EV Battery Swapping for Two- and Three-Wheeler Market To Generate Revenue Worth $7,477.5 Million by 2030
- Published: October 2023
The EV battery swapping for two- and three-wheeler market is expected to generate revenue of USD 7,477.5 million by 2030, advancing at a compound annual growth rate (CAGR) of 28.3% during 2024–2030. This can be ascribed to the growing concerns among governments of various countries regarding environment protections and sustainability; the increasing sales of electronic vehicles due to the rising need for practical and efficient solutions for commercial and ride-sharing purposes; and the development of battery swapping infrastructure, across the world.
Moreover, governments and industry players are positively looking for the development of battery swapping solutions, to offer quickly and conveniently refueling battery services without any obstructions and unnecessary time and anxiety included in the process. Also, major players in the electronic vehicle sector are actively working on improving the driving range of EVs by innovating new technology and infrastructure to overcome the challenges of lack of appropriate charging facilities and fulfill the regular charging needs of EV owners.
In order to ensure the speedy development of the respective sector, there are many key players who are entering into contracts with other companies to increase their network of battery-as-a-service. For instance, in May 2022, SUN Mobility entered into a partnership with Greaves Electric for battery technology to deploy swappable batteries of EVs.
Pay-Per-Use Category To Record a Higher Growth Rate
The pay-per-use category is expected to witness faster growth in the coming years. This can be because this pricing model is increasingly adopted by battery-swapping providers and the rising demand for electric two-wheelers and three-wheelers across the globe. Moreover, in this method, vehicle owners have the liberty to decide and pay based on their specific vehicle usage, as they do not indulge with the vehicles for the same duration and distance every day.
In addition, flexible charging, no upfront high investments, and increased urbanization have led to a consecutively high increase in the growth of the market in this category because it helps in tackling the congestion and parking problem in major cities. The trend toward integrating artificial intelligence has furthermore helped in locating EVs with GPS tracking to access the real-time status of the vehicles, thus increasing the appeal of the pay-per-use model. Hence, this provides consumers with a practical, affordable, and sustainable option for meeting the charging needs of EVs.
Geographically, APAC leads the EV battery swapping for two- and three-wheeler market and is expected to witness the same trend in the coming years as well. This is primarily due to the increased efforts and development of infrastructure and technology for battery swapping made by several governments and private players, and the increasing sales of electric two- and three-wheelers in the region.
Some of the prominent players operating in the market include NIO Inc., Leo Motors Inc., Tesla Inc., SUN Mobility Private Limited, BYD Co. Ltd., BattSwap Inc., Kwang Yang Motor Co. Ltd. (KYMCO), Gogoro Inc., Panasonic Corporation, and Lithion Power Private Limited.