The Battery Leasing Market is estimated to be valued at US$ 15.03 Bn in 2023 and is expected to exhibit a CAGR of 11.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The Battery Leasing Market involves leasing out batteries for electric vehicles and energy storage applications rather than selling them. Customers pay a monthly fee to access batteries without having to incur huge upfront capital costs. This has made EVs more affordable and accessible. The market players lease lithium-ion batteries and provide battery swapping/replacement services for e-scooters, e-bikes, fleet vehicles etc. They also offer energy storage solutions, helping businesses and households store electricity generated from rooftop solar panels.
Market Dynamics:
Rising adoption of electric vehicles across the globe is a major driver for the battery leasing market. Stringent emission norms and government incentives/subsidies are encouraging consumers to switch from gasoline cars to EVs. Furthermore, the deployment of renewable energy is increasing rapidly. However, intermittency issues associated with solar and wind energy are driving the need for large-scale battery storage. Battery leasing helps commercial and industrial users address intermittency in a cost-effective way without having to deal with battery ownership and upgrading responsibilities. Another driver is the innovative business models introduced by leasing companies which make access to new battery and charging technology easier for consumers. This is helping accelerate the commercialization of electric mobility solutions.
Segment Analysis
The Global Battery Leasing Market is dominated by the industrial energy storage segment due to rising adoption of lithium-ion batteries across industries like manufacturing, energy, transportation, logistics etc. The industrial segment accounted for over 35% of the total market share in 2023 owing to increasing demand for backup power solutions and hybrid microgrids.
PEST Analysis
Political: Favorable government policies and regulations supporting clean energy adoption and energy storage infrastructure development are driving the battery leasing market growth.
Economic: Declining battery costs and investment in clean energy projects are positively impacting the market. The total market size for 2023 is US$ 15.03 Bn.
Social: Increasing environmental concerns and rising acceptance of renewable energy are fueling the demand for battery leasing solutions.
Technological: Advancements in battery technologies like lithium-ion and solid-state batteries are improving the performance and lifetime of storage units.
Key Takeaways
The global Battery Leasing Market is expected to witness high growth, exhibiting CAGR of 11% over the forecast period 2023 to 2030, due to increasing investments in clean energy projects and microgrid solutions worldwide. The industrial energy storage segment dominated the market in 2023 with over 35% share owing to rising adoption of hybrid microgrid systems across manufacturing facilities.
The Asia Pacific region is expected to be the fastest growing as well as the most lucrative regional market during the forecast period. Countries like China, South Korea and Japan are witnessing significant renewable energy deployment and surge in microgrid installations supporting the market growth.
Key players operating in the Battery Leasing market are Nextera Energy, Onewatt, EDF Energy, Engie, EON Energy Solutions, Alpiq, Leclanche, Sonnen, Enel X, Shell, Total Solar Distributed Generation USA, Sunrun, LG Chem, Samsung SDI, BYD, Panasonic, CATL, Tesla, Fluence, Powin Energy. Strategic partnerships and collaboration with industry players are helping these companies to expand their operational footprint.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
