Battery As A Service Market Size
| Study Period | 2020 - 2030 |
| Market Size (2025) | USD 2.74 Billion |
| Market Size (2030) | USD 5.60 Billion |
| CAGR (2025 - 2030) | 15.38% |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
| Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
Battery As A Service Market Analysis
The Battery As A Service Market size is estimated at USD 2.74 billion in 2025, and is expected to reach USD 5.60 billion by 2030, at a CAGR of 15.38% during the forecast period (2025-2030).
Globally, the rising adoption of electric vehicles (EVs) and aggressive governmental pushes for transportation electrification to curb carbon emissions are pivotal drivers for the burgeoning battery-as-a-service (BaaS) market. Furthermore, consumers are actively exploring cost-effective avenues to own EVs. Given that the battery constitutes the priciest component of an EV, the BaaS model emerges as a compelling solution, substantially lowering the vehicle's upfront cost.
- Per the International Energy Agency (IEA), global electric car sales surged to 16.6 million in 2023, up from 13.7 million in 2023, marking a robust 21.16% year-on-year growth.
Numerous logistics and delivery firms have recently turned to electric fleets, aligning with governmental carbon reduction initiatives. This shift has spurred a heightened demand for electric two-wheelers and commercial vehicles. As these electric vehicles become integral to logistics and delivery fleets, the appetite for BaaS offerings will swell, given their role in curbing acquisition costs.
- Statistics Norway reports that electric van registrations in Norway jumped to 29,623 units in 2023, up from 21,657 in 2022, showcasing a notable 36.78% year-on-year increase.
As electric vehicle adoption becomes ubiquitous, the demand for BaaS services is set to rise globally. This surge is attributed mainly to the payment flexibility BaaS offers, which helps customers manage battery costs. Moreover, the BaaS model alleviates range anxiety, allowing customers to leverage battery-swapping technology at designated stations through pay-per-use options.
Battery As A Service Market Trends
Two-Wheeler Segment of the Market is Anticipated to Gain Traction during the Forecast Period
Electric two-wheeler owners and logistics companies are increasingly turning to the "Battery as a Service" (BaaS) model, which allows them to subscribe or lease batteries, significantly cutting costs. This trend is gaining momentum as global demand for electric two-wheelers surges. Notably, countries like China and India are witnessing a boom in electric two-wheeler demand, prompting BaaS providers to target these markets for enhanced financial returns strategically.
- According to the Society of Electric Vehicle Manufacturers (SMEV), electric two-wheeler sales in India reached 944.12 thousand units in FY 2024, up from 728.05 thousand units in FY 2023, marking a robust Y-o-Y growth of 29.67%.
Recognizing the market's lucrative potential, numerous electric two-wheeler manufacturers are integrating the BaaS model into their offerings. This strategic move diversifies their business portfolio and ensures a steady revenue stream as consumers increasingly gravitate toward BaaS subscriptions and leasing services.
- In November 2024, Honda Motor partnered with GoCimo to roll out a 12-month battery-sharing service verification test in Malmo, Sweden, set to kick off in February 2025. Under the terms, Honda will supply essential hardware, including 30 units of the EM1e electric scooter and 60 Honda Mobile Power Pack e-batteries, while GoCimo will manage the battery-sharing operations.
As road freight and delivery services increasingly adopt electric two-wheeler fleets, the demand for BaaS services is poised to rise. Companies like Amazon are already collaborating with electric vehicle manufacturers, aiming to greenify their last-mile delivery with electric cargo fleets. Given this momentum, the BaaS market segment is set for significant growth in the coming years.
Asia-Pacific Region to Contribute to the Majority Share during the Forecast Period
Countries like China and India are driving the Asia-Pacific region's robust growth in electric vehicle adoption, fueling the expansion of the battery-as-a-service (BaaS) market. Chinese automakers, in particular, are heavily investing in launching premium electric vehicle models to captivate consumers. This trend is further supported by government initiatives promoting electric mobility and the development of charging infrastructure, creating a conducive environment for the growth of the BaaS market.
- Sales of battery electric vehicles (BEVs) in China surged to 6.68 million units in 2023, up from 5.36 million in 2022, marking a notable year-on-year growth of 24.62%, as reported by the China Association of Automobile Manufacturers (CAAM).
The region's booming e-commerce sector is significantly driving the adoption of electric two-wheelers and commercial vehicles, bolstering the BaaS market. Companies in logistics and delivery stand to benefit from reduced battery costs by utilizing BaaS services. Additionally, the increasing demand for faster and more efficient delivery services is pushing logistics companies to adopt electric vehicles, further accelerating the growth of the BaaS market.
- In 2023, China, South Korea, and Australia led the Asia-Pacific in e-commerce's share of total retail. China boasted a 29% share, South Korea followed closely at 28%, and Australia accounted for 16%.
The Asia-Pacific market is witnessing a competitive surge with the integration of domestic and international BaaS providers. Companies like NIO are enhancing their BaaS offerings to broaden their customer reach. Advances in battery swapping technology across the Asia-Pacific are poised to amplify the demand for BaaS services further. Moreover, collaborations between automakers and BaaS providers are expected to play a pivotal role in shaping the market dynamics, ensuring better accessibility and affordability for end-users.
Battery As A Service Industry Overview
The battery-as-a-service (BaaS) market is characterized by fragmentation and intense competition, driven by a mix of international and domestic players. Key players include NIO Power, Gogoro Inc., Immotor Technology, Sun Mobility Private Limited, Ample, Inc., MG Motor, and Numocity Technologies. Competition among these players hinges on factors such as rental and subscription fees, geographical reach, digital footprint, customer base, and the robustness of their battery-swapping infrastructure.
Furthermore, these companies are increasingly refining their BaaS offerings to bolster their global brand presence.
- In December 2024, Bengaluru-based electric vehicle (EV) startup Vidyut teamed up with Mahindra Last Mile Mobility Ltd (MLMML) to introduce a Battery-as-a-Service (BaaS) financing initiative. This program aims to lower the expenses associated with owning an electric vehicle. The partnership seeks to enhance the affordability of Mahindra's EV lineup, which includes the ZEO (4W), Zor Grand, and Treo Plus (3Ws), by providing customers with a flexible battery rental solution.
- In December 2024, NIO Power rolled out two battery sizes for its European customers. Customers can select either size as part of its "Battery as a Service" program, which is currently active in several European nations, including Germany, the Netherlands, Norway, and Sweden.
The market is anticipated to witness technological innovations in BaaS offerings, which can help reduce customers' range anxiety, and the penetration of battery swapping services on a leasing or pay-per-use basis, which will disrupt the industry in the coming years.
Battery As A Service Market Leaders
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NIO Power
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Gogoro Inc.
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Immotor Technology
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Sun Mobility Private Limited
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Ample, Inc.
- *Disclaimer: Major Players sorted in no particular order
Battery As A Service Market News
- October 2024: Vidyut (VT), a full-stack EV ecosystem startup based in Bengaluru, teamed up with JSW MG Motor to introduce a battery-as-a-service (BaaS) initiative. This service is designed to finance passenger cars, including the MG Comet EV, MG Windsor EV, and MG ZS EV. According to the program, customers will pay a minimum rental fee starting at Rs 2.5/km, based on their battery usage. This allows EV owners to rent batteries, slashing their running costs by 40% compared to conventional ICE vehicles.
- July 2024: Hyundai Motor Group announced its future plan to debut a battery subscription service in South Korea. The company further stated that the service is in demonstration phase, with utilization plans to be unveiled post-completion.
- July 2023: Nio unveiled an update to its battery leasing program, enabling drivers to swap their battery packs for ones with higher energy density on a daily basis, a shift from the previous months or years timeline. The service is operational in China which allows them to upgrade to the long-range 100kWh battery from 70/75 kWh battery pack . This swap comes at an additional cost of RMB 50 (USD 7) per day, and the upgraded battery can be returned to any Nio swap station across China.
Battery As A Service Industry Segmentation
Battery-as-a-Service (BaaS) revolutionizes electric vehicle (EV) ownership by replacing the expensive battery component with a subscription-based infrastructure. This system enables users to effortlessly exchange a depleted battery for a fully charged one at designated swapping stations.
The battery as a service market is segmented by service type, vehicle type, battery capacity, and geography. By service type, the market is segmented into battery subscription, battery leasing, and pay-per-use. By vehicle type, the market is segmented into passenger cars, two-wheelers, three-wheelers, and commercial vehicles. By battery capacity, the market is segmented into less than 50 kWh, 50-100 kWh, and more than 100 kWh. By geography, the market is segmented into North America, Europe, Asia-Pacific, and Rest of the World.
The report offers market size and forecasts for the battery as a service market in value (USD) for all the above segments.
| By Service Type | Battery Subscription | ||
| Battery Leasing | |||
| Pay-Per-Use | |||
| By Vehicle Type | Passenger Cars | ||
| Two-Wheelers | |||
| Three-Wheelers | |||
| Commercial Vehicles | |||
| By Battery Capacity | Less than 50 kWh | ||
| 50-100 kWh | |||
| More than 100 kWh | |||
| By Geography | North America | United States | |
| Canada | |||
| Rest of North America | |||
| Europe | Germany | ||
| United Kingdom | |||
| France | |||
| Spain | |||
| Rest of Europe | |||
| Asia-Pacific | China | ||
| India | |||
| Japan | |||
| South Korea | |||
| Rest of Asia-Pacific | |||
| Rest of the World | South America | ||
| Middle East and Africa | |||
Battery As A Service Market Research FAQs
How big is the Battery As A Service Market?
The Battery As A Service Market size is expected to reach USD 2.74 billion in 2025 and grow at a CAGR of 15.38% to reach USD 5.60 billion by 2030.
What is the current Battery As A Service Market size?
In 2025, the Battery As A Service Market size is expected to reach USD 2.74 billion.
Who are the key players in Battery As A Service Market?
NIO Power, Gogoro Inc., Immotor Technology, Sun Mobility Private Limited and Ample, Inc. are the major companies operating in the Battery As A Service Market.
Which is the fastest growing region in Battery As A Service Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Battery As A Service Market?
In 2025, the Asia Pacific accounts for the largest market share in Battery As A Service Market.
What years does this Battery As A Service Market cover, and what was the market size in 2024?
In 2024, the Battery As A Service Market size was estimated at USD 2.32 billion. The report covers the Battery As A Service Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Battery As A Service Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Battery As A Service Industry Report
Statistics for the 2025 Battery As A Service market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Battery As A Service analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
