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The global electric vehicle AC charger market size was valued at USD 3.68 billion in 2021 and is projected to grow from USD 4.37 billion in 2022 to USD 33.57 billion by 2029, exhibiting a CAGR of 33.82% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with electric vehicle AC charger experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a growth of 47.44% in 2020 as compared to 2019.
AC charging is the most commonly used method for powering up electric vehicles; therefore, as automotive electrification continues across emerging countries worldwide, the demand for AC chargers will significantly rise during the forecast period. Most of the charging stations that are installed worldwide offer AC charging. However, the power provided by the grid is available in the form of AC, whereas the power stored in a battery is in the form of DC. Therefore, to utilize the AC charging stations onboard, electric vehicle chargers are required that can first convert AC to DC and then feed it into the car’s battery.
Moreover, AC chargers are compact in size compared to DC charging stations; therefore, they are highly preferred for offices and residential use. Further, the rising demand for convenient charging of electric vehicles among the global populace is anticipated to surge the demand for AC charger for EVs in the near future. Additionally, AC chargers are more affordable compared to their counterpart, DC. Hence, increasing penetration of electric vehicle AC charger in price-sensitive markets such as India will likely boost the growth of the global market in the coming years.
Government Implementation of Schemes and Subsidies Drives the Market Growth.
The COVID-19 pandemic disturbed the global supply chains, and the electric vehicle charger industry has been heavily impacted. The COVID-19 crisis negatively impacted all indices, but recovery speed varied. Around 16.5 million electric cars existed on the road in 2021, triple the amount in 2018. Around 6.6 million electric vehicles were sold in 2021, around double the sales in 2020. This led to global EVs accounting for approximately 10% of car sales in 2021, four times the share in 2019.
Several countries imposed complete lockdowns due to the COVID-19 pandemic. EV charging service providers are already reporting falls of nearly 80% in the utilization of operational chargers. The AC charging infrastructure contains different semiconductor components, and most of these components are produced in China and other countries of Asia Pacific, which were severely influenced during the pandemic.
During the COVID-19 pandemic, the market faced strong fluctuation in raw materials prices due to disruption in the supply chain and management. Due to high raw materials prices, companies could not provide affordable AC electric vehicle charging solutions, which decreased the manufacturing and sales of AC charger products.
In the U.K., Lubricity and Pod Point had to stop their installation of EV charging stations due to government orders. The subsidies provided by the government to adopt electric vehicles fueled market growth. As a result, people were encouraged to switch to electric vehicles. With proper EV charging infrastructure, the electric vehicle segment makes sustainable development in the country and economy. This surged the demand for AC chargers for people owning electric vehicles for home charging, thus leading to market growth.
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Rising Adoption of Residential Charging Stations is the Ongoing Trend in the Market
The increasing adoption of residential electric vehicle charging stations worldwide is one of the ongoing trends in the market. Residential charging stations offer convenience to consumers to charge their electric vehicles at the comfort of their homes. Therefore, currently, the majority of the populace prefers to install home charging stations. For instance, in 2020, nearly 60% of the battery electric vehicles charged across Europe utilized home charging stations for charging. The share is anticipated to grow in the coming years. Moreover, due to the growing popularity of residential electric vehicle charging stations among the populace, various leading players started offering home charging points to consumers.
In Europe, more than 100 companies offer home EV chargers. Whereas in the U.S., more than 50 such companies offer home charging stations. Furthermore, various populace installed home charging stations after the pandemic due to rising health concerns and to avoid unnecessary social contact. Residential charging stations provide AC charging, further surging the demand for AC chargers. Hence, diversifying product range for home charging stations offered by leading companies and rising EV sales and consumer preference for home charging stations are anticipated to drive the market growth in the coming years.
Rising Electric Vehicle Sales and EV Penetration Across the Globe to Drive Market Growth
Rising electric vehicle sales worldwide is one of the major drivers of market growth. The global automotive industry has been going through once in a century of evolution. In the past decade, electric vehicle sales witnessed a significant boost due to increasing demand for emission-free vehicles, stringent government regulations for automotive emission control, incentives, and tax benefits that governments worldwide offer to accelerate electrification. Therefore, increasing demand for electric vehicle chargers owing to rapid automotive electrification worldwide is anticipated to drive the electric vehicle AC charger market growth over the forecast period.
According to the International Energy Agency 2021, global electric vehicle sales doubled in the year 2021 compared to 2020. In 2021, nearly 10% of the total cars sold worldwide were electric, reaching a new record of 6.6 million units. Moreover, factors such as increasing fossil fuel prices, rising environmental concerns among the populace, and declining electric vehicle battery prices have also fueled the market growth.
For instance, according to the Bloomberg NEF, EV battery costs have been reduced by around 85% over the last decade. In 2010, the average cost per kWh was USD 1,200; in 2020, the cost declined to nearly USD 140/kWh. Therefore, the overall price of electric vehicles also dropped with the declining trend of battery costs, further fueling the demand for AC electric vehicle chargers worldwide. Furthermore, increasing consumer spending on EVs is also influencing the leading automakers to diversify their EV product portfolio and convert their fleets to electric, further influencing EV sales and surging the demand for AC EV chargers globally.
Increasing Government Focus on Strengthening the Charging Service Network to Propel Market Development
Increasing government focus on strengthening electric vehicle charging service networks and charging infrastructure is anticipated to drive market growth over the forecast period. Governments worldwide are funding significantly to strengthen the EV charging infrastructure. For instance, in February 2022, the U.S. government announced its plan to invest USD 5 billion to build an estimated number of electric vehicle charging stations and services over the next five years.
Similarly, in March 2022, the U.K. government announced its plan to support the U.K. market to reach nearly 300,000 public EV charge points by 2030. The government plans to establish an EV charging points network equivalent to about five times the number of fuel pumps available on the roads of the U.K. Emerging economies such as China, India, and several others are also highly focused on strengthening the EV charging service network to hasten the adoption of electric vehicles in respective regions to fight climate change and reduce the dependency on fossil fuels, further propelling the market growth.
Slow Charging Speed of AC Chargers May Restraint Market Growth
Most of the charging stations available in the market provide AC charging. However, AC charging offers a charging speed of nearly 22kW based on the vehicle and power available to the charging infrastructure. However, DC chargers offer fast charging compared to AC chargers. The standard power of a fast DC charging station is 50kW, which is more than twice compared to an AC charging station. Moreover, ultra-fast DC charging stations offer a power of up to 150kW. Tesla has already developed super-ultra-mega-fast DC charging stations with high power output of 250kW. Therefore, the inclining preference of the populace for fast charging of electric vehicles in high-traffic congestion areas is estimated to hamper the market growth over the projection period.
Easy Accessibility and Installations of EV Chargers to Drive Residential Segment Growth
Based on end-user, the market is segmented into residential charging and commercial charging.
Residential charging segment is estimated to be the largest segment in the year 2021. The growth is attributed to the increasing adoption of AC chargers in residential areas. In January 2022, ElectiVa signed an agreement with local urban bodies for installing and operating 100 electric vehicle charging stations in Delhi. The contract covers key locations in the city such as Green Park, Hauz Khas, Saket, defense colony, South Ex, Lajpat Nagar, RK Puram, and Vasant Vihar, among other commercial areas.
The commercial charging segment is the fastest-growing segment in 2021 and is projected to grow at a certain CAGR during the forecast period. The growth is attributed to rising charging stations by governments driving the market growth during the forecast period. In November 2021, the Japanese government announced that the government is providing a total of USD 328 million for e-mobility in a supplementary budget for 2021. Most of the sum flows into purchase premiums for vehicles and the rest into charging and hydrogen infrastructure. The government in Tokyo has announced expanding the network of public EV charging points from the current 30,000 to 150,000 by 2030.
Rising Adoption of Electric Vehicles to Drive the BEV Segment
Based on vehicle type, the market is split into BEV and PHEV.
The Battery Electric Vehicle (BEV) segment held the largest shareholder in the global market in 2021. Increasing electric vehicle sales worldwide to reduce carbon emission emitted by conventional vehicles will drive market growth during the forecast period. Globally in 2020, BEV sales were around 20,00,000, which further rose to around 47,00,000 in 2021. The growth of the BEV segment is attributed to increasing sales of electric vehicles, which will further create demand for electric vehicle AC charger during the forecast period.
The Plug-in Hybrid Electric Vehicle (PHEV) segment accounted for the fastest-growing segment in 2021. Increasing plug-in electric vehicle sales is driving segment growth. For instance, there were nearly 9,80,000 plug-in hybrid electric vehicle sales in 2020, and the same is expected to be 1900,000 in 2029, which will increase the adoption of AC charger for EVs, thus propelling the market growth.
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Growing Adoption and Installation of Charging Stations to Propel the Standard Charger Segment Growth
Based on product, the market is split into standard charger and fast charger.
The standard charger segment is estimated to be a major segment of electric vehicle AC charger in 2021. The growth is ascribed to the existence of level 1 & 2 charging infrastructures in prominent countries, and vehicle sales are creating demand for 3-22kW of power capacity, further propelling the demand for AC standard chargers.
The fast charger segment was estimated to be the fastest-growing segment in 2021 and is projected to grow significantly during the forecast period. The growth is attributed to increasing charging infrastructure worldwide. The growth of fast chargers has been attributed to increasing charging points worldwide; for instance, in 2020, publicly available fast chargers registered at around 350,000 and increased by around 550,000 charging points in 2021. This development is expected to drive the market growth during the forecast period 2022-2029.
Asia Pacific Electric Vehicle AC charger Market Size, 2021 (USD Billion)
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Asia Pacific dominated the electric vehicle AC charger market share in 2021. The surge in the adoption of electric vehicle charging stations, such as in China, is driving the market growth. The government in China is highly focused on improving the charging infrastructure in the region. For instance, in August 2022, China’s Ministry of Transport (MOT) announced increased charging stations along the country’s highways. The Ministry assumes the new facilities must have the capacity to serve 20 million new energy vehicles by 2024. The government is highly focused on green mobility adoption. Highways connecting provinces will provide charging services by the end of 2023, with routes connecting rural roads covered by 2025, thus driving the Asia Pacific EV charging station market in the region.
In Europe, an increase in the demand for charging stations is driving the market growth. The local bodies of Europe and government initiatives focus on the provision of public charging stations across the regions and the adoption of green energy and green vehicles. This drives the market in the region. Moreover, companies dominating in the region are focused on developing efficient products to deliver fast charging solutions for EV users. For instance, in July 2022, Bosch launched its two latest technology-driven electric vehicle chargers. The two electric vehicle chargers are EV 300 Level 2 Charging Station and EV 3000 DC Fast Charger. The EV 300 Level 2 Charging Station is a compact charger that can be used for outdoor and indoor applications. It provides four times faster charging than the standard plug outlet. The EV 3000 DC Fast Charger is four times faster than the Level 2 charging station. Both electric vehicle chargers can be used for home applications and commercial use.
North America will witness a decent growth in the electric vehicle AC charger market. The region's major electric vehicle adoption and demand for home charging solutions propel the market. Companies are providing charging solutions for homes and buildings with efficient AC chargers for the residents to charge their vehicles within the building premises or garages of their houses. For instance, in September 2022, Blink Charging Co. signed a collaboration with Veris Residential. In the collaboration, Blink will deploy its 24 EV charging ports at Veris Residential’s newly-built, sustainability-focused, luxury apartment high-rise Haus25, located at 25 Christopher Columbus Drive in Jersey City. At Haus25, Blink installed 12 IQ 200 dual chargers with 24 charging ports for the residents and visitors of the property.
Focus on the Development of AC Charging Technologies to Drive the Competition
The market is vastly fragmented and is led by various global market players operating in this industry. The companies focus on expanding their product range to cover a more extensive EV customer base. Additionally, these leading players are targeting Europe to expand their business due to the increasing focus on green energy adoption in the regions ever since the pandemic. Besides, companies are also focused on technological developments to offer additional features through their EV chargers, such as compact-designed AC chargers, fast charging ac chargers, portable ac chargers, and others, which are driving the competition in the market.
With Increasing Electric Vehicle AC Charger, Schneider Electric is One of the Leading Players in the Market
Schneider Electric is a leading global integrated process and energy technology-driven company. The company provides end-point-to-cloud integration connecting products, controls, software, and services. The company provides a wide range of electric vehicle charging products compatible with every field of service. The company offers AC charging products such as EV Link Home, EV Link Pro AC, and others to achieve its sustainability and efficiency goals. In 2021 the company generated revenue of USD 28.90 billion. Whereas in 2020, the revenue was USD 25.20 billion. Eugene Schneider and Adolphe Schneider established Schneider Electric in 1836 in Le Creusot, France. The company has its headquarters located in Rueil-Malmaison, France.
An Infographic Representation of Electric Vehicle AC Charger Market
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The market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, end-users, design, and technology. Besides this, the report offers insights into the AC charger for EVs market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the growth of the market in recent years.
Value (USD Billion)
By Vehicle Type
Fortune Business Insights says that the market was registered at a value of USD 3.68 billion in 2021, and it is evaluated to reach USD 33.57 billion by 2029.
Throughout the forecast period 2022-2029, the market is expected to record a CAGR 33.82%
The rising government focus on strengthening the charging service network is expected to drive market growth.
Asia Pacific led the global market in 2021.
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