A battery replacement station or battery swapping station is a place, where an electric vehicle's drained battery can be immediately swapped with fully charged one, by eliminating the delay involved in waiting for the vehicle's battery to be charged. In a battery swapping station, the driver does not need to come out of the car while the battery is swapped. Battery swapping requires an electric car, which is specially designed for 'easy swap' of batteries. Battery swapping stations offer electric vehicle's driver an ability to recharge the exhausted batteries with an excess electricity generated from renewable sources such as solar energy, during the off-peak electricity hours. Electric vehicle (EV) sales in China, U.S., and Europe has increased at significant rate. For instance, according to coherent market insights, the global electric vehicle sales increased by 160% in the first half of 2021 from 2020. Therefore, increasing number of electric vehicles across the world and long waiting hours for charging vehicles are major factors that are expected to drive the electric vehicle battery swapping system market growth during the forecast period.
Global Electric Vehicle Battery Swapping System Market - Impact of Coronavirus (Covid-19) Pandemic
COVID-19 has significantly disrupted almost all the industries including infrastructure, transportation, oil and gas, manufacturing, and others. To combat COVID-19 pandemic, most of the countries had implemented lockdown restrictions, which are now being eased slowly on phase-wise and industry-wise. This has also adversely affected the sales of automotive, which include electric vehicles.
The global pandemic disrupted the supply chain in both upstream as well as downstream of the target market. The manufacturing activities were paralyzed, which impacted the supply of raw materials for electric vehicle battery swapping system. Additionally, the public investments in many countries such as India electric vehicle battery swapping system development has been stopped for a while and diverted towards healthcare sector.
Asia Pacific is expected to hold dominant position in the global electric vehicle battery swapping system market during the forecast period.
Asia Pacific held dominant position in the global electric vehicle battery swapping system market in 2020, accounting for 89.1% share, in terms of value, followed by North America and Europe.
Figure 1: Global Electric Vehicle Battery Swapping System Market Share (%), By Region, 2020
Among regions, Asia Pacific held dominant position in the global electric vehicle battery swapping system market in 2020 and is expected to retain its dominance throughout the forecast period. On the basis of country, in Asia Pacific region, China alone accounted for 81.1% market share in 2020.
The growing demand for electric vehicles and government plans towards adoption electric vehicle are expected to boost demand for electric vehicle battery swapping system in the region. For instance, according to Coherent Market Insight analysis, in March 2019, the Indian government planned to replace all cars with electric cars by 2030.
|Base Year:||2020||Market Size in 2020:||US$ 76.7 Mn|
|Historical Data for:||2017 to 2019||Forecast Period:||2021 to 2028|
|Forecast Period 2021 to 2028 CAGR:||56.4%||2028 Value Projection:||US$ 4,956.2 Mn|
Tesla Motors, NIO Inc., Hitachi Ltd., Beijing Automotive Group Co., Ltd. (BAIC Group) (BAIC BJEV), Aleees Likai, Hyundai KEFICO Corporation, Preh GmbH, SK innovation Co., Ltd., BYD Auto Co., Ltd., Denso Corporation, T3 Motion, Inc., and Calsonic Kansei Corporation
|Restraints & Challenges:||
The present electric vehicle battery swapping systems and infrastructure are based on battery charging factories and battery swapping stations. A large number of batteries are centrally-charged and are moved to different battery swapping stations with the help of logistics system. Electric vehicle users have to drive to a battery swapping station for swapping battery and may still have to wait in queue due to limited number of battery swapping infrastructure. Therefore, there is a requirement for more effective and reasonable electric vehicle battery swapping infrastructure. As a solution to this problem, the present passive battery swapping mode is switched to the active battery swapping mode.
Currently, a new fast electric vehicle battery swapping device is developed, which can be fitted on a van, which converts the van into a mobile electric vehicle battery swapping station. This device has the benefits of precise positioning and suitable swapping due to its components such as a positioning pin, positioning slot, positioning track, positioning hole, and PLC control system. The operations of removing and installing a battery takes place at the same time. Thus, the entire process of swapping the batteries is very fast and lasts only for few minutes. The actual operation of battery swapping takes place inside the battery swapping van. The flexibility of the battery swapping van eliminates the limitations of infrastructure and number of electric vehicle battery swapping stations.
Figure 2: Global Electric Vehicle Battery Swapping System Market Value (US$ Mn) Analysis and Forecast and Y-o-Y Growth (%), 2020 - 2028
The global electric vehicle battery swapping system market was valued at US$ 76.7 Mn in 2020 and is expected to reach US$ 4,956.2 Mn by 2028 at a CAGR of 56.4% between 2021 and 2028.
Major players operating in the global electric vehicle battery swapping system market include Tesla Motors, NIO Inc., Hitachi Ltd., Beijing Automotive Group Co., Ltd. (BAIC Group) (BAIC BJEV), Aleees Likai, Hyundai KEFICO Corporation, Preh GmbH, SK innovation Co., Ltd., BYD Auto Co., Ltd., Denso Corporation, T3 Motion, Inc., and Calsonic Kansei Corporation.
Battery swapping is a technique of swapping a discharged electric car battery with already charged battery. This eliminates the refueling time and reduces waiting time of the vehicles to charge the battery. The electric vehicle battery swapping system also provides benefit to drivers, as they are not required to come out of the car, while the battery is swapped.
Increasing number of electric vehicles across the world and long waiting hours for charging the vehicles are major factors that are expected to drive the electric vehicle battery swapping system market growth in the near future.
The rising air pollution is one of the hazardous problems faced by many countries such as India, China, and others, wherein vehicles are a major factor contributing to air pollution. Replacing conventional fuel-based vehicles with new generation electric vehicle is an important step towards air pollution control, as electric vehicles does not emit any polluting gases. Increasing number of electric vehicles results in rising demand for electric vehicle battery swapping system.
Considering the environmental and economic benefits of electric vehicle and charging stations, governments are introducing new policies, which boosts the electric vehicle battery swapping system market growth. For instance, the Government of India introduced schemes such as Faster Adoption & Manufacturing of Hybrid and Electric Vehicles (FAME) in 2015 and second phase FEMA II in 2017 to support growth of the electric vehicle battery swapping system market.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.