On-board Charger Market Report By Vehicle Type (Passenger Cars, Boats, Vans, Buses, Medium and Heavy Duty Vehicles), By Power Type (Less than 11 kW, 11 kW to 22 kW), By Propulsion (Battery Electric Vehicle, Plug-in Hybrid Electric Vehicle), By Sales Channel (Original Equipment Manufacturer, Aftermarket), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033

Report Overview

The Global On-board Charger Market size is expected to be worth around USD 29.5 Billion by 2033, from USD 6.4 Billion in 2023, growing at a CAGR of 16.5% during the forecast period from 2024 to 2033.

The on-board charger market refers to the industry focused on developing and selling integrated charging systems within electric vehicles (EVs). These chargers are crucial for converting alternating current (AC) from a power source into direct current (DC) to charge an EV’s battery efficiently.

As the demand for electric vehicles grows globally, the importance of on-board chargers escalates, driving advancements in technology and efficiency. Key market players are continuously innovating to offer faster, more reliable charging solutions. This market is critical for stakeholders aiming to capitalize on the shift towards sustainable transportation. CEOs and product managers in this sector focus on enhancing product capabilities to meet evolving consumer expectations and regulatory standards.

The on-board charger market is positioned for significant growth, driven by the rapid acceleration of electric vehicle (EV) adoption globally. In 2022, electric vehicles accounted for 14% of all new vehicles sold worldwide, marking a substantial increase from about 9% in 2021 and less than 5% in 2020. This trend is underpinned by robust policy support and consumer demand, particularly in key markets such as China, Europe, and the United States, which collectively account for 60% of global car sales.

Norway emerges as a remarkable case study in EV adoption, where 80% of passenger car sales in 2022 were all-electric. This high penetration rate is reflective of strong governmental incentives and a mature charging infrastructure, setting a benchmark for other nations. Meanwhile, China leads the global market in volume, responsible for approximately 60% of worldwide electric car sales. This dominance is expected to persist as the country continues to invest in EV technology and infrastructure.

Looking ahead, the global EV market is anticipated to continue its upward trajectory with sales expected to reach 14.1 million units in 2023, representing a 34% year-over-year growth. By 2025, EVs are projected to account for 23.5% of the global light-vehicle market, and by 2030, this figure is forecasted to rise to 45.3%.

The burgeoning demand for EVs directly impacts the on-board charger market, necessitating advancements in technology to support faster and more efficient charging solutions. As EVs become more prevalent, the need for high-performing on-board chargers will intensify, presenting lucrative opportunities for manufacturers and investors in this space. Market players are advised to focus on technological innovations and scalability to capitalize on this growing trend.

Key Takeaways

• Market Value: The global on-board charger market is expected to reach USD 29.5 Billion by 2033, growing from USD 6.4 Billion in 2023, with a CAGR of 16.5% during the forecast period from 2024 to 2033.
• Vehicle Type Analysis: Passenger cars dominate with 56.2% due to their widespread adoption and consumer preference for personal transportation. This segment benefits from increasing EV infrastructure and government incentives promoting emissions reduction.
• Power Type Analysis: Chargers with less than 11 kW power dominate with 73.4% due to their adequacy for standard home charging requirements, balancing charging speed and energy efficiency.
• Propulsion Analysis: Battery Electric Vehicles (BEVs) dominate with 68.9% due to their pure electric operation, reflecting the global push for sustainable transportation solutions.
• Sales Channel Analysis: The Original Equipment Manufacturer (OEM) channel dominates with 80.9% due to direct integration during vehicle manufacturing, ensuring compatibility and optimal performance.
• Asia-Pacific dominates with 42.8% market share, driven by rapid urbanization and government initiatives promoting electric vehicles.
• North America holds a substantial market share of 23.5%, focusing on modernizing infrastructure and supporting the transition to electric vehicles.
• Analyst Viewpoint:  The market shows robust growth driven by increasing adoption of electric vehicles and advancing EV infrastructure. Competition is intensifying, with opportunities in expanding product offerings and enhancing charging efficiency.
• Growth Opportunities: Key players can capitalize on the growing demand for EVs, expand into new vehicle segments, improve charging speed capabilities, and innovate in sustainable charging solutions to differentiate in the competitive market.

Driving Factors

Increasing Adoption of Electric Vehicles Drives Market Growth

The escalating adoption of electric vehicles (EVs) is a primary catalyst for the expansion of the on-board charger market. As EV sales surge, so does the need for essential components like on-board chargers, which are crucial for powering up the vehicle’s battery.

With a significant increase in EV sales—from less than 5% of global new vehicle sales in 2020 to 14% in 2022—the demand for on-board chargers has surged correspondingly. Governments worldwide are bolstering this growth through various incentives and regulations aimed at phasing out internal combustion engine vehicles in favor of more sustainable electric alternatives. Countries such as Norway, where EVs constituted 80% of new car sales in 2022, exemplify the direct impact of supportive policies on market demand for on-board chargers.

Technological Advancements Enhance Market Prospects

Technological advancements across battery management, power electronics, and charging infrastructure are reshaping the on-board charger market. Innovations have led to more efficient, compact, and cost-effective on-board chargers, enhancing their appeal to both automakers and consumers.

Companies like Infineon Technologies AG and BorgWarner Inc. are at the forefront, developing on-board chargers that offer higher power density and efficiency. These improvements not only boost the performance of EVs but also contribute to shorter charging times and extended battery longevity, factors that are increasingly important to consumers and manufacturers alike.

Increasing Range of EVs Propels Charger Demand

Automakers are continuously innovating to extend the driving range of EVs, addressing consumer concerns about range anxiety. This push for greater range has spurred demand for on-board chargers with higher charging capacities, which can significantly reduce charging time and enhance battery efficiency.

For instance, Tesla’s implementation of on-board chargers with capacities up to 16.5 kW illustrates this trend, enabling faster charging and thus more appealing vehicle options for consumers. As range continues to be a pivotal selling point, the need for advanced on-board charging solutions grows, directly influencing market dynamics.

Development of Charging Infrastructure Supports Market Expansion

The development of both public and private EV charging infrastructures is crucial for the growth of the on-board charger market. As nations like China, the United States, and Germany invest in expanding their charging networks, the demand for compatible on-board chargers escalates.

This infrastructure expansion not only facilitates the increased adoption of EVs by easing consumer concerns over charging availability but also drives the need for on-board chargers that can efficiently interface with these new charging stations. The synergy between charging infrastructure development and on-board charger advancements is pivotal in sustaining the market’s growth trajectory.

Restraining Factors

High Cost of On-board Chargers Restrains Market Growth

The substantial cost of on-board chargers, essential for electric vehicles (EVs) and hybrid electric vehicles (HEVs), poses a significant barrier to their broader adoption. These systems are intricate and costly, with expenses for high-capacity chargers like those in Tesla Model S ranging from $500 to $1,000. This financial burden can deter consumers, particularly in markets sensitive to price.

The high cost also impacts automakers’ pricing strategies for EVs, potentially slowing down market penetration in regions where affordability is key to consumer purchasing decisions. Reducing these costs through technological advancements or economies of scale remains crucial for expanding the on-board charger market.

Limited Availability of Raw Materials Restrains Market Growth

The production of on-board chargers depends heavily on specific raw materials, such as semiconductors, copper, and rare earth metals. Shortages in these materials, as witnessed with the global semiconductor crisis in 2021, severely disrupt the supply chain, leading to production delays and increased costs.

Such limitations not only impact the availability of on-board chargers but also escalate their prices, further constraining market growth. The industry faces the challenge of ensuring a steady and affordable supply of these essential materials to maintain stable production rates and keep costs competitive.

Vehicle Type Analysis

Passenger cars dominate with 56.2% due to their widespread adoption and consumer preference for personal transportation.

The vehicle type segment of the on-board charger market is significantly influenced by the surge in demand for electric passenger cars, which hold a dominant share of 56.2%. This dominance is driven by the increasing consumer shift towards electric vehicles as a primary mode of personal transportation, supported by improving EV infrastructure and governmental incentives aimed at reducing carbon emissions. Passenger cars are favored for their convenience, which is amplified by advancements in EV technologies that extend driving ranges and reduce charging times. As electric passenger cars become more affordable and accessible, their market share is expected to continue its growth trajectory.

Other important segments within the vehicle type category include boats, vans, buses, and medium and heavy-duty vehicles. Although these segments represent smaller portions of the market, they are integral to the comprehensive growth of the on-board charger industry. Electric vans and buses are gaining traction in urban logistics and public transportation due to low emissions and reduced operational costs. Meanwhile, the electrification of boats and heavy-duty vehicles is progressing, driven by similar environmental concerns and technological improvements. Each sub-segment contributes uniquely to the overall expansion of the on-board charger market, paving the way for a diversified and sustainable automotive industry.

Power Type Analysis

Chargers with less than 11 kW power dominate with 73.4% due to their adequacy for standard home charging requirements.

In the power type segment, on-board chargers with less than 11 kW represent the majority with 73.4% market share. This dominance is primarily because these chargers meet the typical daily charging needs of average EV users, providing a balance between charging speed and energy efficiency. Chargers in this category are particularly suited for home use, where they can efficiently charge EVs overnight without the need for more complex and expensive infrastructure. Their lower cost and widespread applicability make them a popular choice among EV manufacturers and consumers alike.

The sub-segment of chargers ranging from 11 kW to 22 kW, though smaller, plays a crucial role in markets where faster charging is necessary, such as in commercial settings or for vehicles with larger battery capacities. These chargers offer a quicker charging solution without reaching the industrial-grade power requirements that come with even higher capacity systems. As EV technology evolves and consumer expectations for quicker charging times increase, the demand for chargers in this range is expected to grow, supporting the overall expansion of the market.

Propulsion Analysis

Battery Electric Vehicles (BEVs) dominate with 68.9% due to their pure electric operation without reliance on fossil fuels.

Propulsion types within the on-board charger market are led by Battery Electric Vehicles (BEVs), which currently hold a 68.9% share. This segment’s dominance is attributed to the global push for cleaner, more sustainable transportation solutions that do not rely on fossil fuels. BEVs, which operate exclusively on electric power, require robust on-board charging systems to manage energy transfer efficiently and maintain battery health. The growth of this segment is bolstered by advancements in battery technology, increasing vehicle range, and reducing charging time, making BEVs increasingly attractive to consumers.

Plug-in Hybrid Electric Vehicles (PHEVs) also play a significant role in the propulsion market segment. While they do not solely rely on electric power, PHEVs require on-board chargers to manage their electric battery usage effectively. As technology improves and regulations on emissions become stricter, the demand for PHEVs continues to contribute to the growth of the on-board charger market, offering a transitional technology for consumers and industries moving towards full electrification.

Sales Channel Analysis

The Original Equipment Manufacturer (OEM) channel dominates with 80.9% due to direct integration during vehicle manufacturing.

The sales channel segment is overwhelmingly led by Original Equipment Manufacturers (OEMs), which account for 80.9% of the market. This dominance is largely because on-board chargers are typically integrated into vehicles during the manufacturing process, ensuring compatibility and optimal performance. OEMs have the advantage of designing and installing these systems in conjunction with the vehicle’s overall design, which can optimize the efficiency and effectiveness of the charging process.

The aftermarket segment, though smaller, serves an essential role in the on-board charger market. It provides solutions for vehicles that were not initially equipped with adequate charging systems or for consumers looking to upgrade their existing systems. As the EV market matures and older models require updates or replacements, the aftermarket for on-board chargers is expected to see significant growth, offering continued opportunities for expansion within the industry.

Key Market Segments

By Vehicle Type

• Passenger Cars
• Boats
• Vans
• Buses
• Medium and Heavy Duty Vehicles

By Power Type

• Less than 11 kW
• 11 kW to 22 kW

By Propulsion

• Battery Electric Vehicle
• Plug-in Hybrid Electric Vehicle

By Sales Channel

• Original Equipment Manufacturer
• Aftermarket

Growth Opportunities

Wireless Charging Technology Offers Growth Opportunity

The advancement of wireless charging technology is carving significant growth pathways within the on-board charger market. By eliminating the need for physical plug-ins, wireless charging enhances convenience and safety for electric vehicle (EV) users. This technology’s potential for widespread adoption could significantly increase the demand for on-board chargers designed to accommodate wireless energy transfer.

Leading companies such as WiTricity and Qualcomm are spearheading developments in this area, suggesting a robust market expansion as these technologies mature and are adopted more broadly. The rise of wireless charging is not just a trend; it represents a fundamental shift towards more user-friendly and innovative EV charging solutions, projecting considerable market growth as consumer acceptance and infrastructure readiness align.

Integration of On-board Chargers with Vehicle-to-Grid (V2G) Systems Offers Growth Opportunity

Vehicle-to-Grid (V2G) technology integration presents a transformative opportunity for the on-board charger market. V2G systems allow electric vehicles to return energy to the power grid, which can be crucial during peak demand times. This functionality requires on-board chargers with bi-directional charging capabilities, which are more sophisticated than standard chargers.

As more utilities and governments look towards grid stabilization and renewable integration, the demand for EVs equipped with V2G-capable on-board chargers is expected to grow. The push for energy-efficient technologies, coupled with the growing recognition of EVs as potential energy solutions, positions V2G-compatible on-board chargers as a key driver of future market expansion. This growth is supported by increasing investments in smart grid technologies and renewable energy systems, making V2G a lucrative segment in the on-board charging market.

Trending Factors

Modular and Scalable On-board Charger Designs Are Trending Factors

The shift towards modular and scalable on-board charger designs is a significant trend within the on-board charger market. This trend caters to the diverse needs of electric vehicle (EV) manufacturers and consumers by offering adaptable charging solutions that can be tailored to various vehicle specifications and customer requirements.

Companies like BorgWarner and Infineon are leading the way in providing these flexible solutions, which allow automakers to seamlessly integrate different charging capacities and configurations across their model ranges. The ability to customize on-board chargers enhances the appeal of EVs to a broader audience, ensuring that consumers can choose a vehicle that best fits their lifestyle and charging needs, thus driving wider adoption and market growth.

Integration of On-board Chargers with Advanced Battery Management Systems Are Trending Factors

Integrating on-board chargers with advanced battery management systems (BMS) is another prominent trend influencing the on-board charger market. This integration enhances charging efficiency, optimizes thermal management, and extends battery lifespan, crucial factors for improving overall EV performance and safety.

Companies like Tesla and Panasonic are at the forefront of developing these integrated solutions, which not only boost the functionality of on-board chargers but also elevate the user experience. By improving the efficiency and reliability of EVs, this trend not only meets the growing consumer demands for high-performance, long-lasting electric vehicles but also supports the industry’s advancement toward more sustainable transportation solutions.

Regional Analysis

Asia-Pacific Dominates with 42.8% Market Share

Asia-Pacific holds a commanding 42.8% share of the global on-board charger market, a testament to the region’s pivotal role in the electric vehicle (EV) industry. Several factors contribute to this dominance. Firstly, countries like China, Japan, and South Korea are leading in EV production and adoption, driven by strong government incentives and public enthusiasm for green technologies. Secondly, the region boasts advanced manufacturing capabilities and significant investments in EV infrastructure, which bolster the development and integration of on-board chargers. Finally, Asia-Pacific’s commitment to reducing carbon emissions has accelerated the shift towards electric transportation, further fueling market growth.

The market dynamics in Asia-Pacific are influenced by its robust manufacturing ecosystem and the rapid adoption of new technologies. The region’s aggressive push towards electrification, supported by government policies and subsidies, encourages local and international companies to invest in research and development of EV components, including on-board chargers. Additionally, the high population density in urban areas drives the demand for efficient and eco-friendly transportation solutions, making EVs an attractive option.

Other Regional Market Shares:

• North America: North America holds a substantial market share of 23.5% in the on-board charger market. This is fueled by increasing EV sales, particularly in the United States, where state-level incentives and a growing network of charging stations enhance market growth.
• Europe: Europe accounts for 27.3% of the market, driven by stringent environmental regulations and high consumer demand for sustainable vehicles. The region’s commitment to phasing out internal combustion engines by 2040 significantly contributes to the growth of the on-board charger market.
• Middle East & Africa: This region captures a smaller market share of 3.2%. However, there is growing interest in reducing oil dependency and increasing sustainable practices, which may lead to future market expansion.
• Latin America: With a market share of 3.2%, Latin America is gradually progressing in the on-board charger market. Factors such as increasing urbanization and government incentives for clean energy are starting to influence market growth in countries like Brazil and Argentina.

Key Regions and Countries

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Key Players Analysis

The on-board charger market features a dynamic and competitive landscape, with key players ranging from established automotive suppliers to innovative technology firms. Companies like Infineon and Borg Warner Inc are at the forefront, leveraging their technological expertise to develop high-efficiency on-board chargers that enhance vehicle performance and appeal to a broad customer base. Infineon, for instance, is known for its advanced semiconductor solutions that significantly improve the power management and efficiency of on-board chargers.

Meanwhile, companies such as Lear and Delphi (now Aptiv) play crucial roles in integrating these chargers into comprehensive vehicle electrical architectures, offering systems that are both reliable and compatible with global automotive standards. Their strategic positioning as suppliers to major automotive manufacturers gives them a pivotal role in the market’s expansion.

Emerging players like Hyundai Mobis and LG Electronics are also making significant strides, focusing on innovation and the expansion of their EV components portfolios. Hyundai Mobis, for example, has been actively increasing its capacity to meet the rising demand for EV parts, thereby securing its place within the market.

Additionally, smaller companies like Tonhe Technology and Wanma specialize in specific niches within the on-board charger market, providing customized solutions that cater to regional needs and specific customer requirements. This diversification of strategies among key players not only intensifies the competition but also drives technological advancements and market growth.

Collectively, these companies shape the competitive landscape of the on-board charger market, each contributing to the industry’s development through strategic innovations, partnerships, and market-oriented solutions. As they continue to evolve, their influence on both regional and global scales will likely dictate the pace and direction of market growth.

Market Key Players

• Tonhe Technology
• Anghua
• Bel Fuse Inc.
• Wanma
• Kongsberg
• Lear
• Delphi
• Infineon
• Borg Warner Inc
• Hyundai Mobis Co., Ltd
• LG Electronics
• Ficosa Corporation

Recent Developments

• On April 2024, the article from Autocar Professional discusses the significant surge in Electric Vehicle (EV) adoption globally, highlighting the growing confidence among consumers in eco-friendly transportation. It emphasizes the informed decision-making process of individuals who view EVs as a practical and sustainable choice for optimal performance and eco-conscious commuting.
• On May 2024, the article from eepower.com delves into the importance of designing Onboard Chargers for high performance and power density in Electric Vehicles. It highlights how the speed of EV charging is crucial for EV adoption and how the onboard charger plays a pivotal role in this process.

Report Scope