Battery Leasing Service Market Analysis

Battery Leasing Service Market Analysis

The pay-per-use model segment accounted for a market revenue of around USD 35 million in 2022. The growing emphasis of private vehicle owners on paying the battery charges as per usage is driving the segment growth within the battery leasing service market. The pay-per-use battery leasing service model allows customers to pay for using the vehicles rather than having to purchase them. Under this model, the ownership of the vehicle lies with the company. The benefits of this model include lower costs, improved transparency, and no unexpected maintenance costs.

The lithium-ion segment held a market share of 86.7% in 2022 and is poised to grow by 2032. Li-ion batteries are widely used in EVs to provide safety & protection to consumers. Various companies are shifting to Li-ion batteries. For instance, in October 2021, Tesla changed its battery cell chemistry that it uses in its standard vehicle range. The company started using Li-ion batteries instead of nickel-cobalt-aluminum batteries for improved battery performance.

Asia Pacific dominated the global battery leasing service market with a revenue of over USD 50 million in 2022. Federal institutions in Asia Pacific have been promoting green technology for delivering better public administration through the integration of low carbon emission technologies. Along with government support, the keen focus of public sector enterprises leveraging battery solutions to accelerate growth in power & energy systems is promoting the adoption of battery leasing technologies in the region.