Electric Vehicle Battery Swapping Market
Global Electric Vehicle Battery Swapping Market to Grow at a CAGR of 26.1% during Forecast Period
Published | 20 September 2022
Global Electric Vehicle Battery Swapping Market is growing at a high CAGR because of the increased demand for electric vehicles due to sky rocketing fuel prices, environmental issues and increased vehicle efficiency. The battery-as-a-service model has reduced time for charging electric vehicles, which is fueling the growth of the global electric vehicle battery swapping market. Moreover, the novel technological developments in this area are also expected to drive the growth of the market.
A recent study conducted by the strategic consulting and market research firm, BlueWeave Consulting, revealed that the Global Electric Vehicle Battery Swapping Market was worth USD 126.2 million in the year 2021. The market is projected to grow at a CAGR of 26.1%, earning revenues of around USD 621.0 million by the end of 2028. The global electric vehicle battery swapping market is booming because of the increase in demand for electric vehicles. This is due to consumer demand for increased vehicle efficiency, high fuel prices, and increased awareness of environmental issues like global warming and high carbon emissions. The novel technological advancements such as artificial intelligence, GPS tracking, the Internet of Things, and facial recognition is improving the customer experience in this market. The reduced time for charging these electric vehicles, coupled with the introduction of the battery-as-a-service model, is also driving the growth of the global electric vehicle battery swapping market during the forecast period 2022-2028.
Reduced Time for Electric Vehicle Charging to Drive the Market Growth
The charging time is an important aspect of the functioning of electric vehicles. Most electric vehicles employ a slow charging system to recharge a battery, which usually takes 6-10 hours for a full charge. The onboard chargers of two-wheelers charge the battery in less than an hour, whereas four-wheelers take up to 5-6 hours. Due to the range anxiety of electric vehicle owners and the long charging time, the demand for battery swapping services for electric vehicles has bolstered. Various battery swapping stations have been set up due to a lack of suitable public charging facilities and lack of standardization of charging infrastructure. At these battery swapping stations, electric vehicle owners can simply swap their discharged batteries with fully charged ones in about 10 minutes. This reduced time for electric vehicle charging is expected to bolster the growth of the electric vehicle battery swapping market in the forecast period.
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Challenge: Depreciation of Old Batteries
The value of electric vehicles depreciates over time. The life expectancy of most EV batteries is 15-20 years within the car. The performance can depreciate due to natural aging and operation in rigid environments. Moreover, the value of the old batteries will depreciate substantially when a new generation of batteries is launched in the market. As electric vehicle battery technology is evolving, it is expected that the world will see cheaper, smaller, lighter batteries that will take longer life.
Global Electric Vehicle Battery Swapping Market - Regional Insights
Based on regions, the global electric vehicle battery swapping market has been segmented into five categories- North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa. Amidst the segmentation, Asia-Pacific dominated the global electric vehicle battery swapping market share in 2021 due to the low cost per swap, increased affordability, introduction of more battery leasing solutions, and ease of use. On the other hand, Europe is estimated to grow at the highest rate due to the increased adoption of electric mobility and several gigafactories planned to be commissioned during the forecast period.
Impact of COVID-19 on Global Electric Vehicle Battery Swapping Market
Like the majority of the industries, the global electric vehicle battery swapping market was negatively impacted during the Covid-19 pandemic as the overall demand for vehicles fell. People were urged to stay indoors and travel only in case of emergencies. The global automotive industry was significantly impacted during the Covid-19 pandemic. Due to worldwide lockdowns, the global economy drastically fell. The business of the key market players was severely affected as the sales fell down. However, this time was used advantageously by the companies to get a solid understanding of changing landscape and update their strategies. Post Covid-19 pandemic, the world saw an increase in acceptance of electric vehicles and the installation of more electric vehicle battery swapping stations.
Amara Raja Batteries Limited, Amplify Cleantech Solutions Private Limited, Chargemygaadi, Echargeup Solutions Pvt. Ltd., Esmito Solutions Pvt. Ltd., Gogoro Inc., Lithion Power Pvt. Ltd., Nio Inc., Numocity Technologies Pvt. Ltd., Oyika, Leo Motors Inc., Tesla Inc., SUN Mobility Pvt. Ltd., BYD Co. Ltd., BattSwap Inc., Kwang Yang Motor Co. Ltd., Panasonic Corporation, Revolt Motors, and TATA Power are the key players operating in global electric vehicle battery swapping market. Other than collaborations, mergers, and partnerships, product diversification and facility expansion are the most important strategies taken up by these companies. For example, NIO Power has decided to further expand its charging and swapping network in Shanghai, China. From 2022 to 2025, NIO commits to installing 600 new battery swap stations in China. Moreover, by the end of 2025, NIO plans to have more than 4,000 NIO battery swap stations worldwide.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the global electric vehicle battery swapping market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in the global Electric Vehicle Battery Swapping market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
BlueWeave Consulting provides comprehensive Market Intelligence (MI) Solutions to businesses regarding various products and services online and offline. We offer all-inclusive market research reports by analyzing both qualitative and quantitative data to boost the performance of your business solutions. BWC has built its reputation from the scratch by delivering quality inputs and nourishing long-lasting relationships with its clients. We are one of the promising digital MI solutions companies providing agile assistance to make your business endeavors successful.
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