Battery Swapping Charging Infrastructure Market Size, Share & Trends Analysis Report By Vehicle Type (Three-, Two-wheeler), By Service Type (Pay-per-Use, Subscription), By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global battery swapping charging infrastructure market size was valued at USD 166.5 million in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 20.2% from 2022 to 2030. The battery-swapping charging infrastructure allows Electric Vehicle (EV) users to replace their discharged batteries with charged batteries at the swap stations. Consumers are charged for these batteries on a pay-per-use or subscription basis. Reduced charging time, reduced upfront costs of buying an EV, increasing demand for public charging infrastructure, and favorable government subsidies are driving the installation of battery swapping charging infrastructure, thereby driving the industry growth.

With the use of battery swapping charging infrastructure, EV users can swap their batteries for a charged battery at the swap station, reducing their range anxiety for long journeys as they can save time by swapping batteries instead of waiting hours for the battery to be charged again. In addition, battery swapping charging infrastructure of battery-as-a-service allows customers to lease batteries, which reduces their overall upfront cost of purchasing the battery. Batteries account for about 30%-40% of the overall EV cost, and leasing them can reduce this cost considerably for consumers.

The time and cost-saving capabilities of battery swapping charging infrastructure are expected to play a crucial role in their adoption, driving the industry growth. A study conducted by Nissan in June 2021 revealed that 56% of European ICE drivers who are not considering buying an EV believe there are insufficient charging points. To overcome this challenge, EV manufacturers are focusing on manufacturing swappable batteries, to provide adequate charging infrastructure and efficiency to their customers. While the adoption of EVs is increasing globally, it will remain slow if countries lack public charging infrastructure.

As a result, many governments are taking initiatives to fill this gap, which is driving the adoption of the battery swapping charging infrastructure. Government initiatives are crucial in the EV market to solve these disparities and kick-start industry growth. Governments worldwide are drafting policies to address key technical, regulatory, institutional, and financial challenges in the EV market. For instance, in April 2022, the Indian government introduced a policy for EV battery-swapping that aims at catalyzing the rapid adoption of EVs by promoting the adoption of battery swapping technology, which ensures minimal downtime, lower upfront costs, and lower space requirements.

Such initiatives are fostering the growth of the industry. A well-established network of battery swapping charging infrastructure could be instrumental in driving the adoption of EVs. However, the market faces a few roadblocks that need to be tackled by the authorities and key players. For instance, standardization of EV Lithium-Ion battery packs remains a constraint for the industry, and battery disposal is yet another issue for environmental pollution. However, with battery swapping charging infrastructure, the burden of removing and recycling batteries will reduce as the responsibilities for safe battery disposal and recycling will shift to private companies, which is expected to drive the industry over the forecast period.

COVID-19 Impact Analysis

The demand for battery swapping charging infrastructure directly depends on the demand for EVs. The outbreak of the COVID-19 pandemic and the subsequent lockdowns and restrictions imposed on the movement of people decreased the overall demand for private vehicles. Subsequently, it reduced the demand for EVs, adversely impacting the industry growth. However, the world saw an increase in the demand for EVs post-pandemic as more people realized the importance of environmental conservation. The improved EV sales post-pandemic is expected to play a crucial role in the battery swapping charging infrastructure adoption.

Vehicle Type Insights

The two-wheeler segment dominated the industry in 2021 and accounted for the largest share of more than 30.00% of the total revenue. The ‘Global EV Outlook 2021’, published by the international energy agency, states that the global stock of electric two-wheelers is around 290 million. The dominating share of two-wheelers in total EVs is driving the adoption of battery swapping charging infrastructure by two-wheelers. Moreover, initiatives by key players are also driving the segment's growth. For instance, in March 2022, Suzuki, Honda, Kawasaki, and Yamaha partnered to launch a service of standardized exchangeable batteries for electric two-wheelers and its corresponding infrastructure under the company Gachaco.

Such initiatives are driving the growth of the segment. The passenger vehicle segment is anticipated to register a significant growth rate over the forecast period. The rising sales of electric passenger vehicles and increasing demand for public charging stations are expected to drive the growth of this segment. In 2021, the sales of passenger vehicles increased by 3.9% worldwide. The increasing sales of passenger vehicles coupled with supportive government initiatives to boost the sales of EVs are expected to drive the growth of passenger vehicles over the forecast period. For instance, in November 2021, the government of Japan announced that it would double its EV purchase incentives to as much as JPY 800,000 (USD 7,069) in terms of subsidies.

Service Type Insights

The pay-per-use segment dominated the industry in 2021 and accounted for the largest share of more than 60.10% of the total revenue. The pay-per-use or pay-as-you-go service allows the separation of battery from the vehicle and enables users to buy EVs at a lower upfront cost. It allows EVs to be financially viable for the first time. The pay-per-use model addresses key EV adoption issues, such as high upfront costs, long refueling time, and range anxiety. The pay-per-use segment is powered by smart batteries, quick interchange stations, smart networks, and plug-N-play docks. The technological innovations and viable economical options provided by the pay-per-use payment model are driving the segment’s growth.

The subscription segment is anticipated to register the fastest growth rate over the forecast period. The subscription service segment allows EV users to subscribe to battery-as-a-service and opt for battery swapping at the swap station at pre-determined subscription prices. Governments across the globe are taking initiatives to increase the adoption of subscription battery swapping charging infrastructure. For instance, in August 2022, the South Korean government announced that it would revise the law to allow battery subscription services for electric vehicles, reducing the upfront cost of electric vehicles by almost one-third. Such initiatives are expected to drive the segment's growth over the forecast period.

Regional Insights

Asia Pacific dominated the global industry market in 2021 and accounted for the largest share of more than 29.90% of the overall revenue. The regional market's growth can be attributed to initiatives by various governments to promote the adoption of electric vehicles and swappable batteries and strategic initiatives taken by catalyst market players. For instance, in November 2021, MIIT launched a battery-swap pilot program in China. The program calls for pilot projects in Beijing, Sanya, Nanjing, Changchun, Hefei, and Jinan. Such initiatives are expected to fuel the market's growth in the Asia Pacific region.

Europe is expected to register significant growth over the forecast period. In mid-2021, the European Commission announced a regulatory proposal to set a 100% target for fully electric vehicles by 2035. Such targets proposed by the government are driving the adoption of electric vehicles, thereby propelling industry growth. Moreover, key players are expanding their services in Europe, which is expected to drive industry expansion. For instance, in September 2022, NIO Inc. announced the delivery of its first European-made “Power Swap” station to Germany.

Key Companies & Market Share Insights

The industry can be described as a highly fragmented market. Prominent players are leveraging subsidies offered through government initiatives to maximize their profits. Moreover, companies are entering into strategic partnerships, mergers & acquisitions, technological advancements, and collaborations to increase their battery swapping charging infrastructure network. Furthermore, players are focusing on standardizing the EV batteries, their responsible disposal, and recycling to sustain the climate change goals. The players are focusing on launching affordable battery charging infrastructure to foothold their industry share.

Key players in are entering into partnerships to increase their network of battery-as-a-service. For instance, in May 2022, SUN Mobility announced its collaboration with Greaves Electric for battery technology. With this partnership, SUN Mobility and Greaves Electric will deploy swappable batteries for EVs, in electric two-wheelers and electric three-wheelers, by utilizing the same charging infrastructure. Such initiatives by key players are expected to drive industry growth. Some of the prominent players in the global battery swapping charging infrastructure market include:

• NIO Inc.

• Gogoro Inc.

• Leo Motors Inc.

• Tesla Inc.

• SUN Mobility Private Ltd.

• BYD Co. Ltd.

• BattSwap Inc.

• Kwang Yang Motor Co. Ltd. (KYMCO)

• Panasonic Corp.

• Lithion Power Pvt. Ltd.

Battery Swapping Charging Infrastructure Market Report Scope

Global Battery Swapping Charging Infrastructure Market Segmentation

The report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global battery swapping charging infrastructure market report based on vehicle type, service type, and region:

• Vehicle Type Outlook (Revenue, USD Million, 2017 - 2030)

  • Two-Wheeler

  • Three-Wheeler

  • Passenger Vehicle

  • Commercial Vehicle

• Service Type Outlook (Revenue, USD Million, 2017 - 2030)

  • Pay-per-use

  • Subscription

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

    • The Netherlands

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa