Wireless Car Charging Market Size, Share & Trends Analysis Report By Charging Type (Dynamic Wireless Charging Systems, Stationary Wireless Charging Systems), By Technology (Magnetic Power Transfer, Inductive Power Transfer, Capacitive Power Transfer), By Vehicle Type (Hybrid Electric Cars, Battery Electric Cars) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

Wireless car charging —a rapidly evolving advanced technology — is expected to be pivotal for the electric vehicle (EV) industry. It eliminates the need for plug-in cables and adaptors and reduced the long wait time otherwise spent at charging stations, making the process of charging electric vehicles far more convenient and enabling vehicles to travel longer distances.

Market Dynamics

Favorable Government Initiatives to Bolster Adoptions of EVs

Rising environmental concerns have seen an upward trend in the uptake of electric vehicles. Favorable government initiatives are further supporting this shift. For instance, Amsterdam’s government offers parking permits all over the city for electric vehicles. Other benefits such as exemption from taxation during vehicle registration and subsidies are also accelerating the adoption of electric vehicles, in turn providing impetus for changing technologies such as wireless car charging.

2017 was a significant year for the electric vehicles market, as the global sale of plug-in and battery electric vehicles surpassed 1 million units for the first time in history. Almost 20 cities around the world have declared plans to ban diesel and gasoline cars by the end of 2030. For instance, Paris aims to ban diesel and gasoline automobiles by the end of 2030. The rising adoption of electric vehicles will subsequently enhance the need for wireless charging infrastructure, augmenting the growth of the wireless car charging market.

Rapid Expansion of Wireless Charging Infrastructure

Governments have realized that the adoption of EVs depends on the availability of advanced infrastructure. They are thus taking steps to develop adequate charging infrastructure to meet the existing and future needs of electric mobility. For instance, the Norwegian government is working with Fortum, a Finnish company, for the implementation of wireless car charging facilities for electric taxis in Oslo. The U.K. government has invested USD 2 million in Char.gy, an electric charging company, for the installation of wireless charging technologies in residential streets of the U.K.

Developed countries are already developing wireless charging infrastructure, and developing countries are expected to follow in the coming years, which will augment the wireless car charging market during the forecast period.

The Middle East and Africa

Low fuel prices contribute to the dominance of combustion engines in the Middle East; however, the advent of EVs has affected the region as well. Public and private sector initiatives for reducing carbon emissions to match international trends are augmenting the regional EV market.

The UAE is a pioneer in the adoption of EVs, and the government is developing wireless car charging infrastructure as inconvenient and cumbersome charging options are hindering market growth in the country.

Regional Analysis

The global wireless car charging market has been studied across five regions, namely North America, Europe, Asia-Pacific, South America, and the Middle East and Africa. The figure below portrays the share of each region in the global wireless car charging market.

Europe

Europe is the largest value shareholder in the wireless charging market, which is attributable to the presence of advanced infrastructure facilities, coupled with favorable government initiatives supporting the development of wireless charging techniques.

Asia-Pacific

The sale of EVs in China is increasing rapidly. ICE cars manufactured in China lack quality; thus, companies are adopting new technologies, which has accelerated the production and sales of EVs in the country.

The inherent flaws of China’s wired charging facilities have forced the government to invest in emerging technologies such as wireless car charging. Not only is a wireless car charging more convenient, but it also does not cause electric shocks and maintenance problems.

South America

South America’s EV infrastructure is still in the nascent stage, and countries in the region have limited experience with EVs. Public charging is not prevalent in the region, and EV adoption is low. However, the region’s 650 million populace marks South America as a strategically critical region.

Manufacturers from North America, Asia, and Europe have started establishing facilities in the region. The regional car market size and growth is projected to bring forth more promising opportunities for the Latin American electric vehicle market and further for the inductive wireless charging systems market.

Segmental Analysis

By Charging Type

On the basis of the charging type, the wireless car charging market is bifurcated into dynamic wireless charging and stationary wireless charging systems. The stationary wireless car charging segment dominates the market. Stationary wireless car charging technology was introduced first and, thus, has higher adoption. With this technology, vehicles can be charged in parking areas and public places without the use of wires. Companies are increasingly implementing stationary wireless car charging systems.

By Technology

On the basis of technology, the wireless car charging market is segmented into magnetic power transfer, inductive power transfer, and capacitive power transfer. The inductive power transfer segment accounts for a significant share due to the rising adoption among countries and companies. For instance, in 2018, BMW introduced inductive wireless charging for the 530e sedan in Germany. The company has also initiated the service in the U.S and strives to expand to emerging markets, such as Japan and China.     

By Vehicle Type

On the basis of vehicle type, the wireless car charging market is divided into hybrid electric cars and battery electric cars. Battery electric vehicles is anticipated to be the fastest-growing segment in the market due to government initiatives promoting the adoption of battery electric vehicles.

As per the U.K. Department of Transport, the U.K. government is investing USD 44 million for the enhancement of electric vehicle infrastructure coupled with wireless car charging methodologies. The Society of Motor Manufacturers and Traders reports that after the aforementioned government initiative, battery-electric car registration in the U.K. increased by 61.7% in June 2019, compared to sales in June 2018. Concurrently, a reduction in the sale of hybrid vehicles was also observed.

Impact of covid-19

As per the data published by the U.S. Tire Manufacturers Association, due to the disruption in the value chain of the automotive industry after the outbreak of the COVID-19 pandemic, in the year 2020, the market of North America witnessed a record low supply of automotive tires. The market registered a sharp decline of 18% as compared to the sales of 2019.

Many manufacturers with a substantial hold on the sales of SSBR tires have listed considerable decrement in their net revenue generation and profit margins. The massive dip in the production and sales of the products are underpinning the weak performance of these companies across the global market. For instance, Bridgestone, a global manufacture of SSBR tiers recorded a reduction in revenue by 11%, with operating profit plummeted almost twice between the first quarters of 2020. Hankook observed a reduction of 20% in its revenue and a reduction of 29% in its profit margin.

The strategic exit of the global market players from the unprofitable markets has accelerated and significantly decreased the development prospects. Additionally, the exits resulted in market consolidation in particular regions affecting the overall performance of the market. The suppliers operating in the market are facing intense cash liquidity issues and retailers are also unable to cope up with the sudden change and volatility in the economic behavior of the market. The entire automotive value chain may succumb to the disruptive situation.

Recent Developments

• WiTricity, headquartered in the U.S., acquired Qualcomm’s electric vehicle wireless charging unit Halo in February 2019to deliver a seamless charging experience in the U.S.
• Connected Kerb partnered with theGerman induction technology specialist Magmentin in November 2019 to provide wireless electric vehicle charging in the U.K.