Rise in the production of electric vehicles and growing inclination toward low-emission & fuel-efficient vehicles drive the growth of the global electric vehicle charging system market to hit $ 42.62 billion by 2030.
According to the latest report by Allied Market Research titled - Electric Vehicle Charging System Market by product type, mode of charging and charging voltage: Global Opportunity Analysis and Industry Forecast, 2021–2030, the market was estimated at $ 4.26 billion in 2020 and is expected to register a CAGR of 26.2% till 2030.
Though there are drivers to propel the market, the high cost of electric vehicles impedes the growth to some extent, the report said. However, developing wireless charging technology and incorporating Vehicle-To-Grid (V2g) EV charging stations are anticipated to create lucrative opportunities in the industry.
Interruptions in the export of Chinese automotive parts, huge manufacturing disruptions across Europe, and the shutting down of assembly plants in the United States impacted the global unified automotive industry badly, thereby hampering the growth of the electric vehicle charging system market, especially during the initial phase. However, as the global situation improves, the market is projected to recoup soon, Allied Market Research said.
Some of the major players in the industry include Delta Electronics, Eaton, BorgWarner, Moser Services Group, Plugless Power, Webasto, Robert Bosch, Schneider Electric, General Electric, Siemens and Tesla.
Plug-in Charging System
By mode of charging, the plug-in charging system segment held the major share in 2020, garnering 98% of the global electric vehicle charging system market due to its greater availability.
The wireless charging system segment, on the other hand, is projected to cite the fastest CAGR of 28.8% throughout the forecast period. The fact that it holds remarkable opportunities for the players operating in the market drives the segment's growth.
Level-2 Segment To Dominate
By charging voltage level, the Level-2 segment contributed to the lion's share in 2020, holding 87% of the global electric vehicle charging system market. This is because it charges the vehicle up to ten times faster than Level-1 charging and offers a better cost to the performance ratio. However, the Level-3 segment is projected to manifest the fastest CAGR of 34.8% from 2021 to 2030. This is because Level-3 charging is the fastest type of charging available in the market.
Asia-Pacific, Europe, North America, Held Major Share
By region, the market across Asia-Pacific, followed by Europe and North America, dominated in 2020, garnering nearly half of the global electric vehicle charging system market due to a rise in the extent of electric vehicle sales in the region. Simultaneously, North America is expected to cite the fastest CAGR of 30.0% throughout the forecast period. This is attributed to the region's rapidly growing electric vehicle charging infrastructure, the research and business-consulting company noted.
Courtesy: Allied Market Research. NB: Photo is representational; courtesy: Webasto.