Author: Shazan Siddiqi, Senior Technology Analyst and Technical Sales Lead at IDTechEx
Expansion of public charging networks and utilization rates
The EV charging market is witnessing rapid growth in public charging networks, driven by substantial investments in infrastructure expansion. The focus is particularly on the deployment of high-power DC chargers exceeding 150 kW, which significantly enhances the convenience and efficiency of public charging. These high-power chargers reduce charging time and increase vehicle throughput, meeting the growing demand from EV owners who rely on public stations for on-the-go charging.
IDTechex’s new report on the topic, “Charging Infrastructure for Electric Vehicles and Fleets 2025-2035: Markets, Technologies, and Forecasts”, finds that roughly 72% of existing public chargers globally were concentrated in China by the end of 2023, with approximately 77,000 new public charging units being installed every month. Charging has expanded enormously, but utilization is low – around 5% for public chargers in 2024, dropping from 10% in 2023. The average Chinese charging post has a charge rate of 30 kW, charges 39 kWh per day, for around 77 minutes per day – this implies around 2-3 customer sessions per day. On the contrary, in the US, L3 (DCFC) utilization is up 32%, growing from an average of 13% in July 2023 to 17% in June 2024. After rapid growth at the end of last year, utilization appears to have stabilized at 16-17% in the first half of 2024.
High CapEx and market consolidation
The EV charging market is characterized by high capital expenditure (CapEx) and low profit margins, creating a challenging environment for smaller players. Building and maintaining charging infrastructure require substantial investment in hardware, grid connections, and ongoing operational costs, which can be difficult to sustain without significant financial backing. As a result, the market is ripe for consolidation, with larger companies acquiring smaller, less profitable entities to scale up operations.
IDTechEx’s research segments the various acquisitions in the EV charging market based on various growth strategies like new market entry, expanding product portfolio, and integration along the value chain, for example. The report examines over 20 recent acquisitions in the market and categorizes them to provide clarity on the state of the market.
Consolidation allows large companies to quickly scale up their operations by acquiring established networks and technologies. This is crucial in the EV charging market, where speed-to-market and scale are significant competitive advantages. Acquiring smaller companies with specialized technologies (e.g., ultra-fast charging, wireless charging) enables larger players to integrate advanced solutions into their product lines, diversify their charging solutions, and enter future growth areas. Siemens’ stake in WiTricity and Heliox is a good example.
Technological advancements and smart charging
Innovations such as smart charging, which balances grid demand and integrates renewable energy sources, are becoming more prevalent, enabling more sustainable and reliable charging options. Vehicle-to-Grid (V2G) technology is also gaining traction, allowing EVs to feed energy back into the grid, thus providing additional value to both consumers and energy providers. These technological developments are poised to play a pivotal role in the future of EV charging, making the infrastructure smarter and recognizing the value of EVs as distributed energy resources.
The IDTechEx report delves into the other promising advancements, including off-grid solar charging, battery-integrated DC charging, and robotic systems. These technologies represent the future of EV charging, offering efficient and adaptable solutions that cater to the market’s diverse needs. The exploration of distributed versus all-in-one systems offers critical benchmarking data, guiding stakeholders in selecting optimal site architectures.
Besides new charging technologies, the report also analyses componentry within conductive cable-based charging hardware. This includes benchmarking power modules, the shift towards SiC-based systems, and thermal management of cables and connectors. Key trends to watch out for within this space are increasing overall system efficiency to minimize power loss and developing thinner, lighter, and more flexible liquid-cooled cables that can still handle high power levels. ABB’s new A400 all-in-one charger uses a closed-loop two-phase liquid-cooled connector (but an air-cooled cable), which is unique.
These key trends present significant opportunities for stakeholders to address infrastructure gaps, enhance user experience, and support the broader adoption of electric vehicles as the market continues to evolve.
To find out more about the IDTechEx report “Charging Infrastructure for Electric Vehicles and Fleets 2025-2035: Markets, Technologies, and Forecasts”, including downloadable sample pages, please visit www.IDTechEx.com/EVCharge.
For the full portfolio of electric vehicle market research available from IDTechEx, please see www.IDTechEx.com/Research/EV.
Upcoming free-to-attend webinar
Strategic Roadmap for EV Charging: Market Trends, Emerging Tech, and Opportunities
Shazan Siddiqi, Senior Technology Analyst at IDTechEx, will be presenting a free-to-attend webinar on the topic on Thursday 24 October 2024 – Strategic Roadmap for EV Charging: Market Trends, Emerging Tech, and Opportunities.
Key topics covered:
- Market Overview: A comprehensive analysis of global EV charging infrastructure, including public, private, and fleet solutions, and insights into key regions such as China, Europe, and the US.
- Emerging Technologies: Discover innovations like megawatt charging, wireless charging, battery swapping, and off-grid solar solutions that are redefining the EV charging experience.
- Competitive Landscape: Insights into key market players, product benchmarking, and strategic positioning, including the impact of market consolidation and V2X (Vehicle-to-Everything) solutions.
- Challenges and Opportunities: Explore the technical challenges of high-power charging, grid limitations, and the latest on megawatt charging standards for heavy-duty vehicles.
We will be holding exactly the same webinar three times in one day. Please click here to register for the session most convenient for you.
If you are unable to make the date, please register anyway to receive the links to the on-demand recording (available for a limited time) and webinar slides as soon as they are available.
About IDTechEx
IDTechEx provides trusted independent research on emerging technologies and their markets. Since 1999, we have been helping our clients to understand new technologies, their supply chains, market requirements, opportunities and forecasts. For more information, contact research@IDTechEx.com or visit www.IDTechEx.com.
