EV charging station: Key market research findings
- Declining prices of Li-ion batteries drive market growth
- Emergence of battery swapping stations
- Key vendors – BYD, Hong Kong EV Power, Shanghai Xundao New Energy technology, SORO Electronics, and ABB
Technavio’s market research analysts predict the global EV charging station market to surpass more than $5 billion in terms of market value between 2016 and 2020. The decline in the price of Li-ion batteries is the primary driver for growth in this market. The deteriorating battery prices are expected to result in low-cost electric vehicles (EVs) since the battery is one of the most expensive components of the vehicle. This decline in the prices of batteries is projected to make the EVs attractive to consumers, resulting in more purchases and subsequently, increasing the demand for charging stations. During 2015, the public EV charging station segment occupied around 69% of the market share to dominate the EV charging station market in China. The combined efforts and investments of the central government, the local authorities, and major automakers in developing charging infrastructure is expected to reflect positively on the public EV charging station market during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the EV charging station segments based on charging modes.
“Battery swapping stations is the latest trend in the EV charging station market in China. Owing to the shortage in the number of charging stations in the country, several state-owned power conglomerates State Grid Corporation of China (SGCC) and China Southern Power Grid (CSPG) have set up battery swapping stations or the smart charging service network as this business model was called by SGCC, instead of charging stations. Such stations can charge the batteries at the best times to reduce the impact of peak power demand as well as allow the driver to recharge quickly on the go, and can serve as an alternative approach to controlled charging,” says Anju Ajaykumar, Lead Analyst, Heavy Industry, Technavio Research.
Regular EV charging stations occupied around 80% of the total market space to dominate the EV charging station market in China. Regular charging stations are usually installed in home parking and workplace parking and offer slow to medium charging. The regular charging posts comply with the AC standards called GB/T 20234.2-2011 and are currently the most widely used chargers across the nation. However, the market share for regular charging stations is expected to decline during the forecast period owing to their slow charging mode.
The key vendors in the market include BYD, Hong Kong EV Power, Shanghai Xundao New Energy technology, SORO Electronics, and ABB. The market was previously controlled only by the SGCC (State Grid Corporation of China) and the CSPG (China Southern Power Grid). However, the recent shift in government policies has opened the market for a number of private vendors. Additionally, the government’s role in constructing new charging stations across the Chinese region will also lead to several new EV charging station manufacturers entering the market.
A more detailed analysis is available in the Technavio report, EV Charging Station Market in China 2016-2020.
We can customize reports by other regions and specific segments upon request.
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