The rising demand for electric vehicles (CAGR ~20%) is driving the need for EV charging connectors (CAGR~19%). Moreover, the increasing efficiency of electric vehicles is expected to create a significant opportunity for market growth in near future.
EV charging connector suppliers are also positioning themselves for growth by collaborating with electric vehicle manufacturers. EV charging connector suppliers are also collaborating with regional players to benefit from their knowledge of the local market, and maintain high-profit margins, low overhead costs, and their overall competitiveness in the market. CHAdeMO, CCS, and AC Type 2 connectors are the most common and effective solutions in the current scenario with more than 80% market share. However, DC fast charging connector segment has started to get more market share due to its fast-charging capability. With the growing requirement for EV charging infrastructure (CAGR ~32%) associated components, suppliers are finding newer sourcing and procurement methods for optimizing the cost of manufacturing, reducing the volatility of obtaining raw materials, and improving profitability.
Leading EV charging connector suppliers are mostly manufacturing EV connectors for their in-house charging infrastructure development. Hence, the competition is particularly high among the smaller regional EV charging connector suppliers.
An increase in mergers and acquisitions, coupled with diffused customer concentration, has enabled EV charging connector suppliers to secure add-on offerings to realize growth in new geographies. The Asia Pacific region holds the highest share of the global EV charging connector market, thanks to China’s position as the leading sourcing destination due to its low-cost manufacturing. It is also the fastest-growing market, owing to the supportive policies of China's government and the development of China as the global EV charging infrastructure hub.
Raw materials, energy, and labor are three major cost components (~60%) of EV charging connector manufacturing. In most cases, the EV charging connector body is made of thermoplastic and it holds the highest share (20%) among raw materials.
The electric vehicle charging connector market procurement intelligence report provides a detailed analysis of the cost structure along with the prevalent pricing models that prominent suppliers in the market opt for.
The U.S. has been one of the largest importers of electric connectors for the past 5 years.
The import value has increased over the past 2-3 years. In the wake of the U.S.-China trade war, the U.S. has been moving its supply chains to Japan and South Korea, which are comparatively expensive sourcing destinations than China.
From a sourcing perspective, the majority of the suppliers opt for a hybrid or bundled outsourcing engagement model as it reduces the complexities associated with in-house production.
In order to reduce risks and improve the potential for value creation, suppliers widely prefer using shared service operating models. As such, suppliers are expected to move from offering custom products to proprietary products in the future. The report also provides details of the quick wins, portfolio analysis, and key negotiation strategies of the key suppliers.
b. The global EV charging connector market size was estimated at USD 36 million in 2019 and is expected to reach USD 42 million in 2020.
b. The global EV charging connector market is expected to grow at a CAGR of 19% from 2019 to 2025 and reach USD 101 million by 2025.
b. Increasing production of electric vehicles and government initiatives towards sustainable development are some of the major driving factors of EV battery market.
b. LCC/BCC sourcing analysis indicates China to be one of the best sourcing destinations for EV charging connectors.
b. Some of the key manufacturers in EV charging connector market are ABB, Bosch, Tesla, Siemens.
b. The EV charging connector market is fragmented as the top five players occupying less than 20% of the market.
b. The raw materials account for 80% of the overall manufacturing cost of EV charging connectors.
b. The key raw materials for manufacturing EV charging connectors are thermoplastic for the body, tough pitch copper for contact, stainless steel for latch, etc.
b. Prevalence of regional sourcing practices, increasing spend transparency, migration to cloud-based procurement tools, and standardization of contract period are some of the best practices in the EV charging connector market.
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Component wise cost break down for better negotiation for the client, highlights the key cost drivers in the market with future price fluctuation for different materials (e.g.: steel, aluminum, etc.) used in the production process
Offering cost transparency for different products / services procured by the client. A typical report involves 2-3 case scenarios helping clients to select the best suited engagement with the supplier
Determining and forecasting salaries for specific skill set labor to make decision on outsourcing vs in-house.
A typical newsletter study by capturing latest information for specific suppliers related to: M&As, technological innovations, expansion, litigations, bankruptcy etc.
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