PUBLISHER: Prescient & Strategic Intelligence | PRODUCT CODE: 1463806
PUBLISHER: Prescient & Strategic Intelligence | PRODUCT CODE: 1463806
Key Highlights
The electric vehicle battery swapping market generated a value of USD 1,795.3 million in 2023, which will increase to USD 16,552.1 million, advancing at more than 37.0% compound annual growth rate, by 2030.
The major factor boosting the growth of this industry is the increasing need for minimal wait time for electric vehicle charging. The charging duration is an important aspect in the acceptance of EVs, mainly in long-haul applications.
Most electric vehicles across the globe employ a slow charge system for recharging the battery overnight, which needs up to eight hours of charging.
The swapping procedure significantly decreases the battery charging duration to under three minutes, which improves the operational time of the electric vehicles.
The battery accounts for nearly 35 to 45% of the overall price of an electric vehicle.
Technological improvement is a major trend being observed in this industry. The arrival of swappable batteries enables drivers to swap the discharged battery with a fully charged one at a dedicated swapping station.
This, sequentially, boosts the uptime of vehicles significantly, while also decreasing the operational expenses, which will eventually take the EV sector toward profitability.
The rising electric vehicle sales are boosting the need for charging infrastructure as well as swapping centers.
The costs of batteries are decreasing rapidly, and rising technological improvement enables EV makers to offer cost-competitive electric vehicles, thus, booting the need for battery-swapping technologies.
Key Insights
The three-wheelers category was the largest contributor to the electric vehicle battery swapping industry. This can be because, on average, they travel over 100 kilometers per day.
Three-wheelers need to be charged twice/three times per day. The ideal substitute for slow charging is the battery swapping technology, which enables drivers to make the most of their operational times.
The pay-per-use category accounted for the largest share of the industry in 2023, and it will continue this trend throughout this decade. The drivers can pay as per their usage of this type of service.
For example, traveling short distances doesn't necessitate frequent battery swapping, and thus most people select the pay-per-use service rather than the subscription type.
APAC accounted for the largest share of the industry, and it is likely to advance at a significant compound annual growth rate in the years to come.
Government strategies to help the acceptance of electric vehicles as well as the increasing inclination in research & development to enhance the existing technologies are boosting the regional industry expansion.
APAC has many developing nations with substantial human as well as natural resources, with India and China likely to be a main investment center for battery firms in the years to come due to government backing for the manufacturing sector.
The electric vehicle battery swapping industry is a competitive space with recognized players and developing firms vying for dominance. Infrastructure development, cost control, and standardization will play important role in this evolving industry.
Players in this industry are increasing their battery-swapping networks to eventually enhance the sales of their EVs. The goal of this development is to offer convenience to customers.