On-board charger are used to charge Lead-acid, lithium-ion, and nickel-metal hydride batteries. It is also utilized in electric cars to charge the electric motor and other components. It is furthermore intended to streamline the charging procedure, guaranteeing a secure and effective charge of the battery. In addition, it guards against overcharging and keeps an eye on the battery’s temperature.
In 2021, the market for on-board charger was worth USD 4.6 billion, and by 2030, it will be worth USD 16 billion at a 15% CAGR during the forecast period.
The on-board charger market is currently experiencing growth due to the increasing demand for electric and hybrid vehicles. As more consumers switch to electric or hybrid vehicles, the demand for on-board chargers will increase. In addition, government regulations and incentives are also driving the growth of the market, as many countries are encouraging the adoption of electric vehicles by offering tax credits and other incentives.
Market Dynamics
Drivers
- Government regulations and incentives: Many countries are implementing regulations and offering incentives to promote the adoption of electric vehicles, which is driving the demand for on-board chargers. For example, the US federal government offers a tax credit of up to $7,500 for the purchase of an electric vehicle, while several states also offer additional incentives.
- Expanding demand for electric & hybrid vehicles: As consumers become more environmentally conscious and seek more cost-effective transportation options, the demand for electric and hybrid vehicles is increasing. This, in turn, is driving the demand for on-board chargers.
- Technological advancements: The development of new technologies, such as wireless charging and fast-charging, is making electric vehicles more convenient and practical for consumers. As these technologies become more widely available, the demand for on-board chargers will continue to increase.
- Cost reductions: As the manufacturing costs of on-board chargers continue to decrease, the price of electric vehicles will become more competitive with traditional gasoline-powered vehicles. This will further drive the demand for on-board chargers.
- Environmental concerns: With increasing awareness of the impact of transportation on the environment, many consumers are choosing electric vehicles as a more sustainable option. This will drive the demand for on-board chargers.
Restraints
The COVID-19 pandemic had a severe negative impact on electric vehicle onboard charger sales in the first half of 2020, which constrained industry growth. The Association of Electric Vehicle Manufacturers said that the production rate of E.V. onboard chargers decreased by 20% in 2021 from 295,683 units in 2020 to 236,802 units, drastically slowing the rate of market expansion.
Opportunity
Additionally, the global implementation of electric charging stations is hastening industry growth. In February 2021, Shell said that it will put up 500,000 EV charging stations by 2025. Onboard chargers are present in an electric vehicle that supports A.C. level 1 and level 2 charging. According to research by Idaho Laboratory, just 8% of the Nissan Leaf’s on-board charging is done using DC fast chargers, with the other 92% using AC Level 2 and Level 1 chargers, respectively.
Market Segmentation
By Power Output
In 2021, the 11 kW–22 kW segment led the market with 41.0% of revenue share. In about two to four hours, the 11-22 kW tri-phase AC chargers can fully charge an electric vehicle. A tri-phase AC charger is frequently used as a tri-phase AC charging station. Statistics from Transport & Environment indicate that 63% of charging stations in Europe are tri-phase AC charging stations.
During the projected period, the category with less than 11kW will increase quickly. The onboard chargers in the upcoming generation of electric vehicles will have power outputs ranging from 6 kW to 11 kW.
By Vehicle Type
Passenger automobiles dominated the market in 2021. With the increasing sales of electric passenger vehicles worldwide, there will likely be a rise in the need for onboard chargers.
During the projected period, the bus segment will expand the fastest. The battery is charged by the onboard charger of the bus, which converts AC to DC. The expansion of zero-emission buses around the globe will accelerate segment growth.
By Propulsion Type
The battery electric vehicle (BEV) sector led the entire market with more than 68% revenue share. Plug-in Hybrid Electric Vehicles (PHEV) are anticipated to see the highest CAGR growth after BEV through 2030.
Regional Analysis
Asia Pacific led the entire regional market with 42.0% of the revenue share in 2021. Increased government initiatives to encourage electric vehicles in nations like China and India have sped up the region’s market growth. Sales quotas for China are a significant driver in the growth of EV on-board charger sales. EVs employing China’s onboard chargers include the Tesla Model 3, GAC Aion S, and BYD Qin Pro EV.
During the projection period, Europe will expand at a rapid rate. Players in the EV business in Europe are consistently growing their product lines. This fuels the need for onboard charging stations. According to BMW’s ambition, by 2032, all of its automobiles, including sedans and small cars, will be electric in Europe. Another element fueling market expansion in the area is an increase in incentives for purchasing electric vehicles.
Key Players
- Toyota Industries Corporation
- STMicroelectronics
- Bel Fuse Inc.
- Delta Energy Systems
- Ficosa Internacional SA
- Stercom Power Solutions GmbH
- Eaton
- Siemens
- AVID Technology Limited
- BRUSA Elektronik AG
- Innolectric AG
- Infineon Technologies AG
- Current Ways Inc.
- Eaton Corporation
- Innoelectric GmbH
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