ELECTRIC VEHICLE BATTERY SWAPPING SYSTEM MARKET SIZE & SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

The global electric vehicle battery swapping market size was valued at US$ 781.2 million in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 32.6% from 2023 to 2030. The global Electric Vehicle Battery Swapping market is growing primarily due to the demand for hassle-free and affordable solutions for EV drivers. A rise in the number of electric vehicles is anticipated to drive the demand for battery swapping stations, especially in Asia-Pacific. The global electric vehicle battery swapping market is expanding at a significant growth rate owing to the growing demand for electric vehicles.   

Global Electric Vehicle Battery Swapping Market: Regional Insights

North America is expected to show major growth in the global electric vehicle battery swapping market over the forecast period. This can be attributed to rise in research and development activities in the region, along with partnerships and acquisitions among market players. Moreover, the use electric vehicles is increasing in the region due to growing environmental concerns and initiatives by governments promoting use of battery-operated vehicles. Thus, aforementioned factors are anticipated to support growth of the market across the region.

Furthermore, Asia Pacific is also expected to account for major share in the global electric vehicle battery swapping market during the forecast period due to growing sales of EVs in countries such as Japan and China in the region, along with rising efforts from governments of countries toward reduction of greenhouse gas emissions. Governments of several Asian countries are planning to end sales as well as production of diesel and gasoline powered vehicles. Due to this, the demand for electric vehicles is anticipated to increase in the coming future. For instance, the National Institute for Transforming India (NITI Aayog) and the government of India announced that in 2030, electric vehicles will account for 70% of all commercial cars, 80% of two- and three-wheeler, 40% of buses, and 30% of private cars sales.  

Figure 1. Global Electric Vehicle Battery Swapping Market Share (%), By Region, 2022

Global Electric Vehicle Battery Swapping Market Drivers:

Growing demand for EVs along with shortage of proper public charging infrastructure to drive the market growth

Electric vehicles are gaining popularity all over the world, due to their higher environment-friendliness and efficiency compared to conventional vehicles. Thus, the customer demand for increasing efficiency of vehicle and minimizing fuel costs is leading to constant technological developments in electric vehicles. Along with this, the cost of gasoline is increasing with stringent regulations by governments pertaining emissions of carbon dioxide. These factors are in turn creating strong demand for electric vehicles all over the world. Moreover, several region have shortage of appropriate public charging places leading to rise in demand for EV battery swapping. As a result, the global electric vehicle battery swapping market is expected to witness substantial growth in the coming future.

Reduced charging time for EVs to boost the market growth

When looking at functioning of electric vehicles, their charging time is an important factor, specifically in long-hauling applications. At present, most electric vehicles use a slow charging system for recharging the batteries. With this system, it usually requires nearly eight hours to completely charge the battery. Moreover, generally electric vehicles come with on-board chargers that charge the vehicle at 2.4-3 kW per hour rate. However, using battery swapping systems, reduces this charging time for electric vehicles. This major benefit of EV battery swapping systems is expected to augment growth of the market in the coming future.

Global Electric Vehicle Battery Swapping Market Opportunities:

Rapidly emerging services of shared e-mobility to offer major growth opportunities in the global electric vehicle battery swapping market over the forecast period. The expansion of electric vehicle sharing services is growing all over the world due to rise in vehicle ownership cost and stringent regulations by governments on emission from vehicles. These vehicles are mainly utilized in passenger carriers and operate 100 km per day. When fully charged, these vehicles run less than 100 km, due to this they need to be charged more than once per day. Consequently, battery swapping stations are promising alternative to problems around slow charging of battery. This in turn is creating growth opportunities in the market.

Launch of novel and advanced battery swapping models and services are expected to generate business opportunities in the global electric vehicle battery swapping market during the forecast period. Key players in the market are taking various strategic measures such as partnerships, product launches, and expansion of facilities to gain a competitive edge in the market. Moreover, along with technological developments in electric vehicles, need for rapid battery charging is also increasing. Due to this, market players launching novel solutions of battery charging. This is further offering growth opportunities in the market.

Global Electric Vehicle Battery Swapping Market Trends:

Advancements in lithium batteries is a growing trend in the market

At present, the upfront cost of an EV is determined by cost of the batteries, which accounts for 40 to 70%. The upfront cost can be changed based on network of the energy operator, which further shifts to the cost of ownership to operations, when these batteries are rented or sold separately. In such scenario, battery swapping and interoperability is of high importance, as it helps create the supply chain network, which eventually will boost adoption of electric vehicles. Currently, use of lithium-ion batteries is high among electric vehicles, thus, manufacturers are developing more advanced lithium batteries with higher efficiency and capacity. This trend is further likely to continue in the market over the forecast period.

Increasing investments in novel technologies by market players is another trend in the market

Major players in the market are making heavy investments in novel technologies and are adopting strategic partnerships among themselves. This trend is expected to support growth of the global electric vehicle battery swapping market over the forecast period. For instance, in January 2022, Hon Hai Technology Group (Foxconn), Gogoro Taiwan Limited, PT. Indika Energy Tbk. (Indika), PT. Industri Baterai Indonesia (IBC), and the Indonesian Ministry of Investment/Investment Coordinating Board (BKPM) signed a Memorandum of Understanding for joint development of a sustainable new energy ecosystem. Under this agreement, the companies will seek various investment opportunities and work in collaboration for development of a new energy ecosystem in Indonesia, which will include development of battery exchange facilities, battery recycling, and industries for energy storage systems.

Global Electric Vehicle Battery Swapping Market Restraints:

Differing design and technology of batteries to hamper the market growth

One of the major challenges for battery swapping stations is differing battery designs and technology. A battery pack requires specific design in order for it to be removed easily and rapidly from a vehicle and re-attached. However, such battery pack designs are very limited at the moment. This factor in turn is expected to limit battery swapping concept, which is further expected to hamper growth of the global electric vehicle battery swapping market over the forecast period.

High cost of initial set-up and operating cost of stations to hinder the market growth

The initial infrastructure of battery swapping stations is complex and expensive compared to charging stations. Along with this, swapping stations require a number of battery packs more than a specific percentage of daily need for a station. For every car, it should have at least two battery packs, one available in a station and other one inside the car. Thus, the overall high cost of battery swapping stations is expected to hamper growth of the global electric vehicle battery swapping market over the forecast period.

Figure 2. Global Electric Vehicle Battery Swapping Market Share (%) Analysis and Forecast, By Service Type, 2022

Global Electric Vehicle Battery Swapping Market Segmentation:

The global electric vehicle battery swapping market report is segmented into Service Type and Vehicle Type.

Based on Service Type, the market is segmented into Subscription model, and Pay-per-use model. Out of which, Subscription Model is expected to dominate the global market over the forecast period and this is attributed to its benefits over pay-per-use model such as low cost per swapping, battery leasing, and affordability leading to rise in adoption. For instance, in August 2020, NIO, an automobile manufacturers introduced its battery-as-a-service (BaaS) subscription. Moreover, the growing adoption of subscription models is also driving growth of the segment in the global electric vehicle battery swapping market.

Pay-Per-User Model segment is also expected to witness significant growth in the near future and this is owing to the increase in preference for pay as per their usage in vehicle drivers due to lack of fixed use pattern of their vehicles. This is leading to growing adoption of pay-per-usage model. Moreover, increasing number of market players are launching new products and services and adopting collaborations. This is also driving growth of the segment in the global market.

Based on Vehicle Type, the market is segmented into Two-wheeler, Three-wheeler passenger vehicle, Three-wheeler light commercial vehicle, Four-wheeler light commercial vehicle, Buses, and Others. Out of which, Two-wheeler is expected to dominate the global market over the forecast period and this is attributed to the growing adoption of electric two wheelers battery swapping technique in the global electric vehicle charging infrastructure, owing to the under developing infrastructure of EV charging. Moreover, increasing number of governments and private companies investing in development of battery swapping infrastructure is also driving growth of this segment.

Three-wheeler Light Commercial Vehicle segment is also expected to witness significant growth in the near future and this is owing to the increasing popularity of battery swapping usage in electric three-wheeler for increasing daily operations of these vehicles. Along with this, leading players in the market are launching battery swapping platforms for such vehicles in order to reduce charging time. These factors are likely to support growth of this segment in the global electric vehicle battery swapping market over the forecast period.

Global Electric Vehicle Battery Swapping Market: Key Developments

In September 2022, Gogoro Inc., a battery-swapping refueling platform developer launched Smart Scooters as well as a battery-swapping system in the Tel Aviv metropolitan region.

In September 2022, Oyika Pte Ltd. signed a Memorandum of Understanding (MOU) with NEFIN Group, a leading green independent power producing company in Asia, for promoting the adoption of EVs in Singapore, Malaysia, Cambodia, Indonesia, and Thailand.

In August 2022, NIO Power began testing of 3^rd generation battery swapping stations capable of sending power back to the grid. When an EV driver is replacing their battery at the charging station, other ten or eleven batteries can be sent back to the grid for nearly ten minutes.

In February 2022, MG Motors exhibited the MG 4, its upcoming EV which will be launched in India in second half of 2022. The novel EV is expected to have 61.1 kWh battery pack with 400 km mileage.

Global Electric Vehicle Battery Swapping Market: Key Companies Insights

The global electric vehicle battery swapping market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global electric vehicle battery swapping market are Nio Inc., Amara Raja Batteries Limited, Lithion Power Private Limited, Amplify Cleantech Solutions Private Limited, Gogoro Inc., Chargemygaadi, Esmito Solutions Pvt. Ltd., and Echargeup

*Definition: Electric Vehicle Battery Swapping is a way to recharge a car's EV battery without having to wait for the charger to do its job. Electric Vehicle Battery Swapping systems allow drivers to swap their depleted batteries for a fully charged one at a station, essentially recharging their car in a matter of minutes.