Electric Vehicle Battery Swapping Market Research Report: By Vehicle Type (Two-Wheeler, Three-Wheeler, Passenger Vehicle, Commercial Vehicle), Service Type (Pay-Per-Use, Subscription) - Global Industry Analysis and Growth Forecast to 2030

Market Overview

The global electric vehicle battery swapping market was valued at ~$150 million in 2020. The popularity of electric vehicles (EVs) is being fueled by the rising levels of pollution in many countries. Additionally, the availability of appropriate charging infrastructure is critical to the widespread adoption of EVs. The ease of access to such infrastructure alleviates the anxiety related to EVs’ limited range. In this respect, the battery swapping technology is a viable alternative for supplying power to vehicles, as it eliminates the need for slow-charging stations.

The COVID-19 pandemic’s fast spread had a major impact on the automotive industry, including EV sales. In the short term, this resulted in a decrease in the demand for EVs. The industry's growth has been hampered by the shutdown of plants, as well as the lower use and sales of equipment during the lockdowns. With conditions returning to normal and automakers resuming operations, the demand for EVs is expected to pick up and drive the EV battery swapping market growth.

Pay-Per-Use Category Holds Larger Share due to Frequent Short-Distance Commuting

The pay-per-use category was the larger share holder in the electric vehicle battery swapping market in 2020, and it is expected to continue to do so during the forecast period, on the basis of service type. This will be due to drivers' choice to pay according to their usage, due to the absence of a fixed driving pattern. For instance, a short-distance commute does not necessitate frequent battery swaps, which is why the majority of the drivers are likely to choose the pay-per-use model.

Electric Two-Wheelers Category Is Expected To Dominate Market during Forecast Period

Electric two-wheelers are expected to dominate the market for EV battery swapping in 2030, on the basis of vehicle type, because they travel more than 100 kilometers per day, on average. As a result, they must be charged twice or three times a day. The best alternative to slow charging is the battery swapping technology, which allows drivers to make the most of their operational hours.

Rising Number of Manufacturers Is Expected To Positively Impact Asia-Pacific (APAC) Market

Globally, APAC is expected to grow with the highest CAGR in the global EV battery swapping market during the forecast period. Government policies to facilitate the adoption of EVs, as well as a growing inclination in research and development (R&D) to improve the available technologies, are driving the market growth in APAC.

The APAC region has numerous developing economies with significant natural and human resources, with China and India expected to be major investment hotspots for battery companies in the coming years as a result of the government support to the manufacturing industry. Essentially, the electric vehicle battery swapping market will experience rapid growth in the coming years owing to the increasing deployment of electric two- and three-wheelers, as well as the rising demand for battery swapping due to a lack of adequate charging infrastructure and high lithium-ion battery prices.

Technological Advancements Are Key Trend in Market

The introduction of swappable batteries allows the driver to replace the discharged battery with a charged one at a dedicated swapping center. This, in turn, increases the vehicle’s uptime substantially, while also reducing the operational costs, which will ultimately take the EV industry toward profitability. Furthermore, the expansion of the EV charging infrastructure, aided by the deployment targets for charging and battery swapping stations, enactment of legislations, and provision of financial assistance, are some of the factors affecting the scenario in a positive way. Essentially, the rising EV sales are driving the demand for EV charging and battery swapping stations, thus attracting major investments. Apart from this, the falling battery prices and improving technology are expected to enable automakers to offer cost-competitive EVs, thus resulting in the increasing demand for battery swapping technologies.

Need for Lower Waiting Time for EV Charging for Long-Haul Commercial Vehicles To Drive Market

The key factor driving the development of the electric vehicle battery swapping market is the rising requirement for minimal wait time for EV charging. The charging time is a critical factor in the adoption of EVs, particularly in long-haul applications. The majority of the EVs around the world use a slow charge system to recharge the battery overnight, which can take up to eight hours. The swapping process significantly reduces the battery charging time to under three minutes, which enhances the operational duration of the EV.

Additionally, the battery accounts for 35% to 45% of the total cost of an EV. As a result, an EV without a battery costs less than or equal to an internal combustion engine (ICE) vehicle, thus driving the EV battery swapping market growth.

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Market Players Involved in Service Launches, Partnerships, and Investments to Gain Competitive Edge

In recent years, major players in the market have been actively involved in facility expansions in order to make the most of this new technology. For instance,

• In February 2021, Tesla opened a battery swapping station in California, ready to swap out a vehicle's energy cells for fully charged ones, instead of EV owners having to rely on fast-charging stations.
• In January 2020, EVI Technologies Pvt. Ltd. (EVIT) entered into a partnership with Bharat Sanchar Nigam Ltd. (BSNL) for installing battery swapping and charging stations. Under this 10-year memorandum of understanding (MoU), EVIT would set up the charging infrastructure at 5,000 locations of BSNL in major cities. EVIT will make the entire upfront investment on the services, operation, and maintenance of battery swapping and charging infrastructure. On the other hand, BSNL would be responsible for providing the necessary power connections and space for installing the battery swapping stations.

Key Players in Global EV Battery Swapping Market Include:

Market Size Breakdown by Segments

The electric vehicle battery swapping market report offers comprehensive market segmentation analysis along with market estimation for the period 2015-2030.

Based on Vehicle Type

• Two-Wheeler
• Three-Wheeler
• Passenger Vehicle
• Commercial Vehicle

Based on Service Type

• Pay-per-Use
• Subscription

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • U.K.
  • Italy
  • Spain
• Asia-Pacific (APAC)
  • Japan
  • China
  • India
  • Australia
  • South Korea
• Latin America (LATAM)
  • Brazil
  • Mexico
• Middle East and Africa (MEA)
  • Saudi Arabia
  • South Africa

Market Segment Analysis of Countries

• Further breakdown of 16 listed countries will be provided as per below segmentation:
  • By vehicle type
  • By service type