Vehicle manufactures are investing high for enhancement of the product portfolio. Increasing passenger vehicle sale in developing countries, manufactures approach towards introduction of electric vehicles with battery leasing service during the vehicle purchase this is expected to impact the growth of target market.

In 2020, Kia Motors Corporation a multinational automotive manufacturer is focused on increasing the electric vehicle sale. The company aims to increase its number of dedicated EV work bays in Korea to 1,200 by 2030. It is also focused on enhancing the product portfolio by creation of subscription services to offer a diversified buying option for customers, as well as EV battery leasing and rental programs. This is expected to help the company to enhance the business presence.

Business expansion activities by major players through acquisitions and enhancing the product portfolio are among other factors expected to boost the growth of target market.

In 2020, Xpeng Motors a Chinese electric vehicle manufacturer launched a new battery leasing service in the US market. Under the service, consumers can finance the "battery" and "car body" separately at the time of purchase. This is expected to help the company to enhance the business presence.

In 2020, Octillion Power Systems a global provider of advanced lithium-ion storage systems for electric mobility launched a program for the customer with the focus on battery-leasing segment that allows batteries to be leased to fleet customers when they purchase vehicles. This is expected to help the company to enhance the business presence.

In 2020, Nio Inc. a Chinese automobile manufacturer launched a battery leasing service that will allow drivers to buy an EV without owning the battery pack. Nio operates 143 battery-swapping stations around China, where drivers can swap spent battery packs for fully charged replacements. This is expected to help the company to enhance the business presence.

However, factors such as high cost of services and lack of required infrastructure for battery charging are expected to hamper the growth of global battery leasing service l market. In addition, high cost associated to maintenance of service is expected to challenge the market growth.

Rising electric vehicle sale in developing countries and increasing government spending on development of changing infrastructure are factors expected to create new opportunities for players operating in the target market over the forecast period. In addition, increasing partnership and agreements between regional and international players are factors expected to revenue support the growth of target market.

Segment Analysis by Region

The market in North America is expected to account for major revenue share in the global battery leasing service market due to increase in cases of vehicle breakdown due to battery failure. There is gradual increase in number of vehicle break down on highways and roadways in the US due to battery failure. Consumers demand for vehicle road side assistance is increasing which is in terms is rising demand for batteries from service providers this is another factor expected to support the growth of target market.

Presence of large number of players operating in the country and focus on business expansion through merger are among other factors expected to impact the growth of target market.

Competitive Landscape                                                                                 

The global market is high highly competitive due to presence of large number of players and innovative product offerings. In addition, business expansion activities through partnerships and agreements are factors expected to further increase the competition.

Report coverage

Battery Leasing Service Market Segment Analysis, 2019

The global battery leasing service market is segmented into vehicle type and service model. The vehicle type segment is further bifurcated into passenger vehicles and commercial vehicles. Among vehicle type the passenger vehicle segment is expected to account for major revenue share due to increasing sale of passenger EV’s across the globe.

The service model segment is further divided into subscription model and pay-per-use model. Among the service model segment the subscription model segment is expected to account for major revenue share in the target segment.

The players profiled in the report are Groupe Renault, Tesla, Inc., Daimler AG, RCI BANK AND SERVICES, Honeywell International Inc. KIA motors NIO Inc., Gogoro Inc., and Leo Motors Inc.

Market Segmentation

Market By Vehicle Type

• Passenger Vehicle
• Commercial Vehicle
  
  

Market By Service Model

• Subscription Model
• Pay-Per-Use Model
  
  

Market By Region

North America

• U.S.
• Canada

Europe

• UK
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• China
• Japan
• India
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America