The increase in the demand for electric vehicles (EVs) the world over are not commensurated with the sufficient charging infrastructure, and this eventually enabled the global market for EV battery swapping reach $148.2 million in 2020, P&S Intelligence said.
According to the market research and consulting provider, the battery swapping market is expected to exhibit huge expansion during 2021–2030.
The increasing air pollution levels in several countries fuel the demand for EVs. However, a sufficient number of charging stations is required for the large-scale adoption of these new breeds of vehicles, as it can eliminate the problems associated with EVs, such as their limited range of mobility. These factors drive the demand for battery swapping technology, as they solve the issues of slow charging at charging stations.
Some of the major players in the EV battery swapping market include NIO, Leo Motors, Gogoro, BattSwap, Tesla, BYD, SUN Mobility, Lithion Power, Panasonic and Kwang Yang Motor.
According to P&S Intelligence, the COVID-19 pandemic has significantly affected the EV battery swapping market. Workplaces and businesses were closed due to the imposition of lockdowns in several countries. Moreover, stringent social distancing protocols caused employees to work from home and disrupted assembly operations. In addition, production delays, market confusion, and work stoppages increased phenomenally during the period. However, with the situation becoming normal in many countries, the market started showing signs of resurgence during the last quarter of 2020, observes the research agency.
The EV battery swapping market is classified into three-wheelers, two-wheelers, commercial vehicles, and passenger cars, depending on vehicle type. The commercial vehicle category is predicted to register the highest CAGR in the market during the forecast period.
Furthermore, the burgeoning requirement for electric three- and two-wheelers in ridesharing and hailing services is fueling the three-wheeler and two-wheeler categories in the market.
The Asia Pacific to dominate the market
Asia-Pacific (APAC) is predicted to dominate the EV battery swapping market in the current decade. This is because of the intense efforts made by several Chinese companies for developing the battery swapping technology.
Moreover, with the rising demand for electric mobility, the major players in the market are rapidly augmenting their operations in the region, says the research agency.
The players operating in the global EV battery swapping market are actively focusing on improving the driving range of EVs, as the lack of proper charging facilities is creating major problems for end-users across the world.
For example, Ample, a startup, launched a battery swap system for EVs in March 2021. The system was created due to the failures of the previous devices. It deploys robots that rapidly replace small modular battery packs in electric cars, thereby allowing the vehicle owners to quickly return to the road, just like they do after a gas fill, indicates the research firm.
Courtesy: P&S Intelligence. NB: Photo is representational. Courtesy: SUN Mobility.