The growing deployment of electric vehicles is driving the demand for electric vehicle charging infrastructure, which is, in turn, fueling the need for electric vehicle charging cables. According to the observations of the International Energy Agency (IEA), 2.1 million electric cars were sold across the world in 2019. Furthermore, the agency reported that electric car sales accounted for 2.6% of the worldwide car sales and recorded a 40% year-on-year growth from 2018.
Due to the mushrooming adoption of electric vehicles, the governments of many countries are making huge investments in the development of electric vehicle charging stations. In recent years, many countries have witnessed the installation of electric vehicle charging points in public places. As per the IEA, the total number of electric vehicle charging points around the world increased by nearly 44% from 2017 to 2018. The rapid development of these charging stations and points is pushing up the requirement for electric vehicle charging cables, as these cables are extensively used in the charging stations.
Due to the aforementioned factors, the global electric vehicle charging cables market reached nearly $250 million revenue in 2020 and it is predicted to exhibit huge expansion between 2021 and 2030. Depending on power supply, the electric vehicle charging cables are divided into DC and AC. Between these, the demand for the AC cables is expected to be higher in the forthcoming years. This is ascribed to the surging installation of charging stations in private settings such as homes in many countries.
With the growing deployment of electric vehicles, many technological advancements and innovations have been made in electric vehicle charging cables such as electric vehicle identification through power lines, advent of type-2 connector plugs, better charging control, high security, dynamic load management, and integration between electric vehicle charging and existing payment systems. These advancements have massively augmented the sales of charging cables, which have, in turn, propelled the growth of the market all over the world.
Furthermore, many electric vehicle charging cables market players such as TE Connectivity Ltd., PHOENIX CONTACT GmbH & Co. KG., Leoni AG, and BESEN-Group are focusing on taking strategic measures like launching partnerships and mergers, in order to improve the quality of the charging cables in terms of durability and charging speed and cater to requirements of customers. For example, AMPLY Power entered into a partnership with BYD Co. Ltd. in November 2019.
This was done to develop electric vehicle charging infrastructure and provide end-to-end services such as utility interconnections and operational upgrades, debt financing and funding, and optimal charging strategies based on duty cycle and drive cycle, to various fleet operators. Across the world, Asia-Pacific dominated the electric vehicle charging cables market in 2020, as per the findings of the market research company, P&S Intelligence. This was because of the expansion of the EV industry in China, South Korea, and Japan.
Hence, it can be said without any hesitation that the demand for electric vehicle charging cables will explode in the coming years, primarily because of the growing deployment of electric vehicles across the world.