EV Charging Cables Market Growth & Trends
The global electric vehicle charging cables market size is expected to reach USD 1.25 billion by 2027, expanding at a CAGR of 25.4% from 2020 to 2027, according to a study conducted by Grand View Research, Inc. Increasing large-scale adoption of electric vehicles (EV), growing demand for fast charging cables, and rapid development of EV supply equipment across the world are expected to drive the market. Emerging changes related to autonomous, shared, and connected mobility could considerably reshape road transport in the forthcoming years, with important implications for vehicle electrification. Therefore, many policy developments in 2018 and 2019 support the uptake of electric vehicles and growth of charging infrastructure. Furthermore, this will help market players create strategies to make the most of future growth opportunities.
Governments across various countries are taking initiatives to reduce emission of greenhouse gases, support the adoption of electric vehicles, and develop and install EV charging stations. For instance, in August 2018, the government of Japan prepared a policy for electric vehicles for better cooperation and smooth transition in the automotive industry. All such factors have led to an increase in the demand for electric vehicle charging cables in the automotive sector. However, the recent attack of the corona virus is expected to severely affect the market growth for the next few years.
Advancements in EV charging technologies such as robotic changing, improving socio-economic conditions, and improvement in charging infrastructure are expected to fuel the demand for battery electric vehicles, which, in turn, will increase the adoption of EV charging stations. According to the International Energy Agency, in 2018, the number of charging points installed across the world was estimated to be approximately 5.2 million, up by 44% from 2017. Most of the EV owners prefer private charging station as it is cheap and convenient. Public charging station is expected to emerge as the fastest growing segment from 2020 to 2027. Companies such as BMW, Volkswagen, Nissan, and Tesla are promoting the deployment of public charging infrastructure through various providers.
Asia Pacific dominated in 2019 and is expected to maintain its lead over the forecast period. This is attributed to rising government initiatives in countries, such as China, South Korea, and Japan, to improve charging infrastructure. The market in Japan is projected to expand at the highest CAGR with the increasing number of EV charging stations. Moreover, development of improved vehicle charging infrastructure, along with reduction in charging times and costs, would boost the adoption of electric vehicles in the region, thereby supporting the growth of the market.
EV Charging Cables Market Report Highlights
- By power supply, the AC segment is expected to dominate the market in coming years as it has low installation cost and offers a low power output. AC power supply is mostly used in semi-commercial and residential charging stations across the world
- Based on cable length, the below 5 meters segment is expected to dominate the market and is expected to maintain its lead over the forecast period. These cables are more efficient for use in residential applications and offer ease of storage and ease of use
- By charging level, the Level 2 segment dominated the market in 2019 and is projected to witness significant growth from 2020 to 2027
- On the basis of shape, the coiled cable is estimated to be the fastest growing segment over the forecast period as they are easy to maintain and do not spread over the surface, hence helping to prevent a tripping hazard
- The public charging station is anticipated to be the fastest growing application segment over the forecast period. These charging stations have the capability to charge an electric vehicle in less time with high voltage
- Asia Pacific is projected to account for the majority share in the market over the forecast period. High number of EV charging stations in the region is projected to uplift the regional market growth over the forecast period.