PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1461249
PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1461249
Global electric vehicle on-board charger market is projected to witness a CAGR of 19.1% during the forecast period 2024-2031, growing from USD 5.52 billion in 2023 to USD 22.35 billion in 2031. The increased vehicular pollution, rising production facilities, higher range, and rising fuel prices have garnered the EV component sectors, especially those dealing with EV charging infrastructure. The EV onboard charger is one instrument that converts the alternative current to a direct power supply, making EV charging easy, accessible, and quick. Therefore, the EV onboard fast charger market is anticipated to be fuelled during the forecast period.
The increased range and mileage of electric vehicles are expected to advance the charging technology while also reducing environmental pollution to a greater extent. The long-range of vehicles includes buses, passenger cars, and trucks that use this charging technology. The government pushes manufacturers and equipment producers to deliver innovative charging solutions such as on-board EV chargers.
The advent of smart EV onboard chargers with higher power supply, quick charging, and power management systems is expected to expand the market boundaries.
In November 2023, Editron, a subsidiary of Danfoss Power Solutions expanded its product line by introducing two new electrification products at this year's Agritechnica trade show. The revolutionary products will accelerate the heavy-duty electrification process and boost value for original equipment manufacturers (OEMs) in the off-highway and on-highway sectors. Heavy-duty electric vehicles may now be charged overnight using accessible AC power outlets with Danfoss' ED3 onboard charger.
Higher Convenience, Flexibility, and Reduced Pollution to Fuel Market Expansion
The end-user can charge the EV at home or anywhere with AC power. This reduces the need for public charging stations and allows one to manage their charging needs at their own space and pace. EVs are a great alternative to traditional fuel vehicles, and they also reduce exhaust emissions. EVs use renewable energy to charge their cars, reducing their carbon footprint. The increased demand for faster and more accessible charging is expected to innovate and advance on-board charging platforms. By using the voltage or current control mode on the onboard charger, end-users regulate the voltage and current at which the battery must be charged, extending its longevity. The charger provides easy-to-use charging at either constant voltage or constant current. The companies also launch bidirectional chargers that come with vehicle-to-load (V2L) features.
For instance, in November 2023, BorgWarner secured an agreement with a major North American OEM to offer its bi-directional 800V Onboard Charger (OBC) for the automaker's premium passenger vehicle battery electric vehicle (BEV) platforms. The technology increases power density, conversion, and safety compliance by utilizing silicon carbide (SiC) power switches for increased efficiency. Production is expected to begin in January 2027.
Rising EV Adoption and Lower Energy Costs to Thrive Market Growth
The market growth is majorly driven by increased EV adoption around the world. Automakers launch new EVs and new companies launch advanced EVs with extended range and technology. Technological advancements including artificial intelligence, machine learning, and electronics are likely to propel the market growth. Furthermore, the continuous advancements with quick charging speeds and extended power capabilities are increasing the traction for the market. The strong supply chain of raw materials to build advanced onboard chargers through collaborations and partnerships is anticipated to add value to the market growth. With the phenomenal growth, the technological brands are also building supportive infrastructure that helps in advancements of on-board charging.
In February 2024, AKM (Asahi Kasei Microdevices Corporation) initiated the mass manufacture of coreless current sensors, specifically the CZ39 series. The CZ39 device family's noise immunity, minimal heat generation, and 100 ns response time make it especially suitable for use in electric vehicle (EV) applications. These characteristics are compatible with the high efficiency and smaller form factor of silicon carbide (SiC) and gallium nitride (GaN) based power devices that OEMs require.
Government's Support to Automotive Equipment Manufacturers to Fuel Market Growth
The government initiatives to promote electric vehicles are contributing to market expansion. Apart from the EV push, government authorities also incentivize automotive equipment manufacturers that promote sustainable production and innovative ideas. Furthermore, new charging infrastructure built by the government is likely to limit the sales of on-board EV chargers. However, early adoption of EVs in nations with not enough charging infrastructure is likely to push the adoption of on-board chargers. However, governments are pushing the automakers to develop lightweight charging systems for higher interoperability.
For instance, in February 2024, the Ministry of Power advocated for battery charging standard compatibility by consulting with companies in the electric vehicle (EV) ecosystem. In March 2023, the government declared that state-run oil marketing businesses would receive a USD 95.8 million subsidy to install 7,432 electric vehicle charging points. Even though many EVs currently do not use the more costly CCS charging, the subsidy was only available for chargers that were set up using the CCS protocol.
Higher Adoption and Expanded BEV Charging Infrastructure to Fuel Segmental Growth
During the forecast period, BEV is anticipated to maintain its dominant position in the market for on-board chargers for electric vehicles, holding the highest share globally. The primary operational distinction between PHEVs and BEVs is that the latter are powered solely by electricity, while the former contains an electric motor that is recharged via an external plug. PHEVs have fuel tanks to power their motors, which are battery-operated.
Since internal combustion engines power PHEVs, they have smaller batteries than BEVs, which limits their travel range and top speed. BEVs, on the other hand, combine withstand energy storage with an extended travel range. The extended government support, subsidies, and incentives for BEV along with the expanded charging infrastructure are likely to play a vital role in segmental growth.
For instance, in April 2022, Toyota created a brand-new, lightweight, and small battery electric vehicle (BEV) unit that has a DC-DC converter and on-board charger. The product is incorporated into the electricity supply unit (ESU), which is a key unit for power conversion and charging functions that Toyota Motor Corporation adopted for BEVs for the first time. It is installed in the brand's new bZ4X BEV.
Asia-Pacific Region Leads in the Global Electric Vehicle On-Board Charger Market
The Asia-Pacific region is expected to hold a decent share of the market. The long range of EV equipment companies along with the government's push for EV adoption is anticipated to fuel market expansion. As nations such as China, Japan, and India are focusing on limiting vehicular emissions along with the development of batteries that provide a higher operational range. The increased sales of EV units in these nations are attributed to the major EV manufacturers such as BYD, Tata Motors, Hyundai Motor, and others. Since the early phase of adoption, China's electric vehicle (EV) industry has grown due to government rules that include incentives. Nonetheless, the government is heavily burdened by the incentives due to the EV sector's phenomenal growth and therefore it is focusing more on the independent charging infrastructure. Brands are focusing on providing fast chargers along with the new model launches.
For instance, in January 2024, the highly anticipated Punch EV, a compact SUV from Tata Motors, was unveiled. It comes in two versions with approved operating ranges of 315 km and 421 km. There are two battery options available for the Tata Punch EV with 25 kWh and 35 kWh battery packs. Customers will have a choice between two charger options including a 3.3 kW wall box charger and a 7.2 kW rapid home charger that is only available for the LR model.
Future Market Scenario (2024-2031F)
Increased EV adoption, new integrated technology, and constantly changing battery technology are expected to transform the market dynamics during the forecast period.
Adoption of different levels of chargers, fast charging technology, and increased research and development projects are anticipated to facilitate upcoming EVs.
The government's focus on increased EV adoption, independent charging, and interoperability is projected to flourish the market growth.
Key Players Landscape and Outlook
The electric vehicle on-board charger market comprises major automotive players along with aftermarket companies. The company's focus is on high-end research and fast-charging solutions. Competitors also strategize with partnerships, acquisitions, and mergers to expand their supply chain and distribution channels.
For instance, in February 2023, Bel Fuse Inc. announced its investment agreement with Germany-based Innolectric AG ("innolectric"). This passive investment is likely to create a strategic alliance that is focused on electric vehicles on-board power electronics broadly, but specifically on next-generation fast charging technology.
In February 2024, Infineon Technologies AG led the 2024 Applied Power Electronics Conference with a wide range of EV onboard chargers. It includes the latest 50 kW and 22 kW EV chargers, along with SiC- and GaN-based on-board charging solutions.
All segments will be provided for all regions and countries covered
Companies mentioned above DO NOT hold any order as per market share and can be changed as per information available during research work.