Surge in electric vehicle demand, scarcity of public charging facilities, and lesser time required for electric vehicle charging drive the growth of the global electric vehicle battery swapping market
PORTLAND, Ore., April 6, 2021 /PRNewswire/ -- Allied Market Research recently published a report, titled, "Electric Vehicle Battery Swapping Marketby Service Type (Subscription Model and Pay-Per-Use Model) and Vehicle Type (Two-Wheelers, Three-Wheelers, Passenger Cars, and Commercial Vehicles): Global Opportunity Analysis and Industry Forecast, 2020–2027". As per the report, the global electric vehicle battery swapping industry generated $118.44 million in 2019, and is projected to reach $409.99 million by 2027, growing at a CAGR of 22.3% from 2020 to 2027.
Rise in demand for electric vehicles, lack of sufficient public charging facilities, and reduced time for electric vehicle charging have boosted the growth of the global electric vehicle battery swapping market. However, the high initial set-up & operating cost of battery swapping stations and differentiation in battery technology and design hinder the market growth. On the contrary, advent of advanced battery swapping models and services and rapid emergence of shared e-mobility are expected to open lucrative opportunities for the market players in the future.
The spread of Covid-19 severely affected the global automotive industry, owing to decrease in demand for new and old vehicles.
The economical uncertainty and market sentiment have hampered the business of several key players.
However, the pandemic accelerated several trends. For instance, electrification is expected to increase in two-wheeler and three-wheeler vehicles. Moreover, the shared mobility and ride-hailing would rise post-pandemic.
The subscription model segment held the lion's share
By service type, the subscription model segment dominated the market in 2019, accounting for more than three-fourths of the global electric vehicle battery swapping market, due to its benefits over the pay-per-use model including battery leasing, low cost per swapping, and affordability. However, the pay-per-use model segment is estimated to register the highest CAGR of 24.9% during the forecast period, owing to lack of fixed usage patterns of their vehicles.
The two-wheeler segment to manifest the highest CAGR through 2057
By vehicle type, the two-wheeler segment is projected to portray the highest CAGR of 25.0% from 2020 to 2027, due to a significant rise in the preference for carpool and bike pool services among the regular office commuters. However, the three-wheeler segment held the lion's share in 2019, contributing to more than one-third of the global electric vehicle battery swapping market, owing to increase in daily operational hours of electric vehicles and popularity of battery swapping usage in the electric three-wheelers.
LAMEA, followed by North America, to register the highest CAGR by 2027
By region, the market across LAMEA, followed by North America, is anticipated to manifest the highest CAGR of 25.6% during the forecast period, due to increase in expansion by leading market players to promote their products and services coupled with the surge in demand for electric mobility. However, the global electric vehicle battery swapping market across Asia-Pacific held the lion's share in 2019, accounting for more than half of the market, owing to governments of many Asian countries plan to end the production and sales of gasoline and diesel vehicles in the coming years.
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