Six development characteristics of EV charging and swapping industry
In 2023, China’s EV battery swapping and charging industry will face new demands and requirements brought about by the large-scale entry of electric vehicles into the homes of ordinary people, as well as new challenges and new opportunities brought about by technological progress in charging and swapping facilities to drive industrialization upgrades.
Facing the new market and new opportunities brought by the coordination and linkage of power system network source, load and storage, it is foreseeable that this year’s charging and swapping industry will enter a new track.
Table of Contents
The market scale of charging and swapping industry continues to expand
In 2022, the production and sales of new energy vehicles in China will be 7.058 million and 6.887 million respectively, a YOY increase of 96.9% and 93.4% respectively, and the market share will reach 25.6%. The data shows that in 2022, the electricity consumption of new energy vehicle manufacturing will increase by 71.1% year-on-year. The construction of charging and swapping facilities has also developed rapidly along with the expansion of new energy vehicles. As of December 2022, there will be 1.797 million public charging piles, a year-on-year increase of 56.6%.
In 2022, China’s new energy vehicles have entered a new stage of market-driven and large-scale development, and the charging and swapping industry will continue to maintain a rapid growth trend. In 2023, the electric vehicle charging and swapping industry will usher in new opportunities.
First of all, China continues to increase the implementation of policies to promote consumption, and the product experience of new energy vehicles has been further improved. The construction of charging and swapping facilities has also received high attention from government departments, and policy support has continued to increase. The demand for charging and swapping facilities is still growing rapidly, and the market situation has further improved.
Secondly, with the increase in the number of electric vehicles, the scale of charging capacity is increasing day by day, which brings space for the optimization of the profit model of charging and swapping services, and also provides the possibility for the establishment of a commercial ecology of charging and swapping Internet. This post-market service trend will become more and more obvious.
Third, the city’s comprehensive energy system construction provides better support for the charging and swapping industry. The coordination of three-dimensional transportation, smart city, and smart distribution network has laid a foundation for the layout and construction of charging and swapping facilities and the improvement of operation services, and the characteristics of comprehensive energy services have become more and more obvious. Based on the above factors, the construction scale of electric vehicle charging and swapping facilities is expected to grow by 30% to 40% in 2023, and charging and swapping services will become the focus of the market.
Battery swapping and wireless charging open the door to marketization
Electric vehicle power supply methods include conduction charging, wireless charging and battery swap, and conduction charging includes DC charging and AC charging. The battery swap mode with the advantage of fast energy replenishment has attracted more and more attention from all parties. The launch of the pilot work of the battery swap mode application has further promoted the improvement of the battery swap industry chain.
With the establishment of the battery swap standard system and the advancement of demonstration cities, heavy truck battery swap, taxi battery swap, and private car battery swap will also develop rapidly. With years of persistence in technology accumulation, standard development, cost control, and striving for policy space, wireless charging with convenient charging, safety advantages, and high-tech experience will enter the market in 2023.
The wireless charging module will be officially included in new car sales as an optional feature of high-end models. Faced with the characteristics of the large scale of the Chinese market, the obvious gap between urban and rural areas, and the large number of models, the three-dimensional characteristics of the electric vehicle charging and swapping service system are becoming increasingly obvious. Different market demands and different battery swap vs charging technology routes will flourish in the segmented market.
The construction of charging and swapping application scenarios is increasing rapidly
The problem of difficult highway charging during holidays has begun to emerge. As a cross-regional traffic, highway charging and swapping facilities are a key node of the entire charging and swapping network. As the country begins to plan and implement the construction plan and implementation of charging infrastructure along highways, highways, as the main application scenarios of charging and swapping facilities, will attract the attention of all parties in 2023 and become a new market growth point.
As the main parking places and charging places, residential areas will continue to maintain rapid growth in 2023. New requirements and new models such as orderly charging, low-power DC, DC bus charging, intelligent charging piles, and unified construction and unified management have brought new changes to residential area charging. The potential safety hazards caused by aging charging facilities in residential areas will also promote the technical improvement and industrial upgrading of charging facilities in residential areas.
Fast charging has become the explosive point of industrial upgrading
Long charging time and poor charging experience have always been the pain points of charging services, which have affected car owners’ desire to buy a car. Since the high-power charging technology and standard pre-research work started in 2016, after nearly six years of hard work, the compilation of three ChaoJi standards will be completed in 2022, marking the completion of high-power charging technology and standard preparations.
The fast charging industry chain is already in place, and the successful high-power charging test of some car companies has also confirmed the direction of industrialization development. It is reported that many models with fast charging will also be launched. With the active layout of the charging industry, fast charging will become a breakthrough point for the industrial upgrading of the charging industry. In 2023, fast charging will begin to appear in application scenarios such as highways, megacities, and commercial vehicles.
High-quality charging has become a competitive point in the post-charging service market
As private cars become the main body of new energy vehicles, the charging experience competition will become the main competition point in the charging and swapping service market. Whether the location of the charging site is convenient, whether the charging station equipment is in good condition, whether the charging process is smooth, and the flexibility of the charging electricity price strategy will be the main concerns of everyone.
In 2023, the requirements of carbon peak will be implemented, and the sense of acquisition and social responsibility of the public participating in green and low-carbon consumption will be enhanced. The low-carbon concept of charging will also affect the choice of car owners. After the trial operation last year, the high-quality charging action plan will be promoted on a large scale in 2023 to improve the quality and efficiency of charging services.
The two-way interaction between electric vehicles and the grid is entering the market
It has always been the common wish of the two industries to give full play to the role of electric vehicles as distributed energy storage and realize the two-way interaction between electric vehicle charging and swapping and the power grid. As the number of pure electric vehicles in China exceeds 10 million, the effect of distributed energy storage is beginning to appear. Shanghai and Beijing began to require the construction of smart piles to promote the update of the performance requirements of charging facilities.
In 2023, the two-way interaction between electric vehicles and the grid will gradually enter the stage of market exploration, standard formulation, and product update. In-depth and large-scale vehicle-network interaction requires further improvement of battery technology, further reform of the power system, and further opening of policy support. In 2023, the battery charging and swapping industry will be in the outbreak period of the industrial application of new technologies, the transition period of industrial transformation and upgrading, and the integration period of multi-industry coordinated development.
Peach
Hi Dear readers, I confidently introduce myself as an author with a fervent passion for writing and substantial experience in the battery swapping industry. My educational background includes a bachelor's degree in Electronic Engineering, and I have previously served as a battery engineer at a renowned power battery company, actively participating in and leading various motorcycle swapping station projects, from design to operational implementation.
Over the years, I have actively explored and extensively researched swapping technologies, business models, and market trends. Through practical experience, I have accumulated valuable insights, actively contributing to various aspects of station planning, equipment selection, and operational management.
I am eagerly looking forward to sharing my insights and experiences in the battery swapping domain. I believe that my writing will assist you in gaining a better understanding of this rapidly evolving industry and provide valuable insights for your decision-making. Let's embark on an exciting journey to explore the world of battery swapping together!
Six development characteristics of EV charging and swapping industry
In 2023, China’s EV battery swapping and charging industry will face new demands and requirements brought about by the large-scale entry of electric vehicles into the homes of ordinary people, as well as new challenges and new opportunities brought about by technological progress in charging and swapping facilities to drive industrialization upgrades.
Facing the new market and new opportunities brought by the coordination and linkage of power system network source, load and storage, it is foreseeable that this year’s charging and swapping industry will enter a new track.
The market scale of charging and swapping industry continues to expand
In 2022, the production and sales of new energy vehicles in China will be 7.058 million and 6.887 million respectively, a YOY increase of 96.9% and 93.4% respectively, and the market share will reach 25.6%. The data shows that in 2022, the electricity consumption of new energy vehicle manufacturing will increase by 71.1% year-on-year. The construction of charging and swapping facilities has also developed rapidly along with the expansion of new energy vehicles. As of December 2022, there will be 1.797 million public charging piles, a year-on-year increase of 56.6%.
In 2022, China’s new energy vehicles have entered a new stage of market-driven and large-scale development, and the charging and swapping industry will continue to maintain a rapid growth trend. In 2023, the electric vehicle charging and swapping industry will usher in new opportunities.
First of all, China continues to increase the implementation of policies to promote consumption, and the product experience of new energy vehicles has been further improved. The construction of charging and swapping facilities has also received high attention from government departments, and policy support has continued to increase. The demand for charging and swapping facilities is still growing rapidly, and the market situation has further improved.
Secondly, with the increase in the number of electric vehicles, the scale of charging capacity is increasing day by day, which brings space for the optimization of the profit model of charging and swapping services, and also provides the possibility for the establishment of a commercial ecology of charging and swapping Internet. This post-market service trend will become more and more obvious.
Third, the city’s comprehensive energy system construction provides better support for the charging and swapping industry. The coordination of three-dimensional transportation, smart city, and smart distribution network has laid a foundation for the layout and construction of charging and swapping facilities and the improvement of operation services, and the characteristics of comprehensive energy services have become more and more obvious. Based on the above factors, the construction scale of electric vehicle charging and swapping facilities is expected to grow by 30% to 40% in 2023, and charging and swapping services will become the focus of the market.
Battery swapping and wireless charging open the door to marketization
Electric vehicle power supply methods include conduction charging, wireless charging and battery swap, and conduction charging includes DC charging and AC charging. The battery swap mode with the advantage of fast energy replenishment has attracted more and more attention from all parties. The launch of the pilot work of the battery swap mode application has further promoted the improvement of the battery swap industry chain.
With the establishment of the battery swap standard system and the advancement of demonstration cities, heavy truck battery swap, taxi battery swap, and private car battery swap will also develop rapidly. With years of persistence in technology accumulation, standard development, cost control, and striving for policy space, wireless charging with convenient charging, safety advantages, and high-tech experience will enter the market in 2023.
The wireless charging module will be officially included in new car sales as an optional feature of high-end models. Faced with the characteristics of the large scale of the Chinese market, the obvious gap between urban and rural areas, and the large number of models, the three-dimensional characteristics of the electric vehicle charging and swapping service system are becoming increasingly obvious. Different market demands and different battery swap vs charging technology routes will flourish in the segmented market.
The construction of charging and swapping application scenarios is increasing rapidly
The problem of difficult highway charging during holidays has begun to emerge. As a cross-regional traffic, highway charging and swapping facilities are a key node of the entire charging and swapping network. As the country begins to plan and implement the construction plan and implementation of charging infrastructure along highways, highways, as the main application scenarios of charging and swapping facilities, will attract the attention of all parties in 2023 and become a new market growth point.
As the main parking places and charging places, residential areas will continue to maintain rapid growth in 2023. New requirements and new models such as orderly charging, low-power DC, DC bus charging, intelligent charging piles, and unified construction and unified management have brought new changes to residential area charging. The potential safety hazards caused by aging charging facilities in residential areas will also promote the technical improvement and industrial upgrading of charging facilities in residential areas.
Fast charging has become the explosive point of industrial upgrading
Long charging time and poor charging experience have always been the pain points of charging services, which have affected car owners’ desire to buy a car. Since the high-power charging technology and standard pre-research work started in 2016, after nearly six years of hard work, the compilation of three ChaoJi standards will be completed in 2022, marking the completion of high-power charging technology and standard preparations.
The fast charging industry chain is already in place, and the successful high-power charging test of some car companies has also confirmed the direction of industrialization development. It is reported that many models with fast charging will also be launched. With the active layout of the charging industry, fast charging will become a breakthrough point for the industrial upgrading of the charging industry. In 2023, fast charging will begin to appear in application scenarios such as highways, megacities, and commercial vehicles.
High-quality charging has become a competitive point in the post-charging service market
As private cars become the main body of new energy vehicles, the charging experience competition will become the main competition point in the charging and swapping service market. Whether the location of the charging site is convenient, whether the charging station equipment is in good condition, whether the charging process is smooth, and the flexibility of the charging electricity price strategy will be the main concerns of everyone.
In 2023, the requirements of carbon peak will be implemented, and the sense of acquisition and social responsibility of the public participating in green and low-carbon consumption will be enhanced. The low-carbon concept of charging will also affect the choice of car owners. After the trial operation last year, the high-quality charging action plan will be promoted on a large scale in 2023 to improve the quality and efficiency of charging services.
The two-way interaction between electric vehicles and the grid is entering the market
It has always been the common wish of the two industries to give full play to the role of electric vehicles as distributed energy storage and realize the two-way interaction between electric vehicle charging and swapping and the power grid. As the number of pure electric vehicles in China exceeds 10 million, the effect of distributed energy storage is beginning to appear. Shanghai and Beijing began to require the construction of smart piles to promote the update of the performance requirements of charging facilities.
In 2023, the two-way interaction between electric vehicles and the grid will gradually enter the stage of market exploration, standard formulation, and product update. In-depth and large-scale vehicle-network interaction requires further improvement of battery technology, further reform of the power system, and further opening of policy support. In 2023, the battery charging and swapping industry will be in the outbreak period of the industrial application of new technologies, the transition period of industrial transformation and upgrading, and the integration period of multi-industry coordinated development.
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