The new energy vehicle charging pile market moves to center stage

The new energy vehicle charging pile market moves to center stage

With the improvement of people's living standards, travel methods have gradually become motorized, and the number of private cars has continued to increase over the years. Since traditional cars use petroleum as fuel, they not only waste a lot of precious resources but also cause serious environmental pollution and cause trouble to people. The development of clean renewable energy is a powerful tool to solve environmental problems. The emergence of new energy vehicles has solved many problems for people, and has been recognized and used by more and more people in just a few years. As the "charger" of new energy vehicles, charging piles have ushered in a new competition in the energy field. It uses grid power for charging, solving the problem of traditional coal and oil power generation to a certain extent and reducing pollution to zero. New energy vehicles are in line with people's pursuit of a better life and the concept of sustainable development. They will definitely be the direction of global automobile change, and their charging piles will also emerge as the times require.

Charging piles, as charging equipment for new energy vehicles, can be compared to oil and gas dispensers for conventional fuel vehicles. Charging piles are usually installed at public construction sites, parking lots in residential communities or beside roads. However, my country's charging infrastructure and the development of electric vehicles are not coordinated. China's new energy vehicle market exceeded 3.81 million vehicles in 2019, with a global share of 49%. It has become the world's largest new energy vehicle market, providing a huge market scale for charging infrastructure. However, the current ratio of new energy vehicles to vehicle piles is 3.5:1, which is far from meeting the normal charging needs of new energy vehicles. As the energy supplement infrastructure for new energy vehicles, it is particularly important to increase the configuration of charging piles.

Driven by both new infrastructure and subsidy policies

The selection of new energy vehicle charging piles as an important part of new infrastructure ushered in the spring of industry development. China is currently the world's leader in charging infrastructure policy support and policy strength. The policy covers many aspects such as charging infrastructure construction, power access, and charging facility operation. In order to implement the State Council's strategic deployment of accelerating the promotion and application of new energy vehicles, according to the "Energy Saving and New Energy Vehicle Industry Development Plan (2012-2020)", at the end of 2015, the State Council proposed overall requirements for the construction of charging piles. By 2020, 12,000 new charging stations of various types will be built, 4.3 million charging piles for official and private car users, and 508,000 decentralized public charging piles. It is expected that investment of approximately 10 billion yuan will be completed in 2020; by 2025, more than 360,000 charging and swapping stations will be built. At the same time, in order to actively promote the use of new energy vehicles and increase investment in the construction of vehicle piles, previous purchase subsidies will be used to support the construction of charging infrastructure and supporting services. Driven by both new infrastructure and subsidies, demand for charging pile construction is expected to be unleashed.

The increase in sales of new energy vehicles in my country has driven the demand for charging piles

New sales of new energy passenger vehicles in overseas markets accounted for 27% in 2019, with a simultaneous growth of 7%, and continued high growth in the first quarter of 2020. Domestic sales of new energy vehicles in 2019 were 3.81 million units, accounting for approximately 4.68%. According to the deployment of the Ministry of Industry and Information Technology, the proportion of new energy vehicle sales in my country will reach about 25% in 2025, which is 5.4 times the current sales proportion. By 2030, China's electric vehicle sales are expected to exceed 15 million units, and the number of electric vehicles is expected to exceed 80 million units. By then, the number of pure electric vehicles may reach 64.8 million units, and the demand for charging piles will reach 63 million. A market size exceeding one trillion yuan is waiting to be filled.

The charging pile market will exceed 18 billion yuan in the next three years

The charging pile market has broad prospects, and the growth of electric vehicles is bound to drive demand for charging piles. At the same time, favorable policies, financial subsidies and other factors have injected reassurance into the charging pile market, revitalizing the once-loss-making industry. Various companies have made plans one after another, and the market size will continue to grow. Data shows that 6 billion yuan. With the gradual implementation of charging infrastructure construction plans in various regions, the scale of the charging pile market will further expand to 18 billion yuan.

The overall vehicle-to-pile ratio shows a downward trend, and DC piles among public piles have great opportunities.

The vehicle-to-pile ratio in my country has been declining year by year since 2015. In 2019, the vehicle-to-pile ratio of new energy vehicles has dropped to 3.5:1. The current rapid decline in the vehicle-to-pile ratio is mainly driven by private vehicles. Data show that the vehicle-to-pile ratio of public piles in 2019 is still 8.25:1, an increase of 0.36 from 2018, and public piles are still in short supply. Charging convenience is an important consideration when setting up public charging piles, given that DC charging piles have higher charging efficiency and lower costs. High-power DC piles have a greater charging capacity per unit time, dilute civil construction costs and increase revenue. They are a good choice for operators. The proportion of DC piles in public power stations will increase. Among the existing charging piles in 2019, DC accounted for 41.6%. We expect that with the popularity of DC charging piles, the proportion of DC among public charging piles is expected to reach 60% from 2020 to 2025. (Source: Electric Network)