Changing automotive landscape across the globe, high electric vehicle penetration in developed and developing is resulting in demand for various services.
There is noticeable increase in air pollution across the globe majorly from automotive sector. Rising fuel demand along with the surging oil & gas prices is impacting the economy. This is resulting in government approach towards lowering the dependency on fossil fuel as power source for vehicle. Inclination towards electric vehicle with high power and better life is gaining attraction. Consumers in developed countries are accepting the shift towards electric vehicles. According to International Energy Agency, Europe overtook China as the centre of the global electric car market. Electric car registrations in Europe more than doubled to 1.4 million, while in China they increased 9% to 1.2 million. Consumer spending on electric cars increased another 50% last year to reach US$ 120 billion. With the changing perspective towards vehicle adoption hurdles related to infrastructure and vehicle charging are popping heads-up. Rising environmental concern, inclination toward adoption of electric vehicles from consumers and manufacturer focus toward lowering the operational cost are major factors expected to drive the growth of global battery as a service (BaaS) market.
Government of developed and developing countries is spending high on the development of electric charging infrastructure with the focus to deliver better electric service to consumer. This is attracting major players operating in the market with innovative solution. Players are focused towards enhance the business and increase the customer base through innovative product and service launch This is expected to augment the growth of battery as a service (BaaS) market.
In 2021, Ample, global electric vehicle service provider launched a new electric vehicle charging system “Ample Swap”. The system works by having robots quickly replace small modular battery packs in electric cars. Swap offers solutions for mid-day charging, battery decline, the use of renewable power and extending vehicle life.
In 2020, Nio, electric vehicle solution provider, launched battery as a service (BaaS) under “Nio-Power”. The service offers charging and swapping of batteries for EV owners. This product launch is expected to help the company to enhance the business and increase the revenue share.
High penetration of electric vehicles in emerging economies and favorable business polices by the government is expected to support the market growth. Factors such as lack of developed infrastructure and high cost associated to battery swapping machines are expected to hamper the growth of global battery as a service (BaaS) market. In addition, high cost of electric vehicles is expected to lowering the adoption further challenging the growth of target market. However, increasing R&D activities by major players for development of advanced long life batteries and low cost vehicles with advanced features and government spending on development of battery charging infrastructure are factors expected to create new opportunities for players operating in the global battery as a service (BaaS) market. In addition, increasing partnership and agreements is expected to support the revenue transaction of target market.
Segment Analysis by Region
The market in Europe is expected to account for significant revenue share the global battery as a service (BaaS) market due to high adoption of electric vehicles. In addition, presence of large number of players operating in the country and introduction of innovative solution in order to attract new customers is expected to support the revenue growth of regional market.
The global battery-as-a-service market is highly competitive due to presence of large number of players and innovative product offerings. In addition, business expansion activities through partnerships and agreements are factors expected to further increase the competition.
Battery-as-a-Service Market Segment Analysis, 2019
The global battery as a service (BaaS) market is segmented into type and application. The type segment is divided into mobile equipment and stationary equipment. Among type the stationary equipment segment is expected to account for major revenue share in the global battery as a service (BaaS) market. The application segment is bifurcated into automotive and transport, energy, industrial, and others. The players profiled in the report are NIO, Global Technology Systems, Inc., Epiroc, Contemporary Amperex Technology Co., Limited, KST Mobility Co., Ltd., and Octillion.
Market By Type
Market By Application
Automotive and Transport
Rising environmental concern, inclination toward adoption of electric vehicles from consumers and manufacturer focus toward lowering the operational cost are major factors expected to drive the growth of global battery as a service (BaaS) market.
In type the mobile equipment segment is growing at faster pace.
In the global market the Asia Pacific region is expected to grow faster.
Some of the players considered in the report scope are GE Healthcare, PerkinElmer, Inc., Merck Millipore, Thermo Fisher Scientific, Inc., and Li-Cor Biosciences.
The Europe is expected to account for major revenue share in the global market.
In application the automotive and transport segment is growing at faster pace.
Factors such as lack of developed infrastructure and high cost associated to battery swapping machines are expected to hamper the growth of global battery as a service (BaaS) market.