Batteries are increasingly being used for storing electricity generated from renewable energy sources such as solar and wind energy. Battery leasing enables individuals and organizations to lease batteries from battery providers at a monthly fee rather than purchasing the batteries outright. This provides access to battery storage without large upfront costs.
The global 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 key trends:
One of the key trends driving growth in the battery leasing market is the increasing popularity of battery leasing models. Battery leasing allows customers like homeowners, businesses and utilities to pay a subscription fee in exchange for use of and ongoing maintenance of batteries. This leasing model has removed barriers to installation and adoption of battery storage systems by eliminating high upfront capital costs. It has made battery storage more affordable and accessible. Leasing also ensures regular maintenance and replacement of aged battery units, providing customers peace of mind. Rising uptake of battery leasing plans is expected to significantly contribute to revenue growth in the global battery leasing market over the forecast period.
Segment Analysis
The global battery leasing market is segmented by type and end-use. Based on type, electric vehicle battery leasing holds the largest market share and expected to maintain dominance over the forecast period. EV battery replacement costs remain very high and with battery leasing the upfront costs of EVs can be lowered significantly. Based on end-use, electric vehicle segment holds the largest share as battery leasing lowers the total cost of ownership for EVs.
Key Takeaways
The global battery leasing market is expected to witness high growth. The global 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.
Regional analysis:
North America region currently dominates the market and is expected to remain the fastest growing region over the forecast period. Increased investment in electric vehicles infrastructure and subsidies supporting battery leasing in the US and Canada are driving the regional market growth. Asia Pacific region is expected to witness fastest growth over the coming years led by China and India. Increasing EV adoption and initiatives in both countries supporting battery leasing will boost the region’s market.
Key players:
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. Nextera Energy and EDF Energy hold the largest market share currently with presence across various regions.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
