43 per cent of the market’s growth will originate from APAC during the forecast period. China is a key market for electric vehicle chargers in APAC
The electric vehicle charger market is poised to grow by 18.5 million units between 2020-2024, progressing at a CAGR of almost 29 per cent till 2024. Electric vehicles are getting adopted globally due to government initiatives to cut down the automotive emissions. Awareness about clean energy and lucrative incentives on the purchase of electric vehicles is also boosting the sale. Thus, growing sales of electric vehicles is a major factor driving the growth of the electric vehicle charger market.
“43 per cent of the market’s growth will originate from APAC during the forecast period. China is a key market for electric vehicle chargers in APAC. Market growth in this region will be slower than the growth of the market in Europe and North America,” read a report by Technavio.
The significant growth of the electric vehicle charger market in the APAC region can be attributed to the continuous adoption of electric vehicles either for private or public purposes. Government initiatives to improve air quality in Asia are also driving the market growth in the APAC region over the forecast period.
Residential segment will grow faster
The EV charger market growth by the residential segment will be faster than the growth of the market in the commercial segment. The residential end-user segment includes EV chargers that are used in homes, multi-dwelling buildings, and workplaces. The positive sales of EVs increase the demand for residential EV chargers due to the proactive efforts by utility providers in creating a better relationship with customers.
The electric vehicle charger market is concentrated. The entry of new entrants and local vendors, particularly Chinese vendors, is easy into the market as there are no stringent regulations or high initial investment requirements. This aspect also provides buyers various options to choose from. However, there are many established vendors and big players already in the market that have a strong market hold and brand value.
The hybrid and electric vehicle on-board charger market size has the potential to grow by 5.94 million units during 2020-2024, and the market’s growth momentum will accelerate at a CAGR of 30 per cent whereas the electric commercial vehicle market size has the potential to grow by 531.99 thousand units during 2020-2024, and the market’s growth momentum will accelerate during the forecast period.
Similarly, the electric vehicle (EV) charging station market has the potential to grow by USD 22.02 billion during 2021-2025, and the market’s growth momentum will accelerate at a CAGR of 30.69 per cent, Government incentives and subsidies for EV charger infrastructure developments, increasing EV sales through tax incentives pushing demand for well-built EV charger infrastructure and fuel emission and efficiency regulations are driving the adoption of EVs and charger.
Lack of infrastructure in potential markets and stringent approval rules for the establishment of a charger unit are some of the challenges that the EV market will have to address.