Global EV Charging Cables Market: Rising demand for electric vehicle fast-charging cables.

Published Date: 12/05/2021

The global EV charging cables market is projected to grow at a CAGR of 39.5 %, to reach USD 3,173 million by 2027 from an estimated USD 431 million in 2020. Growing adoption of electric vehicles (EV), rising demand for electric vehicle fast-charging cables, and rapid development of electric vehicle supply equipment are anticipated to upkeep the market growth over the forecast period. For instance, in 2018, electric car fleet size exceeded over 5.1 million across the globe, up by 2 million from the previous year.

EVs are installed with rechargeable battery packs to supply energy to drive them and these batteries can be charged through public or private station outlets. Battery electric vehicles (BEVs) are exclusively powered through electricity while plummeting vehicular noise, air pollution, and greenhouse gas emissions. Increasing the stringency of carbon dioxide emission norms in emerging markets is driving the demand for EVs. Therefore, need for electric vehicle charging infrastructure is increasing at an exponential rate. For instance, according to the International Energy Agency (IEA), the number of EV charging points across the world grew by around 44% between 2017 and 2018. Such factors are projected to fuel the demand for EV charging cables in the emerging economies over the next decade.
Additionally, rising number of government initiatives and emphasis on encouraging the adoption of EVs are contributing towards market growth. Countries such as China, Netherlands, U.S., France, Norway, and Japan have invested considerably in the development of charging infrastructure, which is further expected to impact the market size for EV charging cables. For instance, in the U.K., USD 650 is offered for the installation of a dedicated home charger for an electric car.

However, COVID-19 is expected to have a significant impact on the supply chain and product demand in the automotive sector. The immediate impact was visible as production disruptions at Fiat Chrysler Automobiles (FCA) and Hyundai factories across the world. Given the size and importance of the Chinese market for the overall automotive industry, especially for the EV segment, global electric vehicle sales are expected to be adversely impacted in the short term. Therefore, the present situation is affecting the growth of the EV charging cables market. The recovery from this pandemic is expected to have a positive impact on the demand. Increase in EV production thereafter would demand more charging infrastructure, which is projected to positively impact the demand for EV charging cables in the forthcoming years.

Moreover, rising demand for fast charging cables and swift growth in the development of EV charger’s equipment is anticipated to drive the market. Electric vehicle charging cables support different charging modes in various regions. To support increasing battery electric vehicles and plug-in electric vehicle sales, the EV charging industry is expected to mature rapidly and become progressively competitive.

The major market players include Leoni AG (Germany), TE Connectivity (Switzerland), BESEN Group (China), Aptiv (Ireland), Phoenix Contact (Germany), and Coroplast (Germany).

Based on the region, the Asia-Pacific region is expected to dominate the market over the forecast period owing to the increasing focus on the manufacturing of electric vehicle in countries including China, Japan, and South Korea. Furthermore, increasing per capita income of people in developing countries, including India, China, Bangladesh, and Thailand coupled with the growing awareness of consumers towards reducing greenhouse gas emission, is further accepted to provide high growth opportunities for the EV charging cables market in the Asia-Pacific region. The North America region is projected to witness a faster CAGR during the forecast period. In North America, the Electric Drive Transportation Association (EDTA), Electric Power Research Institute, Plug in America (PIA), Edison Electric Institute (EEI), Electric Auto Association are some of the major institutes promoting the R&D activities and deployment of electric vehicles in the region, thereby, increasing the growth of the EV charging cables market in the region

. On the other hand, the Europe region is also expected to grow at a higher CAGR during the forecast period. In Europe, various favourable government initiatives and policies to encourage investment for the development of electric vehicles and to reduce vehicle emissions are anticipated to increase the demand for electric vehicles and thereby, boosting the growth of the market in Europe. For instance, the Federal Ministry of Transport and Digital Infrastructure provides various subsidies and tax benefits to the owners of charging stations and has planned to install 1 million electric vehicle charging stations by 2030 in Germany.