According to international market research firm Markets and Markets, the global electric vehicle charging cables market demand will reach US$2.453 billion by 2027, growing at a CAGR of 29.8% during this period.
Factors such as increasing sales of electric vehicles, the rapid development of electric vehicle charging infrastructure, government policies and subsidies, and rising fossil fuel prices will drive the growth of this market. In terms of market segmentation, private charging will hold a larger share during the forecast period.
With increasing sales of electric vehicles, most vehicle owners prefer private (home) charging as it is both convenient and inexpensive. Private charging stations are installed in home garages or outdoor locations.
The private charging segment will therefore continue to grow at a significant rate over the forecast period, as the number of electric vehicle users in these countries is expected to continue to grow rapidly. Most electric vehicle users have the option of installing a home charger when they purchase an electric vehicle. As a result, demand for this type of charging cable is expected to increase as the number of electric vehicles increases.
In terms of charging cable types, there are mainly straight cables and coiled cables. Coiled cables are the most suitable for these private charging stations as they require less space and are easy to handle. These cables reduce the complexity and cost of private charging stations. Outdoor installations require outdoor-rated charging equipment. Home charging stations, on the other hand, require a dedicated circuit.
However, when multiple stations are located within a short distance, straight cables are often used. These cables are cheaper than coiled cables but less durable. As most charging stations are equipped with Type 1 (J1772) connectors, straight cables are often used for charging electric vehicles.
Charging cables must have a small diameter to facilitate handling, but this can also expose them to excessive heat. These cables are therefore equipped with a liquid cooling system.
Asia Pacific is expected to be the largest market for straight cables during the forecast period. Most countries in the region are cost-sensitive markets. According to industry experts, straight cables can be up to 30% cheaper than coiled cables. The refore, in terms of cost, straight cables are better than coiled cables.
As a whole, Asia Pacific is expected to be the largest market for electric vehicle charging cables. The Asia Pacific region is home to some of the world’s fastest-growing economies, such as China and India, which are emphasising the rapid adoption of electric vehicles.
In addition, governments in these emerging economies have recognized the growth potential of the global EV market and have therefore taken various initiatives to attract major OEMs to manufacture EV charging infrastructure in their domestic markets. Subsequently, the region is expected to remain the largest market for EV charging cables over the forecast period, given the high sales volumes and EV infrastructure spending.