Asia's Thriving Public EV Charging Market Outshines US and EU, Providing Lucrative Opportunities For Industry Players

The Big Picture

China has taken the lead in global electric vehicle (EV) adoption and charging infrastructure. The country boasts an impressive 2.5 million public EV chargers, roughly one for every seven Chinese EVs. In comparison, the European Union comes in second with around half a million chargers spread across member states, equating to one charger for every 10 vehicles. 

The United States lags behind both China and the EU with approximately 130,000 public chargers, resulting in one charger for every 18 cars. The significant difference in the number of public charging stations between China and the United States can be clearly seen in the chart below.

China stands out not only in quantity but also in quality when it comes to charging infrastructure.

Charging ports in China provide nearly four kilowatts per EV on average, which is significantly higher than the average in the U.S. and EU, where it is just over one kilowatt per EV. To put this into perspective, the energy difference is like powering about 17 standard light bulbs in the U.S. vs 67 bulbs in China. 

The stark difference in public EV charging between the U.S. and China can be attributed to several key factors: 

1. Population Density: In the US, a majority of EV users have the convenience of charging at home in their garage or office parking lots. This reduces the immediate need for public charging infrastructure, which is primarily used for long-distance travel. However, in China, most people do not have personal garages for charging, leading them to rely heavily on public charging stations for their daily commutes.

2. Number of EVs: Charging infrastructure is the key to mass adoption of EVs. China currently holds the position of the world’s largest market for both automotive vehicles and EVs. Sales of electric cars made in the country also account for about 60% of the global total. Chinese automaker BYD has recently surpassed Tesla TSLA to become the world’s largest EV maker. We will take a deep dive into the Chinese EV market in the next section.

3. Government Support: The Chinese government has placed a strong emphasis on environmental goals, particularly in response to pollution concerns. President Xi announced ambitious “Dual Carbon” goals at the 75th session of the United Nations General Assembly in September 2020. These goals include reaching carbon emissions peak before 2030 and achieving carbon neutrality before 2060. In line with these objectives, the Chinese government has implemented policies to promote the sales of EVs, leading to a surge in the demand for public charging infrastructure. This proactive government support has significantly contributed to the booming need for public chargers in China.

A Deep Dive into China’s EV Market

The latest report from the China Association of Automobile Manufacturers (CAAM) reveals that by the end of 2023, the total number of new energy vehicles in China had reached 20.41 million units, with 7.43 million newly registered throughout the year. This surge is particularly remarkable considering that in 2019, the number was only 1.2 million units. Furthermore, in January 2024, there was a notable increase in both production and sales of new energy vehicles compared to the previous year, resulting in a market share of 29.9%. 

It is predicted that in 2024, China’s sales of new energy vehicles will reach between 11.5 to 12.5 million units, with a market penetration rate of 37% to 40%. By 2025, China’s stock of new energy vehicles will likely approach 50 million units, marking an important milestone for the rapid growth of China’s new energy vehicles and charging service industries. By 2030, China’s stock of new energy vehicles will reach 145 million units, with the market space for the construction and operation of charging piles approaching 3 trillion yuan.

With booming EV sales, the demand for charging services is rapidly increasing. China has the largest number of charging infrastructure installations in the world, has a wide range of services, and has established various types of charging infrastructure systems. The top five operators of charging services at public charging stations are TELD, StarCharge, YKC, State Grid, and Orange Charging. However, the market share of the top 5 charging operators in China has shown a decline over the years: 89.20% in 2018, 83.80% in 2020, 69.80% in 2022, and 65.10% in 2023. This indicates a further decrease in the concentration of top operators.

According to the Electric Vehicle Charging Infrastructure Promotion Alliance report, as of the end of 2023, state-owned entities accounted for around 10% of China’s total public charging stations, while the remaining 90% of charging station assets belonged to the private market.

NaaS – ChargePoint of China

As the public charging station landscape remains fragmented in China, an EV energy retail integrator that can connect all public chargers has become increasingly crucial. It is impractical for users to download a new app each time they visit a different charging station. This is where NaaS Technology Inc. NAAS comes in as the solution provider, linking the largest charging network in China. NaaS can be likened to the ChargePoint of Asia, offering EV charging networks and solutions to car owners across the region.

As a global operator in new energy assets, NaaS is equipped with AI and digital technology, along with an extensive charging network. It provides comprehensive services throughout the industry chain globally, including site consultation, EPC (Engineering, Procurement, and Construction), operation & maintenance, energy storage, PV (photovoltaic), and automatic charging robots, all aimed at boosting industrial efficiency.

As of September 30, 2023, NaaS has connected over 767,000 chargers spanning 73,000 charging stations. In the third quarter of 2023, NAAS saw a remarkable 66% year-over-year increase in charging volume, reaching 1.383 billion kWh. This represents 21.8% of the total public charging volume in China, showcasing the company’s significant impact on the EV charging ecosystem.

The network works beyond China as NaaS is also going global. According to its latest press release, it has partnered with CATARC New Energy Vehicle Test Center, aiming to internationalize China’s EV charging solutions. This collaboration with CATARC, a leading state-owned enterprise in automobile industry standards and research, will leverage digital and AI technologies to provide seamless charging experiences globally. EV owners across Europe, the Americas, Australia, and Southeast Asia will benefit from NaaS platforms for locating public charging stations and streamlined payment services. Mr. Alex Wu, NaaS’ president and CFO, highlighted the significance of this partnership, emphasizing the goal of providing efficient charging services while contributing to carbon neutrality initiatives.

Conclusion

With the EV industry thriving, the demand for charging services is rapidly increasing, especially in China, which boasts the largest number of charging infrastructure installations globally. Despite the dominance of top operators, the market share of these entities has been on a decline over the years. This shift opens the door for NaaS to emerge as a significant player. Its role as an EV energy retail integrator is crucial in bridging the fragmented public charging station landscape, offering seamless solutions for EV owners.

As the world moves towards a greener future, NaaS stands at the forefront, providing efficient and sustainable charging solutions while contributing to global carbon neutrality initiatives. With its innovative approach and extensive network, NaaS is poised to significantly benefit from the booming EV market trend in Asia and emerge as a major player in the EV charging ecosystem.

Featured image sourced from Shutterstock

This post was authored by an external contributor and does not represent Benzinga’s opinions and has not been edited for content. This contains sponsored content and is for informational purposes only and not intended to be investing advice.