On-board Charger Market Size, Share & Trends Analysis Report By Power Output (Less than 11kW, 11kW to 22kW, More than 22kW), By Vehicle Type, By Propulsion Type, By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global on-board charger market size was valued at USD 4.05 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 17.2% from 2021 to 2028. The high cost of charging an electric vehicle at public charging stations is creating the demand for on-board chargers in the current days. The public chargers near highways, malls, and workplaces are subject to commercial electric rates, which are higher as compared to residential rates.

This is creating the need for on-board chargers for an electric vehicle. An on-board charger is used in an electric vehicle for charging the traction battery by converting the AC input received from the grid to the DC input required to charge the batteries. The increase in the number of AC private and public charging stations across the globe is one of the major factors driving the market growth. The AC level 1 on-board charger is deployed in all types of electric vehicles and can be plugged into ordinary power outlets.

This type of charger is in demand among the users as it does not require additional electric work, which minimizes the overall cost of installation. Additionally, approvals received for AC Level 2 charging stations are also one of the major factors accentuating the market growth. For instance, in October 2020, EVBox, an electric vehicle charging infrastructure provider, announced that its EVBox Iqon, a level 2 commercial charging station, received a UL certificate and is now available for installation across North America.

Silicon carbide semiconductor technology is increasingly being used for manufacturing on-board chargers as it provides high power density with an efficiency rate of more than 98%. Various companies are thereby increasing their focus on providing higher power and more efficient silicon carbide on-board chargers, which is creating new opportunities for market growth. For instance, in January 2020, Innolectric, an on-board charger provider, announced the launch of a 22-kW silicon carbide on-board charger. This new charger was developed by the company under its partnership with STMicroelectronics.

The increasing deployment of electric charging stations worldwide is propelling the market growth. For instance, in February 2021, Shell announced the plan of deploying 500,000 electric charging stations by 2025. On-board chargers are deployed in an electric vehicle that supports AC level 1 and level 2 charging. According to the study published by Idaho National Laboratory, 8% of the charging of Nissan Leaf is carried through DC fast chargers and the rest of the charging is done through AC level 1 and level 2 chargers.

The installation cost of an AC charging station is low compared to DC charging stations. The average cost required for installing a level 2 residential charger is approximately USD 1,354, which includes upgraded electrical services that are necessary for old homes. Additionally, the installation of a workplace level 2 charging station costs USD 2,223. However, the installation of fast DC chargers costs USD 22,626 and requires additional electrical services, owing to which, the demand for AC charging stations is increasing, ultimately accentuating the growth of the on-board charger market.

COVID-19 Impact Analysis

The outbreak of the COVID-19 pandemic negatively impacted the sales of electric vehicles in the first half of 2020, which hindered market growth. According to the statistics provided by the Society of Electric Vehicle Manufacturers, registration of electric vehicles during 2021 declined by 20%, to 236,802 units compared to 295,683 units in 2020. However, efforts are being undertaken by governments, such as the increase in purchase incentives, decline in battery costs, and upgrade offers by original equipment manufacturers for EVs, during the pandemic providing opportunities for EV adoption. For instance, in Germany, the purchase subsidy provided on BEV, which was to end in 2021, was extended to 2025 due to the pandemic.

Power Output Insights

The 11 kW to 22 kW segment dominated the market and accounted for more than 41.0% share of the global revenue in 2020. The 11-22 kW chargers are tri-phase AC chargers that charge an electric vehicle in two to four hours. A tri-phase AC charger is commonly used as a public charge point. According to the statistics provided by Transport & Environment, 61% of European public chargers are tri-phase AC chargers.

The less than 11 kW segment is anticipated to register the fastest growth over the forecast period. Most electric vehicles are expected to feature 6 kW to 11 kW on-board chargers in the coming years. According to the statistics published by OpenSystems Media, approximately 98.2% of on-board chargers will be 6 kW to 11 kW, rather than 3 kW to 5 kW, in the coming days. At the same time, benefits offered by less than 11 kW on-board chargers, such as increased charging efficiency and maximized performance, are expected to drive the segment growth.

Vehicle Type Insights

The passenger cars segment dominated the market and accounted for more than 35.0% share of the global revenue in 2020. The increasing sales of electric passenger cars globally are expected to create the demand for on-board chargers. According to the statistics provided by the HIS Market, the plug-in passenger car sales in the U.S. accounted for 5.5% of the market share in 2020, witnessing growth, compared to 4.2% in 2019. Additionally, European plug-in passenger car sales accounted for 7.7% in 2020 compared to 3.5% in 2019.

The bus segment is expected to register the fastest growth over the forecast period. An on-board charger is used in buses for converting the AC to DC for charging the battery. The increase in sales of zero-emission buses globally is expected to accentuate the segment growth. According to the statistics provided by Sustainable Bus, a web magazine focused on the electric buses market, by 2040, the sales of electric buses are expected to rise to 83%.

Propulsion Type Insights

The BEV segment dominated the market and accounted for more than 67.0% share of the global revenue in 2020. In Battery Electric Vehicle (BEV), the propulsion is provided through the plug-in charged battery. The rise in BEV vehicles is driving the segment growth. Various companies such as Volkswagen, Audi, and Mercedes-Benz have accounted for the highest share in the BEV segment. In 2020, Volkswagen accounted for 17.4% of BEV, which was followed by Mercedes-Benz with 14.9%.

The PHEV segment is expected to register the fastest growth over the forecast period. Various Plug-in Hybrid Electric Vehicle (PHEV) manufacturers are adopting on-board chargers with an output between 3 and 3.7 kW, which is driving the segment growth. Car models such as Hyundai Sonata PHEV, Kia K5 PHEV, and Outlander PHEV use on-board chargers for charging their batteries. PHEVs are witnessing exponential growth across the world. In 2020, BYD, a China-based electric vehicle manufacturer, sold 7,126 PHEVs, witnessing an increase of 60%, compared to 4,454 PHEVs in 2019.

Regional Insights

The Asia Pacific region dominated the market and accounted for more than 38.0% share of the global revenue in 2020. The rise in government efforts for promoting electric vehicle sales in countries such as China and India are accentuating the regional market growth. For instance, the sales quotas introduced by the Chinese government for the years 2019, 2020, and 2021 are one of the major factors driving the EV on-board charger sales in the country. The EVs using on-board chargers in China include Tesla Model 3, BYD Qin Pro EV, and GAC Aion S, among others.

Europe is expected to register significant growth over the forecast period. The players in Europe are continuously making efforts to expand their EV offerings, which is thereby driving the demand for on-board chargers. According to the BMW vision, the company has planned to electrify its SUVs, sedans, and Mini vehicles in Europe by 2030. At the same time, an increase in subsidies provided on the purchase of electric vehicles is also one of the major factors driving the market growth in the region.

Key Companies & Market Share Insights

The market is highly fragmented in nature. It is characterized by the presence of a large number of players. The players in the market are focused on strategies such as mergers and acquisitions and partnerships for strengthening their offerings. For instance, in January 2019, Eaton announced its partnership with KPIT. Under this partnership, the company developed next-generation technologies for e-mobility. This partnership was mainly focused on deploying and developing software solutions, technologies, and platforms for on-board chargers and DC-DC converters.

The players in the market are also focusing on expanding their EV charging capabilities by partnering with other players. For instance, in March 2021, Eaton announced the acquisition of Green Motion SA, a manufacturer and designer of electric vehicle charging software and hardware. Through this acquisition, Eaton expanded its electric charging capabilities. Some of the prominent players operating in the global on-board charger market are:

• Bel Fuse Inc. 

• Delta Energy Systems

• STMicroelectronics

• Toyota Industries Corporation

• Eaton

• Stercom Power Solutions GmbH

• innolectric AG

• BRUSA Elektronik AG

• AVID Technology Limited

• Ficosa Internacional SA

On-board Charger Market Report Scope

Segments Covered in the Report

The report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For this study, Grand View Research has segmented the global on-board charger market report based on power output, vehicle type, propulsion type, and region:

• Power Output Outlook (Revenue, USD Billion, 2017 - 2028)

  • Less than 11 kW

  • 11 kW to 22 kW

  • More than 22 kW

• Vehicle Type Outlook (Revenue, USD Billion, 2017 - 2028)

  • Passenger Car

  • Buses

  • Vans

  • Medium & Heavy Duty Vehicles

  • Boats

  • Others

• Propulsion Type Outlook (Revenue, USD Billion, 2017 - 2028)

  • Battery Electric Vehicle (BEV)

  • Plug-in Hybrid Electric Vehicle (PHEV)

• Regional Outlook (Revenue, USD Billion, 2017 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • China

    • South Korea

    • Japan

  • Latin America

    • Brazil

  • Middle East & Africa