The battery as a service market is predicted to reach from USD 0.66 billion in 2024 to USD 14.45 billion in 2035 at a CAGR of 32.4%. The battery as a service market is growing rapidly, driven by the increasing adoption of EVs, that gain advantage from reduced upfront costs and flexibility through battery leasing. Cost-effectiveness, particularly for fleet operators and price-sensitive consumers, is a key factor, as battery leasing can lower ownership costs by 30-40%. Further, the global push for renewable energy integration and sustainability further supports the market, with a battery as a service enabling efficient energy storage and promoting battery recycling. Additionally, supportive government policies, incentives for clean energy adoption, urbanization, and the development of EV infrastructure are fueling demand for battery as a service model.
Key players dominating the battery as a service market include NIO (China), Gogoro (Taiwan), XPENG INC. (China), SAIC Motor Corporation Limited (China), and Vinfast (Vietnam). These companies are capitalizing on the current EV shift, adopting expansion strategies, and undertaking partnerships/collaborations with battery asset management companies and financial institutions to gain traction in the battery as a service market. The organic and inorganic strategies have helped the market players expand globally by providing battery as a service.
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NIO is a leading manufacturer of premium smart electric vehicles. It is a key player in next-generation autonomous driving, digital technologies, electric powertrains, and battery systems. The company designs, develops, manufactures, and distributes high-end smart electric vehicles in collaboration with its partners. On August 20, 2020, the company introduced the battery as a service program to allow customers to purchase electric vehicles with a battery subscription. Under this model, users pay a subscription fee to the company for battery usage. The company offers its subscription model with its ET5, ET7, EC6, EC7, ES6, ES7, and ES8 vehicle models in China. Since 2023, the company has been offering this service with its ET5, ET7, EL6, and EL7 models in Germany. In recent years, NIO has established a robust network of battery charging and swapping facilities. Additionally, with the use of Power Cloud, a mobile internet-based power solution, the company provides a comprehensive power service system that includes rechargeable, swappable, and upgradeable batteries, ensuring power solutions for various customer needs.
Gogoro offers battery swapping services as well as vehicle platforms that are smart and proven. It also offers a sustainable long-term ecosystem for urban mobility. The company has expertise in vehicle design and electric propulsion, battery swapping, smart battery design, and advanced cloud services that utilize artificial intelligence for managing battery availability and safety. Gogoro’s battery as a service model offers a seamless solution for EV riders with easy access to ready-to-swap smart batteries via the Gogoro Network. This service ensures safety, efficiency, and performance with continuous monitoring. Since 2023, Gogoro’s subsidiary, Yadea, has been offering battery leasing services for its C1S two-wheeler model in China. It plans to extend this service to its Keeness two-wheeler model starting in 2025.
XPENG is a prominent Chinese smart EV manufacturer that designs, develops, produces, and sells smart electric vehicles for technology-savvy, middle-class consumers. The company has developed its in-house advanced driver-assistance technology and intelligent in-car operating system. It designs core vehicle systems, including the powertrain and electrical/electronic architecture. In recent years, the company has developed battery leasing services to expand its reach to price-sensitive customers. In September 2020, XPENG introduced a battery leasing service, enabling customers to split the price of batteries into monthly installments. Similarly, in 2022, the company offered battery leasing options for its G3 and P7 vehicle models. Xpeng’s P7, equipped with an 80.9-kWh battery pack, has a battery priced at RMB 75,000 (USD 11,540). Under this pack, customers can rent the battery for as little as USD 79.16 (RMB 580) per month. They can even own the battery after leasing it for seven years. As one of the Top Companies in Battery as a Service Industry, XPENG is revolutionizing the way consumers access and manage EV battery technology.
SAIC Motor Corporation Limited is a leading automaker based in China. It offers vehicles, produces components, offers mobility services, provides financial services, and develops innovative technologies. The company has established 15 vehicle manufacturing facilities and centers for parts and logistics across Northeast China, East China, South China, Southwest China, Central South China, and Northwest China. SAIC Motor owns several well-known vehicle brands offered through its subsidiaries: SAIC Volkswagen Automotive Co., Ltd., SAIC General Motors Co., Ltd., SAIC MAXUS Vehicle Co., Ltd., and MG Motor India Private Limited. SAIC Motor also offers battery leasing services with its most popular brands. For example, since 2024, MG Motor India has offered a battery as a service program with its MG Comet EV, MG Windsor EV, and MG ZS EV models. The program allows customers to buy a vehicle without purchasing the battery. Instead, they can subscribe to a monthly plan based on their usage.
VinFast, a subsidiary of Vingroup JSC, is Vietnam’s leading manufacturer of electric vehicles. It produces a wide range of electric SUVs, e-scooters, and e-buses at its manufacturing facilities in Vietnam and exports its products to North America and Europe. Since its inception, VinFast has delivered 170,000 cars and 270,000 e-scooters. As Vietnam’s first global automotive manufacturer, VinFast integrates advanced technology and modern design to create innovative and sustainable mobility solutions. VinFast also provides battery leasing services, offering flexible subscription plans to meet diverse customer needs. Since 2023, the company has been offering battery leasing services with its VF8 and VF9 models in the US and Canada. In August 2024, the company introduced a battery subscription model with its VF5 model in the Philippines. This model reduces the vehicle price by 16%, from USD 20,330 (P 1,191,000) to USD 16,933 (P 992,000). Under this plan, owners pay a monthly fee based on their battery usage after the initial payment. The first tier of the plan is capped at USD 99 (P 5,800) for up to 1,500 kilometers per month.
Related Reports:
Battery as a Service Market by Leasing Type (Subscription, Pay-per-use), Usage (Private, Commercial), Vehicle Type (Two-wheelers, Three-wheelers, Passenger Cars, Commercial Vehicles), Battery Capacity, and Region - Global Forecast to 2035
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