May 22, 2024

Electric Vehicle Batteries are the largest segment driving the growth of Battery Leasing Market

Battery leasing is an innovative business model that provides customers with access to advanced battery technologies without upfront capital investment. Under battery leasing schemes, customers pay only for the electricity consumed through the batteries on a pay-per-use basis. This provides an affordable and flexible option to use energy storage systems for various applications such as electric vehicles, stationary storage and others.

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 fuelling the growth in battery leasing market is the increasing adoption of electric vehicles (EVs). More customers are preferring to lease batteries for EVs as it eliminates range anxiety and upfront high cost of battery ownership. Under leasing schemes, batteries are maintained and replaced by leasing companies, ensuring customers have access to the latest battery technologies. This makes EV ownership more affordable and attractive for both private and commercial customers thereby boosting the electric vehicle sales and demand for leased batteries.

SWOT Analysis

Strength: Batteries are an integral part of the clean energy transition and electric vehicles. Battery leasing offers flexible financing options for businesses and individuals to access new battery storage technologies.

Weakness: Initial investments required to set up battery leasing businesses are high. Strict safety and performance standards increase operational costs.

Opportunity: Growing adoption of EVs, renewable energy sources and energy storage solutions is driving the demand for battery leasing models. Government policies and incentives supporting clean technologies provide a favorable market environment.

Threats: Technology innovation may make existing battery assets obsolete faster. Slow macroeconomic conditions can impact demand growth. Intense competition from battery manufacturers and disruptive business models poses market threats.

Key players operating in the battery leasing market include 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. These companies offer customized long-term leasing solutions for both stationary and mobile battery applications. Strategic partnerships between different entities in the battery value chain are also gaining traction.

Key Takeaways

The is global Battery Leasing Market expected to witness high growth, exhibiting CAGR of 11.% over the forecast period, due to increasing demand for battery storage driven by the clean energy transition and rising electric vehicle sales. Battery leasing offers an alternative financing model for businesses and consumers to gain access to new battery technologies without upfront capital investments.

North America dominated the global market in 2023 and is expected to continue its lead, supported by supportive government policies promoting clean energy adoption in the US and Canada. The Asia Pacific region is anticipated to be the fastest growing market during the forecast period due to the presence of major battery manufacturing hubs and electric vehicle production centers in China, South Korea and Japan. Countries like India and Indonesia are also emerging as high potential markets.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it