APAC ELECTRIC CHARGING STATION MARKET ANALYSIS

The APAC Electric Charging Station Market size was valued at US$ 11.74 Billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 26.5% from 2023 to 2030. An electric vehicle charging station provides electric energy for the recharging of electric vehicles, including electric cars, neighborhood electric vehicles, and plug-in hybrids. It is also called as EV charging station, electric recharging point, electronic charging station (ECS), and electric vehicle supply equipment (EVSE).

APAC electric charging station market is expected to witness significant growth during the forecast period this is majorly attributed to rising demand for electric vehicles. The usage of electric vehicle is beneficial to environment and health, as electric vehicles do not pollute the environment. Furthermore, these charging stations are more economical, as they save costs of fuel. Once the electric supply is setup, it can be utilized for long period of time.

APAC Electric Charging Station Market: Regional Insights

Among the APAC countries China accounted for the largest share of the Asia Pacific electric vehicle charging stations market. The growing adoption of EVs, ongoing government initiatives to support the automotive industry's electrification, and initiatives for building charging infrastructure across the country are some of the major factors driving this market's growth in China.

The growing adoption of EVs across the country is expected to increase the EV charging stations over the forecast period. Additionally, market players, such as Volvo and Ford, are present in the market and are focusing on green-car by 2025. The National Development and Reform Commission has also directed most electrical power companies to set up EV charging stations nationwide. In addition, the utility companies are focusing on partnership with software companies to offer smart electric vehicle (ev) charging infrastructure. For instance, September 2021, China's State Grid, utility company signed partnership with tech giant Huawei to develop the next-generation smart electric vehicle (EV) charging infrastructure to meet the fast-growing demand in the country.

Figure 1: APAC Electric Charging Station Market Share (%), By Country, 2022

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APAC Electric Charging Station Market- Impact of Coronavirus (Covid-19) Pandemic

The COVID-19 pandemic had moderate negative impact on the electric vehicle charging stations market owing to the global lockdowns. Due to the incentives from governments, the demand for EVs and related markets increased in 2021. The number of private and public EV chargers is increased top charging station manufacturers and network operators. Government and market key players adopted new safety measures for developing the manufacturing practices. In the post-pandemic scenario, the advancements in the technology escalated the sales rate of the charging as it targeted the right audience. The increase in sales of electric vehicles across the globe is expected to further drive the market growth

APAC Electric Charging Station Market Drivers:

Increasing demand for electric vehicles is expected to aid in growth of the APAC electric charging station market

Increasing air pollution is one of the hazardous problems faced by Asia Pacific region, wherein vehicles are a major factor contributing to air pollution. Replacing conventional fuel-based vehicles with new generation electric vehicle is an important step towards air pollution control, as electric vehicles does not emit any polluting gases. Increasing number of electric vehicles results in rising demand for electric power stations.

Considering the environmental and economic benefits of electric vehicle and charging stations, governments are introducing new policies to boost the market growth. The Government of India introduced schemes such as Faster Adoption & Manufacturing of Hybrid and Electric Vehicles (FAME) in 2015 and second phase FEMA II in 2017 to support growth of the electric vehicle market.  

As per Coherent Market Insights’ analysis, electric charging station market is expected to grow at a rapid pace over the forecast period. This growth is attributed to increasing need for vehicles run using renewable energy, which is expected to aid in growth of the APAC electric charging station market.

Growing popularity of Level 2 charging stations among consumers

Considering the technology, the market is divided into level 1, level 2, and level 3. Among these, the application of level 2 charging stations has the highest usage rate in the past few years. These stations are efficient than level 1 and more economical than level 3 charging stations. Therefore, the demand for level 2 charging stations is expected accelerate over the forecast period. However, level 3 charging stations are becoming popular, as the market gears to embrace technological advancements in the future.

China is expected to account for the largest market share in the APAC electric charging station market, while India is expected to witness fastest growth over the forecast period. The presence of large number of electric vehicles in China and increasing need for eco-friendly transport medium are some of the key factors driving the market growth. In India, the highest growth is attributed to various factors such as rapid acceptance of electric vehicles, increasing pollution control policies, and heavy investment by governments and private investors.

APAC Electric Charging Station Market Opportunities:

Increasing Demand of Mobility as a Service (MaaS)

The demand of Mobility as a Service (MaaS) is growing is anticipated to fuel market expansion. Additionally, the emphasis placed on subscription-based charging models has contributed to the expansion of EV charging stations. According to the model, numerous utilities have partnered with OEMs to offer their consumers subscription-based services, including Vattenfall AB, Duke Energy Corporation, and New York Power Authority.

Growing Trend towards Clean Transportation

The trend towards clean transportation is growing transportation planners believe that emissions, traffic, and accidents will greatly decrease. Electric mopeds, electric scooters, and electric cycles can all be used as last-mile transportation. Additionally, connected electric vehicles produce data planners can utilize to reorganize parking and roadways. To reduce the pollution the demand of electric vehicle is growing which is likely to create more opportunities in the market.

APAC Electric Charging Station Market Trends:

The trend towards Wireless EV Charging

The wireless EV charging segment is expected to grow at the highest CAGR during the forecast period. The high growth rate of this segment is mainly attributed to the rising demand for EV fast-charging infrastructure, increasing implementation of wireless charging infrastructure in Asia Pacific, and increasing prevalence of range anxiety issues associated with electric vehicles. The standardization of wireless EV charging systems and the growing use of autonomous vehicles for public transport and logistics are projected to provide significant growth opportunities for vendors operating in this market.

Technological Advancements

The growing trend towards technological advancements, such as integration of all-EV charging stations systems with the Internet of Things (IoT) and real-time information solutions accelerate the market growth. The technologies provide real-time data about the availability of vacant spots and locate nearby charging stations.

APAC Electric Charging Station Market Restraints:

High Initial Investment

Setting up the EV charging station is quite high in cost. To set up the EV charging infrastructure, some requirements need to be fulfilled like proper location, land, right vendor, grid power stability, remittance of power, varieties of charger types, cables, and other auxiliaries.  However, governments of the countries are focuing on offering subsidies to help the business to setup electric vehicle charging stations

Figure 2: APAC Electric Charging Station Market Share (%), By Technology, 2022

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APAC Electric Charging Station Market Segmentation:

The APAC Electric Charging Station Market Report Is Segmented into Charging Station Type, Technology, End user

On the basis of charging stations, the APAC electric vehicle charging stations market is segmented into AC charging/normal charging station, DC charging station and wireless charging. In 2022, AC charging/ normal charging station segment holds major market share in charging stations segment as commercial stations are mostly installing AC charging stations for faster charge.

On the basis of technology, the APAC electric vehicle charging stations market is segmented into level 1, level 2 and level 3. In 2022, the level 2 segment dominates the technology segment as it resembles AC charging; however Level 3 is expected to grow at higher rate as it collaterally resembles DC charging.

APAC Electric Charging Station Market: Key Developments

• In September 2022 India and Japan governments collaborated to install and set up a charging station network across India for electric vehicles, as India plans to install 70,000 electric vehicle charging stations at gas stations across the country.
• In Jan 2023, Tata Power announced plan to set up 25,000 EV charging points across India which aims to support faster adoption of e-mobility 

APAC Electric Charging Station Market: Key Companies Insights

The market players operating in the market are focusing on product launch and merger, acquisition strategies to expand the APAC presence

Some of the key players in the APAC Electric Charging Station Market are PluginIndia.com, Greenlots, Mitsubushi Motors Corporation, ChargePoint, Inc., Efacec, NARI Technology Co., Ltd, Blink Charging Co., Toshiba Corporation and others

*Definition: An electric vehicle charging station is equipment that connects an electric vehicle (EV) to a source of electricity to recharge electric cars, neighborhood electric vehicles and plug-in hybrids. Some charging stations have advanced features such as smart metering, cellular capability and network connectivity, while others are more basic.