Current status of EV charger industry

The development momentum of new energy vehicles is strong, and there is huge room for development of charging infrastructure. With the rapid growth of new energy vehicle ownership, higher requirements have been placed on the quantity and charging speed of charging infrastructure. At present, most electric vehicle charging places are residences and workplaces, but charging facilities that can quickly replenish power on the way are not yet complete. To solve the problem of battery life anxiety and make electric vehicle charging as fast and convenient as traditional fuel vehicles, it is necessary to accelerate the construction of public charging facilities.

It is expected that global new energy vehicle sales will reach 18 million units in 2024, and the global vehicle electrification penetration rate will be close to 20%. Currently, about 60% of existing public electric vehicle chargers are slow charging. The power supply speed of slow electric vehicle chargers is much slower than that of fast charging and cannot meet the charging needs of electric vehicles well. The construction of charging infrastructure needs to be accelerated. In addition, the continued penetration of new energy vehicles will bring more incremental demand for private electric vehicle chargers, and the market space for electric vehicle chargers is vast.

In 2023, China's new energy vehicle sales will be 9.495 million units, a year-on-year increase of 46.4%, and the penetration rate will reach 31.6%, continuing explosive growth. In 2023, the number of cars in China will reach 435 million, of which the number of new energy vehicles will reach 20 million, with a penetration rate of only 4.6%. It is expected that China will add 1.08 million/1.44 million/1.57 million public chargers from 2024 to 2026, including 510/690/820 thousand new DC chargers and 570/750/750 thousand AC chargers. The market size reaches 41.3 billion/50.8 billion/60.9 billion yuan.

From 2018 to 2020, the development of the new energy vehicle industry in the United States almost stagnated, but it has regained its vitality under the stimulation of the green energy policy proposed by Biden after taking office. Cumulative sales of pure electric vehicles in the United States will exceed 1.2 million in 2023, a year-on-year increase of 22%. Considering that the current penetration rate of new energy vehicles in the United States is still low, with the continued investment of car companies and continued stimulus from policies, the number of new energy vehicles in the United States will continue to increase, and the infrastructure will continue to improve. It is expected that sales will increase significantly in 2024 , becoming the fastest growing market in the world. It is estimated that there will be 150/270/450 thousand new public chargers in the United States from 2024 to 2026, including 40/70/120 thousand new fast chargers and 110/200/330 thousand new slow chargers. The market size reaches 1 billion/1.9 billion/3.1 billion US dollars.

European new car sales in 2023 will be approximately 12.85 million units, a year-on-year increase of 13.7%. Among them, from January to November, monthly sales in the European new car market maintained a year-on-year growth trend. In terms of categories, pure electric vehicles in Europe will sell 2.019 million units in 2023, a year-on-year increase of 28.2%, while plug-in hybrid vehicles will sell 990 thousand units, a slight decline of 2.4%. Judging from the data, the Chinese and European markets clearly have different product preferences. The European region prefers pure electric vehicles, while the Chinese market prefers plug-in hybrid vehicles (including extended range). Europe predicts that 270/370/500 thousand new public chargers will be added from 2024 to 2026, of which 40/60/90 thousand will be added for fast charging and 230/310/420 thousand will be added for slow charging. The market size reaches 1.2 billion/1.8 billion/2.5 billion US dollars.