Japan Electric Vehicle Charging Equipment Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Japanese Electric Vehicle Charging Equipment Market is Segmented by End-Use (Home Charging and Public Charging), and by Charging Station Type (AC Charging Station and DC Charging Station). The report offers market size and forecasts for Japan Electric Vehicle Charging Equipment in terms of Value (USD billion) for all the above segments.

Market Snapshot

Japan Electric Vehicle Charging Equipment Market_Overview
Study Period: 2018-2027
Base Year: 2021
CAGR: >44 %

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Market Overview

The Japanese Electric Vehicle Charging Equipment Market was valued at USD 0.2 billion in 2021, and the market is expected to register a CAGR of more than 44% during the forecast period (2021-2026).

The outbreak of COVID-19 has negatively impacted the market. The sales of electric vehicles in the country were hampered, and the market share of electric vehicles is very low. The major reason for the low sales during the year was the strict lockdown measures as economic activities were stopped for a long time. In March 2020, it was recorded that the number of charging stations in the country reduced by around 1,087 to 29,233 charging stations. The reason for the reduction in charging stations is that electric vehicles account for only one percent of the new cars sold in Japan because the charging stands are not being used very much. Some of them are outdated, and others have been removed.

The number of stations has been growing steadily in Japan since fiscal 2010. In 2010, there were around 310 charging stations in the country, which increased to more than 30,000 stations in 2021.

The Japanese government is boosting the sales of green fuel vehicles and has an ambitious plan that all the new vehicles sold by 2035 will be powered by electricity, both electric and hybrid electric vehicles. This will enhance electric vehicle charging equipment demand during the forecast period.

Scope of the Report

A charging station, also called electric vehicle charging station, electric recharging point, charging point, charge point, electronic charging station (ECS), and electric vehicle supply equipment (EVSE), is a machine that supplies electric energy to charge plug-in electric vehicles including cars, trucks, buses, and others. Charging stations provide connectors that conform to a variety of standards. For common direct current rapid charging, chargers are equipped with multiple adaptors such as Combined Charging System (CCS), CHAdeMO, and AC fast charging. The Japan Electric Vehicle Charging Infrastructure is segmented by End Use and Charging Station Type. By End Use, the market is segmented into Home Charging and Public Charging. By CHarging Station Type, the market is segmented into AC Charging Station and DC Charging Station.

End Use
Home Charging
Public Charging
Charging Station
AC Charging Station
DC Charging Station

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Key Market Trends

Government Initiatives to Boost Electric Vehicle Sales in the Country

Surging carbon emission by the transportation sector has propelled the environmental concern across Japan, which is scrutinized by Japan government by encouraging the adoption of electric vehicles, i.e., HEVs, PHEVs, and BEVs. With this, the number of electric vehicles on the road is constantly increasing, which is likely to drive the demand for associated charging infrastructure.

The five largest passenger car market includes China, the United States, Germany, India, and Japan. Along with several other countries across the world, Japan has committed to net zero-emission passenger car sales.

· In December 2020, Japan government introduced a green growth strategy to make Japan carbon neutral by 2050 by promoting electric vehicles, fuel cell electric vehicles, plug-in hybrid vehicles, and hybrid vehicles.

· With these implementations, Japan seeks to reduce the emission impact from the transportation sector to achieve the GHG (Green House Gas) reduction goals under the Paris agreement.

The concentration of charging stations in Japan is quite less compared to other developed countries, indicating massive growth potential in the coming years. For instance, in 2021, Japan had only 1.7 charging stations per 100 km of roadways, whereas South Korea had around 75.2. In 2020, Japan had a total of 29,855 charging stations (21,916 sallow chargers and 7,939 fast chargers). Although, Japan accounts for the second position in charging technology patents across the world, with more than 1,310 patent filings.

Japan has long-term goals and strategies for the automotive industry to beat climate change and minimize carbon emissions. For the next half-decade, the government has set three key actions to promote the electric vehicle, including innovations, Policies, and investment in infrastructure.

· Promotion for innovation, developing lithium-ion batteries, building economic procurement channels, and developing next-generation technologies.

Through policies, the country is focusing on robust the global supply chain, incorporating international electrification policies, and maximizing the fuel standards.

· In Infrastructural development, the primary focus would be building a battery network by stabilizing the battery components procurement, establishing a guideline for used batteries to reuse/recycle, and investing in research and development of wireless charging infrastructures. In November 2021, Japan government announced to double their incentives for electric vehicles to 800,000 Yen per vehicle and subsidizes charging infrastructure to catch up with matured economies, including North America and Europe.

Japan Electric Vehicle Charging Equipment Market_Key Market Trend1

High Cost of Installation and Maintenance

The cost of setting up an EV charging station is quite high and varies according to the type of chargers being installed. In order to set up the EV charging infrastructure, minimum infrastructure requirements need to be fulfilled, and finding the right vendor and location is important. The charging infrastructure costs include fixed (installation, utility service, transformers, and equipment) and variable (electricity charges) components.

For chargers on commercial electricity tariffs, demand charges can dominate operating costs. As a result, the total cost of power from fast-charging stations is higher than slower residential chargers unless the former can achieve sufficiently high utilization rates.

At current levels of utilization, commercial chargers are almost universally not economically profitable. A significant, sustained increase in demand will be needed for commercial charging infrastructure to deliver financial returns and compete with IC engines.

The high concentration of EV home charging during peak periods can overload local transformers. Utilities may have to procure additional peak capacities unless they are able to shift demand to off-peak periods.

There are three types of chargers available for EVs. The standard 120V plug, often used for home appliances, charges slowly but can fill a battery to near-full capacity in about 8 to 12 hours. The 240V level-2 chargers generally provide 20 to 25 miles of charge in an hour, which shortens charging time to eight hours or less. In homes, level-2 chargers can use the same outlet type required for clothes dryers or electric ovens. Level-3 direct current (DC) fast chargers can charge a battery up to 80% in 30 minutes.

Different auto manufacturers use three different varieties of DC fast chargers. Most manufacturers use the SAE Combined Charging System (CCS), the CHAdeMO variant is used by Nissan and Mitsubishi, and the Tesla Supercharger is used by only Tesla cars. This lack of vehicle compatibility restricts universal vehicle access to charging stations and could hinder market growth.

Deploying high-powered energy chargers must be done carefully to ensure stations have high utilization. The profit potential of charging stations is quite low in the current scenario. The profitability may only increase when there are enough electric cars on the road, so the infrastructure could have a high utilization rate. Consumer preference is more leaned toward hybrid vehicles, which significantly restraints the sales of BEVs; for instance, the sales of BEVs in 2020 was 14,604 units, whereas hybrid vehicles have surpassed the sales volume of 1,324,800 units during the same tenure.

Japan Electric Vehicle Charging Equipment Market

Competitive Landscape

The Electric vehicle charging station market is fairly consolidated, with a major market share being covered by a few companies. Some of the major players in the market are ABB, Delta Electronics Inc., Toyota, and others. The major players in the country are entering into joint ventures with other players to develop the latest technology.

Recent Developments

· In January 2022, Here Technologies and Digital Charging Solutions GmbH entered a strategic collaboration to provide a seamless charging experience for electric vehicles. DCS has expertise in authicating charging process, access to charging stations, payment, Booking and billing service, and more than 280,000 charging points across Europe and Japan.

· In November 2021, Japan announced to double their incentives on electric vehicles to USD 7,000 in order to compete in the US and European EV market with an intention to be carbon neutral by 2050. Japan has also trailed the charging stations to encourage the sales of EVs, which subsequentally propels the demand for charging equipment. As of now, Japan has more than 30,000 charging stations, which is likely to cross the mark of 50,000 over the coming three years due to the aim of 100% electrified passenger cars by mid-2030.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 End Use

      1. 5.1.1 Home Charging

      2. 5.1.2 Public Charging

    2. 5.2 Charging Station

      1. 5.2.1 AC Charging Station

      2. 5.2.2 DC Charging Station

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles*

      1. 6.2.1 ABB Ltd

      2. 6.2.2 Delta Electronics Inc.

      3. 6.2.3 e-Mobility Power Inc.

      4. 6.2.4 Toyota Connected Corporation

      5. 6.2.5 Tesla Inc.

      6. 6.2.6 Aoyama Elevator Global Ltd

      7. 6.2.7 Tritium Charging

      8. 6.2.8 NEC Telecommunication and Information Technology Ltd

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Frequently Asked Questions

The Japan Electric Vehicle Charging Equipment Market market is studied from 2018 - 2027.

The Japan Electric Vehicle Charging Equipment Market is growing at a CAGR of >44% over the next 5 years.

The Japan Electric Vehicle Charging Equipment Market is valued at 1 Million USD in 2018.

The Japan Electric Vehicle Charging Equipment Market is valued at 2 Million USD in 2027.

ABB, Tesla Inc., Delta Electronics Inc., Toyota Connected Corporation, Aoyama Elevator Global Ltd. are the major companies operating in Japan Electric Vehicle Charging Equipment Market.

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