February 19, 2025
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Emerging lithium-ion battery leasing models to boost growth of the Battery Leasing Market

The battery leasing market involves renting out batteries for electric vehicles, solar energy storage systems, and other applications rather than owning them. Lithium-ion batteries are increasingly being used for energy storage due to their high energy density and longer life cycles compared to lead-acid batteries. However, the high upfront costs of lithium-ion batteries pose challenges for mass adoption of EVs and solar +storage systems. Battery leasing provides an alternative financing model where customers pay a monthly fee to access batteries without incurring huge capital expenditures. This model is gaining traction as it offers flexible payment options and reduces pricing pressures.

The global Battery Leasing Market is estimated to be valued at US$ 15.03 billions in 2023 and is expected to exhibit a CAGR of 11% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
One of the key trends in the battery leasing market is the emergence of innovative financing and rental models by OEMs and startups. For instance, some EV manufacturers are offering leasing options for batteries separately from the vehicles. This provides more flexibility to users and makes EVs more affordable. Furthermore, several startups are entering the domain with tailored solutions for different applications like home energy storage, commercial fleet electrification etc. Advancements in battery technologies are also supporting growth whereby new lithium-ion battery chemistries are demonstrating longer cycle life, higher energy density and improved safety features. This bodes well for increasing the lifetime value of batteries and making leasing a more attractive proposition over the forecast period.

Porter’s Analysis

Threat of new entrants: The threat of new entrants in the battery leasing market is moderate. Significant upfront investment requirement for battery manufacturing creates barriers for new entrants.

Bargaining power of buyers: The bargaining power of buyers is high due to presence of many battery leasing providers in the market. Buyers can select from multiple providers based on their offerings.

Bargaining power of suppliers: The bargaining power of suppliers is moderate as it requires significant infrastructure for battery manufacturing. However, shortage of raw materials can increase suppliers’ bargaining power.

Threat of new substitutes: Threat from substitutes is low as battery leasing offers more flexibility and cost-effectiveness compared to alternatives such as battery purchasing.

Competitive rivalry: High as key players compete on the basis of battery technology, leasing plans, support services and geographic reach.

Key players: Key players operating in the battery leasing market are Nextera Energy, Onewatt, EDF Energy, Engie, EON Energy Solutions, Alpiq, Leclanche, Sonnen, Enel X, Shell, Total Solar Distributed Generation USA, Sunrun, LG Chem, Samsung SDI, BYD, Panasonic, CATL, Tesla, Fluence, Powin Energy. Players are investing in R&D to develop superior lithium-ion battery technology and provide differentiated leasing plans.

Key Takeaways

The global Battery Leasing Market is expected to witness high growth, exhibiting CAGR of 11.% over the forecast period, due to increasing demand for electric vehicles. Battery leasing helps commercial customers switch to cleaner transportation in a cost-effective way.

Regional analysis: North America dominates the battery leasing market currently due to high adoption of electric cargo vans and buses for logistics and transit applications. Asia Pacific is expected to witness fastest growth aided by supportive government policies for EV adoption in China and India.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it
Money Singh
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Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. 

Money Singh

Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. 

View all posts by Money Singh →