The global battery swapping market for passenger and commercial vehicles is estimated to be worth $1.7 billion USD in 2022 and is projected to reach $11.8 billion USD by 2027.
The report, published by management consulting firm, MarketsandMarkets, considered two-, three- and four-wheeler automated and manual vehicles.
Battery swapping, according to the forecaster, is an alternative method of powering an electric vehicle and involves exchanging discharged batteries for charged ones.
“This swap method removes the direct relation between the vehicle and the battery, thus decreasing the initial cost of buying an electric vehicle,” said MarketsandMarkets.
“Battery swapping is mostly eligible in two- and three-wheelers, as these vehicles are integrated with small batteries, which makes it easier to swap the battery in them.
“Compared to conventional charging, battery swapping saves time, space and money, especially when the system is used efficiently.
“Additionally, battery swapping offers sustainable and innovative business models, such as ‘Battery-as-a-Service’ (BaaS), in which a service provider does not charge upfront costs for batteries and offers daily or monthly subscription-based rental plans that allow the EV drivers to swap batteries multiple times a day.”
Europe is projected to be one of the fastest-growing regions in the battery swapping market according to the report.
In other news, the Technical University of Munich is enabling battery-powered trucks to transport cargo long distances.
