Shifting consumer pattern towards clean and safe mobility for a sustainable future is slated to spur Asia Pacific EV charging infrastructure market revenue. Lately, a palpable traction to install the charging infrastructure has fared well for stakeholders vying to expand their penetration in the APAC region.
Deployment of electrical vehicles in a massive scale is in line with favorable policies by governments towards production of EVs. Moreover, a global push to reduce greenhouse gas emissions from conventional automobiles has instilled confidence among stakeholders.
According to the recently collated research report, Asia Pacific EV charging infrastructure market size will witness a sizeable uptick by 2025.
Some of the trends which are expected to reshape the business outlook are delineated below:
Level 2 charging infrastructure to gain impetus
Robust technological innovation of semiconductor devices, along with improved battery life cycle has driven the adoption of level 2 charging infrastructure. It is worth noting that fast charging that is compatible with electricity grid will witness a pressing demand and boost the penetration of level 2 charging infrastructure.
A notable trend for ultra-fast charging has helped DC charging station portfolio gain impetus following the R&D activities and flexibility of DC chargers to connect to the grid and store energy becoming more apparent in recent years. It is pertinent to mention that a typical DC charger takes around 30 to 45 minutes to charge the EV battery from 0% to 80%.
Japan footfall to be more pronounced
Stakeholders are expected to infuse funds in Japan as the island country has gained financial support from its government. Japan is witnessing an influx of EVs following the rigorous government policies and mandates to contain the carbon footprint and boost energy efficiency. For instance, Japanese government came up with Green Vehicle Purchasing Promotion Measure in 2009 to ensure tax exemption and deduction and trigger production and sales of EVs.
India is gradually coming up as a huge market for electric vehicles as governments continue to promote production and purchase of EVs. For instance, Government of India announced tax rebates of up to US$2,100 on interest paid on loans to purchase EVs.
Public charging infrastructure to be highly sought-after
With an upsurge in the manufacturing of EVs, public charging infrastructure is poised to be highly sought-after in India, China, Japan and South Korea. Strong investments and relentless development of battery technology have subsequently triggered the demand for battery swapping stations. In addition, massive commercial parking spaces and dearth of space in cities have furthered the expansion of public-charging stations.
On the flip side, lack of power infrastructure and high installation cost may deter the industry size expansion; however, R&D activities meant to reduce the cost will boost the business outlook. For instance, BP inked a deal with DiDi, a China-based transportation company in 2019 to collaborate to build EV charging infrastructure in the mainland.
Leading companies are expected to focus on product roll outs and mergers & acquisitions to gain an edge in the industry. Some of the industry players profiled in the report are, included but not limited to, Renault, BMW, Volkswagen, Exxon Mobil, Mercedes, and Hyundai.
