States
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
United Kingdom
Germany
France
Italy
Spain
Others
Middle East and Africa
Saudi Arabia
UAE
Others
Asia Pacific
Japan
China
India
South Korea
Taiwan
Thailand
Indonesia
Others