According to a research report “EV Charging Cable Market by Power Supply (AC and DC), Application (Private Charging & Public Charging), Length (2-5 Meters, 6-10 Meters, and >10 Meters), Shape, Mode, Charging Level, Connector Type, Cable Type Diameter & Region – Global Forecast to 2030″ published by MarketsandMarkets, the global EV charging cable market is projected to grow from USD 1.3 billion in 2023 to USD 3.9 billion by 2030, registering a CAGR of 16.7%.
EV Charging Cables Market Growth Dynamics:
Driver: Government policies & subsidies to accelerate setup of EV charging stations
The increasing pace of charging station deployment is expected to accelerate further the demand for related components such as EV charging cables. Various governments are funding the development of charging station infrastructure and subsidizing EV charging infrastructure. In addition to subsidies, governments are also introducing favorable policies for installing EV charging infrastructure. Several governments provide various kinds of incentives such as low or zero registration fees and exemptions from import, purchase, and road taxes. Europe was the first region to introduce plans to shift fully to EVs by 2050, which was later changed to 2035. Other countries have also set up plans to increase EV charging infrastructure along with their EV shift by 2030 and beyond. Various countries thus set up policies for EV charging stations around the world. Furthermore, countries such as Norway and Germany are investing significantly in promoting the sales of EVs. Thus, due to the significant incentives and subsidies offered in Europe, there is high growth in the sale of electric vehicles. This has increased the demand for components and equipment associated with EV charging operations, such as charging cables, connectors, adapters, and portable chargers. Government initiatives and subsidies promoting electric vehicle (EV) adoption are gaining momentum, particularly evident in the US Inflation Reduction Act (IRA) of August 2022. Allocated from a USD 369 billion climate investment fund, the IRA outlines measures to expedite the EV transition. The Clean Vehicle Tax Credit is a cornerstone of the IRA, introducing stringent criteria for EV incentives starting in 2023. Eligible EVs must be assembled in North America, possess a 7 kWh+ battery, weigh under 6.35 t, and fit price caps. Major US automakers are aligning with IRA provisions, with incentives of up to USD 7,500 per vehicle. The IRA also fosters battery production through Advanced Manufacturing Production Tax Credits. Further, in February 2023, the European Union introduced the Green Deal Industrial Plan, prioritizing expedited permitting, financial support, skill enhancement, and open trade to advance net-zero projects.
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Opportunity: Technological advancements for EV charging cables
The rising demand for high-speed charging stations has compelled manufacturers of EV charging cables to develop advanced technology cables. Most of the DC charging stations operate on 400 V to 480 V and can charge up to about 50 kW. Leading EV charging cable manufacturers have launched various new products to ease charging. For instance, Phoenix Contact, a leading EV charging cable market player, has developed high-power charging cables that can charge electric vehicles rapidly. These cables do not overheat during charging as they are cooled efficiently with an environment-friendly water-glycol mixture. Technological advancements have also led to changes in the charging interface. For instance, LEONI AG developed a new charging cable concept involving a status-indicating light function. This advanced feature illuminates the charging cable, which enhances safety and prevents tripping over the cable in dark areas. Further, in May 2023, Volvo Cars announced to invest in the bidirectional EV charging startup dcbel. The firm introduced its “r16” Home Energy Station, a comprehensive sustainable energy system that includes solar energy, two-way charging for backup power, and an intelligent home energy management system. Moreover, In May 2023, Scania achieved a significant milestone by successfully implementing and testing a pilot megawatt charging system developed by ABB E-mobility. This achievement marks a crucial advancement in the creation of a high-power charging solution for heavy-duty vehicles, promising to cut charging times in half. The joint effort aims to facilitate rapid charging for commercial electric vehicles, offering substantial range improvements and bolstering the market for fossil-free heavy-duty vehicles. Further advancements in EV charging cables are expected to act as an opportunity for market growth.
EV charging cables with GB/T connector compatilibty to be the largest market during the forecast period
GB/T is expected to be the largest segment, whereas CCS 1 is expected to be the fastest growing segment during the forecast period. The GB/T DC connector is currently China’s only rapid charging standard, with intentions to develop a next-generation connector in collaboration with CHAdeMO to generate 900 kW output power. With over 6.8 million EV sales, China’s substantial market share is largely underpinned by GB/T connectors. Meanwhile, the CCS1 standard is expected to exhibit rapid growth, fueled by its continued dominance for non-Tesla EVs and charging networks across North America. With its stronghold in the US and Canada, CCS1 ensures seamless compatibility and interoperability, contributing to its projected ascent as the fastest-growing segment in the EV charging connector arena. The GB/T connector exhibits a two-pin arrangement for alternating (AC) charging and a three-pin configuration for direct (DC) charging. This flexibility enables it to accommodate a variety of charging capacities and power levels. Notably, the GB/T connector caters to AC and DC charging, making it suitable for various EV models. Its robust build and compatibility with varying charging voltages contribute to its widespread adoption. China’s steadfast dedication to electric mobility, coupled with its status as a key market for electric vehicles, has propelled the expansion of the GB/T connector. Government backing for EV adoption and incentives for EV manufacturers to adopt the GB/T standard have further elevated its prominence. As China continues to exert a leadership role in the global EV market, the prevalence of the GB/T connector is anticipated to endure, shaping the charging infrastructure landscape not solely within China but also potentially influencing charging standards in neighboring regions.
“Asia Pacific to be the fastest growing market for EV Charging Cables during forecast period”
The Asia Pacific region is expected to be the fastest-growing market for EV charging cables during the forecast period. According to data published by the China Electric Vehicle Charging Infrastructure Promotion Alliance, from January to March period 2023, a total of 632,000 charging piles were added in China. The increasing development of charging stations will, in turn, boost the demand for EV charging cables. Most of the public charging stations in China install straight-shaped EV charging cables as these are easy to manufacture and exert less force compared to coiled-shaped EV charging cables. China has rapidly expanded its charging infrastructure to support the growing electric vehicle fleet. With over 1.76 million charging stations established nationwide, the country showcases its steadfast progress in constructing a comprehensive and accessible charging network that aligns with the principles of sustainable mobility. The State Grid Corporation of China initially dominated the charging station landscape, but the industry has witnessed a surge in private car manufacturers and energy suppliers entering the EV charging sector. The Indian government has shown a strong commitment to enhancing the EV charging infrastructure by declaring plans to set up 137 EV charging stations along National Highways. This initiative, backed by allocated funds, underscores the nation’s dedication to promoting sustainable transportation solutions. In tandem, major corporations are making significant contributions to the expansion of charging networks. Tata Power unveiled an ambitious vision to establish 25,000 EV charging points across India within five years, while Shell announced its intent to deploy over 10,000 charging points by 2030. Notably, Ather Energy is expected to deploy 2,500 charging stations nationwide by the end of 2023, and Statiq has set an ambitious goal of installing 20,000 EV charging stations across India within the same timeframe. In Japan, Type 1 plugs are utilized for Level 1 & 2 Charging, and CHAdeMO is the standard for Level 3 Charging. Additionally, the majority of DC fast chargers in the country have imposed power limits. Overall, Japan’s strategic initiatives, partnerships, and favorable policies are propelling the growth of the EV charging cable market, positioning the country as a pivotal player in the global EV industry. South Korea’s government policies further fuel the growth of the EV market and align with the burgeoning demand for charging cables. The continuation of the EV subsidy program under the Green Deal, extended support to both passenger and commercial EVs, and ambitious plans to elevate the charger-to-EV ratio to 50% by 2025 all reflect the nation’s recognition of the surging demand for efficient and accessible EV charging infrastructure. Hyundai Motors’ USD 16.1 billion investment in EV-related incentives serves as a testament to the escalating demand for electric vehicles and the charging infrastructure to support them. With South Korea setting a precedent through its remarkable charging infrastructure and supportive policies, the adoption of the CCS1 charging connector type underscores the nation’s progressive approach to advancing electric mobility.
Key Market Players:
The EV charging cable market is dominated by Leoni AG (Germany), Aptiv (Ireland), TE Connectivity (Switzerland), BESEN International Group (China), Dyden Corporation (Japan), among others. These companies manufacturers EV charging cables. These companies have set up R&D facilities and offer best-in-class products to their customers.
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