An on-board charger (OBC) transforms ac power from any ac source into usable dc form. Its primary function is power conversion, typically located inside the car. As a result, on-board chargers offer the benefit of charging the electric vehicle directly from a power outlet at our homes. Also, it avoids the requirement for purchasing any additional machinery for power conversion.
In 2021, the market for on-board charger was worth USD 4.6 billion, and by 2030 it will be worth USD 16 billion, growing at a 15% CAGR during the forecast period.
On-board chargers are increasingly being constructed with silicon carbide semiconductor technology, which has a high power density and more than 98 percent efficiency. As a result, numerous companies are focusing more on providing greater power and more efficient SiC on board chargers, creating new avenues for market growth.
Market Dynamics
Drivers
Factor influencing the growth of the on-board charger market is the expanding use of electric vehicles on a global scale. The population’s tendency to use less gasoline and other fossil fuels drive market demand in favor of the sustainable development program. The usage of electric vehicles does not affect the environment; thus, the government is implementing a number of steps to encourage their use.
EVs offer a number of advantages, such as reduced fuel (petrol, gas, and diesel) consumption and tailpipe emissions, which in turn support the need for on-board chargers. Also, the industry is expanding due to an increase in manufacturers’ strategic mergers and acquisitions.
Restraints
The COVID-19 outbreak restricted market expansion by reducing sales of electric vehicle on-board chargers in the first half of 2020. The association of Electric Vehicle Manufacturers said that the production rate of E.V. on-board chargers decreased by 20% in 2021 from 295,683 units in 2020 to 236,802 units, drastically slowing the rate of market expansion.
Opportunity
Due to its high power density and efficiency of over 98 percent, silicon carbide semiconductor technology is used more frequently in producing E.V. on-board chargers. Many companies are focusing more on providing higher power and more efficient silicon carbide on-board chargers as a result, creating new opportunities for market expansion.
Market Segmentation
By Power Output
The 11 kW to 22 kW segment ruled the market in 2020 with a significant revenue share of 41.0%. To fully charge an electric vehicle, 11-22 kW chargers take nearly two-four hours. As a public charging station, a tri-phase AC charger is widely utilized. Data from Transport & Environment show that 61% of European public chargers are tri-phase AC chargers.
Over the projected period, less than 11 kW will increase fastest. In the upcoming years, most electric vehicles will include 6 kW to 11 kW on-board chargers.
By Vehicle Type
In 2020, the passenger car segment was the biggest market, with a revenue share of 35.0%. On-board charger is becoming more popular due to rising electric passenger car sales globally. Also, consumers’ increasing disposable income is encouraging EV sales, boosting the overall expansion of the market segment.
Over the forecast period, the bus segment will increase at the fastest rate. In buses, an on-board charger converts AC to DC so that the battery can be charged. The market’s rise will be enhanced by an increase in the sales of zero-emission buses internationally.
By Propulsion Type
The PHEV sector ruled the market for on-board chargers in 2020. The segment’s rise is driven by the use of on-board chargers with outputs ranging from 3 to 3.7 kW by a number of Plug-in Hybrid Electric Vehicle (PHEV) manufacturers. Batteries in PHEV cars like the Hyundai Sonata, Kia K5, and Mitsubishi Outlander are charged using on-board chargers.
Regional Overview
Asia Pacific ruled the entire regional market, with the largest revenue share of 38% in 2020. Government programs to boost electric vehicle sales are expanding in countries such as China and India, encouraging regional market growth.
Europe will expand at a rapid rate during the forecast period. The players in Europe are working hard to increase the number of EVs they provide, raising demand for on-board chargers. One of the key elements fueling the market expansion in the area is an increase in subsidies offered for the purchase of electric vehicles.
Key Players
- Bel Fuse Inc.
- Delta Energy Systems
- Toyota Industries Corporation
- Ficosa Internacional SA
- STMicroelectronics
- Eaton
- AVID Technology Limited
- Siemens
- Stercom Power Solutions GmbH
- BRUSA Elektronik AG
- Innoelectric GmbH
- Innolectric AG
- Eaton Corporation
- Current Ways Inc.
- Infineon Technologies AG
In 2021, the market for on-board charger was worth USD 4.6 billion, and by 2030 it will be worth USD 16 billion, growing at a 15% CAGR during the forecast period. The increasing number of AC public and private charging stations worldwide is one of the primary drivers of market growth.
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