Electric Vehicle Charger (EVC) Market

Market Overview

The global electric vehicle charger market size was valued at USD 6135 million in 2021 and is estimated to reach an expected value of USD 52728 million by 2030, registering a CAGR of 27% during the forecast period (2022 – 2030).

An electric vehicle (EV) charger charges electric vehicles with a battery and an electrical source that helps to charge the battery. Such vehicles can be charged through different levels of charging, that is, level 1, level 2, and level 3. The cost, in addition to the maintenance cost of electric vehicles, is lower than conventional petrol/diesel cars.

Implementing stringent government regulations regarding using electric vehicles to curb environmental pollution drives their demand. This is because electric vehicles aid in reducing carbon emissions, which contain toxic gas particles, which, in turn, boost the need for EV chargers—Furthermore, the surge in demand for electric vehicles fuels market growth. An increase in demand for luxury electric vehicles is expected to offer ample opportunities to key players operating in the market.

Market Dynamics

Market Drivers

Adoption of Stringent Government Regulations to Limit Environment Pollution

The conventional gas-powered vehicle uses an internal combustion engine to generate power. In an ideal scenario, the combustion system completely incinerates the fuel and emits carbon dioxide and water as waste; however, the combustion system generates various greenhouse gases, leading to environmental pollution. On the contrary, an electric vehicle uses an electric motor powered via a continuous supply of current; hence, it does not lead to the emission of pollutants. U.S., Germany, France, and China have implemented stringent government regulations for vehicular emission, making it mandatory for automobile manufacturers to use advanced technologies to combat high vehicle emission levels. In addition, a program launched by the California Air Resources Board (CARB) includes guidelines for manufacturers to produce and deliver zero-emission vehicles (ZEVs), substantially boosting the adoption of electric vehicles, which, in turn, augments the need for electric vehicle chargers.

Furthermore, several policies have been deployed by various governments across the globe to meet environmental conditions. For instance, Electric Vehicle Initiative (EVI), a multi-firm government policy forum established in 2009 under Clean Energy Ministerial (CEM), helped key players to accelerate the deployment of electric vehicles worldwide (as per IEA.org).

In addition, during the last quarter of 2018, the Government of China announced its New Energy Vehicle (NEV) mandate to ban cars equipped with internal combustion engines (ICS) in the long term. Furthermore, the Government of India is providing subsidiaries to promote the sales and use of electric vehicles. Thus, all these factors collectively are anticipated to drive the growth of the global electric vehicle charger market.

Increase in Penetration of Electric Vehicles

Because it is a fossil fuel, gasoline cannot be renewed as an energy source and will eventually run out. Creating and utilizing alternative fuel sources is crucial for promoting sustainable development. This entails using electric vehicles, which are more cost-effective than traditional automobiles and do not require gasoline. Compared to gas-powered vehicles, which can only convert 17–21% of the energy stored in gasoline, electric vehicles can convert almost 50% of the electrical energy from the grid to power at the wheels, encouraging their use. In addition, the recent increase in the price of gasoline and diesel has raised the demand for fuel-efficient vehicles. This is attributed to the depletion of fossil fuel reserves and an increase in the tendency of companies to gain maximum profit from these oil reserves. Thus, these factors boost the need for advanced fuel-efficient technologies, leading to a surge in demand for electrically powered vehicles, and propelling the demand for electric vehicle chargers.

Market Restraint

Lack of Standardization of EV Charging

End customers' desire for EV chargers is hampered by a lack of uniformity in the industry. Customers frequently hesitate to decide whether such EV chargers are appropriate for their automobiles. Additionally, the vehicles require more adaptable charging systems to benefit from the fastest charging speeds when they become available. The lack of standard plugs makes charging much more challenging. Although the network of chargers for Tesla vehicles is growing, they are made exclusively for Tesla automobiles. Tesla is an American electric vehicle and clean energy corporation headquartered in Palo Alto, California.

Additionally, the 120- and 240-volt plugs, which are typically used in houses, have been standardized by the automobile industry. However, the plugs or ports that may charge vehicles in 30 minutes or fewer have not yet been defined. Thus, all these factors together restrain the growth of the global market.

Market Opportunities

Wireless Charging for Electric Vehicles

Introducing wireless charging for electric vehicles is expected to accelerate the demand for electric vehicles in the upcoming years. Wireless electric vehicle charging (WEVC) is a highly efficient, convenient, and easy-to-use wireless charging technology for charging electric vehicles. Plugless is one of the leading companies that offer wireless charging to electric vehicles.

Furthermore, EVs offer multiple advantages, such as reduced fuel (petrol, diesel, and gas) consumption and low emission from the tailpipe, which boost the demand for wireless charging. Thus, wireless charging for an electric or plug-in hybrid vehicle will become ubiquitous in a short period.

BMW just debuted its wireless electric vehicle charging system in Germany on May 28. With this technique, cars can park over an inductive charging station and press the start/stop button to start charging. The system automatically shuts off after the battery has fully charged. The GroundPad is mounted in a garage or outdoors and uses a magnetic field to connect to the vehicle's charging system over a distance of about eight centimeters. Additionally, the demonstration is carried out at Satory Versailles, France, using an electric vehicle using a wirelessly charged inductive device. This technology has a flexible mechanism for charging electric vehicles. Qualcomm, Renault, and a French company developed it, enabling electric cars to charge their batteries while moving. Such trends in the industry create lucrative opportunities for market expansion during the forecast period.

Segmental Analysis

The global electric vehicle charger market is segmented based on vehicle type, charging type, end user, and region.

Depending on vehicle type, the global EVC market is divided into battery electric vehicles (BEV), plug-in electric vehicles (PHEV), and hybrid electric vehicles (HEV). The PHEV segment was the highest contributor to the market and is estimated to grow at a CAGR of 25% during the forecast period. A plug-in hybrid electric vehicle (PHEV) combines a gasoline or diesel engine with an electric motor and a large rechargeable battery. These vehicles are integrated with an internal combustion engine and electric motor. They are powered by an alternative fuel or a conventional fuel, such as gasoline (petrol), and a battery, which is charged with electricity by plugging into an electrical outlet or charging station. Two basic plug-in hybrid configurations are available in the market, which includes series plug-in hybrids or extended range electric vehicles (EREVs) and parallel or blended plug-in hybrid electric vehicles. The miles per gallon on a plug-in hybrid (PHEV) are higher than on internal combustion engine (ICE) vehicles. In addition, PHEVs emit fewer gases than conventional ICE vehicles, as they have extra capacity to run a certain distance without burning a single drop of fuel, which drives the market's growth.

The BEV segment is the second largest. A BEV does not require gasoline during operation and relies solely on pure electric battery power. Such vehicles are not equipped with an internal combustion engine or fuel tank and operate on a fully electric drivetrain powered by rechargeable batteries, which drives the market growth. BEVs need to be plugged into a power source to charge, and depending on the vehicle, they have varying charging times and driving ranges. In addition, such vehicles have longer electric driving ranges than PHEVs, boosting market growth. Nissan Leaf and Tesla Model S are the key examples of battery electric vehicles. Furthermore, the demand for BEVs has increased significantly over the years to reduce the carbon emissions from fuel cars. Moreover, enforcement of stringent government regulations to restrain environmental pollution and reduce the dependency on fuel cars is expected to boost the demand for battery electric vehicles, thereby augmenting the growth of the global market.

By charging type, the global EVC market is bifurcated into onboard and off-board chargers. The onboard chargers segment was the highest contributor to the market and is estimated to grow at a CAGR of 26.9% during the forecast period. Most of the EVs in the market are equipped with an onboard charger. In addition, the manufacturer supplies a unit of the charger to customers. The EV owner can use this charger to charge the EV from the house power outlet, propelling the market growth. The surge in BEVs and PHEVs is expected to boost the demand for onboard chargers during the forecast period. Onboard chargers include AC level 1 and 2 modes of charging systems that convert AC to DC. Onboard chargers are available at most charging stations, which are more cost-effective than off-board chargers.

The off-board chargers segment is the second largest. Off-board chargers convert AC to DC to provide fast charging to electric vehicles. An increase in plug-in electric vehicles (PHEVs) is expected to boost the demand for these chargers in the coming years. DC charging stations have a unique grid that can charge the vehicle in a few minutes, which reduces downtime. CHAdeMO, combo charging system (CCS), and supercharger are the recent developments in the market. The surge in demand for luxury and supercars is projected to fuel the demand for DC fast chargers, thereby driving the growth of the global market.

By end user, the global EVC market is divided into residential and commercial EV chargers. The residential segment was the highest contributor to the market and is estimated at a CAGR of 26.7% during the forecast period. The electric vehicle charger market is witnessing increased demand for residential EV chargers because around 80% of drivers prefer to charge their vehicles at home. In addition, residential charging is convenient and inexpensive, which allows end users to charge electric vehicles conveniently at home. An electric vehicle commonly comes with a level 1 EVSE charger with three-pong household plugs on one end and a J1772 connector on the other, making it suitable for most home-based charging.

Regional Analysis

Region-wise, the global electric vehicle charger market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Asia-Pacific was the highest revenue contributor and is estimated to grow at a CAGR of 27%. Many countries such as Mexico, Canada, and the U.S. deploy digital infrastructure to facilitate connectivity between vehicles and infrastructures to gather vital information, thereby reducing traffic congestion and ultimately making roads safer. For instance, Ford partnered with companies such as Postmates, Qualcomm, and Autonomic to provide cities with cloud services to facilitate communications among vehicles and nearby infrastructure through transportation mobility cloud & Cellular Vehicle-to-Everything (C-V2X) systems. Apart from private companies, these countries' governments make considerable investments in these technologies and develop more smart cities. This increase in the development of smart cities is expected to drive the EV charger market significantly.

Europe is the second largest region. It is estimated to reach an expected USD 13262 million by 2030, registering a CAGR of 27.4% during the forecast period. The key players operating in the European market, such as BMW, Daimler, Ford, and Volkswagen, have planned to develop a fast charger for electric cars along major European highways. Furthermore, the demand for BEVs and PHEVs is expected to increase in the coming years. Additionally, the adoption of stringent government regulations to curb environmental pollution is projected to boost the demand for electric vehicles in the European region. The first-ever EV charger available commercially was Evatran’s Plugless L2 (level 2) EV charging system, which was equipped with control panels that could be mounted on walls and a wireless transmitter for charging. Germany, the UK, and France witnessed the highest penetration of EV chargers due to economies of scale, high-income levels, and automotive manufacturing hubs. Thus, all these factors significantly contributed to the growth of the European electric vehicle charger market.

Asia-Pacific is the third largest region. Asia-Pacific possesses high growth potential, owing to the rapid upsurge in the number of electric vehicles in countries such as China and Japan. Several government initiatives to develop electric vehicle charging infrastructure is expected to boost the growth of the EV chargers market in this region. For instance, the Automotive Research Association of India (ARAI) planned to employ more than 200 EV charging stations across India. All these factors significantly drive the growth of the market.

Recent Developments

• September 2022 - A prominent provider of auxiliary power converter systems for light rail cars and metros, PowerTech Converter (PTC), is being acquired by ABB, according to a recent announcement. An essential element of ABB Motion's external expansion strategy is the acquisition.
• September 2022 - ABB E-mobility, a leader in electric vehicle (EV) charging infrastructure, today announces the continued expansion of its global and US manufacturing footprint with new manufacturing operations in Columbia, South Carolina.

Electric Vehicle Charger (EVC) Market Segmentation

By Vehicle Type

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

By Charging Type

• Onboard Chargers
• Off-board Chargers

By End User

• Residential
• Commercial

By Region

• North America
• Europe
• Asia-Pacific
• LAMEA