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The battery leasing market involves renting out energy storage batteries to consumers rather than selling them. This reduces upfront costs for customers and allows businesses to maximize battery lifespan through controlled charging/discharging and ongoing maintenance/replacement. Battery leasing is commonly used in industries like utilities, transportation, and renewable energy where large-format batteries power equipment, electric vehicles, solar+storage installations, and more.
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 Dynamics:
The growth of the global battery leasing market is driven by two main factors – increasing demand for reliable and sustainable energy sources, and high upfront costs of battery ownership. As renewable energy adoption increases worldwide to meet climate goals, the energy storage market is growing rapidly to support intermittent power sources like solar and wind. However, battery costs remain a barrier for widespread deployment. Leasing programs alleviate this by transferring ownership responsibilities and costs to a third party, while allowing customers access to battery power. This business model is particularly appealing for commercial and industrial customers investing in electric fleets or behind-the-meter storage projects. As global investments in clean energy and electrification accelerate over the coming decade, the battery leasing sector is well-positioned to play a strategic role in deploying energy storage on a massive scale.
Segment Analysis
The Battery Leasing Market is dominated by the stationary batteries segment which accounts for over 60% share. This segment includes batteries used for grid energy storage and electric vehicles charging infrastructure. It is dominating because electricity grids worldwide are increasingly adopting battery energy storage to store excess renewable energy generation and ensure grid stability.
PEST Analysis
Political: Favorable government policies around the world promoting clean energy adoption and reduction in carbon emissions are driving market growth. Many countries have announced targets to achieve net zero emissions by 2050 which involves large scale rollout of renewable energy backed by battery storage.
Economic: Declining battery prices and technological advancements are making battery energy storage increasingly cost competitive compared to traditional fossil fuel peaker plants. This is encouraging private sector investments in battery leasing models.
Social: Growing environmental awareness and demand for green energy is translating into rising consumer and industrial interest in battery leasing over ownership to reduce costs and carbon footprint.
Technological: Continuous improvements in battery chemistries, efficiencies and lifetimes are supporting the commercial viability of battery leasing business models for providing ancillary grid services and other applications.
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. Nextera Energy is the market leader with over 15% share owing to its expertise in battery energy storage project development across USA.
Regional analysis: Asia Pacific accounts for the largest share of over 35% of the global battery leasing market led by China. Rapid growth of renewables in the region to meet climate targets along with strong government support is driving the adoption of large utility-scale batteries for infrastructure development. Europe is the second largest market growing at a CAGR of 12% over the forecast period backed by progressive energy transition policies across countries like Germany, UK, France etc.
Key Takeaways
The global Battery Leasing Market is expected to witness high growth, exhibiting CAGR of 11% over the forecast period, due to increasing decarbonization of energy grids worldwide. The market size for 2023 is estimated at US$ 15.03 Bn.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
