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Battery leasing is a business model in which batteries used in electric vehicles and other storage applications are leased from the manufacturer instead of being purchased outright. This helps lower upfront costs and makes EVs more affordable. It also ensures that used batteries are recycled or reused, extending their lifespan.
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 in the battery leasing market is its increasing adoption for electric vehicles. As EVs see higher demand, leasing the battery helps reduce the vehicle price for customers. It also allows automakers to efficiently manage battery supplies and the end-of-life recycling/reuse process. As more automakers introduce EV models, they are also opting for battery leasing to strengthen their product value proposition. Separating the battery from the vehicle also gives customers flexibility to periodically upgrade just the battery to newer chemistries/capacities, extending the usefulness of their EVs.
Segment Analysis
The battery leasing market is segmented by battery type, application, and geography. Based on battery type, the lithium-ion battery segment dominated the market in 2023 and is expected to maintain its dominance over the forecast period. Lithium-ion batteries offer advantages like high energy density, longer lifespan, fast charging capabilities, and low self-discharging rate. These qualities make lithium-ion an ideal fit for applications across various industries.
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. Industry leaders like Nextera Energy, EDF Energy, and Engie have wide service coverage and large fleet of batteries that provide them a competitive edge in the market.
Regional analysis
Asia Pacific region dominated the market in 2023 and is expected to continue leading over the forecast period. Countries like China, Japan, and India are major contributors to the region’s large market share due to presence of a strong manufacturing base for batteries and increasing investments in renewable energy generation projects.
Key Takeaways
Market size
The global Battery Leasing Market size is expected to witness high growth, exhibiting a CAGR of 11% over the forecast period, due to increasing demand for energy storage solutions from industries like electricity generation, transportation, communication infrastructure, etc.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
