According to a recent report published by Allied Market Research, titled, "Electric Vehicle Charging System Market by Product Type, Mode of Charging, and Charging Voltage Level: Global Opportunity Analysis and Industry Forecast, 2018-2025," the global Electric Vehicle Charging System market size was valued at $3.18 billion in 2018, and is projected to reach $66.27 billion by 2026, registering a CAGR of 45.6% from 2019 to 2026.
Asia-Pacific dominates the market, followed by Europe, North America, and LAMEA. China dominated the global Electric Vehicle Charging System market share in 2018, whereas South Korea is expected to grow at a significant rate in the Asia-Pacific during the forecast period.
There has been a significant increase in the demand and production of electric vehicles in recent years as electric vehicles have several advantages over fuel-powered automobiles. Components such as fan belts, oil, air filters, head caskets, timing belts, cylinder heads, and spark plugs do not require replacement, which makes EVs cheaper and efficient than fuel-powered automobiles. Thus, growth in the production of electric vehicles boosts the growth of the electric vehicle charging system market.
Governments of various countries are taking initiatives to support the adoption of electric vehicles to meet fuel consumption standards and reduce emission of greenhouse gases. For instance, the government of Japan prepared a policy for electric vehicles in August 2018 for better cooperation and smooth transition in the automotive industry. In addition, it has started an initiative named Faster Adoption and Manufacturing of (Hybrid&) Electric Vehicles II (FAME). According to this, incentives will be provided to promote local manufacturing of electric vehicles. Thus, such government initiatives are expected to drive the growth of the electric vehicle and electric vehicle charging system market.
Instead of using plug-in cable charging methods to charge electric vehicles, wireless charging technology for electric vehicles adopt the principle of magnetic induction to charge electric vehicle batteries. In addition, various automobile giants are working on the development of wireless electric vehicle charging system. For instance, in June 2018, BMW, an automobile industry giant, deployed wireless charging technology in its latest Hybrid Electric Vehicle (HEV) named 530e iPerformance. Thus, development of wireless charging technology for electric vehicles holds a remarkable growth opportunity for the players operating in the electric vehicle charging system market.
Governments of various countries are taking up initiatives to push the penetration of electric vehicle charging systems to provide charging solutions to owners and drivers of electric vehicles. For instance, the U.S. government is taking initiatives to deploy electric vehicle charging systems on the U.S. highways. In November 2016, the US Federal Highway Administration deployed around 48 electric vehicle corridors along 25,000 miles of the U.S. highway, based on suggestion by states such as California, Minnesota, Montana, Washington, and others. In addition, in 2017, the Beijing municipal government mandated that all parking spots in new residential buildings must have some space for electric vehicle charging system installation.
Factors such as growth in production of electric vehicles and rise in adoption of electric vehicles, owing to government initiatives drive the growth of the market. In addition, increase in demand for low-emission and fuel-efficient vehicles is anticipated to propel the electric vehicle charging system market growth. However, factors such as high cost of electric vehicles and high cost of electric vehicle charging infrastructure hamper the growth of the market. Further, development of wireless charging technology and incorporation of vehicle-to-grid (V2G) EV charging stations is expected to create numerous opportunities for the growth and expansion of the electric vehicle charging system market.
Key Findings Of The Electric Vehicle Charging System Market:
- By product type, the commercial charging system is anticipated to grow at a lucrative growth rate.
- By mode of charging, the plug-in charging system segment was the highest revenue contributor in 2018.
- By region, Asia-Pacific contributed the highest market revenue in 2018, followed by Europe, North America, and LAMEA.
The key players analyzed in this report are General Electric Company, Evatran Group, Inc., Robert Bosch GmbH, Delta Electronics, Inc., Schneider Electric SE, Eaton Corporation Plc, Tesla Motors, Inc., Delphi Automotive LLP, Siemens AG, ClipperCreek, Inc., and others.