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Battery Leasing Service Market Driven by 16.39% CAGR

According to Towards Automotive consultants, the global battery leasing service market is projected to reach approximately USD 1419.03 million by 2034, increasing from USD 127.66 million in 2024, at a CAGR of 16.39% during the forecast period 2025 to 2034.

Ottawa, Sept. 02, 2025 (GLOBE NEWSWIRE) -- The global battery leasing service market size stood at USD 362.03 million in 2025 and is projected to reach USD 1419.03 million by 2034, according to a study published by Towards Automotive, a sister firm of Precedence Research.

The battery leasing service market has been burgeoning in recent periods due to high demand for EVs, driven by their sustainable nature and competitive performance compared to ICE vehicles. The market allows consumers to contribute towards sustainability without any restrictions on their work schedule or transportation services.

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Key Highlights of Battery Leasing Service Market

  • By region, the Asia Pacific dominated
  • the battery leasing service market, while North America is expected to be the fastest-growing region during the forecast period.
  • By business model, the subscription service segment led the battery leasing service market, whereas the pay-per-use model is expected to grow in the foreseen period.
  • By battery type, the lithium-ion (Li-ion) segment led the battery leasing service market, whereas the nickel metal hybrid (NiMh) is expected to grow in the foreseen period.
  • By vehicle type, the passenger vehicle segment led the battery leasing service market, whereas the commercial vehicle segment is expected to grow in the foreseeable period.

Market Overview

The rising automotive market has also led to the growth of EVs, which is helpful to maintain sustainability, along with no compromise in various forms of transportation. Partnerships are further helping the growth of the battery leasing service market by providing renewable batteries for energy storage to maintain sustainability. The method not only targets sustainable transportation but also resolves the need for emergency battery solutions.

One of the major growth factors for the market is the rising technology in the battery segment, which is helping the growth of the market. The advanced technology not only helps to manage the transportation of consumers seamlessly but also helps with commercial transport in the form of smooth fleet management.

The market resolves the issue of consumers with EVs to upgrade their batteries with the latest technology for smoother drives and to enhance the life of the vehicle. It helps to maintain sustainability in the form of renewable use of the vehicle by avoiding frequent vehicle replacements due to battery issues.

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Major Applications of Battery Leasing Services

Automotive / Electric Vehicles (EVs)

Battery leasing significantly reduces the high upfront cost of electric vehicles, encouraging wider adoption by offering flexible battery ownership models. It is commonly used in passenger cars, commercial vehicles like taxis and delivery vans, and two-wheelers such as e-bikes and electric scooters.

Industrial Equipment

In the industrial sector, battery leasing supports operations in warehouses, factories, and logistics facilities by powering equipment such as forklifts, heavy machinery, and automated guided vehicles (AGVs), offering cost-effective battery replacement and ongoing maintenance.

Residential Energy Storage

For residential applications, leasing enables homeowners to access energy storage systems often paired with rooftop solar, without large capital investments, providing benefits like backup power during outages and efficient peak load management.

Commercial Buildings & Infrastructure

In commercial settings such as offices, retail stores, and public buildings, battery leasing helps reduce electricity costs, maintain power during blackouts, and support environmental sustainability goals.

New Trends of Battery Leasing Service Market

  • The rising growth of sustainable transportation solutions to maintain environmental harmony has led to the growth of the battery leasing service market. It also helps consumers to lower their carbon footprint and do their bit for the environment as well.
  • The market is also observing growth in the recent period, as it also helps to lower the usage of fossil fuel-powered vehicles, enhancing the growth of renewable battery-operated vehicles, which are helpful to maintain sustainability and lower carbon footprint as well.
  • The advanced technology, helpful to lower the costs of batteries and compelling consumers to opt for EVs at a higher rate compared to ICEs, is also helping the battery leasing service market grow in recent periods.

Market Dynamics

Drivers

What are the growth drivers of the Battery Leasing Service Market?

There are multiple growth drivers helping the growth of the battery leasing service market in the recent period. One of the most important factors for the growth of the market is the sustainability factor. High usage of EVs compared to fossil fuel-powered vehicles is helping the market grow due to increasing awareness about sustainability and the importance of renewable sources for a lower carbon footprint.

Another major factor helpful for the growth of the market is advanced technology. The rising technological advancement is helpful for enhancing the battery’s performance, which is helpful for consumers to lease batteries or replace them with an upgraded option rather than replacing the whole vehicle. It helps to lower the upfront costs, along with managing sustainability efficiently.

Challenge

Infrastructure Costs Restraining the Growth of the Market

Though the battery leasing service market is a growing market, it faces restrictions in the form of high infrastructure costs incurred for setting up the market. The market requires high investment for charging and swapping networks. Maintenance, tracking, and refurbishment of batteries to ensure their longevity and smooth functioning are also some of the segments requiring further investment, further restraining the growth of the battery leasing service market.

Opportunity

Rising EV Adoption is helping the Growth of the Market

The rising adoption of EVs in the form of passenger as well as commercial vehicles is helping the growth of the battery leasing service market.

Passenger EVs are helping consumers to save on rising fuel costs, with no compromise in vehicle performance, which is helping the inclination of consumers towards the market. High usage of EVs in the commercial segment is helping companies to reduce their fuel costs, along with contributing towards sustainability and lowering the carbon footprint, which is essential for managing environmental harmony.

More Insights of Towards Automotive:

Regional Analysis

Asia Pacific Dominated the Battery Leasing Service Market

Asia Pacific dominated the battery leasing service market and is currently dominating with the help of multiple factors fostering the growth of the market. Government initiatives to support the growth of EV adoption are one of the major factors helping the growth of the market.

Stringent government regulations for commercial segments to keep a tap on their carbon footprint are another major factor helpful for the growth of the market. The market is essential for fleet operators to lower the fuel costs, maintenance costs, and various other costs that are curbed by adopting EVs. Countries such as India, China, and Japan contribute significantly to the growth of the market in the Asia Pacific.

North America Battery Leasing Service Market Trends:

Factors such as rising demand for EV ownership, technological advancements in batteries, and government support are some of the major reasons for the growth of the battery leasing service market in North America. Battery leasing helps to enhance the growth of the EV market, further fueling the growth of the battery leasing service market in the region.

Technological advancements helpful for efficient battery performance, energy management, and enhanced charging speed are also helping the growth of the market in the foreseeable period. Services like battery swapping allow EV consumers to swap their depleted batteries in minutes for a smoother routine and sustainable transportation.

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Segmental Analysis

By Business Model

The subscription model allows EV customers to avoid the high upfront costs, as it involves customers paying a regular fee for ongoing battery access, fueling the growth of the battery leasing service market. The segment allows flexibility, cost-effectiveness, and encourages higher EV adoption, further helping the growth of the market. The segment separates the battery costs from the vehicle’s costs, allowing customers to adapt services such as battery swapping and other similar services.

The pay-per-use segment is observed to be the fastest-growing segment in the foreseen period, as it allows infrequent EV users to pay only for the amount of energy consumed. It helps them to lower the additional upfront costs and overall expenses observed in the fossil fuel-powered vehicles. The segment also contributes to the growth of EV adoption, further fueling the growth of the market. The segment is also observed to be growing as it allows consumers to alleviate maintenance costs and battery degradation costs.

By Battery Type

The Li-ion segment led the battery leasing service market due to its efficiency and energy storage, helping the growth of the market. Rising EV adoption and consumer awareness about sustainability and sustainable transportation are also major factors for the growth of the market.

Methods to lower the high upfront costs and easy battery swapping with advanced technology are also some of the major factors that contribute to the growth of the market. The lithium-ion battery is the primary choice for efficient battery performance. Hence, such factors also help in spiking the market.

High usage of nickel metal hybrid batteries in hybrid electric vehicles is one of the major factors for the growth of the segment in the foreseen period. Higher EV adoption, enhancing the importance of renewable energy sources, sustainability, and a lower carbon footprint are also some of the factors contributing to the growth of the market. Government initiatives to maintain sustainability and focus on sustainable means of transport also help to enhance the growth of the market in the foreseeable period.

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By Vehicle Type

The passenger vehicle segment led the battery leasing service market due to multiple advantages offered by the market, such as separate prices of the batteries from the vehicle price, resulting in higher economic options. The segment aided EV adoption, further fueling the growth of the market, along with enhancing sustainability and encouraging sustainable transportation methods.

Government incentives for EV adoption and preferring sustainable transportation methods to lower the carbon footprint of companies are also helping the growth of the market.

The commercial segment is expected to grow in the foreseeable period as it offers sustainable fleet management solutions. The stringent government rules to manage carbon footprint and promote sustainability also help the growth of the segment, further fueling the growth of the battery leasing service market in the foreseeable period.

It also helps companies to lower higher upfront costs and also avoid various other costs such as battery degradation and maintenance, further enhancing the growth of the segment. The segment also contributes to factors such as effective reuse, refurbishment, and second-life applications, which are helpful for the circular economy, further aiding the market’s growth.

Access our exclusive, data-rich dashboard dedicated to the Battery Leasing Service Market, designed specifically for decision-makers, strategists, and industry leaders. The Towards Automotive dashboard offers in-depth statistical insights, segment-wise market analysis, regional share breakdowns, comprehensive company profiles, annual updates, and much more. From market sizing to competitive benchmarking, this all-in-one platform is your strategic gateway to smarter, data-driven decisions in the truck rental and leasing industry.

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Recent Developments in Battery Leasing Service Market

  • In January 2025, Urja Mobility, an EV startup, announced the launch of its B2C battery leasing program. The main target of the launch was e-rickshaw drivers by providing them with lithium-ion batteries for enhanced performance and efficiency. The launch was done in 10 cities in India.
  • In June 2025, Firefly, an EV by brand Nio, announced its Battery-as-a-Service (BaaS) battery rental purchase plan for its inaugural model, Firefly. It helped the brand to lower the starting price by 30% to 79,800 yuan (11,100 USD).

Battery Leasing Service Market Companies

  • Ample, Inc.
  • Bounce Infinity
  • Contemporary Amperex Technology Co., Ltd.
  • E-ChargeUp Solutions Private Limited
  • Esmito Solutions Private Limited
  • Gogoro Inc.
  • Lithion Power Private Limited
  • NIO NextEV Limited
  • Numocity Technologies Private Limited
  • Octillion Power Systems
  • Oyika Pte Ltd.
  • Renault Group
  • Sun Mobility Private Limited
  • VoltUp

Battery Leasing Service Market Segmentation

By Business Model

  • Subscription Service
  • Pay-Per-Use Model

By Battery Type

  • Lithium-ion (Li-ion)
  • Nickel Metal Hybrid (NiMh)

By Vehicle Type

  • Passenger Vehicle
  • Commercial Vehicle

By Geography

North America

  • U.S.
  • Canada

Europe

  • U.K.
  • Germany
  • France

Asia-Pacific

  • China
  • India
  • Japan
  • South Korea
  • Malaysia
  • Philippines

Latin America

  • Brazil
  • Rest of Latin America

Middle East & Africa (MEA)

  • GCC
  • North Africa
  • South Africa
  • Rest of the Middle East & Africa

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About Us

Towards Automotive is a leading research and consulting firm specializing in the global automotive industry. We deliver actionable insights across key segments such as electric vehicles (EVs), autonomous driving, connected cars, automotive software, aftermarket services, and more. Our expert team supports both global enterprises and start-ups with tailored research on market trends, technology, and consumer behavior. With a focus on accuracy and innovation, we empower clients to make informed decisions and stay competitive in a rapidly evolving landscape.

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