Market Trends of Battery-Swapping For Electric Two-Wheeler Industry
The Lithium-ion Battery Segment Projected to Gain Rapid Traction during the Forecast Period
Ride-hailing and delivery service companies worldwide increasingly opt for electric fleets of scooters and mopeds. This shift is driving the establishment of numerous battery-swapping stations. Delivery riders favor e-scooters and mopeds for their cargo space, aligning with government efforts to decarbonize transportation. Consequently, the rising adoption of e-scooters, particularly in the Asia-Pacific and Europe, is boosting the market demand for battery-swapping stations. These stations predominantly store lithium-ion batteries, known for their superior power and extended distance per charge.
- In 2023, Thailand saw Winnonie, Honda PCX Electric Smart, and H SEM Power Station emerge as the top electric motorcycle battery-swapping services providers. Winnonie operated 103 stations, followed by Honda PCX Electric Smart with 61 and H SEM Power Station with 54.
Furthermore, introducing new electric two-wheeler models equipped with battery-swapping capabilities drives global demand for lithium-ion batteries. Companies like Gogoro are heavily investing in advanced electric two-wheelers featuring lithium-ion battery packs designed for easy swapping at Gogoro's charging stations. As more companies join this ecosystem, the lithium-ion battery segment is poised for significant growth, thanks to its efficiency in battery swapping solutions.
- In May 2024, in India, Bounce Infinity unveiled its latest E1 scooter variant, the Bounce Infinity E1X. This model boasts batteries that can be swapped at various stations nationwide, promoting the adoption of electric two-wheelers with battery-swapping features across the country.
Advancements in battery technology are prompting manufacturers to prioritize lithium-ion packs that minimize downtime and offer faster charging. Given consumers' readiness to invest time for efficient on-the-road charging, the lithium-ion battery market segment is set for rapid growth in the coming years.
Asia-Pacific Expected to Dominate the Electric Two-Wheeler Battery Swapping Market
The Asia-Pacific electric vehicle (EV) battery-swapping market is transitioning from development to expansion. Range anxiety and prolonged charging times hinder the widespread adoption of EVs. Battery swapping addresses range anxiety more efficiently, as each swap is quicker and requires less space than traditional charging stations. Additionally, Battery-as-a-Service is gaining momentum in the regional EV landscape. This model alleviates the steep upfront costs of EVs by decoupling battery ownership from vehicle ownership. Instead of purchasing batteries outright, customers can opt for subscription-based battery-swapping plans tailored to their needs.
- As reported by the Thailand Automotive Institute, sales of new battery electric vehicle motorcycles in Thailand climbed to 2,253 units in January 2024, up from 1,847 units in December 2023, marking a 21.9% month-on-month growth.
Governments across the Asia-Pacific are endorsing battery swapping and actively testing the feasibility of swappable batteries. While national efforts have predominantly centered on establishing a vast network of electric vehicle charging stations, there's been a noticeable lag in developing battery-swapping infrastructure. The successful piloting of battery-swapping solutions now paves the way for a diverse market, fostering an environment where multiple solutions can thrive.
- In April 2022, NITI Aayog unveiled its policy blueprint, charting a course for battery swapping and charging infrastructure along India's highways. This underscored the organization's commitment to accelerating electric vehicle (EV) adoption.
Europe is poised to mirror the Asia-Pacific's embrace of battery swapping. This is driven by the surging demand for electric two-wheelers in cargo, logistics, and delivery sectors, bolstered by a rising tide of logistics and e-commerce firms in the region.
