Battery-as-a-Service (BaaS) enables users to lease batteries independently of the vehicle, eliminating the need for an upfront battery and vehicle purchase. By the BaaS model, the battery would be rented from a provider of charging infrastructure, and whenever it needed to be recharged, it would be changed at a station.

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According to a research report by Astute Analytica, the global Battery as a service market value was US$ 142.7 million in 2021 and is expected to reach US$ 1,097.6 million by 2030, growing at a compound annual growth rate (CAGR) of 25.9% over the projection period from 2022 to 2030. 

The market is driven by factors like high battery costs, rising electric car sales, and supportive government measures. The operational expenses of electric vehicles (EVs) are lower than those of conventional automobiles, but they cost more to buy. The high cost of the batteries used in these vehicles accounts for a large portion of this expense.

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The battery-as-a-Service model allows customers to lease batteries as a separate component from cars. Leasing the battery saves the upfront purchase cost of an electric vehicle. This new service provides battery swapping options that offer a solution to address shorter-range issues of an EV. Further, governments of several countries promote the adoption of electric vehicles, which in turn is expected to propel market growth.

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Furthermore, countries like France, China, the U.S., and Germany have implemented stringent government laws and regulations regarding vehicular emissions. As a result, it is mandatory for automobile manufacturers to use advanced technologies that help to combat high-emission levels emitted by vehicles. They have promoted growth in this segment by offering incentives, preferential policies, and imposing tax rebates among people.

For instance, in India, the state of Maharashtra declared its EV policy in 2021. This policy provides incentives of Rs. 5,000 per kilowatt-hour of battery capacity to all types of electric vehicle buyers. Moreover, several European governments have made long-term pledges with compliance targets within a specific timeframe such as ZEV (Zero-Emission Vehicles) mandates and the phase-out of internal combustion engine vehicle sales. However, the damage to the battery due to handling coupled with a lack of standardization is hindering the market growth.

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Asia Pacific is the highest shareholder region in the Global Battery-as-a-Service Market in 2021 and will continue its dominance over the forecast period. China is the world's top EV producer and user and has a stranglehold on the region's EV market. Furthermore, South Korea and Japan have seen rapid growth in their electric vehicle market. As a result, their governments have aided the increase of EV demand by providing EV charging stations, establishing deadlines for switching from ICE vehicles to full or hybrid EVs, set up pollution standards, among other things.

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