Battery Swapping Market Analysis by Type (Automated and Manual); by Application (Passenger, and Commercial); by Vehicle Type (Two-Wheeler, Three-Wheeler, Four-Wheeler, Six-Wheeler); Service Type (Subscription Model and Pay-Per-Use Model) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
Buy Now Report ID: 4875 | Published Date: Apr 30, 2023
Battery Swapping Market size is estimated to reach ~USD 12 Billion by the end of 2035 by growing at a CAGR of ~47% over the forecast period, i.e., 2023 – 2035. In addition to this, in the year 2022, the market size of battery swapping was ~USD 2 Billion. The growth of the market can be attributed to the rising sales of electric vehicles. Battery swapping saves time for the driver to replace the depleted battery with a fully charged battery in a matter of minutes. The demand for electric passenger vehicles is rapidly increasing, the International Energy Agency projects that by 2022, over 13% of all new cars sold will be electric across the globe. Furthermore, in 2020, 35 million electric passenger cars were sold in China, followed by 1.8 million automobiles sold in Europe.
In addition to these, factors that are believed to fuel the market growth of battery swapping include the rising investment to boost the production of the electric vehicle. The Biden Administration announced a USD 2 trillion-dollar plan, "The American Jobs Plan," at the end of March 2021, that proposes a USD 174 billion investment in the US electric vehicle sector. The plan proposes proactively promoting the electric bus industry as part of this investment, assisting the replacement of 50,000 diesel transit buses with zero-emission buses, as well as supporting the effort to electrify at least 20% of the nation's 480,000+ yellow school bus fleet. On the other hand, the rising advancement in battery technology is also expected to drive market growth.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~47% |
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Base Year Market Size (2022) |
~ USD 2 Billion |
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Forecast Year Market Size (2035) |
~ USD 12 Billion |
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Regional Scope |
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Growth Drivers
Challenges
The global battery swapping industry is segmented and analyzed for demand and supply by application into passenger, and commercial. Out of the two application of battery swapping, the commercial segment is estimated to gain the largest market share of about ~60% in the year 2035. The growth of the segment can be attributed to the rising adoption of electric commercial vehicles. In China, electric vehicles have increased from less than 1% of light commercial vehicle sales to 10% in just two years. In August 2022, sales reached a new high of around 18,000 units. In addition to this, the adoption rate of commercial electric vehicles is higher in South Korea, with more than 20% of light commercial vehicle sales in 2022 already being electric. Furthermore, the rising demand for low-emission commuting systems and increasing government efforts to support carbon-neutral transportation for commercial vehicles, such as buses, trucks, vans, and pickups is also expected to drive the growth of the segment.
The global battery swapping market is also segmented and analyzed for demand and supply by vehicle type into two-wheeler, three-wheeler, four-wheeler, and six-wheeler. Amongst these four segments, the three-wheeler segment is expected to garner a significant share of around ~40% in the year 2035. the growth of the segment is attributed to the account of higher distance traveled by three-wheelers every day. On average three-wheeler vehicles travel over 100 km every day, which increases the need for a charged battery. The battery swapping technology improves the lifespan of the batteries in these vehicles. Moreover, it also reduced the downtime that occurs due to traditional ways of charging and long queues at the charging stations. Furthermore, the higher deployment of electric autos and e-rickshaws are expected to boost the segment growth. E-rickshaw retail sales in India surged by 89% in February 2023 compared to March 2022. Around 30,413 e-rickshaws were registered, up from 16,122 in the same time frame.
Our in-depth analysis of the global battery swapping market includes the following segments:
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By Type |
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By Application |
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By Vehicle Type |
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By Service Type |
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The market share of battery swapping in Europe, amongst the market in all the other regions, is projected to be the largest with a share of about ~32% by the end of 2035. The growth of the market can be attributed majorly to the lack of electric vehicle charging station infrastructure followed by slow services of the stations in the region. Six EU countries lack a single charging point for every 100 kilometers of road. 17 countries have fewer than five charging stations per 100 kilometers of road, with only five having more than ten. Moreover, charging speed is also a serious issue across the continent, as fast chargers with capacities greater than 22kW account for only a small portion of the overall stations. In reality, only one in every seven charging outlets in the EU is fast. All of the others have a capacity of 22kW or less and do not charge automobiles at an appropriate rate.
The Asia Pacific battery swapping market is estimated to be the second largest, registering a share of about ~28% by the end of 2035. The growth of the market can be attributed majorly to the increased adoption of electric passenger and commercial vehicles. Electric vehicles accounted for 5% of total automobile sales in India in the fiscal year 2023 ending March 31, with EV sales exceeding 1 million, up 148% year on year, driven by two- and three-wheelers. Moreover, in March 2023, EV retail sales reached a new monthly high of 140,509 units. Furthermore, China is the world leader in electric vehicle deployment. At the end of June 2019, China accounted for nearly half of all electric vehicles and 99% of all electric buses in the globe. Moreover, China also controls the global markets for low-speed electric automobiles and electric two-wheelers.
Further, the market in North America, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. The growth of the market can be attributed majorly to the growing demand for fast, convenient, and reliable charging options for electric vehicle. Many companies are putting efforts to bring innovative technologies in battery swapping technology for commercial fleets. This would help in minimizing the downtime for the vehicles, and they would not have to wait for long charging times. On the other hand, the lack of charging infrastructure in the region is also expected to drive market growth.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Payel Roy, Dhruv Bhatia
Ans: Increasing adoption of electric vehicles and high investment in batteries are the major factors driving the market growth.
Ans: The market size of battery swapping is anticipated to attain a CAGR of ~47% over the forecast period, i.e., 2023 – 2035.
Ans: Lack of standard regulations, and the high cost of infrastructural development are estimated to be the growth hindering factors for the market expansion.
Ans: The market in the Europe region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are NIO Inc., Gogoro Inc., Leo Auto Sales LLC, Tesla Inc., SUN Mobility Private Ltd., BYD Motors, Inc., Kwang Yang Motor Co. Ltd., Panasonic Corporation, Contemporary Amperex Energy Service Technology Ltd., and Echargeup Solutions Pvt. Ltd.
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by type, application, service type, vehicle type, and by region.
Ans: The commercial vehicle segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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