Battery Swapping Market by Station Type (Automated and Manual), Service Type, Application (Passenger and Commercial), Battery capacity, Vehicle Type (2-wheeler, 3-wheeler, 4-wheeler), Application and Region - Global Forecast to 2027
[224 Pages Report] The battery swapping market is projected to grow from USD 1.7 billion in 2022 to USD 11.8 billion by 2027, at a CAGR of 46.9% during the forecast period. Increased demand for efficient, long-range, and low-emission vehicles is expected to boost the battery swapping market. Countries around the world are undertaking efforts to reduce emissions from vehicles in the coming decades. Compared to battery charging, battery swapping offers a quick battery exchange option. Government policies in countries like India for battery swapping are expected to drive the market in the future. Similar incentives by different countries are expected to increase the demand for electric vehicles, specially E2Ws and E3Ws equipped with swappable batteries. Battery swapping increases the vehicle's operational life while maintaining the majority of its value as a used vehicle.
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Driver: Increasing reliance on micromobility
The use of EVs in micromobility is becoming popular, with many nations supporting micromobility companies by providing infrastructure, allocating specific areas in cities for service trials, and working with these companies to establish micromobility in the country. The durability and safety of shared e-scooters have improved over the last several years. But there is still one issue that stands out: the issue of recharging. While the electric vehicle industry struggles with issues related to range, recharge times, and infrastructure, micromobility may have it much easier.
Okai, an electric scooter manufacturer, collaborated closely with sharing service providers, especially Tier, to provide battery-swapping solutions for micromobility. Choosing a user-friendly swappable battery solution was the first step in this collaborative effort. At Okai, the engineers and designers were tasked with making "safe, simple, entertaining" battery swapping a reality. Okai created the ES400B Electric Scooter and the Okai EB100 Electric Bike, which employ the same swappable battery system, another distinctive innovation, to fit the hardware and software of Tier's breakthrough in-store charging cabinet (through the PushMe acquisition). With the apparent advantage that it can be used for e-bikes and perhaps other vehicles in the future, Tier is implementing the system in all of the European towns where it operates. Since battery swapping is such an effective solution to a difficult problem and benefits users, sharing providers, and small businesses, it will soon be accepted as the industry standard
Restraint: Lack of standardization of batteries used in different vehicles
The inability of automakers to agree and commit to creating vehicles that are particularly suited to run on standardized swappable battery packs is the main obstacle before the planned deployment of standardized batteries for EVs. The success of such an initiative assumes the involvement of a significant number of automakers, at least during the system's setup and launch, who will define the technical specifications and establish the standardized parameters. Currently, this level of collaboration between the automakers appears to be rather challenging, particularly in light of numerous prior failed initiatives in several other industrial areas.
The standardization of batteries comes with its own problems. There are many technical difficulties in standardizing battery specifications that are already present in the market, and most OEMs are currently not in favor of standardization. A report from the vice president of one of the reputed energy companies stated that linking standardization of batteries in personal passenger vehicles will decrease innovation. Battery standardization is very necessary for the BaaS model to become effective. In order to offer services to all kinds of vehicles, standardization of batteries is a must.
Opportunity: OEMs plans on selling EVs without batteries will increase demand for batteries as a service
Battery-as-a-service (BaaS) enables users to lease batteries apart from the vehicle, eliminating the need for an upfront battery along with the vehicle’s purchase. The battery would be leased from a provider of charging infrastructure under the BaaS model, and every time the battery requires recharging, it would be swapped out at a station.
From the standpoint of the consumer, BaaS is an asset-light, low-cost, and quick-on-its-feet approach that enables the customer to swap the battery quickly, as compared to a fixed charging station where the charging of the batteries takes time and requires an expensive charging infrastructure. Due to the BaaS model, the upfront costs of EVs may fall significantly; for example, the expenses for two-wheelers may easily decrease by up to 20%. The model reduces the price of establishing a retail charging station and related infrastructure. BaaS providers can also grow their networks by working with organizations that have extensive networks of agents and charging infrastructure, similar to how banks use business correspondents to expand their banking services to the unbanked and underbanked areas.
Challenge: Complex infrastructure of swapping stations
Battery swapping requires investments in equipment and property estate in addition to batteries and inventories. The swapping stations must be placed in high-traffic areas that are simple for users to access, which will result in expensive leasing fees. Asset use becomes essential for long-term viability in a corporation that relies heavily on capital expenditures. Therefore, it is crucial to create demand for BaaS, which can be done by capital demand and confirming minimum capacity utilization (e.g., fleets, vertical integration). The implementation of battery swapping is practically a challenge. First off, it costs a lot of money to set up a battery swapping system because it requires expensive robotic technology to switch the battery and plenty of expensive batteries to operate. Second, the area required to construct a battery swapping station is significantly larger than that for a charging station because it must hold both depleted and fully charged batteries. Thirdly, before the potential deployment of autonomous battery switching, EV batteries need to be standardized in terms of their physical dimensions and electrical properties.
The Subscription segment to be the largest segment by service type during the forecast period
Subscription service in battery swapping is a more sustainable approach to the use of battery swapping. This allows users to swap batteries at much lower rates compared to the pay-per-use model. Most battery swapping providers offer this kind of battery swapping service as well as provide great offers to long-term users. An important aspect of the battery-swapping subscription service is the number of swaps available as part of the service per month. Most 2- and 3-wheeler swapping providers provide 12-18 swaps per month, depending upon the battery power capacity, number of batteries in the vehicle, and other factors. Four-wheeler battery swap providers on the other hand provide 4-6 swaps (e.g. NIO Power) as that much is usually sufficient for monthly EV usage.
While most users opt for monthly subscriptions, annual subscriptions and quarterly subscriptions are also available from top battery-swapping providers such as Gogoro and Immotor. Gogoro, for instance, charges around USD 10-30 per month for 2-wheelers in the Asia Pacific region. Immotor provides subscription services for battery swapping for around USD 5-10 per month for 2-wheelers. NIO Power on the other hand provides around 4-6 swaps as part of a USD 135 subscription.
2-wheeler segment is expected to have high demand during the forecast period
Even with high electricity prices, E2Ws are continually more cost-effective than gasoline vehicles, and point charging is still the most practical at low and medium utilization rates (less than 100 km per day). However, battery swapping is the most cost-effective solution for daily usage of 140 km or more. ICCT also discovered that battery swapping becomes the most cost-effective alternative for daily consumption rates of 120 km and higher if the overall cost per kilowatt hour (kWh) is reduced.
Compared to fixed batteries, swappable batteries are often lower in size. Swappable batteries typically have a capacity of 1 to 1.5 kWh, weigh 10 to 12 kg, and are modular in design. E2Ws are lighter because of their smaller batteries, which improve energy efficiency and increase the range of the available charge. Riders of E2Ws in the city are never more than a few hundred meters from a swapping station.
The Europe market is projected to to grow at faster rate during the forecast year
Europe was one of the fastest-growing regions in the battery swapping market, NIO Power, a leading manufacturer of electric vehicles in China, recently announced plans to grow operations and introduce its line of electric vehicles to Europe, including the UK. NIO co-founder Lihong Qin revealed that the company will introduce its ET5, ET7, and EL8 electric vehicles in the UK toward the end of next year after doing so in Germany, the Netherlands, Denmark, and Sweden.EU initiatives for greener transportation and high funding achieved by local players like Swobbee and others are also expected to drive the market in this region.
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Key Market Players
The battery swapping market is dominated by players such as NIO Power (China), Gogoro (Taiwan), Immotor (China), Aulton (China), and Sun Mobility (India). These companies adopted new product launches, partnership, and supply contracts to gain traction in the market.
Scope of the Report
USD 1.7 billion in 2022 to USD 11.8 billion by 2027
Drivers, Restraints, Opportunities & Challenges
Value (USD Billion)
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Product, Technology, End user and Region
North America, Europe, Asia Pacific, Latin America, and Middle East and Africa
Updated financial information / product portfolio of players
Key Market Opportunities:
OEMs plans on selling EVs without batteries will increase demand for batteries as a service
Key Market Drivers:
Increasing reliance on micromobility
This research report categorizes the Battery Swapping market on the basis of Application, Service type, station type, battery capacity, vehicle type and Region
Battery Swapping Market, by Application
Battery Swapping Market, by Service Type
Battery Swapping Market, by station type
Battery Swapping Market, Logistic by battery capacity
- >30 kWh
- <30 kWh
Battery Swapping Market, by vehicle type
Battery Swapping Market, by Region
- North America (US, Canada)
- Europe (Germany, France, UK, Netherlands)
- Asia Pacific(China, India, Japan, South Korea, Taiwan, Vietnam, Thailand, Indonesia)
- In February 2022, MG Motors showcased its upcoming EV, the MG 4, which is expected to launch in India later in 2022. The EV will come with a 61.1 kWh battery pack and is expected to run around 400 km.
- In November 2022, Gogoro and Zypp Electric entered into a strategic partnership to start a B2B pilot program in New Delhi in December 2022. Zypp Electric will receive Smart Scooters from Gogoro with Smart Batteries as well as GoStations from the Gogoro Network for battery swapping.
- In August 2022, NIO Power started testing 3rd generation battery swapping stations that can send power back to the grid. When one EV driver replaces his/her battery at the charging station, the other ten or eleven batteries can then be discharged back to the grid for five to ten minutes, barely interfering with the regular battery replacement services.
- In August 2022, EVeez partnered with SUN Mobility to deploy over 10,000 vehicles across India in the coming years. The firms hope to further accelerate the adoption of electric vehicles in order to address the growing environmental issues.
- In July 2022, Immotor received USD 28 million in a series C financing headed by PTT, a Petronas affiliate, and PIVL, a Thai state-owned corporation. Immotor stated that it will examine the Southeast Asian market using links with its two conglomerate financiers, PTT and Petronas.
- In October 2021, NIO Power opened its first battery-swapping station in Norway. The Power Swap Station 2.0 features a better battery-swapping experience and can perform 312 swaps every day. Additionally, users can start the self-service switch with a single tap on the central display without getting out of the car, and the vehicle can autonomously drive into the station.
Frequently Asked Questions (FAQ):
How big is the battery swapping market?
The battery swapping market is projected to grow from USD 1.7 billion in 2022 to USD 11.8 billion by 2027, at a CAGR of 46.9% during the forecast period.
Who are the winners in the global battery swapping market?
The battery swapping market is dominated by players such as NIO Power (China), Gogoro(Taiwan), Immotor (China), Aulton (China), and Sun Mobility (India). The market ranking has been derived by considering the EV with swappable batteries sales in 2021 and a certain percentage of the segmental revenue for each of the companies mentioned above. These companies also offer extensive products and solutions for the automotive industry.
What are the new market trends impacting the growth of the battery swapping market?
EV battery price reductions, Modular battery swapping, IoT and Cloud connected batteries are the key market trends or technologies which will have a major impact on the battery swapping market in the future.
What are the different kinds of battery swapping station in market?
Battery changing systems come in different types, each having advantages and disadvantages. The most popular type is the manual system, due to its high penetration in 2 and 3-wheelers. The manual system requires manual battery replacement. Although it is often less expensive than the automated system, the manual system is slower and requires more labor. The automated system uses robotic arms to swap a battery and, although it might be expensive to set up and operate, this system is quick and effective. Technologies that are semi-automated incorporate aspects of manual and automated systems. These systems might operate more quickly than manual ones, but not as quickly as automated ones. They often cost less than manual and automated systems.
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The study involves four main activities to estimate the current size of the battery swapping market. Exhaustive secondary research was done to collect information on the market, such as application, service type, station type, battery capacity, vehicle type and region. The next step was to validate these findings, assumptions, and market analysis with industry experts across value chains through primary research. Bottom-up and top-down approaches were employed to estimate the complete market size for different segments considered in this study. Thereafter, market breakdown and data triangulation processes were used to estimate the market size of segments and subsegments.
Secondary sources referred to for this research study included publications from government sources, such as country-level automotive associations and organizations, Organisation for Economic Co-operation and Development (OECD), World Bank, CDC, and Eurostat; corporate and regulatory filings, such as annual reports, SEC filings, investor presentations, and financial statements; business magazines and research journals; press releases; free and paid automotive databases; the International Energy Agency; EV-volumes; the European Alternative Fuels Observatory (EAFO); and other associations/organizations. Secondary data was collected and analyzed to determine the global market's overall size, which was validated by primary research.
Extensive primary research was conducted after understanding the battery swapping market scenario through secondary research. Several primary interviews were conducted with market experts from both the demand side and supply sides (battery swapping manufacturers, service providers, and component manufacturers) across major regions, namely, North America, Europe, and Asia Pacific. Approximately 17% and 83% of primary interviews were conducted from the demand and supply sides, respectively. Primary data was collected through questionnaires, emails, and telephonic interviews.
In the canvassing of primaries, various departments within organizations, such as sales, operations, and marketing, were covered to provide a holistic viewpoint in the report. After interacting with industry experts, brief sessions were conducted with highly experienced independent consultants to reinforce the findings from the primaries. This, along with the in-house subject matter experts’ opinions, led to the findings described in the remainder of this report.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
The bottom-up approach was used to estimate and validate the size of the battery swapping market by vehicle type. This approach considers the vehicle sales statistics for each vehicle type (2-wheeler, 3-wheeler, and 4-wheeler) at the country level to arrive at the ratio of EVs using swappable batteries. Then, the number of swaps per year was arrived at by considering both subscription and pay-per-use battery swaps. From this, the total EV battery swapping market was derived.
After arriving at the overall market size—using the market size estimation processes as explained above—the market was split into several segments and subsegments. All parameters that are said to affect the markets covered in this research study have been accounted for, viewed in extensive detail, and analyzed to obtain the final quantitative and qualitative data. This data has been consolidated, enhanced with detailed inputs and analysis from MarketsandMarkets, and presented in the report. The data was triangulated by studying various factors and trends in the demand and supply sides of the battery swapping market.
To segment and forecast the battery swapping market size in terms of value (USD Million/USD Billions)
- To segment and forecast the market based on vehicle type (2-wheeler, 3-wheeler, and 4-wheeler)
- To segment and forecast the market based on application (passenger and commercial)
- To segment and forecast the market based on battery capacity (<30 kWh and >30 kWh)
- To segment and forecast the market based on station type (manual and automated)
- To segment and forecast the market based on service type (subscription and pay-per-use)
- To analyze technological developments impacting the market
- To analyze opportunities for stakeholders and the competitive landscape for market leaders
- To provide detailed information regarding the major factors influencing the market growth (drivers, challenges, restraints, and opportunities)
- To strategically analyze the market with respect to individual growth trends, prospects, and contributions to the total market
To study the following with respect to the market
- Value Chain Analysis
- Porter’s Five Forces Analysis
- Technology Analysis
- Case Study Analysis
- Patent Analysis
- Regulatory Landscape
- Average Service Price Analysis
- To strategically profile key players and comprehensively analyze their market shares and core competencies
- To track and analyze competitive developments such as deals (joint ventures, mergers & acquisitions, partnerships, collaborations), new product developments, and other activities carried out by key industry participants
With the given market data, MarketsandMarkets offers customizations in line with company-specific needs.
- Battery Swapping Market, By Battery Capacity at Country Level
- Battery Swapping Market, Additional Countries (Up to 3)
- Profiling of Additional Market Players (Up to 3)