The global battery-swapping charging infrastructure market size is expected to reach USD 811.5 million by 2030, expanding at a CAGR of 20.2% from 2022 to 2030.
Battery swapping charging infrastructure, also known as battery-as-a-services, eliminates the maintenance and service cost required, reduces the upfront cost of an Electric Vehicle(EV) considerably, cuts down CO2 emissions, and minimizes EV battery wastage. Owing to these advantages of the battery-swapping charging infrastructure, the industry is expected to grow significantly over the forecast period.
Through the battery-swapping charging infrastructure, consumers can borrow batteries as a stand-alone component from automobiles. The upgradation and recharging of batteries provided by the market conquer the shortcomings of plug-in EV chargers, including charging time and range anxiety.
It provides charged batteries within a few minutes, comparable to traditional gas stations, thereby reducing the charging time. It provides longevity for long journeys by reducing users’ range anxiety by providing them instant battery swapping at multiple locations. These factors are contributing to the growth of the market.
The demand for battery-swapping charging infrastructure is closely related to and dependent on the demand for electric vehicles. Governments across the world are engaging in strategic initiatives to promote electric vehicles.
For instance, a multi-government policy group called the Electric Vehicles Initiative (EVI) was established to hasten the introduction and adoption of electric vehicles. EVI was established as part of the Clean Energy Ministerial (CEM), a high-level conference for the world’s leading economies’ energy ministers. Multiple countries, including the U.S., Canada, France, Germany, the U.K., Netherlands, India, and Japan, have participated in EVI.
Such government initiatives are driving the adoption of electric vehicles which bodes well for the market. The COVID-19 pandemic had an adverse effect on global car sales. According to a report published by the International Energy Agency, global car sales witnessed an unprecedented drop in sales.
However, global electric car sales grew by 40% from 2019 to 2020. The pandemic highlighted the need to adopt more environmentally cautious practices, driving the adoption of EVs. With the increasing demand for EVs, demand for public charging infrastructure also increased, driving the growth of the global market.
Battery Swapping Charging Infrastructure Market Report Highlights
- The two-wheelers segment is expected to witness significant growth over the forecast period. Battery-swapping charging infrastructure provides a cost-efficient alternative. Traditional battery charging requires high upfront expenditure, while battery-as-a-service reduces the upfront cost
- Moreover, the time-saving capability and lack of park and charge facilities in tier-I and tier-II cities are driving the installation of battery-swapping stops for two-wheelers, driving the segment’s growth
- The subscription segment is expected to register the fastest CAGR over the forecast period. A subscription allows EV users to rent and swap batteries under a subscription pricing model
- The subscription pricing model enables users to pay monthly/quarterly/yearly for their batteries and removes the hassle of payment every time they want to swap their batteries
- The convenience of subscription battery-swapping charging services is expected to drive the segment’s growth over the forecast period.
- Europe is anticipated to register significant growth over the forecast period. Batteries form a strategic part of Europe’s digital and clean transition, and they are a critical enabling technology that plays a crucial role in the automotive sector’s competitiveness
- Key players in Europe are continuously innovating new battery and charging infrastructures, harnessing the growth of the regional market