Market Trends of APAC Electric Vehicle Charging Station Industry
Rising Electric Passenger Car Sale to Fuel Charging Station Demand
- Rapid technological developments, improvements in design and manufacturing, changing consumer preferences, growing concern about sustainability and climate change, and regulatory pressures and measures continue to transform the structures and systems that underpin the automotive industry.
- China is dominating in terms of electric vehicle sales across the region. In 2022, the country registered around 6 million electric cars. The cost advantages that electric vehicles have over conventional vehicles, as well as other factors, will help the market expand throughout the projected period. Another element that is anticipated to generate considerable development prospects for industry participants is a drop in battery pack prices.
- Similarly, the Indian electric vehicle (EV) market is estimated to grow rapidly during the forecast period. It is likely to necessitate a USD 180 billion investment in vehicle manufacturing and charging infrastructure by 2030.
- The Indian government's severe rules in response to rising levels of vehicular emissions and increased demand for environmentally friendly automobiles are likely to drive market expansion over the forecast period. Along with various schemes, the government announced a battery-swapping policy in the Union Budget 2022-2023, allowing depleted batteries to be switched out for charged ones at specific charging points, increasing the viability of EVs for potential buyers.
- Owing to the initiative, many carmakers are also investing in India under various schemes. For instance, In July 2021, Nissan started an investigation into the viability of producing electric cars in India. Nissan might wind up producing EVs in India for both domestic and international markets if the study's findings are favorable when it is finished in a year.
- Automakers have been gradually developing business strategies that take electrification into account as a way to increase market share and keep a competitive edge in recent years. Companies have kept their stance in a way to comply with policy regulations or in response to government incentives. Moving forward, companies have announced their recent plans with a greater choice of models to be rolled out sooner over the study period.
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Rising Investment to Expand Charging Station Network in China
- Electric vehicles, though still in the growing stage across the region, are anticipated to play a key role. However, the expansion has faced some challenges in widespread adoption, out of which a major contributor turned out to be inadequate charging infrastructure. Owing to such challenges, key mobility partners and utility leaders have engaged some of the key greenfield and brownfield investments coupled with government investment to expand the charging network to every single corner across the region. For instance,
- According to China's electric vehicle charging alliance, In 2022, China has added 650,000 public chargers, which sum up to a total of 1.8 million charging stations, an increase of 56.7 percent in comparison to 2021, in which more than 40% have a fast-charging capability.
- In China, more than 70% of public charging stations are installed across densely populated regions like Guangdong and Shanghai. However, regulatory authorities have acknowledged this concern and are taking initiatives to spread the charging infrastructure.
- For instance, in January 2022, the National Development and Reform Commission and several other agencies urged for the installation of charging stations in every province and village under the government's "rural regeneration" initiative, which is likely to be a growth lever for the market.
- Technology advancements in charging stations are likely to increase the penetration while simultaneously minimizing the carbon emission of charging stations. Many companies are working to establish charging stations powered by green energy sources. For instance,
- With the above mentioned development across the region, the market is witnessing major growth during the forecast period.
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