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The battery leasing market provides an innovative and affordable energy storage solution for applications ranging from residential to utility-scale installations. Battery leasing allows customers to avoid large upfront capital costs and focuses on a pay-per-use model that offers flexibility. Installing battery storage enables the integration of renewable energy sources and provides backup power during outages. The global battery leasing market plays a key role in facilitating the energy transition towards cleaner and more distributed power generation.
The global Battery Leasing Market is estimated to be valued at US$ 15.03 Billion 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 major trends in the battery leasing market is the development of innovative business models that leverage the latest battery technologies. As lithium-ion batteries continue to fall in price while improving in performance, new subscription services are emerging that modernize the energy grid. For example, some companies are piloting integrated home energy solutions that combine rooftop solar, batteries, electric vehicle chargers, and energy management systems through affordable subscriptions. This simplifies distributed energy access and accelerates the uptake of renewable technologies.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as large capital investments are required to set up battery manufacturing and leasing infrastructure. However, declining battery costs are lowering entry barriers.
Bargaining power of buyers: The bargaining power of buyers is high due to the presence of numerous battery leasing providers offering flexible contracts. Buyers can easily switch between providers based on cost and services.
Bargaining power of suppliers: Battery manufacturers have moderate bargaining power over battery leasing companies as suppliers. Established battery makers can influence prices but new suppliers are increasing competition.
Threat of new substitutes: Threat from substitutes is medium as renewable energy sources like solar and wind require battery storage for commercialization. However, fuel cells and flywheels pose a threat for specific non-residential applications.
Competitive rivalry: The competitive rivalry is high due to increasing number of battery leasing companies and contracts. Companies compete based on pricing, technology, fleet size, and services.
Key Takeaways
The global battery leasing market is expected to witness high growth over the forecast period supported by growing adoption of electric vehicles and expansion of renewable energy capacity additions which require energy storage solutions. The global Battery Leasing Market is estimated to be valued at US$ 15.03 Billion in 2023 and is expected to exhibit a CAGR of 11% over the forecast period 2023 to 2030.
North America currently dominates the market owing to favorable government policies and initiatives promoting clean energy installations in the US and Canada. In Europe, countries like Germany, the UK, Italy, and France are major markets for battery leasing driven by high renewable Integration. Asia Pacific is projected to be the fastest growing region led by China due to strong government support for electric vehicles and renewable energy projects.
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, and Powin Energy. Players like Tesla and CATL are witnessing growing demand for their battery technologies and products globally. New partnerships and service launches are expanding business opportunities.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
