With the growing deployment of electric two- and three-wheelers, on account of the increasing concerns being raised over the escalating air pollution levels, the demand for battery swapping technologies for electric two- and three-wheelers is growing rapidly. The governments of many countries are providing subsidies and various other financial incentives such as purchase rebates and tax exemptions, for promoting the deployment of electric motorcycles and scooters. For example, the Indian government has recently launched the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles II (FAME 2) scheme for promoting the use of electric vehicles in the country.
Depending on service type, the market is bifurcated into subscription model and pay-per-use model. Of these, the subscription model category dominated the market in 2019, primarily because of the various benefits of the subscription service model such as low cost per swapping, higher affordability, and battery leasing. Additionally, the battery used in three- and two-wheelers accounts for as much as 30-40% of the total price of the vehicle. As the subscription model allows consumers to purchase the vehicle without the battery, it is being increasingly preferred by people over the pay-per-use model.
Geographically, the Asia-Pacific (APAC) region led the electric vehicle (EV) battery swapping for two- and three-wheeler market during the last few years. India and China are two of the biggest procurers of electric two- and three-wheelers in the world. Moreover, the popularity of battery swapping in electric vehicles has grown massively in Taiwan over the last few years, thereby causing the expansion of the regional market. Furthermore, the presence of a large two-wheeler base and the high population density in major cities are also driving the market growth in the region.
On the other hand, the EV battery swapping for two- and three-wheeler market will exhibit the fastest growth in Europe and RoW (Rest of the World), particularly Africa, in the upcoming years, as per the forecast of the market research company, P&S Intelligence. In these regions, the market is being driven by the soaring popularity of business-to-business (B2B) services, particularly moto-taxi, rapid advancements being made in the battery swapping technology in Africa, and the rising popularity of the kick scooter sharing services in the European countries.
Hence, it is safe to say that the popularity of the battery swapping technology for electric two- and three-wheelers will surge sharply in the forthcoming years, mainly because of the growing deployment of electric two- and three-wheelers all over the world.