Market Challenges And Opportunities

Global Electric Vehicle Battery Swapping Market Drivers:

Growing demand for EVs along with shortage of proper public charging infrastructure to drive the market growth

Electric vehicles are gaining popularity all over the world, due to their higher environment-friendliness and efficiency compared to conventional vehicles. Thus, the customer demand for increasing efficiency of vehicle and minimizing fuel costs is leading to constant technological developments in electric vehicles. Along with this, the cost of gasoline is increasing with stringent regulations by governments pertaining emissions of carbon dioxide. These factors are in turn creating strong demand for electric vehicles all over the world. Moreover, several region have shortage of appropriate public charging places leading to rise in demand for EV battery swapping. As a result, the global electric vehicle battery swapping market is expected to witness substantial growth in the coming future.

Reduced charging time for EVs to boost the market growth

When looking at functioning of electric vehicles, their charging time is an important factor, specifically in long-hauling applications. At present, most electric vehicles use a slow charging system for recharging the batteries. With this system, it usually requires nearly eight hours to completely charge the battery. Moreover, generally electric vehicles come with on-board chargers that charge the vehicle at 2.4-3 kW per hour rate. However, using battery swapping systems, reduces this charging time for electric vehicles. This major benefit of EV battery swapping systems is expected to augment growth of the market in the coming future.

Global Electric Vehicle Battery Swapping Market Opportunities:

Rapidly emerging services of shared e-mobility to offer major growth opportunities in the global electric vehicle battery swapping market over the forecast period. The expansion of electric vehicle sharing services is growing all over the world due to rise in vehicle ownership cost and stringent regulations by governments on emission from vehicles. These vehicles are mainly utilized in passenger carriers and operate 100 km per day. When fully charged, these vehicles run less than 100 km, due to this they need to be charged more than once per day. Consequently, battery swapping stations are promising alternative to problems around slow charging of battery. This in turn is creating growth opportunities in the market.

Launch of novel and advanced battery swapping models and services are expected to generate business opportunities in the global electric vehicle battery swapping market during the forecast period. Key players in the market are taking various strategic measures such as partnerships, product launches, and expansion of facilities to gain a competitive edge in the market. Moreover, along with technological developments in electric vehicles, need for rapid battery charging is also increasing. Due to this, market players launching novel solutions of battery charging. This is further offering growth opportunities in the market.

Global Electric Vehicle Battery Swapping Market Restraints:

Differing design and technology of batteries to hamper the market growth

One of the major challenges for battery swapping stations is differing battery designs and technology. A battery pack requires specific design in order for it to be removed easily and rapidly from a vehicle and re-attached. However, such battery pack designs are very limited at the moment. This factor in turn is expected to limit battery swapping concept, which is further expected to hamper growth of the global electric vehicle battery swapping market over the forecast period.

High cost of initial set-up and operating cost of stations to hinder the market growth

The initial infrastructure of battery swapping stations is complex and expensive compared to charging stations. Along with this, swapping stations require a number of battery packs more than a specific percentage of daily need for a station. For every car, it should have at least two battery packs, one available in a station and other one inside the car. Thus, the overall high cost of battery swapping stations is expected to hamper growth of the global electric vehicle battery swapping market over the forecast period.

Restraints & Challenges: