Market Trends of China Electric Vehicle Charging Infrastructure Industry
Public Charging Stations are Expected to Gain Prominent Share in the Market During the Forecast Period
The Chinese electric vehicle charging infrastructure market is well supported by its battery electric vehicle market. It is backed by generous support from the government. China extended the incentives relating to the purchase of new energy vehicles (NEVs) till 2022.
The availability of public EV charging stations is critical in the purchase of electric vehicles worldwide. When purchasing an electric vehicle, public charging access to fast charging is regarded as a critical criterion. It is expected to boost revenue growth in the public charging segment. Due to the growing number of EV users, the Chinese government continues to install public charging stations at a rapid pace.
China implemented policies that encourage the use of electric vehicles by providing subsidies and lowering taxes. It also promotes the growth of EV manufacturers and related industries by providing grants or enacting preferential policies for EV-related businesses, allowing them to expand more quickly. A steady increase in economic growth, urbanization, and travel demand, combined with increased investments in electric mobility to contribute to energy storage and environmental sustainability, is expected to fuel the growth of the public charging station segment.
Buses, taxis, and electric light vehicles are the three major vehicle segments in China that make use of public charging stations. Apart from buses, which require specialized captive infrastructure, the majority of other vehicles require public fast charging. The rapid growth of electric vehicles and the country's pro-EV policies are expected to boost the market's growth in the future. For instance,
- According to the China Electric Vehicle Charging Infrastructure Promotion Alliance (EVCIPA), the total number of public electric vehicle charging piles in China touched 1,797 thousand as of 2022, expanding at a CAGR of 46.7% between 2018 and 2022.
Passenger Vehicles Across China to Gain Significance During the Forecast Period
China created the most public electric vehicle charging stations in the world as new energy vehicles gain traction in the world's largest car market.
China set a target of having 40% of vehicles sold in the country be EVs by 2030, indicating that many more passenger vehicles will need to be charged. The government hopes to include enough charging infrastructure in place by 2025 to meet the needs of more than 20 million cars. Currently, more than 70% of China's 810,000 public charging points are in densely populated coastal areas such as Guangdong and Shanghai. The National Development and Reform Commission and several other agencies issued guidelines calling for charging stations to be installed in all counties and villages as part of the government's "rural revitalization" effort.
China not only produces the majority of the world's EV batteries, but it is also forging ahead with EV development and manufacturing and selling them to the rest of the world. Domestically, the efforts to boost the EV industry are already paying off. It was estimated that between January 2023 and June 2023, more than 3.2 million new plug-in electric cars were registered in China. It is an increase of 38% compared to the same period in 2022.
Even as subsidies for EV purchases are phased out in recent years, sales skyrocketed. According to the International Energy Agency (IEA), 6 million battery electric cars were sold in China in 2022, accounting for nearly 22% of all new car sales for the year. After taking the growth into account, the Chinese government is also taking initiatives to build charging infrastructure in the country.
- In July 2022, the Chongqing Economic and Information Commission published a notice titled "Work Plan to Accelerate the Construction of EV Charging and Swapping Infrastructure in Chongqing." According to this notice, more than 240,000 EV chargers, including 30,000 public fast EV chargers, will be built by the end of 2025.
