EV Charging Cable Market

[299 Pages Report] 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%. With environmental concerns at the forefront of collective consciousness and the increasing popularity of electric vehicles, the demand for cutting-edge charging solutions has never been more pronounced. In this dynamic landscape, various innovative technologies are reshaping the EV Landscape, transforming the EV charging cable market into a hotbed of innovation, efficiency, and user-friendly advancements.

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Market 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.

Restraint: High initial investments in EV fast-charging infrastructure

The initial investment in setting up a fast-charging system is much higher compared to petrol, CNG, or LPG fuel stations. This has been a major restraint that has kept countries around the world from shifting to EVs on a larger scale. The cost for EV fast charging is high due to the higher equipment costs and the additional requirement for the fast charger to install a transformer to connect the grid and charging system. This has led to the slower development of charging networks around the world, which have gained traction in the past few years due to concerns related to vehicle emissions.  The cost of DC fast-charging cables is notably higher, with a fast-charging cable priced around USD 126, significantly more than slower charging cables. This elevated expense, coupled with the costly installation of slow charging stations at approximately USD 1,700 in the UK, could hinder the widespread adoption of this technology. DC Fast Chargers, which power electric vehicles using direct current, offer rapid and efficient charging. These chargers can charge an average EV to 80% in about 30 minutes, making them particularly appealing for commercial applications. Despite their advantages, the higher cost of DC Fast Chargers is mainly due to the more expensive equipment involved. To make EVs successful, it is necessary to develop infrastructure to support them. The initial investment for installations of charging stations is very high compared to other types of fuel stations.

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.

Challenge: Mechanical and corrosive damages lowering the reliability of EV charging cables

The reliability of EV charging cables can be compromised by various factors, including mechanical and corrosive damages and the impacts of weathering and temperature fluctuations resulting from cyclic use. The charging cable, a crucial link between the charging station and the vehicle, is susceptible to wear and tear over time. Fraying or physical damage to the cable can lead to charging failures, while issues like loose connections, cable breaks, or faulty plugs can result in slow or unreliable charging. Mechanical problems, such as damaged components within the charging port or the use of incompatible cables, can further exacerbate these issues. Moreover, weathering impacts and temperature rises due to cyclic use can also contribute to the deterioration of EV charging cables. Exposure to varying weather conditions, such as extreme heat, cold, and moisture, can degrade the cable's insulation and protective layers over time. This can weaken the overall structural integrity of the cable and increase the risk of performance issues. Additionally, frequent and repetitive plugging and unplugging, coupled with the associated temperature changes during charging and discharging cycles, can lead to thermal stress and gradual degradation of the cable's materials. Addressing these multifaceted challenges is essential to ensure the long-term reliability and durability of EV charging cables. As the demand for electric vehicles and charging solutions continues to rise, industry stakeholders are actively working on innovative designs and materials to enhance the cable's resistance to mechanical wear, corrosive elements, weathering, and temperature fluctuations. The EV charging ecosystem aims to deliver a seamless and dependable charging experience for electric vehicle users worldwide by advancing these aspects.

Market Ecosystem

Mode 4 EV charging cables to be the fastest growing segment during forecast period

The mode 4 segment is expected to register the fastest rate during the forecast period, driven by the demand for swift DC charging solutions, particularly in dedicated charging stations for long-distance travel. Mode 4 includes DC fast charging. It works with varying charging rates, starting with portable 5 kW units to 50 kW and 150 kW, as well as upcoming 350- & 400-kW standards. This type of charging now provides DC (direct current) up to 200 amperes and is recommended for rapid charging of EVs. It consists of high charging capacity; thus, charging cables are required to handle the high current capacity of fast charging. Mode 4 charging cables are specifically used for DC charging, and the power is converted before being transferred to the vehicle. However, since this type of charging transfers a large amount of power directly to the battery, the cables need to be permanently connected to the charging station and are often liquid-cooled to handle the heat. In the United States, the deployment of Mode 4 EV charging stations has been supported by federal and state government incentives, such as tax credits and grants. China is currently the largest market for electric vehicles, and the government is investing heavily in charging infrastructure to support this growth. In Europe, there has been a push towards deploying ultra-fast charging stations, with many countries setting ambitious targets for the number of stations to be deployed in the coming years. For example, Germany has set a goal of having 1 million public charging stations by 2030, with 10,000 of them being ultra-fast charging stations. Overall, the deployment of Mode 4 EV charging stations is crucial to the growth and adoption of electric vehicles worldwide, and there have been significant developments and investments in this area in recent years.

Level 1 EV charging cable segment to be the largest market during the forecast period

By charging level, the Level 1 segment is estimated to lead the market during the forecast period as the infrastructure required for Level 1 charging is less expensive than Level 2 and Level 3. Additionally, electric vehicles are typically sold with Level 1 chargers, which results in exponentially high sales of Level 1 charging cables. Considering the rapid sales of electric vehicles worldwide, the Level 1 segment is estimated to remain dominant in the market throughout the forecast period. 1 charging for most vehicles in the market requires 8 to 16 hours for complete charging, depending upon the size of the battery. Level 1 charging is used when the EV needs to be used for short distances. Such type of charging infrastructure costs the lowest among all charging types and is often subsidized by governments with various incentive schemes. Most EVs are equipped with Level 1 charging, which is easily accessible and cost-effective. For instance, in July 2023, Lectron, a prominent supplier of electric vehicle (EV) charging solutions, has unveiled its latest innovation – The Lectron Level 1 EV Charger to the needs of daily commuters by delivering convenient and straightforward charging solutions. Operating at a charging speed of up to 1.65 kW and drawing 15 Amps of current guarantees a dependable and consistent charging experience. Engineered with a NEMA 5-15 plug, it seamlessly connects to standard 110V outlets. Its portable and user-centric design renders it an ideal choice for those seeking on-the-move charging capabilities.

Asia Pacific to be the largest market for EV Charging Cables by value during the forecast period

The Asia Pacific region is expected to be the largest market for EV charging cables during the forecast period. The increasing adoption of electric vehicles in China and Japan is expected to drive the market. Major EV OEMs like BYD, NIO, and Hyundai, coupled with government subsidies and incentives in countries such as China, Japan, and South Korea, foster robust EV adoption and necessitate extensive charging infrastructure. Particularly in growing economies like India, where EV adoption is in its early stages but rapidly gaining traction, government initiatives like FAME-II and proactive measures from companies like Tata Motors and Mahindra Electric drive the demand for charging cables. Similarly, in June 2023, China has prolonged its tax exemption initiative for new energy vehicles (NEVs) until 2027, reaffirming its dedication to fostering the electric vehicle (EV) sector. This decision is anticipated to enhance domestic sales and sustain China's role as a prominent player in the global EV market. The extension offers stability and assistance to both consumers and manufacturers while also fostering potential foreign investment opportunities in the realm of electric mobility. These factors collectively position the Asia Pacific region as the epicenter of the burgeoning EV charging cables market.

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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Scope of the Report

This research report categorizes the EV charging cable market based on Diameter, Power Supply, Application, Cable Type, Charging Level, Shape, Jacket Material, Mode, Cable Length and Connector Type and Region.

Based on Diameter:

• <10 mm
• 10-20 mm
• >20 mm

Based on Power Supply:

• AC
• DC

Based on Application:

• Private
• Public

Based on Cable Type:

• Normal Charging Cable
• High-Power Charging Cable (HPC)
• Liquid-Cooled High-Power Charging Cable

Based on Charging Level:

• Level 1
• Level 2
• Level 3

Based on Shape:

• Straight
• Coiled

Based on Jacket Material:

• All Rubber
• Thermoplastic Elastomer (TPE)
• Polyvinyl Chloride (PVC)

Based on Mode:

• Mode 1 & 2
• Mode 3
• Mode 4

Based on Cable Length:

• 2-5 Meters
• 6-10 Meters
• >10 Meters

Based on Connector Type:

• Type1
• Type2
• CCS 1
• CCS 2
• CHADEMO
• GB/T
• NACS/Tesla

Based on the region:

• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
• North America
  • US
  • Canada
• Europe
  • Austria
  • Denmark
  • France
  • Germany
  • Netherlands
  • Norway
  • Spain
  • Sweden
  • Switzerland
  • Italy
  • UK

Recent Developments

• In April 2023, Leoni AG announced that it has changed its Business Group AM to the Automotive Cable Solutions (ACS) Division, underscoring the vital role of automotive cables within the company's cables segment. With a global network of ten facilities across seven countries and around 3,300 employees, ACS is a prominent supplier of standard automotive, special, and charging cables.
• In September 2022, Ravicab Cables Private Limited announced acquisition of Leoni Cable Solution India Private Limited (LCSI), Pune, a wholly-owned subsidiary of Leoni AG. This strategic move by Ravicab not only broadens its market presence but also extends its product offerings, establishing a seamless synergy with Ravicab's ambitious growth plans. The acquisition opens up exciting opportunities for investment and growth in the acquired business, setting the stage for a promising future in terms of development and expansion.
• In August 2022, Huber+Suhner partnered with South Korean EV charging system producer, SK Signet. Both companies will work together as part of this cooperation to further advance and encourage EV charging infrastructure innovation.
• In May 2022, Aptiv Plc announced its plan to acquire 85% of Intercable Automotive Solutions, a unit of Italy's Intercable. The deal, valued at USD 605.71 million, will grant Aptiv access to cutting-edge technology used in EVs. Intercable Automotive Solutions specializes in manufacturing high-voltage busbars capable of carrying substantially more electrical power than conventional cables. The unit operates manufacturing facilities in both Europe and Asia.
• In May 2022, Aptiv Plc announced its plan to acquire 85% of Intercable Automotive Solutions, a unit of Italy's Intercable. The deal, valued at USD 605.71 million, will grant Aptiv access to cutting-edge technology used in EVs. Intercable Automotive Solutions specializes in manufacturing high-voltage busbars capable of carrying substantially more electrical power than conventional cables. The unit operates manufacturing facilities in both Europe and Asia.

Frequently Asked Questions (FAQ):

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