Swappable Electric Vehicle Battery Market To Reach $2.36 Billion By 2030

Swappable Electric Vehicle Battery Market Growth & Trends

The global swappable electric vehicle battery market size is expected to reach USD 2.36 billion by 2030, expanding at a CAGR of 22.8% from 2023 to 2030, according to a new study conducted by Grand View Research, Inc. The rising adoption of electric vehicles with swappable batteries by consumers, as they are not required to pay the high upfront cost of fixed batteries is propelling the market growth. This trend is fueled by various factors, including rising fuel expenses, government incentives, and lower carbon emissions.

To reduce carbon emissions and achieve net-zero targets, governments worldwide are implementing strategic initiatives. Many countries have committed to reaching net-zero emissions by mid-century or even earlier and are participating in international agreements to enhance their efforts. For instance, as per the Mission Zero plan released in 2019, the Netherlands government has set a target for all new buses utilized in public transportation to emit zero harmful exhaust gases by 2025. This implies that the buses must either be battery electric or hydrogen fuel cell electric to comply with the regulation. Hence, ongoing government initiatives to achieve net zero emission goals and the environmental benefits of rechargeable batteries are driving the adoption of swappable electric vehicle batteries, thereby propelling the market's growth.

Furthermore, various companies started producing swappable batteries for two- and three-wheel electric vehicles. For instance, GOGORO INC., a manufacturer of electric scooters, battery-swapping infrastructure, and smart mobility management systems, collaborated with ProLogium Technology, a prominent player in solid-state battery technology, to develop a solid-state lithium ceramic battery for two-wheeler battery swapping. The newly developed solid-state battery technology would be seamlessly integrated with the existing Gogoro swapping network and vehicles.

The declining cost of lithium-ion batteries is expected to drive demand for swappable batteries for electric vehicles. As per a study conducted by the Massachusetts Institute of Technology (MIT) and the Energy and Environmental Science Journal, the reduction in lithium-ion battery prices could result in a significant drop in the prices of swappable batteries, which would make them more economical and increase their demand. The study suggests that more than 50% of this cost reduction is attributed to research and development efforts, including funding from both private and government segments.

The outbreak of the COVID-19 pandemic severely impacted several economies. In addition, increased fuel prices owing to the Russia-Ukraine conflict are expected to prompt consumers to adopt electric vehicles considering the lower lifecycle cost of an electric vehicle as compared to internal combustion engine (ICE) vehicles, which is ultimately creating more demand for swappable electric vehicle batteries. Furthermore, aggressive investments in innovation and subsequent advances in battery technology are expected to create new opportunities for the growth of the swappable electric vehicle battery industry.

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Swappable Electric Vehicle Battery Market Report Highlights

• Lithium-Ion segment is anticipated to emerge as the fastest-growing segment over the forecast period. Increasing adoption of lithium-ion swappable electric vehicle batteries owing to their benefits such as lightweight and space-saving design, high efficiency, and low cost, among others, is attributed to the growth of the segment

• The >5 kWh capacity segment accounted for the largest market share in 2022. Increasing adoption of large-capacity swappable electric vehicle batteries as it covers long distances on a single charge and provide reliable energy storage for renewable energy systems is boosting the growth of the segment

• Two-wheeler segment is anticipated to emerge as the fastest-growing segment over the forecast period. The increasing development of two-wheeled electric vehicles equipped with swappable batteries and the growing market for e-bikes/e-scooters in developing countries are expected to boost the segment growth

• Asia Pacific is expected to grow at the highest CAGR from 2023 to 2030 due to the vast presence of swappable battery start-ups, significant growth in electric vehicle sales in the region, and extensive deployment of battery swapping stations in countries such as China India, Taiwan, and Japan

• Key players operating in the market include Contemporary Amperex Technology Co.; Limited, NIO Inc.; GOGORO INC.; Silence Urban Ecomobility; Honda Motor Co., Ltd.; SUN Mobility Private Ltd.; ONiON Mobility; Swap Energi Indonesia; Bounce; and Okinawa Autotech Internationall Private Limited 

Swappable Electric Vehicle Battery Market Segmentation

Grand View Research has segmented the global swappable electric vehicle battery market based on battery type, capacity, application, and region:

Swappable Electric Vehicle Battery Type Outlook (Revenue, USD Million, 2017 - 2030)

• Lead Acid

• Lithium-ion

• Others (Nickel-Metal Hydride, Sodium Ion)

Swappable Electric Vehicle Battery Capacity Outlook (Revenue, USD Million, 2017 - 2030)

• < 5 kWh

• > 5 kWh

Swappable Electric Vehicle Battery Application Outlook (Revenue, USD Million, 2017 - 2030)

• Two-Wheeler

• Passenger Cars

• Commercial Light Duty Vehicles

  • Three-Wheeler

  • Four-Wheeler

Swappable Electric Vehicle Battery Regional Outlook (Revenue, USD Million, 2017 - 2030)

• North America

  • U.S.

  • Canada

• Europe

  • Germany

  • U.K.

  • France

• Asia Pacific

  • China

  • India

  • Japan

  • Taiwan

  • Vietnam

  • Indonesia

  • Thailand

  • Malaysia

  • Philippines

  • South Korea

  • Singapore

• Latin America

  • Brazil

  • Mexico

• MEA

List of Key Players in the Swappable Electric Vehicle Battery Market

• Contemporary Amperex Technology Co., Limited

• NIO Inc.

• GOGORO INC.

• Silence Urban Ecomobility

• Honda Motor Co., Ltd.

• SUN Mobility Private Ltd.

• ONiON Mobility

• Swap Energi Indonesia

• Bounce

• Okinawa Autotech Internationall Private Limited