As the popularity of new energy vehicles continues to increase, the construction of overseas charging pile markets has become one of the hottest topics in the current new energy industry. In European and American countries, there is a huge gap in the construction of charging piles, while the Chinese market is facing serious involution problems. Many industry insiders believe that the dividend period of China’s manufacturing industry has brought huge development opportunities to the charging pile industry. Especially for those companies that can seize the opportunity, overseas markets will become their main direction of development.
According to data from the International Energy Agency (IEA), in the first half of 2023, the sales of electric vehicles in EU countries reached 1.42 million units, but the construction of charging piles has not kept up, resulting in a vehicle-to-pile ratio as high as 16:1. The situation in the United States is even more severe. As of 2022, the United States has 131,000 public charging piles, but the number of new energy vehicles is about 3.3 million. The ratio of public charging piles has increased from 5.1 in 2011 to 25.1 in 2022. These data reveal the huge potential growth space of the overseas charging pile market.
Market size and growth trends
In the past few years, the demand for overseas charging piles has continued to surge, becoming a popular commodity on major cross-border e-commerce platforms around the world. In March this year alone, the purchase demand for overseas charging piles surged by 218%. According to predictions from the China Association of Automobile Manufacturers, Chinese companies are expected to account for 30%-50% of the European and American charging pile market in the next five years. With the popularity of new energy vehicles around the world, the construction of charging infrastructure is gradually accelerating.
In this market full of opportunities, Chinese charging pile companies have accelerated their pace of going overseas. According to the cross-border index of Alibaba International Station, overseas business opportunities for new energy vehicle charging piles will rapidly increase by 245% in 2022, and it is expected that there will be nearly three times the demand in the future. Faced with this huge market demand, Chinese companies have actively responded and established companies related to the export of charging piles.
Among the many charging pile companies going overseas, fast charging has become a key layout target. At present, Chinese companies have developed various types of products, including fast charging, slow charging, integrated optical storage, charging and inspection, etc. However, to succeed in overseas markets, Chinese charging pile companies still need to overcome some challenges.
First of all, battery certification is the first difficulty in going overseas. The main industry standards that need attention in the industry are European standard CE certification and American standard UL certification. CE certification is compulsory certification. The certification period is 1-2 months. The main applicable area is the EU member states. The certification fee is about hundreds of thousands of yuan. UL certification is one of the main certification standards for charging pile products to enter the US market. Certification The cycle time is about 6 months and the cost is up to millions of yuan. In addition, charging pile interface standards in different countries and regions are also different, and companies need to re-initiate research and development projects and adjust interfaces to adapt to the standards of different countries and regions.
Secondly, channel construction is also a major difficulty. There are certain customer barriers in foreign markets. Chinese companies need to overcome the problem of insufficient brand power and develop customers through multiple channels. Many Chinese manufacturers have found new ways to expand their business by participating in international charging pile exhibitions and other channels. At the same time, actively participating in international charging pile exhibitions is also a good opportunity to showcase your own products and technologies.
Opportunities and challenges coexist
In the European and American markets, rapid energy replenishment has always been an urgent need for tram owners. In addition to residences and workplaces, fast charging services are required in highways, shopping mall parking lots and other scenarios. However, there is a big difference in the number of AC and DC piles in the European and American markets. Only about 10% of public charging piles are fast-charging DC piles. With the promotion of policies and the growth of market demand, the growth rate of the fast charging DC pile market will continue to accelerate. Soochow Securities Research Institute predicts that the market space in Europe and the United States will reach 18.7 billion yuan and 7.9 billion yuan respectively by 2025, with compound growth rates of 76% and 112% respectively.
With the popularity of new energy vehicles, the demand for overseas charging piles continues to grow, but there are also problems such as certification standards and channel construction. Chinese charging pile companies are actively exploring overseas markets and are facing huge market opportunities and challenges.
In order to promote the development of new energy vehicles, the government has introduced a series of subsidy policies. The German government has provided high subsidies for high-power charging piles, and the federal government of the United States has also provided a subsidy of US$5 billion to support the construction of public charging piles. These policies not only stimulate market demand, but also provide more business opportunities for Chinese charging pile companies.
Against the background of favorable policies, major domestic charging pile companies have accelerated overseas standard certification to seize market share. Among them, Wang Yang, founder and CEO of Nenglian Smart Electric, observed that last year, many overseas charging pile companies were actively conducting European CE, American UL and other standard certifications to prepare for this year’s market expansion.
It can be said that the European and American markets have very strict requirements for charging pile products, and the certification cycle is long and expensive. This is why Chinese charging pile companies also face some challenges in the process of going overseas. In addition, there are differences in charging pile interface standards in different countries and regions, requiring companies to re-adjust their products and conduct research and development.
In order to better adapt to market demand and policy changes, Chinese charging pile companies need to strengthen R&D and product innovation, expand channels and partnerships. At the same time, understanding the local market and policy trends is also one of the key factors for business success. Gan Chunming concluded: “Remaining sensitive to policy trends and maintaining communication with industry associations, local organizations, and government departments is part of business operations. Prejudging the business and product layout in advance according to changes in market demand and regulatory trends is This is where the risks and opportunities lie.”
As the demand for high-power DC piles and supercharging piles increases in the European and American markets, charging modules, liquid-cooled charging gun cables and other supporting components are also expected to become new export growth points! But at the same time, we should also note that the United States requires that all subsidized charging piles must be manufactured in the United States, and Europe is also promoting the implementation of relevant policies. Once these policies are implemented, they will have a direct impact on the export of charging piles. Faced with these challenges and opportunities, Chinese charging pile companies need to flexibly respond to market changes, strengthen cooperation with local partners, and jointly explore overseas markets. By seizing policy opportunities, strengthening R&D innovation and expanding channel cooperation, Chinese charging pile companies are expected to achieve greater success in overseas markets.
