Electric vehicles are gaining popularity, which is helping the Global Electric Vehicle Charger Market grow at a CAGR 28.28 percent from 2014-2018. But even this sunny outlook is being overshadowed by some big challenges for electric vehicle charger (EVC) manufacturers and vendors.
TechNavio analysts have prepped a list of the pros and cons behind electric vehicles, to help shed some light on this growing, albeit volatile market.
Con: Time Required for Charging
Electric cars were initially equipped with lead-acid batteries but these have now been replaced with lithium-ion batteries, which take longer to charge.
The time required to charge vehicles at a level one station, which includes homes and workplaces, is approximately 8-12 hours. Level two charging stations take approximately three to four hours while level three charging stations take a few minutes to an hour, but these are few and far between, and cater mostly to EVs with a high power rating. Currently, R&D activities are taking place to improve the chemistry of the batteries so as to increase the discharge time.
Pro: Focus on Extending the Life of Li-ion Batteries
To respond to consumer concerns over charging time for EVs, many vendors have shifted their focus to extending the life of lithium-ion batteries.
Lithium has the highest electrochemical potential of all metals, and these batteries have high energy and power densities, improved charge efficiency and high durability for a longer life. Improvements in battery technology will result in improved performance and efficiency of micro EVs.
Bonus: Rapid Growth in Wireless Charging Technology
Additionally, major steps are being taken towards the development and commercialization of wireless charging technology for electric vehicles. Currently, sales of wireless EVCs are relatively low with the presence of only a few major vendors. However, the wireless EVC segment is expected to explode in coming years, growing at a CAGR of 183.22 percent, and contribute significantly to the growth of the EVC market during the forecast period.
Con: Customer Perception of EVs
The Global EVC market is in its nascent stage and is still perceived as a risky investment by many top vendors. This insecurity surrounding the technology has been transmitted to customers, with concerns surrounding the safety and feasibility of these cars acting as a major market barrier.
Although governments are working on developing the infrastructure required for EVs and taking initiatives to raise awareness among potential customers, many manufacturers are still evaluating the technology. Currently, the US, Japan, and China generate the highest demand for EVs, but it’s not clear yet if this success can be replicated in other geographies.
Pro: Better Electric Drive Motors
Vehicle manufacturers are looking for ways to address customer concerns while also making their conventional vehicles more efficient to prepare for stringent emissions and efficiency targets.
Electric motors will be an important part of the solution, and technological advancements like increasing the basic voltage from 12 V to 48 V will lead to better growth for the Global EV Market. Most OEMs have already invested in their own electric motor manufacturing capability for high-power drive motors.
Additionally hybrid vehicles, which combine elements of electric and conventional vehicles, will be instrumental in easing customer transition into fully electric cars.
Con: Cost
The price per usable kWh of a lithium-ion battery ranges from US$500 to US$650 and makes up a large portion of the vehicle’s cost, depending on the size of the battery pack installed. The Nissan LEAF has a 24 kWh battery that costs about US$12,000, which represents about a third of the vehicle’s retail price. Most EVs are more expensive than their gas-fuelled counterparts, even with government purchase subsidies, thus reducing the affordability of EVs.
Pro: Low Maintenance Costs
They might cost a lot off the top, but EVs are designed to have relatively low maintenance costs, with the components and accessories designed for longevity.
This has boosted the Global EV market, and has acted as an indirect incentive for the buyers. Most manufacturers are now focusing on improving the technology and reducing the maintenance costs to attract more customers. Consequently, low maintenance costs of EVs will become one of the major driving factors for the Global EVC market.
