EV On-Board Chargers Market: Current Analysis and Forecast (2022-2030)

Electric Vehicle (EV) onboard chargers play a vital role in the transition towards a sustainable and eco-friendly transportation future. These innovative devices are integrated directly into electric vehicles, serving as the essential link between the vehicle's battery pack and external power sources. The primary function of on-board chargers is to convert AC (alternating current) from the electric grid into DC (direct current) required to charge the EV's battery.

The EV on-board chargers market is expected to grow at a strong CAGR of 17.5% during the forecast period. The growth of EV on-board chargers is being driven by several influential factors, as the world transitions towards a more sustainable and eco-conscious transportation landscape. One significant factor is the increasing global awareness and urgency to combat climate change and reduce greenhouse gas emissions. Governments and environmental organizations are actively promoting electric vehicles as a cleaner alternative to internal combustion engine vehicles, leading to a surge in EV adoption. As a result, automakers and technology companies are investing heavily and adopting strategic alliances such as mergers and acquisitions to improve onboard charger technology, making charging faster, more efficient, and convenient for consumers. For instance, in 2023, A U.S.-based subsidiary of oil company Shell is buying EV charging network operator Volta in an all-cash transaction valued at USD 169 million

Based on vehicle type, the market is segmented into passenger cars and commercial vehicles. Among these, the passenger car segment is expected to attain a high market share in 2022. The growth of the passenger car segment in the EV on-board charger market is primarily fueled by increasing awareness and acceptance of electric vehicles among consumers. Governments worldwide are implementing stringent emission regulations and offering incentives to promote clean transportation, leading more consumers to consider electric cars as viable alternatives to conventional gasoline vehicles. As charging infrastructure continues to expand, range anxiety diminishes, making electric vehicles a more practical choice for daily commuting and long-distance travel. Technological advancements in on-board chargers, such as higher power outputs and bidirectional capabilities for vehicle-to-grid (V2G) integration, are also boosting consumer confidence in electric cars, further driving the growth of this segment.

Based on propulsion, the market is segmented into BEV, PHEV, and HEV. Among these, the BEV segment is expected to hold a significant share of the market share in 2022 and will dominate during the forecast period. BEVs are emission-free and offer a more sustainable mode of transportation, aligning with the global push for eco-friendly solutions to combat climate change. As battery technology continues to advance, the driving range of BEVs has improved significantly, increasing their appeal to consumers. On-board chargers play a critical role in charging BEVs efficiently and conveniently, enhancing the overall ownership experience. With governments offering incentives and investing in charging infrastructure specifically tailored to BEVs, the demand for on-board chargers in this segment is projected to surge in the coming years. For instance, In December 2021, Toyota Motor Corporation announced a line-up of its battery electric vehicle plans, unveiling 16 new BEV models. The 16 new BEVs unveiled at the Mega web showcase included five Toyota "bZ" (beyond Zero) vehicles, one of which was the bZ4X launched in 2022.

Based on power output, the market is segmented into less than 20KW and more than 20KW. Among these, the less than 20KW segment is expected to attain a high market share in 2022. The growth of the less than 20 kW segment in the EV on-board charger market is being driven by the rise of electric two-wheelers, three-wheelers, and smaller electric vehicles used in urban environments. These low-power vehicles are particularly popular in densely populated cities, where shorter commutes are common, and environmental concerns are significant. On-board chargers in this segment cater to the specific power requirements of these smaller vehicles, ensuring efficient charging and optimal performance. Additionally, the affordability and compact size of such chargers make them accessible to a broader consumer base. As urbanization and the need for sustainable mobility increase, the demand for on-board chargers in the less than 20 kW segment is expected to see robust growth, promoting the widespread adoption of electric micro-mobility solutions.

For a better understanding of the market adoption of the EV on-board chargers industry, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, UK, France, Italy, Spain, Rest of Europe), Asia-Pacific (China, Japan, India, Korea, and Rest of Asia-Pacific), Rest of World. Asia-Pacific is likely to be the market leader for automotive on-board chargers because it is the center of the EV industry due to low raw material costs, low labor costs, numerous industry players, high population, and government involvement. Despite a global drop in auto sales caused by a lack of semiconductor supply due to COVID-19, electric vehicle sales increased by 154 percent in China last year as more people opted for cleaner vehicles. Chinese EV manufacturers sold 3.3 million EVs in China last year, after selling 1.3 million vehicles in 2020 and 1.2 million vehicles in 2019. The growth of China's electric vehicle industry has been aided by government regulations that include incentives. However, with the huge growth of the EV industry, the incentives weigh heavily on the government. For example, the country's Finance Ministry announced in January 2022 that China will cut EV subsidies by 30 percent this year and all subsidies will be eliminated by the end of 2022. These measures may impede market growth.

Some of the major players operating in the market include: Bel Fuse Inc; BRUSA Elektronik AG; Current Ways; BorgWarner Inc; Eaton; Infineon Technologies AG; innolectric Agi; Stercom Power Solutions GmbH; Toyota Industries Corporation; Xepics Ltd.