Automotive Battery Rental Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 244.31 Million |
| Market Size (2029) | USD 986.49 Million |
| CAGR (2024 - 2029) | 32.20 % |
| Fastest Growing Market | Europe |
| Largest Market | Asia Pacific |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Automotive Battery Rental Market Analysis
The Automotive Battery Rental Market size is estimated at USD 244.31 million in 2024, and is expected to reach USD 986.49 million by 2029, growing at a CAGR of 32.20% during the forecast period (2024-2029).
Over the medium term, the increasing demand for electric vehicles combined with the limited availability of charging infrastructure is anticipated to fuel the need for battery rental services. Consumers are actively seeking access to charging facilities for their electric vehicles, and as a result, the demand for battery rental services is expected to rise.
The growing need for sustainable transportation and cleaner energy has resulted in an increased demand for battery electric vehicles. Consumer worries about vehicle range, higher upfront costs, limited model availability, and lack of knowledge are being tackled through promotional activities and government regulations. These factors will heavily impact the demand for electric vehicles and ultimately drive the target market.
The demand for automotive batteries is projected to increase globally, primarily due to the rising popularity of electric vehicles. The Asia Pacific region is anticipated to dominate the automotive battery market, driven by rapid industrialization and urbanization, as well as the growing demand for electric vehicles in countries like China and India. Significant growth in the target market is also expected in regions such as North America and Europe.
Automotive Battery Rental Market Trends
Lithium-Ion Battery Hold Major Market Share
The increasing focus of leading automotive companies and the surging interest in electric vehicles, supported by government initiatives and advancements in electric vehicle battery technology, are serving as key drivers for the growth of this market.
Lithium-ion batteries are a specific type of rechargeable battery commonly found in electric vehicles. They are known for their higher energy density compared to traditional nickel-cadmium and lead-acid rechargeable batteries. This higher energy density allows manufacturers to reduce the overall size of the battery pack, saving space and contributing to the lightweight design of electric vehicles.
While lithium-ion batteries do not contain metallic lithium, they do contain lithium ions that play a crucial role in the battery's operation and energy storage capabilities. This unique composition and design make lithium-ion batteries a popular choice for a wide range of portable electronic devices and electric vehicles.
The increasing adoption of electric vehicles for various commercial applications is expected to significantly boost the need for lithium-ion batteries in the region's market. This trend is driven by the emergence of new and dynamic markets that are embracing electric vehicle technology, particularly in the commercial vehicle sector.
In the North American region, there has been a significant rise in investments from both governments and manufacturers. Canada, in particular, has been swiftly rolling out electric buses, propelled by robust support. This trend is expected to lead to a surge in the demand for Lithium-Ion batteries in rental services over the forecast period.
The battery rental service is poised for substantial growth in the coming years, thanks to significant progress in various regions. This growth is highly probable due to the increasing demand for sustainable energy solutions and the adoption of electric vehicles.
Asia-Pacific Hold Major Market Share
China holds a prominent position as a leading vehicle manufacturer in the Asia-Pacific region. With a significant presence of automotive manufacturers, China is poised to offer highly lucrative opportunities for the market throughout the forecast period.
China holds the title of being the largest manufacturer and consumer of electric vehicles globally. The country's domestic demand is being bolstered by various factors, including sales targets, favorable regulations, and municipal air-quality goals.
China has implemented a requirement for manufacturers of electric or hybrid vehicles to ensure that these vehicles constitute at least 10% of their total net sales, emphasizing the nation's commitment to the widespread adoption of electric and hybrid vehicles. Also, the city of Beijing only issues 10,000 permits for the registration of combustion engine vehicles per month to encourage its inhabitants to switch to electric vehicles.
The Indian economy is experiencing growth, driven by an increase in the disposable income of middle-class consumers. This rise in income has led to a surge in demand for automobiles. Over the past five years, vehicle manufacturing has rapidly expanded due to the country's cost-effective production capabilities. Consequently, the automotive sensor market is gaining momentum alongside the uptick in vehicle production.
In the rapidly growing Asia Pacific region, numerous countries are actively introducing a range of policies and incentives aimed at promoting the adoption of electric vehicles (EVs) to mitigate emissions and foster sustainable mobility. These comprehensive initiatives encompass a variety of measures such as financial subsidies for EV purchases, tax incentives designed to make electric vehicles more affordable, and the implementation of regulations aimed at fostering the establishment of robust charging infrastructure and battery-swapping facilities.
Given the ongoing developments in the region, it is anticipated that there will be significant growth in the battery rental services market during the forecast period.
Automotive Battery Rental Industry Overview
The Automotive Battery Rental Market is dominated by several key players such as Ample Inc., NIO Limited, Contemporary Amperex Technology Co., Limited, Renault Group, and others. The rapid increase in the construction of battery manufacturing facilities worldwide is expected to lead to a significant rise in demand for battery rental services in the coming years. For instance,
- In May 2024, Piaggio Vehicles Pvt Ltd, a subsidiary of the renowned Piaggio Group, unveiled an innovative "Battery Subscription Model" for its Apé Elektrik electric three-wheelers (3Ws). This pioneering move aims to revolutionize the electric vehicle industry by offering a flexible and cost-effective approach to battery ownership.
- In July 2023, Nio Limited unveiled a new daily battery leasing service, which is a significant development aimed at expanding its recharging network across China. This innovative initiative not only addresses the issue of range anxiety for electric vehicle owners but also demonstrates Nio's commitment to providing convenient and sustainable solutions for its customers.
Automotive Battery Rental Market Leaders
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NIO LIMITED
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Ample Inc.
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Contemporary Amperex Technology Co., Limited.
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Renault Group
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Oyika Pte Ltd
*Disclaimer: Major Players sorted in no particular order
Automotive Battery Rental Market News
- September 2024: MG Motor introduced an innovative battery rental plan as part of its strategic initiatives aimed at boosting sales of eco-friendly vehicles. Under this plan the company will offer battery for their newly launch electric car Windsor on a pay-per-use rental model at Rs 3.5 per km. This move is intended to make electric vehicles more accessible and affordable for customers, thereby encouraging the adoption of sustainable transportation options.
- March 2024: Nio Inc. a Chinese multinational automobile manufacturer has signed a partnership agreement with battery giant CATL to develop technologically advance batteries which can offer longer battery life in wake of reducing operating cost of Nio's battery swapping and changing stations. In a move aimed at reducing the purchase costs of electric vehicles (EVs), the company unveiled a significant reduction of up to 33% in the monthly battery rental fees.
Automotive Battery Rental Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.1.1 EV Sales to Bolster Electic Vehicle Makret
4.2 Market Restraints
4.2.1 Low Infrastructure Readiness Level For Electric Vehicles
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size in Value - USD)
5.1 By Rental Type
5.1.1 Subscription
5.1.2 Pay-Per-Use
5.2 By Battery Type
5.2.1 Lead Acid Battery
5.2.2 Lithium-Ion Battery
5.2.3 Other Battery Types
5.3 By Vehicle Type
5.3.1 Passenger Car
5.3.2 Commercial Vehicles
5.4 By Geography
5.4.1 North America
5.4.1.1 United States
5.4.1.2 Canada
5.4.1.3 Rest of North America
5.4.2 Europe
5.4.2.1 Germany
5.4.2.2 United Kingdom
5.4.2.3 France
5.4.2.4 Italy
5.4.2.5 Spain
5.4.2.6 Rest of Europe
5.4.3 Asia-Pacific
5.4.3.1 China
5.4.3.2 India
5.4.3.3 Japan
5.4.3.4 South Korea
5.4.3.5 Rest of Asia-Pacific
5.4.4 Rest of the World
5.4.4.1 South America
5.4.4.2 Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 NIO LIMITED
6.2.2 Ample Inc.
6.2.3 Contemporary Amperex Technology Co., Limited.
6.2.4 Renault Group
6.2.5 Oyika Pte Ltd
6.2.6 Esmito Solutions Private Limited
6.2.7 Sun Mobility Private Limited
6.2.8 E-Chargeup Solutions Pvt Ltd.
6.2.9 Numocity Technologies Private Limited
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Automotive Battery Rental Industry Segmentation
The automotive battery rental service offers users the option to rent a battery over a specific time frame or through a subscription model. This convenient service allows users to access a reliable and fully charged battery as and when needed without the commitment of outright ownership of battery.
The automotive battery rental market is segmented by rental type, battery type, vehicle type, and geography. By rental type, the market is segmented into Subscription and Pay-Per-Use. By battery type, the market is segmented into Lead Acid Battery, Lithium-Ion Battery, and Other Battery Types. By vehicle type, the market is segmented into passenger cars and commercial vehicles. By Geography, the market is segmented into North America, Europe, Asia-Pacific, and Rest of the World. For each segment, the market sizing and forecast have been done based on the value (USD).
| By Rental Type | |
| Subscription | |
| Pay-Per-Use |
| By Battery Type | |
| Lead Acid Battery | |
| Lithium-Ion Battery | |
| Other Battery Types |
| By Vehicle Type | |
| Passenger Car | |
| Commercial Vehicles |
| By Geography | ||||||||
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Automotive Battery Rental Market Research Faqs
How big is the Automotive Battery Rental Market?
The Automotive Battery Rental Market size is expected to reach USD 244.31 million in 2024 and grow at a CAGR of 32.20% to reach USD 986.49 million by 2029.
What is the current Automotive Battery Rental Market size?
In 2024, the Automotive Battery Rental Market size is expected to reach USD 244.31 million.
Who are the key players in Automotive Battery Rental Market?
NIO LIMITED, Ample Inc., Contemporary Amperex Technology Co., Limited., Renault Group and Oyika Pte Ltd are the major companies operating in the Automotive Battery Rental Market.
Which is the fastest growing region in Automotive Battery Rental Market?
Europe is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Automotive Battery Rental Market?
In 2024, the Asia Pacific accounts for the largest market share in Automotive Battery Rental Market.
What years does this Automotive Battery Rental Market cover, and what was the market size in 2023?
In 2023, the Automotive Battery Rental Market size was estimated at USD 165.64 million. The report covers the Automotive Battery Rental Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Automotive Battery Rental Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Automotive Battery Rental Industry Report
Statistics for the 2024 Automotive Battery Rental market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Automotive Battery Rental analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
