The swappable electric vehicle battery market will witness a significant market size growth of $21.78 billion by 2030 from just $1.6 billion in 2022, SNS Insider forecasts.
Likewise, its CAGR (compound annual growth rate) will also surge by 38.6% from 2023 to the forecast period.
What is battery swapping?
Battery swapping is basically the process of replacing an electric vehicle’s depleted battery with a fully charged unit at existing stations.
It is an innovative system that efficiently handles some of the common barriers to the EV shift, including range anxiety and time-consuming charging sessions.
With this technology, EV owners can easily and immediately replenish their cars’ range in one go. It essentially eliminates the need to wait a long time to charge the battery at charging stations, which also have their own issues like inoperability and insufficiency.
Growth drivers
The report emphasized that the potential market value growth of the global battery swapping industry is primarily due to the “improved battery technology and growing urbanization trends.”
True enough, recent developments in battery technologies effectively reduced the weight of swappable batteries. They also now offer higher energy density and longer life spans.
These advancements significantly improved battery performance and lowered production costs.
Moreover, the industry has also benefited from government support worldwide through subsidies and tax breaks, among others. It aids the technology in reaching urban areas needing green and sustainable mobility solutions.
Given the substantial size of the population in urban areas, more customers become aware of the swapping concept and its benefits.
Outlook
SNS Insider projects that the commercial vehicle sector will lead the battery-swapping industry owing to the following factors:
- operational efficiency enhancement
- TCO reduction
- regulatory and sustainability goals alignment
Moreover, it also indicated that the pay-per-use model will be a major driver of the industry’s wider adoption. The market research firm expects individual customers and businesses to opt for this payment method due to its simple and easy process.
See Also:
- VoltUp develops PowerCore 2.0 technology for its swappable batteries
- Ample unveils revolutionary robotic EV battery swapping station, delivers full charge in just 5 minutes
- SUN Mobility to nearly triple electric vehicle battery-swapping network
- Fisker, Ample partner to launch e-SUVs with swappable batteries
- Fisker, Ample partner to launch e-SUVs with swappable batteries
Battery swapping is undoubtedly an effective and useful technology to ease drivers’ range anxiety. It enables them to regain their much-needed range to go on with their journey. Apart from addressing range anxiety, it also aids the charging infrastructure network in supporting the growing number of electric cars across the world.
