Battery Leasing Service Market size is set to surpass USD 400 million by 2028, according to a new research report by Global Market Insights Inc.
Increasing interest in EV technology among venture capitalists as they recognize the technology’s potential to impact the automotive sector is driving the battery leasing service industry growth. Automotive companies are extensively investing in developing and producing EVs due to the growing adoption of eco-friendly and sustainable vehicle technologies. The increasing shift from conventional vehicles to battery-operated vehicles is likely to significantly contribute to the market share. The availability of limited charging infrastructures is another factor supporting the market demand.
Pay-per-use model to grow at a significant rate
The pay-per-use battery leasing service market is anticipated to grow at a CAGR of over 25% through 2028 owing to the rising emphasis on paying the battery charges as per usage among private vehicle owners. This 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 itself. There are several benefits of this model such as lower costs, improved transparency, and no unexpected maintenance costs.
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Browse key industry insights spread across 207 pages with 211 market data tables and 32 figures & charts from the report, “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, Application Potential, Price Trends, Competitive Market Share & Forecast, 2022 – 2028”, in detail along with the table of contents:
Stable and lightweight lithium-ion batteries to fuel the market demand
The lithium-ion battery type held around 85% of the battery leasing service market share in 2021 owing to the increasing adoption of advanced EV battery technologies. A lithium-ion battery is widely used in electric vehicles to provide safety & protection to the consumer. Various companies are changing their battery type to lithium-ion batteries. For instance, in October 2021, Tesla changed its battery cell chemistry that it uses in its standard vehicles range. The company has started using lithium-ion batteries instead of nickel-cobalt-aluminum batteries to improve battery performance.
The growing demand for economical commercial vehicles
The commercial vehicle segment is estimated to witness growth rate of about 25% till 2028 led by thriving demand for economic commercial vehicles. Various end-user industries, such as logistics, supply chain, and transportation, are increasingly using electric commercial vehicles, thereby increasing the adoption for battery leasing services. Under battery leasing services, customers purchase commercial electric vehicles and rent their batteries. This offers various advantages to the consumers such as free battery replacement, reduced additional costs, and aid in the event of a breakdown.
Supportive government initiatives to increase the adoption of electric vehicles in North America
North America battery leasing service market is projected to generate a revenue of nearly USD 80 million by 2028 on account of growing emphasis on reducing carbon emissions. Federal institutions in the region 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 in leveraging battery solutions to accelerate growth in power and energy systems is a major factor promoting the usage of battery leasing technologies.
Leading market players to focus on expanding their regional presence
Companies are focusing on expanding their battery leasing services across unserved regions to enhance their market presence. For instance, in January 2022, VinFast launched a new battery leasing program for the Canadian population. Through this battery leasing facility, VinFast aims to make EVs easily accessible throughout the country.
Some of the key players operating in the battery leasing service market are 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.