Battery as a Service Market

Battery as a Service Market is anticipated to grow at a higher CAGR during forecast period due to increasing electric vehicle sale due to favorable government schemes and funding along with increasing consumer awareness towards the environment friendly transportation.

Introduction of the Battery as a Service Market Report

Battery as a Service (BaaS) provides three services including separation of automobile and electricity, battery renting, and rechargeable, replaceable, and upgradation of batteries. Customers can lease batteries as a stand-alone component from automobiles under the Battery-as-a-Service business. The upfront cost of an electric car can be reduced by leasing the battery. This innovative business offers battery changing solutions to alleviate an EV’s short range difficulties. In comparison to a charging station, battery swapping takes less time and requires fewer infrastructures.

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Market Dynamic

Key Drivers and Emerging Trends

The factors driving the global Battery as a Service market include increasing electric vehicle sale due to favourable government schemes and funding along with increasing consumer awareness towards the environment friendly transportation. For instance, according to the International Energy Agency Organization in 2020, the global electric vehicle sale registered more than 7 Million which is increasing at 2 Million annually. It created massive demand for the Battery as a service market in developing and developed countries. Instead of purchasing a battery pack with an electric car, the owner of the car can lease or subscribe to a battery subscription plan, which is a more cost-effective option. The consumer has more negotiating power with the Battery-as-a-Service method since they can buy simply the car shell entirely and simply pay the rental rates for the batteries.

Furthermore, leasing and renting battery packs offers additional benefits such as free/warrantied replacements, timely assessment of battery residual values by the service provider, and service provider help in the case of a breakdown. With such leasing models spanning service, shared logistics, mobility, and delivery organisations with big fleets are projected to save money. Further, increasing energy demand in the industries due to industrialization and rising investment for increasing the production have propelled the battery as a service market.

Restraint in the Battery as a Service Market

From a production standpoint, batteries must be checked to ensure optimal safety by avoiding a range of defects. The battery housing of LIBs, for example, must be completely sealed since the electrolyte creates extremely toxic hydrofluoric acid when it reacts with water, which is dangerous to both humans and the environment. Metallic contaminants that might occur during the housing’s welding process might result in a shoddy product. Thus, the damage of the battery during handling from the consumers and service providers along with high cost of battery production may hinder the battery as a service market growth.

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Type – Segment Analysis

Based on the type, mobile equipment is expected to grow at the fastest rate in the global battery as a service market during the forecast period owing to increasing demand for the electric vehicles globally with surge in consumer awareness.

Service – Segment Analysis

Based on the service, swappable and upgradable batteries projected to capture the largest market share over the forecast period in the global battery as a service market due to the low cost availability. When compared to a charging station, battery swapping takes less time and requires less infrastructure, making this model a viable option for future adoption.

Application – Segment Analysis

Based on the application, automotive and transport holds the highest market share in 2020 in the global battery as a service market owing to the increasing adoption of the electric buses, electric vehicles and electric two wheelers around the globe.

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Regional – Segment Analysis:

Due to the significant penetration of electric cars in countries like Norway, Sweden, and the Netherlands, Europe remains the leading market for the Battery-as-a-Service model. For instance, according to the We Forum Organization in 2020, more than 60% of the vehicles sold were registered as electric vehicles.

Increasing investments in the electric car sector, Asia Pacific is projected to see higher adoption over the next several years. In Asia-Pacific region, China has the highest EV adoption, which is projected to boost demand for the Battery-as-a-Service model in the coming years. For example, China’s NIO-Power business unit is promoting its efforts to develop its battery-as-a-Service (BaaS) operation. The business will provide charging as well as battery switching services for electric vehicles.

Top Market Players

Various notable players operating in the market, include NIO, Epiroc, Global Technology Systems, Inc., Contemporary Amperex Technology Co., KST Mobility Co., Ltd., Octillion, Rock Clean Energy, and among others. 

Key Developments:

• • In 2020, Nio launched a battery leasing business. Battery as a service (BaaS) under Nio-Power will offer swapping and charging of batteries for EV owners as the users can buy a Nio car without the battery and enjoy more than USD 10,000 off on all NIO models. There is also a USD 142 monthly battery rental price.
  • In 2021, Hyundai Motor Group signed a Memorandum of Understanding (MOU) with South Korea’s Ministry of Trade, Industry, and Energy, KST Mobility, and LG Energy Solution. Under the terms of the MOU, the parties will investigate a new creative business model for EV battery leasing.

Segments covered in the Report:

The global Battery as a Service market has been segmented on the basis of type, service, application, and key regions. Based on type, the market is segmented into stationary equipment, and mobile equipment. Based on service, the market is segmented into Vehicle-battery separation, Battery subscription, Chargeable, and Swappable & upgradable batteries. Based on application, the market is segmented automotive and transport, energy, industrial, and others. 

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Key questions answered in this research report:

• • At what pace is global battery as a service market growing? What will be the growth trend in the future?
  • What are the key drivers and restraints in Battery as a Service market? What will be the impact of drivers and restraints in the future?
  • What are the regional revenues and forecast breakdowns? Which are the major regional revenue pockets for growth in the global Battery as a Service market?
  • Which type generated maximum revenues in 2020 and identifies the most promising Type during the forecast period?
  • What are the various application areas of global battery as a service market and how they are poised to grow?
  • What companies are the major participants in this market and their business strategies, how does the competitive landscape look like?

Market Segmentation

Global Battery as a Service Market by Type

• • Stationary Equipment
  • Mobile Equipment

Global Battery as a Service Market by Service

• • Vehicle-Battery Separation
  • Battery Subscription
  • Chargeable
  • Swappable and Upgradable Batteries

Global Battery as a Service Market by Application

• • Automotive and Transport
  • Energy
  • Industrial
  • Others

Global Battery as a Service Market by Region

• • North America Battery as a Service Market (Option 1: As a part of the free 25% customization)
    • North America Battery as a Service Market by Type
    • North America Battery as a Service Market by Service
    • North America Battery as a Service Market by Application
    • US Battery as a Service Market All-Up
    • Canada Battery as a Service Market All-Up
  • Europe Battery as a Service Market (Option 2: As a part of the free 25% customization)
    • Europe Battery as a Service Market by Type
    • Europe Battery as a Service Market by Service
    • Europe Battery as a Service Market by Application
    • UK Battery as a Service Market All-Up
    • Germany Battery as a Service Market All-Up
    • France Battery as a Service Market All-Up
    • Spain Battery as a Service Market All-Up
    • Rest of Europe Battery as a Service Market All-Up
  • Asia-Pacific Battery as a Service Market (Option 3: As a part of the free 25% customization)
    • Asia-Pacific Battery as a Service Market by Type
    • Asia-Pacific Battery as a Service Market by Service
    • Asia-Pacific Battery as a Service Market by Application
    • China Battery as a Service Market All-Up
    • India Battery as a Service Market All-Up
    • Japan Battery as a Service Market All-Up
    • Rest of APAC Battery as a Service Market All-Up
  • RoW Battery as a Service Market (Option 4: As a part of the free 25% customization)
    • RoW Battery as a Service Market by Type
    • RoW Battery as a Service Market by Service
    • RoW Battery as a Service Market by Application
    • Brazil Battery as a Service Market All-Up
    • South Africa Battery as a Service Market All-Up
    • Saudi Arabia Battery as a Service Market All-Up
    • UAE Battery as a Service Market All-Up
    • Rest of world (remaining countries of the LAMEA region) Battery as a Service Market All-Up

Major Players Operating in the Battery as a Service (Option 5: As a part of the Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • NIO
  • Epiroc
  • Global Technology Systems, Inc.
  • Contemporary Amperex Technology Co.
  • KST Mobility Co., Ltd.
  • Octillion
  • Rock Clean Energy