Surpassing the valuation of approximately US$5 Bn in 2020, global electric vehicle charging system market is slated to observe a stupendous, double-digit growth rate through the next few years. The e-mobility drive, and consistently improving electric vehicle infrastructure will heighten the growth potential of the market.
Government Initiatives Favouring EV Sales Complement Electric Vehicle Charging System Market
Favourable government initiatives are playing a crucial role in the development of electric vehicles (EVs) and their promotion globally. For instance, established in 2010, Electric Vehicle Initiative (EVI) under Clean Energy Ministerial (CEM) is a government forum dedicated to trigger adoption of electric vehicles. Several governments are also undertaking initiatives to achieve zero emission targets over the next few years by promoting adoption of EVs to reduce greenhouse gas emissions. For instance, Government of Japan made a policy for EVs in 2018 for their smooth transition in automotive sector. Additionally, the Faster Adoption and Manufacturing of hybrid and Electric Vehicles II (FAME) initiative was commenced by the government in Japan to favour the EV market. Such initiatives by government authorities are expected to augur well for the electric vehicle charging system market.
Rise in EV Sales to Accelerate Electric Vehicle Charging System Market
Growing environmental concerns apropos to carbon emissions from vehicles coupled with technology proliferation in the automotive sector has driven the manufacturing of electric vehicles. According to International Energy Agency (IEA), EV sales worldwide almost doubled in 2021 as compared to the previous year to reach a new record of more than 6 million. IEA also revealed that in 2021, more than 120,000 electric vehicles were sold every week on the global front. In addition, sales of electric vehicles reflected an upward trend in 2022, as sales soared to touch 2 million in the first quarter of the year which is 75% more than sales in Q1 of 2021. Success of electric vehicles has been driven by several factors such as sustained policy support, stable growth in GDP per capita, availability of new models with better design and aesthetics and pledge of countries to achieve zero emission targets in the coming years.
In this backdrop, the manufacturing of electric vehicles witnessed an upswing as countries continue to invest in research and development to develop advanced models with better efficiency. This factor also resulted in the development of efficient and fast electric vehicle charging system which can be used on a commercial or public basis or as a home charging system. That said, increasing sales of electric vehicles is expected to drive the growth of the electric vehicle charging system market worldwide. In the wake of increasing demand for electric vehicles, OEMs are offering wide range of products. From small hatchbacks to top end sedans, OEMs are attracting a large customer pool. For instance, in 2021, General Motors announced its plan to raise an investment of US$35 Bn to enhance its product portfolio and trigger sales by 2025, with an aim to go all electric by end of 2035. Likewise, same year, Ford is planning to enhance its electric vehicle production capacity to around 600,000 units each year by 2023. These investments in capacity expansion are likely to complement sales of EVs, in turn creating an optimistic scenario for the electric vehicle charging system market.
Fast Charging Systems Sought-after in Electric Vehicle Charging System Market
Sales of fast charging systems are expected to increase on the back of their growing demand in commercial stations. Moreover, fast charging systems can charge more than one vehicle simultaneously to reduce delay. Such charging systems are more suitable for electric vehicles used for long distance travel and enhance the suitability and utilisation of charging stations from a business point of view. This factor is expected to fuel demand for fast charging, consecutively contributing towards value growth of the electric vehicle charging system market.
Asia Pacific Likely to Account for a Major Revenue Share in Electric Vehicle Charging System Market
Emerging economies in Asia Pacific are expected to showcase momentous growth in the electric vehicle charging system market. Backed by increasing sales of electric vehicles across countries such as China and India, the demand for charging systems in residential and commercial applications is likely to witness an upswing in the region. Moreover, government initiatives in promoting the use of EVs due to growing environment concerns coupled with rising fuel prices have significantly influenced the adoption of electric vehicles. For instance, according to IEA, sales of electric vehicles in China tripled to reach a count of 3.3 million in 2021 which account for around half of the global EV sales. This is mainly due to the price difference between EVs and conventional vehicles, as the former was only 10% more priced than the latter. Likewise, sales of EVs doubled in other developing regions including India in 2021. This aspect fuelled the need for efficient charging systems and infrastructure, in turn driving growth of the electric vehicle charging system market in Asia Pacific.
Electric Vehicle Charging System Market: Competitive Landscape
A few of the major players in electric vehicle charging system market include General Motors, Tesla, Borgwarner Inc., Eaton Corporation, Siemens AG, and Delta Electronics.
The Global Electric Vehicle Charging System Market Is Segmented As Below:
By Charger Type
By Charger Level
Key Elements Included In The Study: Global Electric Vehicle Charging System Market
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