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) & Forecast, 2023 - 2032

Battery Leasing Service Market Size

Battery Leasing Service Market size was valued at USD 132.4 million in 2022 and is estimated to register a CAGR of 31.5% between 2023 and 2032. The automotive industry growth is driving the demand for battery leasing services. The collaboration focused on the leasing of the electric taxi batteries and eco-friendly repurposing of electric vehicle (EV) batteries for energy storage systems (ESS). The availability of limited charging infrastructure will stimulate the product demand.
 

Battery leasing services gained traction due to their role in addressing the battery technology evolution. With rapid advancements in battery technology in the EV sector, consumers faced the dilemma of investing in vehicles with potentially outdated battery technology. Battery leasing mitigated this concern by providing an avenue for EV owners to upgrade to newer & more efficient batteries. This ensured that their vehicles maintained good performance and range capabilities without necessitating a complete vehicle replacement.
 

It can be a challenge to establish an extensive infrastructure for battery leasing services including battery swapping or rental facilities. Ensuring equitable accessibility across diverse regions, urban & rural areas, and different countries requires significant investments and logistical planning. Overcoming potential barriers, such as land acquisition, zoning regulations, and infrastructure compatibility, can be time-consuming. These challenges may hinder battery leasing service market growth.

COVID-19 Impact

The COVID-19 pandemic had significant impacts on the battery leasing service industry. While initial disruptions in supply chains and manufacturing slowed down some battery leasing initiatives, the pandemic also highlighted the importance of sustainable & flexible transportation solutions. As governments and consumers placed increased emphasis on environmental concerns, the interest in EVs & related services including battery leasing grew.

Battery Leasing Service Market Trends

The rising awareness about climate change is accelerating the interest in sustainable transportation solutions. This is significantly boosting the demand for battery based EVs. Consequently, the market is witnessing substantial growth as consumers seek economical ways to embrace EVs while addressing concerns about battery ownership costs. This aligns with the larger goal of reducing carbon emissions and creating a greener future.

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.

Battery Leasing Service Market Share

The major players operating in the battery leasing service market 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
• VoltUp
   

Battery Leasing Service Industry News

• In July 2023, Kia Corporation, based in South Korea, collaborated with multiple local enterprises to introduce a trial EV battery subscription program. The leasing program is designed to incentivize additional businesses and individuals who might otherwise be deterred by steep initial expenses associated with EVs.
   
• In July 2023, Nio enhanced its battery leasing initiative, enabling drivers to switch to a battery pack with greater energy density daily, a shift from the previous practice of replacement after months or years.
   

This battery leasing service market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD million) from 2018 to 2032 for the following segments:

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Market, By Business Model, 2018 – 2032

• Subscription Service
• Pay-Per-Use Model

Market, By Battery Type, 2018 – 2032

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

Market, By Vehicle Type, 2018 – 2032

• Passenger Vehicle
• Commercial Vehicle

The above information is 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
  • ANZ 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • South Africa
  • UAE
  • Saudi Arabia