by The global Battery Leasing Market is estimated to be valued at US$ 15.03 Bn 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 Overview:
The battery leasing market involves leasing out battery energy storage systems to commercial and industrial customers as an alternative to upfront battery purchase. Leasing helps avoid high upfront costs and allows customers to pay for battery usage over time. The leased batteries can be used for various purposes such as self-consumption of solar power, backup power solutions, and renewable energy integration into the grid. Battery leasing offers operational flexibility to scale battery capacity as per changing needs. It also eases battery replacement and upgrade requirements.
Market key trends:
One of the key trends in the battery leasing market is the growing demand for renewable energy integration. With more renewable energy coming online, there is a need for battery storage to effectively manage the intermittent nature of solar and wind power. Battery leasing helps commercial and industrial customers seamlessly add battery capacity to store excess renewable energy and use it when renewable production is low. Another trend is the rising preference for operational expenditure over capital expenditure. Battery leasing provides an opportunity to shift storage investments from capital to operating budgets. This makes battery storage investments more feasible for customers with limited upfront capital. Customers can rightsize their storage needs through leasing models.
Porter’s Analysis
Threat of new entrants: The Global Battery Leasing Market size requires huge infrastructure and technology investment, posing a high threat of new entrants. However, presence of key players poses limitations for new entrants.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of varied product offerings and financing models in the battery leasing market.
Bargaining power of suppliers: Key battery suppliers have significant bargaining power due to specialized product portfolios and technologies. Suppliers can influence prices.
Threat of new substitutes: Emerging energy storage alternatives like hydrogen fuel cells pose minimal threat currently due to high costs.
Competitive rivalry: The battery leasing market experiences high competition due to presence of global and regional players offering customized solutions.
Key Takeaways
The global Battery Leasing Market is expected to witness high growth, exhibiting CAGR of 11.% over the forecast period, due to increasing demand for cleaner energy sources. The rapid deployment of renewable energy projects and increasing electricity demand from electric vehicles are driving the battery leasing market.
Regional analysis: North America dominates the battery leasing market currently due to favorable government policies regarding clean energy adoption in the US and Canada. Asia Pacific is expected to witness fastest growth owing to rising investments in renewable energy integration in China, India and Southeast Asia.
Key players: 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. Nextera Energy and EDF Energy dominate the market with specialized solutions for utilities and industrial applications.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
