Global On-Board Charger Market Research Report: Forecast (2024-2030)

Market Definition

The On-Board Charger (OBC) is an essential component in the EV that converts alternating current into direct current from a power source so that it can help in charging the battery pack of the vehicle.  To support electric mobility, it is experiencing substantial growth to address environmental concerns and regulatory pressures by governments all around the world. This could entirely change the future outlook of the industry and help in the growth of the whole EV sector altogether.

Market Insights & Analysis: Global On-Board Charger Market (2024-30):

The Global On-Board Charger Market size is valued at around USD 6.2 billion in 2024 and is estimated to grow at a CAGR of around 16.5% during the forecast period, i.e., 2024-30. Multiple market factors are driving the market such as the increased use of EVs at a very significant growth rate supported by advancement in technology as multiple levels of on-board chargers (Level 1, Level2, Level 3, or the DC fast charger) are being introduced to provide fast charging resolution as per requirement. Other factors that help in driving the industry include government policies supporting the growth of EVs to promote clean energy and reduce the greenhouse effects in addition to safe the depletion of nonrenewable natural resources. Global investments are being made on a mass level to support the industry with R&D and innovations.

Moreover, with the innovations and demand in the market, various opportunities can be grabbed by the market players to generate profit and cater effective and efficient OBC products to customers. These include smart tech integration with IoT devices and AI, vehicle-to-grid (V2G) services, etc. Companies can go for the innovations to grab various other opportunities like providing ultra-fast charging solutions, wireless charging technology, and developments in the integration of natural resources like solar and wind energy for charging. Companies are also working on enhanced efficiency and power density that result in lower charging losses and thus increase the overall performance of OBCs. Companies are going for mergers & collaborations in the development of more innovative technologies.

Furthermore, various challenges are being faced by the industry that cause hindrances in its growth and expansion. Major problems occur when customers are concerned about range anxiety specifically at places where there is a scarcity of charging stations. This may drastically reduce the sales.  The technology is also quite expensive which ultimately leads to the increasing cost of the vehicle, which could be a burden in the future as the products could not be able to cater to the underdeveloped regions. Moreover, issues of standardization and compatibility affect a lot as there is no common charging standard yet. Globally there are many types of OBCs used with more innovations yet to come and that could cause serious compatibility issues. Other major issues are regulatory & compliance issues because rules & regulations vary from region to region. Multiple regulations create entry barriers and compliance with them increases the operational cost, particularly for the companies operating in multiple markets.

Global On-Board Charger Market Driver:

Rising Adoption of EVs Driving Growth & Expansion – With the growing awareness about environmental issues more and more people are shifting to EVs as it is cost-efficient, we have seen an increased demand in the sector all over the globe. Governments around the world are working on multiple ways to boost the adoption of electric vehicles. Multiple levels of OBCs are being developed to support the growth of EVs in the market. Its, high usage specifically in the transport and passenger vehicle industry is augmenting the size & volume of the on-board charger industry. The applications of OBCs have gone way beyond passenger cars as the adoption of EVs has already expanded up to commercial vehicles, two-wheelers, and public transport and all of them require on-board chargers to function thus boosting the revenue growth of the market.

The rising adoption is creating the need for fast charging solutions to cater to more customers in less time and provide them with the best solutions to their charging needs. Advanced OBCs are being developed to support rapid charging, enhancing the overall EV user experience. With this, the manufacturers are also focusing on increasing the battery life and reduction in energy loss to match the expectations and requirements of the growing EV market. Thus, the rising adoption of electric vehicles is a significant driver of growth of the Global On-Board Charger Market. The increasing number of EVs on the road is creating a robust demand for OBCs. This trend is expected to continue through 2030, shaping the future landscape of the automotive and charging infrastructure industries.

Global On-Board Charger Market Challenge:

Lack of Adequate Infrastructure Hindering Market Growth – As per current market analysis there is a major hindrance in the market due to the lack of availability of charging infrastructure which ultimately becomes a limiting factor in adopting EV & OBCs. Slow charging stations and low growth in the development of charging networks have affected the market drastically. This also affects the sales as the areas where there is a shortage of charging stations the customers won’t buy the vehicle. Rapid or fast chargers are still under development so this problem cannot be resolved so easily. Massive investment and R&D are required to resolve the issue. The shortage of infrastructure is a heavy entry barrier for customers as range could be a major problem here. Customers have to look out for batteries that could provide them with more range and fast charging to save both time and cost.

Limitations of infrastructure have extended their hands on compatibility issues as different manufacturers have different variations of charging standards and protocols. On-board chargers are required to support multiple standards and types (level 1, level 2, DC fast Charger, CCS, CHAdeMO) to ensure broad compatibility. Addressing these infrastructure limitations is crucial for the continued growth and efficiency of the OBC industry. By tackling these challenges, the industry can improve the overall effectiveness and adoption of on-board chargers and support the broader transition to electric mobility.

Global On-board Charger Market Trend:

Increasing Popularity of High Speed & Wireless Tech Chargers – Companies are focusing on increasing the speed of on-board chargers by introducing level 3 charges also known as DC fast chargers to significantly reduce charging times as compared to the previous gen level 1 and level 2 chargers. This demand for high-speed charging infrastructure is driving growth in the market. Wireless tech is also supporting growth in the industry allowing chargers without physical connectors. It is in the development phase but still it can change market dynamics positively.  Thus, the increasing popularity of high-speed & wireless tech chargers is developing a positive market environment for the market players and ultimately paving a solid path for growth & expansion in the coming years.

Global On-Board Charger Market (2024-30): Segmentation Analysis

The Global On-Board Charger Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2024–2030 at the global level. Based on the analysis, the market has been further classified as:

Based on Propulsion Type:

• Battery Electric Vehicle (BEV)
• Plug-in Hybrid Electric Vehicle (PHEV) 

Battery Electric Vehicles (BEVs) are fully electric vehicles that operate solely on electric power stored in their battery packs. Without any internal combustion engine, they rely entirely on the on-board chargers to manage battery charging. In the year 2023, this segment holds around 65% of the global OBC market with a current valuation of around USD 4.5 billion. This specific segment is expected to grow at a CAGR of about 13% during the forecast period 2024-2030. It is expected to reach a valuation of around USD 10 billion by 2030. The BEVs experience faster growth due to the increasing adoption of fully electric vehicles and advancements in charging technology.

Based on Vehicle Type:

• Passenger Vehicles
• Commercial Vehicles

Passenger vehicles include electric cars and light-duty electric vehicles. This segment has a market share of approx. 70% of the market. Strong dominant growth is expected as there is high demand in this segment. The major demand is coming from high-power chargers (22kw) to reduce charging time and improve the convenience of EV owners.  It is expected to grow with a CAGR of about 10-12% in the coming years.

Global On-board Charger Market (2024-30): Regional Projections

Geographically, the Global On-board Charger Market expands across:

• North America
• South America
• Europe
• The Middle East & Africa
• Asia-Pacific

According to the data, Europe currently holds the most of the global market share i.e. 35% approx. But Asia-Pacific is projected to witness the highest growth for the forecast period, 2024-30, with China as the most prominent and India as one of the fastest-growing countries. An expected CAGR of around 12-15% is driven by the expansion of charging infrastructure and high EV adoption in China and India. Moreover, government incentives, policies, investments in the market, relaxations in taxes, and initiatives for clean energy support the growth of the Asia-Pacific On-board Charger Market.

Global On-Board Charger Industry Recent Development:

• In March 2023: Toyota Industries Corporation announced the launch of a new generation of on-board chargers featuring high-efficiency silicon carbide (SiC) technology in their press release.
• In March 2023: Delphi Technologies announced the launch of their latest on-board charger for high-performance EVs featuring compact design and enhanced efficiency.

Gain a Competitive Edge with Our Global On-Board Charger Market Report

1. Global On-Board Charger Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. Global On-Board Charger Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.