On-board Charger Market Extends at a Healthy CAGR of 17.67% by 2030

Introduction

The growing global demand for electric vehicles will be the critical driver of demand growth for onboard chargers over the forecast period. An onboard charger transforms alternating current (AC) from charging stations into direct current (DC) to charge a vehicle's battery (DC). Increased installation of AC charging stations in expanding business sectors leads to expanding the onboard charger market. As a result of its entire thickness and 98 % efficiency, silicon carbide semiconductor technology is rapidly being used to manufacture onboard chargers. As a result, a few businesses are concentrating more on offering silicon carbide onboard chargers that are more potent and productive, thereby creating new prospects for market expansion. The onboard charger lets you regulate the charging current and voltage, extending the battery's lifespan. Chargers provide constant current or voltage charging, both of which are easy to use and have benefits and drawbacks.

Increasing government initiatives for installing electric vehicle charging infrastructure are driving the growth of the Electric Vehicle onboard charger market. However, the lack of standardisation of EV charging and the surge in the installation of fast DC chargers may impede the expansion of the Electric Vehicle onboard charger market. Developing a two-way onboard charger (V2G) for future electric and plug-in hybrid vehicles is anticipated to present chances for the Electric Vehicle onboard charger market during the forecast period. During the few months of the coronavirus pandemic, sales of electric vehicle (EV) onboard chargers have plummeted due to the global reduction in vehicle demand. To avoid the spread of coronavirus, the import/export of raw materials required for EV chargers and production activities in the EV industry have been suspended during the global shutdown.

Market Dynamics

The high price of charging electric vehicles at public stations

Demand for onboard chargers is driven by the expensive cost of charging an electric vehicle at public charging stations. Near roadways, malls, and businesses, public charging stations are charged commercial power rates higher than residential rates. Consequently, electric vehicles must be equipped with onboard chargers. An onboard charger is utilised to charge the traction battery in an electric vehicle by converting the AC input from the grid into the DC input necessary to charge the batteries. The increase in private and public AC charging stations across the globe is one of the primary factors fueling the market's progress. The AC level 1 onboard charger is compatible with standard power outlets and is installed in all-electric vehicle types.

Expanding government initiatives for the installation of infrastructure for charging electric vehicles

Increasing government initiatives for installing electric vehicle charging infrastructure are driving the growth of the Electric Vehicle onboard charger market. However, the lack of standardisation of EV charging and the surge in the installation of fast DC chargers may impede the expansion of the Electric Vehicle onboard charger market. Developing a two-way onboard charger (V2G) for future electric and plug-in hybrid vehicles is anticipated to present chances for the Electric Vehicle onboard charger market during the forecast period. During the few months of the coronavirus pandemic, sales of electric vehicle (EV) onboard chargers have plummeted due to the global reduction in vehicle demand. To avoid the spread of coronavirus, the import/export of raw materials required for EV chargers and production activities in the EV industry have been suspended during the global shutdown.

Increasing global installation of charging stations

The installation of electric charging stations is driving market expansion on a global scale. For instance, in February 2021, Shell announced intentions to build 500,000 EV charging stations by 2025. A boost in electric vehicle sales will accelerate market growth. Compared to the same period in 2020, sales of electric vehicles surged by 160 % in the first half of 2021. It represented 26% of the car market's new vehicle sales. China is the world's largest market for electric vehicles, accounting for 13 % of the market. As a result of the explosive growth of the EV business, lithium costs have climbed by around 165%. These circumstances lead to more lavish consumer spending. Consumers will spend approximately USD 12 billion on EV products in 2020. In addition, according to a study by Power Technology, EV sales in the first quarter of 2021 totalled 2.6 million units, with 5 million units anticipated by the year's end.

Regional analysis of the Global On-board Charger Market 

In 2021, the Asia Pacific region was responsible for more than 38 % of worldwide revenue. As a result, it now maintains a predominant position in the sector. The acceleration of market growth in the region is mainly attributed to the rise in government efforts being implemented in countries such as China and India to encourage the purchase of electric vehicles. For instance, one of the critical factors that are driving sales of electric vehicle (EV) onboard chargers in the country is the sales quotas that the Chinese government has imposed for the years 2019, 2020, and 2021. These quotas are in effect for all three of those years. These proportions will remain unchanged during 2019, 2020, and 2021. In China, several electric vehicles (EVs) like the Tesla Model 3, the BYD Qin Pro EV, and the GAC Aion S come equipped with onboard chargers. Other EVs like these are also available.

It is projected that Europe will enjoy significant growth throughout the projection period. The market participants in Europe are consistently expanding the selection of electric vehicles (EVs) they provide, directly leading to an increase in the need for chargers that can be installed onboard vehicles. According to the BMW vision, the automobile manufacturer plans to electrify all of its sport utility vehicles (SUVs), four-door sedans (sedans), and Mini vehicles in Europe by 2030. At the same time, an increase in the number of subsidies made available for the acquisition of electric vehicles is also one of the critical factors contributing to the expansion of the market in the region. This is the leading cause, along with others, that is driving the market expansion in the region.

Key highlights

• The Global On-board Charger Market was valued at $ 5.83 billion in 2021, and is projected to reach $ 21.07 billion by 2030, registering a CAGR of 17.67 % from 2022 to 2030.
• In 2021, the 11 kW to 22 kW category led the MarketMarket and accounted for over 41 % of the global revenue.
• In 2021, the passenger car category led the MarketMarket and contributed more than 35.0% of worldwide revenue.
• In 2021, the BEV category led the MarketMarket and accounted for more than 67 % worldwide revenue.
• In 2021, the Asia Pacific area was responsible for more than 38 % of worldwide revenue.

Competitive Players

Competitive players in the global On-board Charger market

The major players in the global On-board Charger market – Bel Fuse Inc.; Delta Energy Systems; STMicroelectronics; Toyota Industries Corporation; Eaton; Stercom Power Solutions GmbH; innolectric AG; BRUSA Elektronik AG; AVID Technology Limited; Ficosa Internacional SA.

Recent Developments

Recent Developments by key players

• In June 2022, Bel Power Solutions’ Dubnica nad Váhom, Slovakia Factory Receives IATF 16949 Certification for Automotive Power Supplies.
• In April 2022, Bel Power Solutions Expands Power Subrack Systems for Railway Applications.
• In July 2022, STMicroelectronics reveals automotive high-side switch controller with flexible diagnostics and protection.
• In April 2022, Toyota Industries Corporation Develops a New Compact and Lightweight Unit That Integrates an On-Board Charger and DC-DC Converter.

Segmentation

The Global On-board Charger Market Segmentation

Power Output

• Less than 11 kW
• 11 kW to 22 kW
• More than 22 kW

Vehicle Type

• Passenger Car
• Buses
• Vans
• Medium & Heavy-Duty Vehicles
• Boats
• Others

Propulsion Type

• Battery Electric Vehicle (BEV)
• Plug-in Hybrid Electric Vehicle (PHEV)

Regional

• North America
• Europe
• Asia Pacific
• LAMEA