Battery leasing involves renting batteries for electric vehicles and storing renewable energy instead of purchasing them. It provides an attractive alternative to high upfront costs of batteries and allows users to pay for battery use on a pay-per-use basis. Battery leasing offers economical and sustainable battery usage by facilitating battery replacement as per latest technology and safety standards.
The global battery leasing market is estimated to be valued at US$ 15.03 billion in 2024 and is expected to exhibit a CAGR of 11% over the forecast period 2023 to 2030.
Key Takeaways
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. These players are focusing on expanding their battery leasing programs globally and investing in R&D to develop more efficient and cost-effective batteries.
The growing demand for electric vehicles and focus on renewable energy integration provides significant opportunities in the battery leasing market. Battery leasing helps overcome range anxiety in electric vehicles and allows commercial and residential consumers to avoid high upfront costs of battery storage systems. Various countries in Europe, North America, Asia Pacific and Middle East have started battery leasing pilots and programs to encourage adoption of sustainable technologies.
Global expansion is a key focus area for battery leasing companies. partnerships with automakers, energy companies and technology providers help expand global footprint. Growing investments are being made in developing economical and large format batteries as well as standardizing leasing contracts and programs. Europe and China have emerged as major markets for battery leasing currently and other regions are also witnessing rising adoption.
Market Drivers
Growing demand for electric vehicles is a major driver as leasing helps overcome challenges like range anxiety and high battery costs. Various government incentives and subsidies on EVs and renewable energy storage are also encouraging battery leasing pilots globally. Focus on distributed energy resources and integration of renewable energy is further boosting the battery leasing market.
Market Restraints
Lack of standardization in leasing contracts and programs poses a challenge for large scale adoption of battery leasing currently. High initial investments and technology risks associated with developing affordable large format batteries may also restrain market growth. Concerns around data access, battery life and residual value at end of lease can discourage some potential customers from opting for battery leasing.
Segment Analysis
The battery leasing market can be segmented based on battery type, application, ownership, and region. Among them, the lithium-ion battery segment currently dominates the market owing to high energy density and long life. Lithium-ion batteries can achieve around 3,000 full charge/discharge cycles during their lifetime, making them suitable for various renewable energy storage applications.
The industrial battery leasing segment dominates currently due to large-scale adoption of battery energy storage systems in the industrial sector for various activities like grid stabilization, peak demand management, and emergency backup power. On the other hand, the commercial segment is expected to witness the highest growth during the forecast period due to increasing uptake of battery storage systems by commercial establishments like office spaces, retail outlets for managing energy efficiency and costs.
Global Analysis
The Asia Pacific region currently dominates the global battery leasing market and is estimated to continue its dominance during the forecast period. This is attributed to the presence of major battery manufacturing countries like China and Japan in the region. Additionally, growing investments toward the adoption of renewable energy and rising installations of battery storage projects also contribute to market growth.
North America holds a notable share in the global market and is expected to witness robust growth owing to the fast-paced deployment of battery storage projects in the US and Canada for grid energy storage applications. Supportive government policies and initiatives toward clean energy also drive the battery leasing market in the region.
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- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it