The increasing levels of air pollution in several countries are fueling the demand for electric vehicles (EVs). However, sufficient charging infrastructure is required for the large-scale adoption of EVs, as the availability of an adequate number of charging facilities eliminates the problems associated with EVs such as their limited range of mobility.
This is driving the demand for battery swapping technology, as this technology solves the problem of slow charging at charging stations, a recent report states. Because of these factors, the global electric vehicle battery swapping market reached a revenue of $148.2 million in 2020 and it is expected to exhibit “huge expansion” during 2021–2030, according to P&S Intelligence.
The report states the COVID-19 pandemic has massively affected the EV battery swapping market. Workplaces and businesses were closed, because of the imposition of lockdowns in several countries. Moreover, the implementation of stringent social distancing protocols caused employees to work from home and also disrupted assembly operations. Furthermore, production delays, market confusion and work stoppages increased massively during the pandemic. However, with the situation becoming normal in many countries, the market started showing signs of resurgence during the last quarter of 2020, according to the report.
The EV battery swapping market is classified into three-wheelers, two-wheelers, commercial vehicles, and passenger cars, depending on vehicle type. Out of these, the commercial vehicle category is predicted to register the highest CAGR in the market during the forecast period. Furthermore, the requirement for electric three- and two-wheelers in ridesharing and hailing services is fueling the growth of the three-wheeler and two-wheeler categories in the market, the report states.
Across the globe, Asia-Pacific (APAC) is predicted to dominate the EV battery swapping market during the forecast period. This was because of the strong efforts made by several Chinese companies for developing the battery swapping technology. With the rising demand for electric mobility, the report says the major players in the market are rapidly augmenting their operations in the region.