The global wireless charging for electric vehicles market is expected to register a CAGR of 45%, during the forecast period, 2020 - 2025.
The increase in the sale of electric vehicles across the globe is driving the demand for wireless charging stations. Governments across the world in countries like the United Kingdom, Norway, Japan, the US, and in developing countries like China, are providing purchasers with incentives. However, these electric vehicles have issues, such as limited cruising range and inadequate infrastructure to charge them.
During May 2017, Qualcomm has demonstrated a new wireless dynamic electric vehicle charging (DEVC) system at highway speeds. This new system is capable of charging an electric vehicle dynamically to up to 20 KW at the speed of 100 km/h. Moreover, the company launched a simultaneous charging system that can charge dynamically at the same time and on the same track. Two vehicles moving in the opposite direction can also use this new dynamic charging system.
Key Market Trends
Increasing Electric Vehicle Sales
Electric vehicle market has been witnessing healthy growth rate in recent years, with about 2,018,247 vehicles sold in 2018, compared to 890,470 in 2012. This spike in sales is the result of an increase in regulatory norms, by various organizations and governments, to control emission levels and to propagate zero-emissions vehicles.
This has forced the automakers to increase their expenditure on R&D of electric vehicles, which eventually allowed them to market electric vehicles as the future. This strategy had a strong impact on people, as there was a considerable change in the purchase pattern from conventional IC engine vehicles to electric vehicles. The change has not decreased the sales of IC engine vehicles but rather created a promising market for electric vehicles in the present as well as for the future.
Electric vehicles have reached on par (sometimes surpassed) with IC engine vehicles in terms of performance, maintenance, and the initial cost of purchase. Tesla has manufactured electric cars, which claim to have greater acceleration, power, top speed, etc., than an average IC engine/hybrid car.
Governments across the globe have initiated various schemes and initiatives, which encourage a buyer to choose electric vehicles over conventional vehicles. California ZEV program, which aims at having 1.5 million electric vehicles on road by 2025, is one such initiative that promotes the purchase of electric vehicles. Countries, like India, China, United Kingdom, Korea, France, Germany, Norway, Netherlands, etc., are other such countries that have various incentives for people willing to buy an electric vehicle.
The growth of electric vehicles is anticipated to increase the need for charging equipment and wireless charging, which claims to reduce effort put in to charge the vehicle. Wireless charging is expected to gain popularity and have a growing market in the near future.
Europe being the Fastest Growing Market
Europe is expected to be the largest manufacturing hub, and also the largest market for wireless charging stations. This growth owes to the availability of viable infrastructures to support electric vehicle sales. Electric vehicles are considered to be a viable option by customers while purchasing a vehicle. The sales of electric vehicles in the European region have been on the rise, since the last five years. The sales are forecasted to increase, thereby opening opportunities for technologies, like wireless charging infrastructure for electric vehicles.
Germany, along with the United Kingdom and France, will be the biggest market for wireless charging due to a combination of economies of scale, high levels of income, and being an automotive manufacturing hub. In countries, like Belgium and the United Kingdom, surveys have demonstrated that vans, buses, and taxis are more likely to accept wireless charging of vehicles, as these particular segments require high range with convenient charging methods.
Moreover, in January 2017, German automakers, including Audi, BMW, Daimler, Toyota Motorsport, and Toyota Motor Europe, collaborated with WiTricity in the STILLE standards project. The project aims to drive wireless EV charging interoperability.
- The STILLE project is part of “Elektro Power II”, which is funded by the German Federal Ministry for Economic Affairs and Energy.
The foundation for the market for wireless charging is already visible from the yearly increasing sales of electric vehicles in European countries, like Germany, the Netherlands, and the United Kingdom, among many others.
Competitive Landscape
Companies, like Qualcomm, WiTricity, Momentum Dynamics, Hevo, Primove (Bombardier), Continental, etc., are currently testing their systems. Currently, Plugless power is the only company producing wireless charging systems for commercial use in the aftermarket sector. The company’s charging systems are compatible to Chevrolet Bolt, Nissan Leaf, Cadillac ELR, and Tesla Model S. Recently, the company developed more than 7KW charging pad for Model S, which helps to charge the vehicle in less than two hours. - The company plans to enter the OEM segment through a collaboration with Zhejiang VIE Science and Technology Co., a manufacturer of automotive parts, based in China’s Zhejiang Province.
- Zhejiang VIE has invested around USD 5 million in Plugless Power, and expects it to roll out electric vehicles equipped with wireless charging systems from 2019.
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