Battery Leasing Service Market Size By Business Model (Subscription Service, Pay-Per-Use Model), By Battery Type [Lithium-ion (Li-ion), Nickel Metal Hybrid (NiMh)], By Vehicle Type (Passenger Vehicle, Commercial Vehicle), COVID-19 Impact Analysis, Regiona

Battery Leasing Service Market Size By Business Model (Subscription Service, Pay-Per-Use Model), By Battery Type [Lithium-ion (Li-ion), Nickel Metal Hybrid (NiMh)], By Vehicle Type (Passenger Vehicle, Commercial Vehicle), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2022 - 2028

The battery leasing service market is set to witness substantial growth by 2028 on account of a drop in the prices of lithium-ion batteries. In addition, rising investments towards the development of electric vehicles worldwide are likely to bolster market development over the forecast period.

Surging demand for electric vehicles (EV) worldwide has propelled market uptake over the past few years. However, all EVs are powered by batteries, which account for a significant portion of both the initial and ongoing costs of the finished vehicle. This has acted as a key impediment to widespread EV adoption. The process of battery-swapping is being adopted across key regions to tackle this drawback. Growing proliferation of battery-swapping centers has augmented industry expansion in recent years.

Notably, industry players have been employing profitable strategies to accommodate the mounting demand for electric vehicles around the world, which has favorably impacted overall business outlook. For instance, in November 2021, Ample, Inc., a major energy delivery solution provider for electric vehicles, inked a partnership agreement with Uber Technologies, Inc., a global mobility and service provider, to expand its battery-swapping technology business across Europe. The firm also announced an additional investment of USD 50 million from Banco Santander and Blackstone.

Similarly, in August 2020, Numocity Technologies Private Ltd., a prominent Internet of eMobility provider, entered into a partnership with CerebrumX, a major connected car data ecosystem company, to accelerate the adoption of EV smart city solutions in the global market. According to the deal, Numocity's Electric Vehicle Advanced Mobility Platform was intended to be combined with CerebrumX's industry-leading Automotive Data Management Platform to provide a comprehensive solution for smart grid interfacing, EV charging, and battery-swapping.

To cite another instance, in November 2021, Gogoro Inc., a Taiwan-based battery-swapping refueling platform, extended its exclusive partnership with Gates Industrial Corporation plc, a leading manufacturer of fluid power products, to co-develop a two-wheel electric drivetrain, dubbed the FLO DRIVE. The strategic deal was intended to accelerate sustainable urban transportation.

The battery leasing service market has been segmented on the basis of vehicle type, business model, battery type, and region. From the regional point of view, the Latin America battery leasing service industry is expected to account for a market share of around 5% by the end of 2028 owing to soaring demand for electric vehicles in the region. Meanwhile, the Middle East & Africa battery leasing service market is poised to progress at a CAGR of more than 20% over the assessment period on account of favorable government initiatives for adoption of electric vehicles in the region.