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Market Research Report
Product code
625893
Japan Electric Vehicle Charging Equipment Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027) |
Japan Electric Vehicle Charging Equipment Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027) |
Published: January 17, 2022
Mordor Intelligence Pvt Ltd
Content info: 70 Pages
Delivery time: 2-3 business days
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The Japan Electric Vehicle Charging Equipment Market was valued at USD 0.17 billion in 2020 and the market is expected to register a CAGR of more than 44% during the forecast period (2021-2026).
The market has been negatively impacted with the outbreak of pandemic COVID-19. The sales of electric vehicles in the country was hampered and the market share of electric vehicles is very low. Major reason for the low sales during the year was the strict lockdown measures as economic activities were stopped for a long time during the year.
The Japanese government plans to reduce its carbon footprint through the use of EVs, which has resulted in substantial investments toward the EV infrastructure development. Japan witnessed an increase in the number of EV charging stations, to support the rising number of EVs, on account of the introduction of government subsidies for EV buyers.The government is taking steps to increase the share of electric and plug-in hybrids to between 20-30% by 2030, from just 1 percent in 2018.
The government is taking steps towards boosting sales of electric vehicles. For instance, in December 2020, Japan's Environment Ministry made an announcement that it is increasing subsidies for the purchase of battery electric vehicles in the country. The maximum amount per BEV vehicle will be doubled to 800,000 yen (about EUR 6,340 ), provided the electricity used in the buyer's home or office is generated from renewable energy sources. Also, the government subsidy will also be doubled for plug-in hybrid vehicles to up to 400,000 yen (just under EUR 3,200 ).
The country's electric vehicle charging infrastructure depends on subsidies to expand the infrastructure. Of the 30,000 chargers in the country, about 20,000 were installed between 2013 and 2016, with the government subsidies. However, the Ministry of Economy, Trade and Industry has seen its charger budget decline.
It is considered that the life span of a quick charger is eight years. But in highly trafficked areas, this can drop to less than three years. Many in Japan will need to be replaced in fiscal 2022, but repairs or replacements will be costly. The government is not spending enough money on repairing the broken charging stations because of the low market share of electric vehicles and low utilization of existing charging infrastructure in the country. For instance,
The Electric vehicle charging station market is fairly consolidated, with a major market share being coverd by 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 latest technology. For instance,
In September 2020, Delta Electronics Inc., announced its new Delta electric vehicle (EV) Charging Station Yokohama, jointly developed and operated by Delta and Japanese energy company Idemitsu Kosan Co., Ltd., which is capable of assisting as a disaster response base for the city of Yokohama by serving the local government's emergency response EVs with charging services as well as with EV battery electricity deployment to the grid during disasters.