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

Industry Trends

Battery Leasing Service Market size exceeded USD 100 million in 2021 and is estimated to grow at over 20% CAGR from 2022 to 2028. Supportive government policies & initiatives such as European Union CO2 emission regulations, China’s New Energy Vehicles mandate, and California’s Zero-Emission Vehicle mandate are fueling the industry statistics.
 

The governments of various countries are reducing subsidies on vehicle purchase to reduce the price gap. Similarly, the governments are also adopting differentiation policies for vehicles and fuels to accelerate sustainable vehicle adoption. The growing awareness about climate change initiatives is spurring the market demand for battery-based Electric Vehicles (EVs).

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Battery leasing service involves monthly payments for an electric car battery instead of completely purchasing it. It is a program under which a customer purchases an electric car but must rent its battery. The ownership of the car remains with the customers, and they need to pay a monthly fee to rent the vehicle battery.
 

The COVID-19 restrictions impacted EV production and sales across the globe. They also reduced the global demand for EVs. This negatively impacted the battery leasing service market.
 

In Canada, subscription service is expected to dominate the market

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The battery leasing subscription service segment held more than 70% of the market share in 2021 owing to the increasing need to reduce the upfront cost of EVs. This service helps the buyers to lower the upfront cost of EVs. It allows the buyer to purchase an EV without the upfront cost of batteries and use the battery on a subscription basis. It also allows users to exchange their discharged batteries with charged ones at battery swap stations. The prominent players in the market, such as Sonnen, Nissan, and Tesla, are providing battery subscription services to their customers.
 

Nickel Metal Hybrid (NiMh) segment in the UK to witness significant growth

In the UK, the Nickel Metal Hybrid (NiMh) battery leasing service market is poised to register 25% gains through 2028. NiMh batteries are chargeable and widely used in consumer electronics & EVs. These batteries have a longer life span as compared to lead acid batteries. The major automotive companies including Toyota are working on developing NiMh battery-based hybrid EVs.
 

Increasing demand for economic passenger vehicles in Germany

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The Germany battery leasing service market from passenger vehicle segment captured about 85% of the revenue share in 2021 led by growing focus on improved vehicle economy and increasing EV sales. The demand for passenger EVs is rising extensively due to the increasing prices of conventional fuel. The prominent companies, such as Tata Motors and Mahindra, are developing the most advanced & best-in-class passenger vehicles.
 

Asia Pacific to dominate the market share

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Asia Pacific market size is predicted to generate USD 150 million revenue by 2028. Factors such as the falling battery prices, expanding EV adoption, and significant investments by leading automotive OEMs to secure the battery supply chains for future EVs is enhancing the regional business expansion. The increased deployment of battery-as-a-service presents excellent growth possibilities for market competitors in the region. The lower energy density of batteries, on the other hand, limits industry growth.
 

Strategic partnerships is the key strategy adopted by the leading industry participants

Some of the key battery leasing service market players include Ample, Inc., Bounce Infinity, Contemporary Amperex Technology Co., Ltd., E-ChargeUp Solutions Private Limited, Esmito Solutions Private Limited, Gogoro Inc., Lithion Power Private Limited, NIO NextEV Limited, Numocity Technologies Private Limited, Octillion Power Systems, Oyika Pte Ltd., Renault Group, Sun Mobility Private Limited, and VoltUp.
 

Companies are emphasizing on strategic partnerships with a variety of stakeholders, such as electric mobility manufacturers and government authorities, to support rapid acceptance of battery leasing service. For instance, in February 2021, Hyundai and LG collaborated on EV battery leasing. The arrangement covers the leasing of electric car batteries and their long-term reuse in Energy Storage Systems (ESS). Hyundai Motor will oversee the overall company operations and sell Battery Electric Vehicles (BEV) to KST Mobility, a car operator, under the terms of the deal. For vehicles that return batteries after use, Hyundai Motor is also responsible for offering battery guarantees and replacement batteries.
 

This market research report on battery leasing service includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2018 to 2028, for the following segments:

Market, By Business Model

• Subscription Service
• Pay-Per-Use model

Market, By Battery Type

• Lithium-ion (Li-ion)
• Nickel Metal Hybrid (NiMH)

Market, By Vehicle Type

• Passenger Vehicle
• Commercial Vehicle

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia and New Zealand
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • South Africa
  • UAE
  • Saudi Arabia