EV Battery Swapping Market: Current Analysis and Forecast (2021-2027)

Report Description

Global EV Battery Swapping Market is anticipated display a CAGR of around ~22% over the forecast period (2021-2027). The demand for electric vehicles is being fueled by rising levels of air pollution in various countries (EVs). However, for large-scale adoption of EVs, sufficient charging infrastructure is essential, as the existence of a significant number of charging facilities solves difficulties associated with EVs, such as their restricted range of mobility. This is fueling demand for battery swapping technology, which addresses the issue of slow charging at charging stations. Other factors driving EV growth include a lack of suitable public infrastructure and shorter charging times for electric vehicles, which are driving the worldwide electric vehicle battery swapping market. However, the market’s growth is hampered by the expensive initial set-up and operational costs of battery swapping stations, as well as differences in battery technology and design.

Insights Presented in the Report

“Amongst Service Type, pay-per-use segment dominated the market in 2020”

Based on Service Type, based on service type, the market is segmented into Pay-per-Use and Subscription. The pay-per-use segment is expected to grow at a higher CAGR during the forecasted period. Customers can subscribe to monthly or annual battery swapping plans or can adopt pay-per-use model as per their needs. The growth of pay-per-use segment is expected to be higher as it will be due to drivers’ choice to pay according to their usage, due to the absence of a fixed driving pattern. A short-distance commute, for example, does not demand frequent battery swaps, which is why most drivers will opt for the pay-per-use approach.

“Amongst Vehicle Type, Two-Wheeler segment dominated the market in 2020.”

Based on Vehicle Type, based on vehicle type, the market is segmented two-wheeler, three-wheeler, four-wheeler and others. The two-wheeler segment is expected to grow at a higher CAGR during the forecasted period. Due to less battery power capacity and more frequent use the two-wheeler segment is expected to capture the maximum share in the segment in future. As a result, they need to be charged twice or three times per day. Battery swapping technology is the ideal option to sluggish charging because it allows drivers to maximize their operational hours.

“Asia Pacific represents as the largest market.”

For a better understanding of the market adoption of EV Battery Swapping, the market is analyzed based on its worldwide presence in the countries such as North America (United States, Canada, Rest of North America), Europe (Germany, UK, France, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Rest of APAC), and Rest of World. Because of government backing for the manufacturing industry, the Asia-Pacific region has numerous developing economies with enormous natural and human resources, with China and India projected to be important investment hotspots for battery businesses over the next years. Essentially, the electric vehicle battery swapping industry will grow rapidly in the next years as the number of electric two- and three-wheelers grows, as will the demand for battery swapping as a result of a lack of suitable charging infrastructure and expensive lithium-ion battery prices. Government efforts to encourage the adoption of electric vehicles (EVs), as well as a growing interest in R&D to improve existing technologies, are propelling market expansion in APAC. Some of the major players operating in the market includes Echargeup, Numocity Technologies Pvt. ltd., Amara Raja Batteries Limited, Lithion Power Pvt Ltd., Chargemygaadi, Esmito Solutions pvt ltd, Gogoro inc, BYD Company Limited, Nio Inc and Oyika etc.

Reasons to buy this report:

• The study includes market sizing and forecasting analysis validated by authenticated key industry experts
• The report presents a quick review of overall industry performance at one glance
• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments
• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry
• The study comprehensively covers the market across different segments
• Deep dive regional & country-level analysis of the industry

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Research Methodology

The global push for zero-emissions road transportation has picked up dramatically. According to new data from BloombergNEF, electric cars (EVs), comprising battery electric and plug-in hybrids, accounted for 7.2 percent of worldwide car sales in the first half of 2021, up from 2.6 percent in 2019 and 4.3 percent in 2020. Government decarbonization goals, falling battery prices, and a growing range of models provided by automakers are propelling the adoption of electric vehicles quicker than previously believed. According to the company, electric vehicles would account for 20-30% of sales in the United States, the European Union, and China by 2025, based on “proposed and confirmed legislation” in those countries. The rising demand and sales of electric vehicle are also creating new demand for its infrastructure and battery swapping can be one of the important sector to gain momentum along with the EV sales.

Electric vehicle battery switching is a process in which a drained battery or battery pack in an electric vehicle can be swapped out for a fully charged one, minimizing the time spent waiting for the battery to charge. When compared to charging stations, battery swapping stations provide a faster option to combat range anxiety, with each battery change taking less than 10 minutes and requiring far less room to install. Furthermore, battery-as-a-service (BaaS) is gaining interest in the battery switching business due to its impact on lowering the high upfront price of electric vehicles by decoupling battery ownership. Furthermore, because the client only pays for the energy, battery swapping saves vehicle downtime and acquisition costs.

Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

Detailed secondary study was conducted to obtain the historical market size of the EV Battery Swapping Market through company internal sources such as annual report & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.

Step 2: Market Segmentation:

After obtaining the historical market size of the EV Battery Swapping, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments included in the report are by loader type, vehicle type, technology and application. Further regional & country-level analyses were conducted to evaluate the overall adoption of the EV Battery Swapping Market in the global context.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size. Further, we conducted factor analysis using dependent and independent variables such as growing government incentives and demand for eco-friendly transportations etc. Historical trends and their year-on-year impact on the market size and share was analyzed. Demand and supply side scenario was also thoroughly studied.

Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the Market, and market shares of the segments and company. All the required percentage split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., bottom-up approach was applied to arrive at the market forecast to 2027 for different segments and subsegments across the major regions globally. The research methodology adopted to estimate the market size encompasses:

• The industry’s market size, in terms of value (US$) and the adoption rate of EV Battery Swapping across the major markets
• All percentage shares, splits, and breakdowns of market segments and sub-segments
• Key players in the EV Battery Swapping Market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market.

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, and Regional Head, Country Head, etc.) across major countries. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

Market Engineering

Data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers of each segment and sub-segment of the EV Battery Swapping market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of service type, vehicle type, and region. 

The main objective of the EV Battery Swapping Market Study

The current & future market trends of EV Battery Swapping were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments from the qualitative and quantitative analysis performed in the study. Current and future market trends would determine the overall attractiveness of the market at a regional & country level, providing a platform for the industrial participant to exploit the untapped market to benefit as a first-mover advantage. Other quantitative goals of the studies include:

• Analyze the current and forecast market size of EV Battery Swapping in terms of value (US$). Also, analyze the current and forecast market size of different segments and sub-segments
• Segments in the study include type, application, and vehicle
• Defined analysis of the regulatory framework for the Global EV Battery Swapping industry
• Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry
• Analyze the current and forecast market size of the EV Battery Swapping for the major regions & countries
• Major regions studied in the report include North America (US, Canada, Rest of North America), Europe (Germany, United Kingdom, France, Italy, Rest of Europe), Asia Pacific (China, Japan, India, South Korea, Rest of Asia-Pacific), and Rest of World
• Company profiles of the EV Battery Swapping Market players and the growth strategies adopted by them to sustain in the fast-growing market
• Deep dive regional & country level analysis of the industry