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European charging pile market outlook

2023-12-14

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As environmental problems become increasingly prominent and the global automobile industry structure is reshaped, various countries have introduced measures to strengthen policy support for new energy vehicles. As the second largest new energy vehicle market after China, Europe is in the ascendant.

As environmental problems become increasingly prominent and the global automobile industry structure is reshaped, various countries have introduced measures to strengthen policy support for new energy vehicles. As the second largest new energy vehicle market after China, Europe is in the ascendant. Both complete vehicles and upstream and downstream industries are growing rapidly, becoming an important destination for Chinese new energy companies to go overseas.

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Among them, the charging pile market is growing rapidly and has a huge demand gap. On the one hand, the market demand is ahead of the North American market. On the other hand, the market saturation level is also lower than that of China, and there are more opportunities. However, various countries have launched different support policies and have different development trends. Entering the markets of various countries faces different opportunities and challenges. Against this background, clarifying the different development characteristics and policy orientations of the charging pile markets in European countries is of great value to Chinese charging pile manufacturers.

1. Increased tram penetration and policy support have stimulated the rapid expansion of the European charging pile market

The development of the European charging pile market is ahead of the North American market, but the market is not as saturated as China. There is a large demand gap for public charging piles, and there is a lot of room for growth.

In 2022, the penetration rates of new energy vehicles in China, Europe, and the United States will be 30%, 23%, and 8% respectively. The maturity of the European new energy vehicle market is second only to China and significantly ahead of the U.S. market. In April 2023, the European Union passed the "2035 Zero Emission Agreement for Newly-Sold Fuel Cars and Small Trucks in Europe" and will become the first region to achieve fully electrified vehicles. This development plan is far more radical than that of China and the United States.

      

On the other hand, although the number of new energy vehicle charging piles in Europe has rapidly increased from 17,000 in 2012 to 475,000 in 2022, it is still difficult to meet the rapidly growing demand for new energy vehicles. According to calculations by the European Automobile Manufacturers Association (ACEA), the penetration rate of new energy vehicles in Europe will reach 60% by 2030, far exceeding the global penetration rate of 26%. 6.8 million public charging piles are needed to achieve carbon reduction in the transportation sector. Target. Especially in the field of public charging piles, the vehicle-to-pile ratio in Europe is 15:1, which is much higher than China's 3:1. Charging demand is far from being fully met.

European governments have also introduced many stimulus policies for the construction of charging piles. On the one hand, the government directly allocates funds for the construction of charging piles and provides certain financial subsidies to companies that install charging piles; on the other hand, it also promotes the construction of charging piles through policy requirements, such as stipulating that certain funds in parking lots must be used for the construction of charging piles. .

The European government has great determination to promote new energy. There is a strong and urgent demand for the construction of charging piles in Europe. In addition, the stability of the European distribution network is high, which can support the construction of a large number of charging piles in a short period of time. The superposition of multiple factors will shape the European charging pile market in the next few years. It may expand rapidly with a growth rate of up to 65%.

              

2. There are obvious differences in the market size and policies of charging piles in various countries.

The new energy vehicle markets vary greatly among countries. The penetration rate of electric vehicles in Western European countries such as the Netherlands, Germany, and Belgium is relatively high, while the sales penetration rate of electric vehicles in southern European countries such as Spain and Italy is less than 10%, and the penetration rate of electric vehicle ownership is less than 1%.

Differences in the electric vehicle market have also affected the charging pile market, causing the construction of charging facilities in various countries to be at different stages of development. Currently, the Netherlands has more than 100,000 charging points, ranking first in Europe, followed by Germany and France, with more than 80,000 charging points. On the other hand, the vehicle-to-pile ratio in the Netherlands is 5:1, and the market demand is relatively saturated, while the vehicle-to-pile ratio in Germany and the United Kingdom is as high as more than 20:1. Charging needs are not well met, and the rigid demand for new charging piles in the future is very high. powerful. Countries such as Belgium, France, Spain, and Italy are at an intermediate level. In the future, the number of charging piles will increase as the penetration rate of electric vehicles increases.

            

 1. Netherlands

The Netherlands is the largest charging pile market in Europe, with the highest level of intelligence. Competition among local companies is fierce. The government supports the development of new energy innovative technologies, making it difficult for new players to enter. In 2022, the Netherlands will have 114,000 charging points, ranking first among the 27 EU countries. Among them, the ratio of fast and slow charging points is about 1:33, and the proportion of fast charging points is low, which means there is more room for future growth. According to the Dutch government plan, the number of public charging piles will reach 270,000 by 2025 and 810,000 by 2030, with a growth rate of 28% from 2022 to 2030.

Dutch charging pile operators and suppliers are mainly local companies, and competition is fierce. Since the new energy vehicle market developed earlier and is now relatively mature, the Dutch government has gradually eliminated many tax exemptions and subsidies for new energy vehicles. However, before 2024, a charging station energy reduction of 8.5 euro cents per kilowatt hour will be provided. Tax relief policies remain in effect. This has less impact on private charging piles, but each public charging pile can save about 470 euros per year, making the installation of charging stations more economically attractive, indirectly helping to increase the supply of charging piles and reducing charging fees for consumers. Rate.

2. Germany

Germany is the largest electric vehicle market and the second largest charging pile market in Europe. There is a large gap in the charging pile market and abundant industry exhibition resources. Chinese companies have many exchange opportunities there. In 2022, the vehicle-to-pile ratio in Germany will be as high as 23:1, with a large amount of unmet charging demand and huge room for future growth. According to the German government plan, the number of public charging piles will reach 640,000 by 2025 and 1 million by 2030, with a growth rate of 36% from 2022 to 2030.

The German government has the strongest policy support for the construction of charging piles in Europe. It has launched a special fund of 2.5 billion euros to accelerate the construction of charging infrastructure, especially the construction of fast charging piles. The goal is to have at least 50 charging stations by the end of 2024. % will be equipped with fast charging piles, and by the end of 2026, at least 75% will be equipped with fast charging piles. The German government also provides high cash subsidies to charging pile installers. Although the subsidy ratio will decrease starting in 2021, it can still cover more than half of the installation costs. Currently, municipal companies that install private charging piles can receive subsidies of up to 80%, businesses and individuals can also receive subsidies of up to 50%, and those who install public charging piles can receive subsidies of up to 60%. In addition, Germany also implements a greenhouse gas emission quota system. From 2022, each public charging point participating in the scheme will receive a subsidy of between 0.08 and 0.15 euros per kilowatt hour.

3. France

The French charging pile market will develop rapidly after 2020, with great growth potential. The government has strong determination to develop the new energy vehicle industry, traditional electrical companies dominate, and Chinese companies can enter the market through government projects. The number of charging points in France is only 30,000 in 2021, and will reach 83,000 by 2022, an increase of nearly 180% from 2021 to 2022. On the other hand, the ratio of fast and slow charging piles in French public charging piles is about 1:13, which is lower than the European average. Fast charging piles have great growth potential. According to the French government plan, the number of public charging piles will reach 434,000 by 2025 and 965,000 by 2030, with a growth rate of 36% from 2022 to 2030.

The French government has launched a number of policies to promote the construction of charging piles. In November 2020, the Advenir program, which subsidizes the installation of charging piles, was extended for 3 years to December 2023. The program is open to individuals, co-ownership trustees, companies and communities, with an individual subsidy limit of 960 euros and a shared subsidy limit of 1,660 euros. EUR. In addition, installing new energy vehicle charging piles at home will enjoy a 5.5% value-added tax exemption. The purchase and installation of new energy vehicle charging piles between January 1, 2021 and December 2023 will also receive a dedicated tax credit. Covers 75% of the cost of purchasing and installing the charging station, up to a maximum of €300.

4. United Kingdom

The British charging pile market is developing very rapidly, but competition from local companies is fierce, and the market concentration of fast charging pile operators is high, making it difficult for Chinese companies to enter. According to the British government plan, the number of public charging piles will reach 445,000 by 2025 and 1.033 million by 2030, with a rapid growth rate of 52% from 2022 to 2030.

The British government has implemented an electric vehicle home charging scheme. Citizens who purchase electric vehicles can receive subsidies of up to 75% of the purchase and installation costs for installing charging points at home, with a cap of £500. In addition, subsidies are also available for installation in workplaces, with each applying company receiving subsidies for up to 20 charging piles.

5. Italy

The growth prospects of the Italian charging pile market are highly uncertain. The penetration rate of new energy vehicles is relatively low, the construction of charging infrastructure is poor, and the management level is imperfect. Chinese companies need to carefully select investors and operators when entering. The ratio of fast and slow charging piles among Italian public charging piles is about 1:19, which is lower than the European average. Fast charging piles have great growth potential. According to the Italian government plan, the number of public charging piles will reach 264,000 by 2025 and 633,000 by 2030, with a growth rate of 43% from 2022 to 2030. However, Italy's infrastructure construction is imperfect, the new energy vehicle market is relatively small, and the existing charging piles are unevenly distributed from north to south and currently have low utilization rates. The actual growth prospects of the charging pile market are highly uncertain.

The Italian government provides tax credits for taxpayers who install electric vehicle charging piles below 22kW. This fee is equivalent to 50% of the purchase and installation costs, up to a maximum of 3,000 euros, and is divided into ten equal parts and is awarded annually.

6. Belgium

The Belgian charging pile market has an urgent need for construction, clear policy planning, and high operator market concentration. When Chinese companies enter, it is recommended to bind leading operators. The ratio of fast and slow charging piles among Belgian public charging piles is about 1:17, which is lower than the European average. Fast charging piles have great growth potential. According to the Belgian government's plan, the number of public charging piles will reach 85,000 by 2025 and 187,000 by 2030, with a growth rate of 32% from 2022 to 2030. The Belgian electric vehicle market has good development prospects and accelerating growth, and there is an urgent need for the construction of charging piles.

The development of charging infrastructure in Belgium is relatively late, but the government is currently strengthening planning for the construction of public charging piles. For example, it is clearly stipulated that new parking lots must be installed with charging piles. The Belgian government also offers tax breaks and subsidies for installing charging stations. Installing charging piles in enterprises will enjoy 100% cost reduction, while private installation of private charging piles will also be able to deduct personal taxes, which is currently equivalent to 45% of the installation cost, up to 1,500 euros, and will be reduced to 15% from 2024. In addition, local governments such as Flanders also provide additional subsidies for the installation of charging facilities for new energy vehicles.

7. Spain

The Spanish charging pile market developed later than other Western European countries, but its future growth prospects are good, competition is relatively gentle, and there is room for Chinese companies to enter the market. The vehicle-to-pile ratio in Spain in 2022 will be 11:1, which is higher than most European countries. However, due to the low penetration rate of new energy vehicles in Spain and the expected rapid growth in the future, the charging pile market will also grow rapidly. It is expected that the number of public charging piles in Spain will reach 340,000 by 2030, with a growth rate of 33% from 2022 to 2030.

The "Climate Change and Energy Transition Regulations" formulated by the Spanish government stipulate that from 2023, all non-residential buildings with more than 20 parking spaces must be equipped with charging piles in their parking lots. Another "MOVES III plan" aims to improve charging infrastructure, especially the construction of charging facilities in low population density areas. The central government will provide a 10% subsidy for electric vehicle charging stations, while towns with less than 5,000 residents will receive a subsidy of 10%. The central government receives an additional 10% subsidy for charging stations.

8. Turkey

Turkey's charging pile market has broad prospects and is in its early stages. It is a window period driven by the growth of new energy vehicles and favorable policies. In 2022, the number of passenger cars in Turkey will be 14.27 million, of which 14,500 are pure electric vehicles, accounting for 0.1%. It is expected that by the end of 2023, the number of pure electric vehicles will reach 27,500, accounting for 0.2%. It is expected that by 2030, the number of new energy vehicles in Turkey will reach 1.5 million. The rapid growth in the number of new energy vehicles will drive the growth of charging supporting infrastructure. It is expected that the ratio of public vehicles to piles will reach 1:6 in the future.

In the context of the "National Energy Plan", Turkey has launched tax incentives for new energy vehicles. When purchasing a car, the special consumption tax for new energy vehicles is 10-60% based on the engine power, which is 35%-160% lower than that of fuel vehicles. In addition, new energy vehicles The annual tax is only 25% of the same type of fuel vehicle. At present, Turkey has not launched relevant subsidy support policies for the construction of charging piles, but the government has been promoting the development of charging supporting industries. For example, those investing in the construction of charging facilities in Turkey can receive exemptions from tariffs, value-added tax, and corporate tax. In addition, Turkey has currently issued charging operator licenses to more than 130 companies, including Tesla and TOGG, and the number of approved licenses is still increasing.

Conclusion

As the region with the most radical plans for vehicle electrification, Europe is highly attractive to Chinese new energy companies. In the field of new energy, charging piles and charging stations have strong market certainty due to their new infrastructure attributes. When charging pile companies enter the European market, they need to

charging pile

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