An electric vehicle fast charging system is an essential component of the electric vehicle ecosystem and is used to charge batteries of electric vehicles faster than other chargers. These chargers supply electric energy to the electric vehicle to charge the battery of both electric vehicles and plug-in hybrid vehicles.
Based on a market intelligence report published by the BIS Research titled Global Electric Vehicle Fast Charging System Market – Analysis and Forecast, 2019-2029, the EV fast charging market is expected to grow and witness a CAGR of 21.90%, during the forecast period 2019-2029, in terms of units sold and reach 812.2 thousand units by 2029.
Key Market Drivers
The growth in the adoption of EVs is influenced by the sharp decline of up to 70% in the price of lithium-ion batteries in the past few years — thus significantly augmenting the mass production capacity of EV batteries to fulfill the increased requirement for the fast charging systems in the market.
Taking into consideration the rising level of pollution in the environment, some countries are planning to introduce a ban on internal combustion engine (ICE) vehicles. This decision is expected to reduce pollution and increase the adoption of electric vehicles in these countries. Additionally, several governments are taking initiatives and rolling out subsidies to end users in order to promote the purchase of electric vehicles, so as to fulfill their targets of reducing carbon footprints.
Moreover, with the increase in the demand for EVs, the impact on energy required to operate the vehicle is expected to increase in the future. It has been noted that the demand for energy in 2017 increased by 21% from 2016. The increasing acceptance of EVs is also aiding in the reduction of emission levels. At present, countries such as India and Germany are aiding manufacturers to develop and promote electric vehicles and deploy more fast charging stations to help reduce the vehicle emission in the environment.
An increasing push from governments for the deployment of highway chargers as well as fast bus chargers that can charge a vehicle in 25 to 30 minutes and technological advancements in the fast charging system are some of the other factors responsible for the growth of the market.
Factors Restraining Market Growth
On the other hand, the factors restraining the growth of the market include lack of standardization in the technology and the high cost associated with fast charging systems in the market. The lack of standardization in the electric vehicle infrastructure, leading to the non-compatibility of a particular fast charging system with all types of electric vehicles, is one of the major bottlenecks for the growth of electric vehicles with fast charging. This causes difficulty for companies as they have to manufacture several types of chargers.
Another challenge hindering the growth of the market is the investment related to fast charging system manufacturing. The maximum cost in a fast charging system is involved in components of the charging system, such as AC to DC converter, DC to DC converter, along with the software used. Thus, the use of these components results in the high cost of fast charging systems especially for the Level 1 and 2 vehicles. This, consequently, increases the overall cost of manufacturing the fast charging system. Among the two challenges, the lack of standardization is having a major impact in restraining the growth of the market.
Further, there are several opportunities present that have the potential to propel the growth of the market. These opportunities include the wide array of avenues in emerging economies, evolving business models for EV charging, along with the shift toward renewable energy powered charging station from conventional energy.
Segmentation of the Global EV Fast Charging Market
The market intelligence published by BIS Research offers a detailed segmentation of the market. The EV fast charging market has been segmented on the basis of type, application, and region.
The EV fast charging market by type is classified into light duty vehicles and bus fast charging. The light duty vehicle segment dominated the market by type. It accounted for the maximum share of the total market in 2018. The light duty vehicle fast charging market is expected to grow at a CAGR of 21.20%. The growth of the segment is projected to be driven by the increase in the number of electric passenger vehicles sold, such as pick-up trucks, cars, and vans.
Also, multiple initiatives have been taken by governments to increase the deployment of highway chargers to further increase the demand for EVs in the market and in turn increase the requirement for fast charging system. In terms of growth percentage, the electric bus fast charging system is expected to grow more than the light duty vehicle system, during the forecast period from 2019 to 2029.
The EV fast charging market by application is classified into public and private fast charging systems. In 2018, the market by application was dominated by the public fast charging system, as it occupied approximately 68.08% of the application market segment. The public fast charging application segment was estimated at 65.7 thousand units in 2018. Owing to the increasing adoption of light duty vehicles (LDVs), the segment is expected to maintain its dominance in the market, throughout the forecast period. However, in term of growth, the private fast charging system is expected to rule the EV fast charging system market by application.
The EV fast charging market, in terms of classification by region, is segmented into North America, Europe, Asia-Pacific (APAC), and Rest-of-the-World (RoW). In 2018, the APAC segment dominated the market with the 82.20% of the total market share and is expected to uphold its dominance during the forecast period, in terms of volume. The growth in the APAC market is expected due to the rapid increase in the number of electric vehicles in the region.
The electric vehicle fast charging system market in APAC is majorly driven by factors such as growing number of electric vehicles in the region, which further create high demand for fast charging systems. In the APAC region, China is the largest market for EV fast charging, due to the country’s prominence in the electric vehicle market. This is mainly due to the stringent government rules and regulation regarding controlling the vehicular emission in the environment.
Key Companies Profiled in the Report
The report profiles several companies that are expected to dominate the electric vehicle fast charging system, of which 16 are listed as follows.
- Advanced Vehicle Manufacturing, Inc.
- Blink Charging Co.
- ChargePoint, Inc.
- Delta Electronics, Inc.
- Elmec Inc.
- Hong Kong EV Power Limited
- POD Point
- Proterra Inc.
- Schneider Electric
- Services FLO Inc.
- Shenzhen SORO Electronics Co., Ltd
- Valent Power
Global EV Fast Charging System Market Research Report
This comprehensive report by BIS Research draws on research from a mix of primary interviews and secondary research, along with analytical tools that have been used to build forecasts and predictive models. For more information, read the report's description page on MarketResearch.com.
About the Publisher: BIS Research is a global market intelligence, research and advisory company that focuses on emerging technology trends that are likely to disrupt the market. Its team includes industry veterans, experts, and analysts with diverse backgrounds in consulting, investment banking, government, and academia.