The
battery leasing market provides both residential and commercial customers with
an affordable alternative to battery ownership. Under a leasing agreement, the
battery provider owns and maintains the battery system, and customers pay a
monthly fee for use. This mitigates high upfront battery costs and shifts other
financial responsibilities like replacement and recycling to the supplier.
Battery leasing allows homeowners and businesses to benefit from reliable and
sustainable energy storage without large capital outlays.
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.
As
electricity costs rise, demand for battery energy storage is growing
significantly. Battery leasing offers an attractive option to store excess
solar power and reduce reliance on the grid. More companies are entering the
renewables industry and leasing out batteries to support this expanding clean
energy transition.
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, and Powin Energy. These suppliers
are investing heavily in large-scale battery manufacturing to meet rising
demand from the leasing sector.
The growing demand for energy storage solutions from both residential and
commercial consumers is fueling expansion of the battery leasing industry. As
renewable energy adoption increases globally, more customers want batteries to
store excess solar power and achieve energy independence. Battery leasing
providers help enable the energy transition by offering accessible storage
options.
Major players in the battery leasing market are also pursuing global expansion
strategies. To capitalize on the large untapped markets, suppliers are
constructing new manufacturing plants and partnering with local installers
across regions like Europe, Asia Pacific, and Latin America. The widespread
push for renewable energy around the world is opening vast opportunities for
battery leasing companies.
Market Drivers
The rising cost of electricity is a major market driver for the battery
leasing industry. As retail power prices continue climbing globally, leasing
affordable battery systems provides savings over the long run from reduced
utility bills. Deploying energy storage helps consumers better control their
electricity consumption and costs through self-generation and demand management
features. This growing demand for cost control will further stimulate growth of
the battery leasing sector.
The Impact of Geopolitical Situation on
Battery Leasing Market Growth
The ongoing geopolitical conflicts, trade tensions and uncertain
macroeconomic conditions are impacting the battery leasing market growth
worldwide. These situations have disrupted the global supply chains for
critical battery materials like lithium, cobalt and nickel. The rising
geostrategic competition between countries for control over these resources is
affecting their steady supply. At the same time, trade conflicts have increased
import/export restrictions and compliance challenges. These supply issues are
hindering battery manufacturing and production ramp up plans of leasing
companies across regions. Moving forward, leasing firms need to diversify
sourcing, invest in resource extraction projects and seek alternative materials
to gain supply resilience in uncertain times. Localizing battery manufacturing
operations also helps address trade barriers risks. Partnerships for joint
research on new chemistries can provide long term solutions.
In terms of demand, worsening macroeconomic conditions are slowing down EV
adoption which is a major end use sector for leased batteries currently.
Declining spending power has reduced individual purchases. Governments with
budget deficits have lower ability to offer supportive EV subsidies and
policies. While these short term impacts cannot be avoided, battery leasing can
still drive adoption by making EVs more affordable via pay-per-use model.
Leasing companies need innovative business models tailored for different
economic cycles to provide sustained growth even during recessions. Overall, a
multipronged approach considering both supply and demand dimensions is required
to counter uncertainties arising from the fluctuating geopolitical environment.
Regional Concentration in Battery
Leasing Market
In terms of value, the battery leasing market is currently concentrated
highly in North America and Europe. This is because early EV and energy storage
markets established first in these regions. Supportive government policies
promoted wide scale commercial and residential deployments here over the last
decade. Also large automakers driving electrification are headquartered in
America and Europe leading to focused manufacturing/testing of new EVs and
batteries. As usage of ESS and EVs rises, these two regions contribute over 60%
of world’s leased battery fleet in 2024. Though China is catching up fast with
its aggressive renewable integration and EV goals.
Fastest Growing Region – Asia Pacific
The Asia Pacific region is forecasted to emerge as the fastest growing
market for battery
leasing market during the period of 2023-2030. This is due to favorable
policies and initiatives taken by countries like China, Japan, South Korea to
expedite clean energy transitions and boost domestic electro-mobility sectors.
Massive investments are flowing into setting up giga factories for advanced
cell and pack manufacturing. Rapid urbanizations and focus on smart city
developments also offer opportunities for deployed energy storage applications.
As battery costs decline and advanced chemistries scale up production from
Asia, the leasing business models will enable wider EV and renewable energy equipment
adoption here over others.
About Author:
Ravina Pandya, Content
Writer, has a strong foothold in the market research industry. She specializes
in writing well-researched articles from different industries, including food
and beverages, information and technology, healthcare, chemical and
materials, etc
*Note:
1. Source: Coherent Market Insights, Public sources,
Desk research
2. We have leveraged AI tools to mine information and
compile it
