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The battery leasing market involves the leasing of stand-alone battery storage solutions to utilities and individual customers. Battery energy storage systems enable storing electrical energy in batteries and discharging it when required, providing solutions for grid stabilization and backup power needs. Additionally, batteries allow for enhanced utilization of renewable energy by storing excess power generated from solar panels and wind turbines that can be used when electricity generation from these sources is low.
The Global Battery Leasing Market is estimated to be valued at US$ 15.03 Bn in 2024 and is expected to exhibit a CAGR of 11.% over the forecast period from 2023 to 2030.
Key Takeaways
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. Key players are focusing on developing innovative financing and leasing models to provide sustainable energy solutions to utilities and individuals.
The growing demand for renewable energy integration and need for grid reliability is driving the battery leasing market. Battery energy storage helps in better utilization of renewable energy by storing excess power. Additionally, batteries provide backup power solutions during grid outages.
Major players are expanding globally to tap the increasing demand for sustainable energy globally. Companies are partnering with utilities and energy retailers to develop large-scale energy storage projects around the world. The global focus on cleaner sources of energy is providing opportunities for battery leasing players.
Market key trends
One of the key trends in the battery leasing market is the pay-as-you-go business model. Many battery leasing companies are offering pay-as-you-go plans where customers pay a monthly rental fee for the battery system and energy consumed. This eliminates large upfront costs associated with battery purchase and makes sustainable energy solutions more affordable. The pay-as-you-go model is gaining popularity among both commercial and residential customers.
Porter’s Analysis
Threat of new entrants: The battery leasing market requires high capital investment and it is difficult for new companies to achieve economies of scale in production.
Bargaining power of buyers: Large enterprises and government entities have strong bargaining power as buyers due to bulk purchase volumes.
Bargaining power of suppliers: A few global players dominate the battery cell manufacturing landscape giving them higher bargaining power over smaller leasing companies.
Threat of new substitutes: Emerging energy storage technologies like hydrogen fuel cells pose a threat, but lithium-ion batteries have established network effects.
Competitive rivalry: Players compete based on technical expertise, rental plans, services offered, and expansion to new markets and applications.
Geographical regions
North America accounts for the largest share of the battery leasing market currently due to supportive policies for clean energy adoption and presence of early technology adopters. Growth is expected to be led by the US.
The Asia Pacific region is projected to grow at the fastest rate during the forecast period led by China, India, Japan and other developing countries rapidly setting up renewable energy projects and investing in grid stabilization solutions.
Geographical regions
North America currently holds the largest share of the battery leasing market value due to the high adoption of clean energy and battery storage solutions in the United States, which is an early technology adopter. Growth is expected to be led by the US.
The Asia Pacific region is projected to witness the fastest growth during the forecast period from 2023 to 2030. This can be attributed to rapid infrastructure development and renewable energy integration in highly populated developing countries like China and India. Japan is also investing heavily in grid flexibility programs.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
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.
