Market Trends of Asia-Pacific Wireless Charging Industry
Increasing Sales of Electric Vehicles Driving the Wireless Charging Demand
- To meet the demand created by electric vehicle (EV) sales, governments are investing in developing charging infrastructure. To increase charging speeds, major economies are spending on research and development of charging technologies. Many players in the market are also exploring other charging methods, like wireless charging in electric vehicle charging, as range anxiety is still an obstacle to widespread acceptance of the adoption of electric vehicles.
- Despite the Asia-Pacific region being home to the largest low-income populations in the world, wireless charging is still expensive as most parts of the area need more supporting infrastructure for EV charging, as most countries are still in the early stages of adopting EVs.
- However, China, which is the largest EV market in the world, has been backed up by generous support from the government. China has extended the incentives related to the purchase of new energy vehicles (NEVs) till 2022. Electric car sales in China tripled to 3.3 million in 2021, accounting for roughly half of the global total.
- Sales increased significantly in Europe (by 65% to 2.3 million) and the United States. Chinese electric vehicles are typically smaller than those found in other markets. Along with lower manufacturing costs, this has resulted in a significant reduction in the price gap with traditional cars. In China, the median price of an electric car was only 10% higher than that of conventional offerings, compared to 45% to 50% in other major markets.
- India is also working towards making electric vehicles 30% of the total road traffic by 2030. The government is planning to make it mandatory for Uber and Ola to make 40% of their fleets electric by 2026.
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China is Leading the Electric Vehicle Demand in Asia-Pacific
- The Chinese electric vehicle (EV) charging station market is well supported by its battery electric vehicle market, which is backed by generous support from the government. For instance, in December 2022, The 'Action Implementation Plan of Zhejiang on Accelerating the Construction of Charging Infrastructure Along Highways" was developed collaboratively by the Zhejiang Provincial Communication Department, the Zhejiang Provincial Energy Bureau, and State Grid Zhejiang Electric Power Co., Ltd. By the end of 2022, 1,000 charging stations are expected to be built in provincial expressway service areas, with the number increasing to 1,800 by the end of 2023. With 600 charging spaces shall be built along ordinary highways in the province, and by the end of 2023, the number shall be increased to 880.
- 13 agencies, including the Sichuan Provincial Development and Reform Commission, issued the "Work Plan of Sichuan Province for Promoting the Construction of Charging Infrastructure for Electric Vehicles," setting the goal of constructing 200,000 charging facilities in the province by 2025 in order to realize full coverage of electric vehicle charging stations in counties and electric vehicle charging stands in towns.
- Over the last few years, the coastal region, which borders Hong Kong, has built hundreds of thousands of public charging points - the EV equivalent of gas pumps. According to the China Electric Vehicle Charging Infrastructure Promotion Alliance, Guangdong has the largest EV charging network in China, with 345,126 public chargers and 19,116 charging stations as of the end of September 2022. That's roughly three times the number of public chargers in the entire United States.
- Taxis, buses, and electric light vehicles are the three major vehicle segments that utilize charging stations in China. Apart from buses, which have the requirement for specialized captive infrastructure, the other vehicles majorly require public fast charging. Players in the country are focusing on the development of charging stations in the country, along with major players, who are also focusing on providing wireless fast charging features in the vehicles themselves. For instance, in July 2023, Zhengzhou Nissan Automobile Co., Ltd. started accepting pre-orders for the next-generation Paladin mid-to-large-size off-road SUV. The vehicle comes standard with such functions as 15W wireless fast charging.
- The rapid growth of electric vehicles and pro-EV policies in the country are expected to propel the growth of the market studied.
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