Charging Pile of New Energy Vehicle Turns Towards the Center of the Stage

With the improvement of our lives and the gradual motorization of the way of travel, the number of private cars has increased over the years. Because the traditional automobile uses oil as fuel, it not only wastes a lot of precious resources but also causes serious environmental pollution, which brings troubles to people. The development of clean and renewable energy is a powerful tool to solve environmental problems that the traditional automobile makes. What solves the above problem is the new energy vehicle which has been recognized and utilized by the public in a short stage. As the charger of the green car, the charging post ushered in a new competition in the field of energy. It charges by grid energy to, which solves the problem, to some extent, of the traditional automobile and greatly reduce the pollution. Green cars meet people's pursuit of a better life, in line with the trend of future development, which will be the direction of global automobile reform. And its charging post will also emerge.

As the charging equipment of the green car, the charging pile can be regarded as a fuel dispenser of the traditional vehicles. The charging pile is usually installed at the public construction site, the parking lot, or the roadside. However, there is a big gap in the development between charging infrastructure and electric vehicles in China where the number of green cars has exceeded 3.81 million in 2019 with a global share of 49%, which has become the largest green car market in the world. However, the current ratio of the green car to the charging pile is 3.5:1, far from meeting the normal charging demand for green cars. As a supplement infrastructure of new energy vehicles, to add the configuration of large charging pile is particularly important.As an essential part of new infrastructure, the charging pile of new energy vehicles ushers in a new opportunity of industry development. At present, China is the best country in the world with comprehensive policy support for charging infrastructure. In order to implement the strategic plan of the State Council on accelerating the promotion and application of new energy vehicles, at the end of 2015, the general requirements for the construction of charging piles were put forward with 1,2000 new charging stations, 4.3 million charging piles for business and private car users, and 508,000 decentralized public charging piles By 2020. It is estimated that the investment will be about 1.4 billion USD in 2020; In 2025, more than 360,000 charging and replacing power stations will be built. At the same time, in order to actively promote the use of new energy vehicles and increase the investment in the construction of vehicle piles, the previous purchase subsidies will be turned to support the construction of charging infrastructure and services. Driven by new infrastructure and subsidies, the demand for a charging pile is expected to release.

The Promotion of New Energy Vehicle Sales in China Drives the Development of Charging Piles

In the overseas market, the new energy passenger vehicle sales accounted for 27% of the total in 2019 with a GR of 7 percent. In the first quarter of 2020, the new energy passenger vehicle sales continued to increase. The sales volume of new energy vehicles in China in 2019 was 3.81 million with the new energy passenger vehicle sales accounting for about 4.68%. According to the deployment of the Ministry of industry and information technology, the sales volume of new energy vehicles in China in 2025 will account for about 25 percent which is 5.4 times the current sales volume. By 2030, the sales volume of electric vehicles in China is expected to exceed 15 million, and the retention volume is expected to exceed 80 million. At that time, the pure electric vehicles may reach 64.8 million, which will drive more demand for charging piles.

The growth of electric vehicles is bound to drive the market demand for charging piles.  At the same time, it seems to inject a calming pill into the charging pile market due to the favorable policies, financial subsidies, and other factors, which contribute to the industry being revived by enterprises actively distributing, and its market scale will maintain growth. Data shows that in 2018, the market scale of charging piles in China was nearly 857 million USD. With the gradual implementation of construction plans of charging infrastructure in various regions, the market scale of charging piles will be further expanded, reaching nearly 2.6 billion USD by 2020 and over 8.3 billion USD by 2023.

The Total Vehicle-Pile Ratio Shows a Downward Trend, But There is a Great Opportunity for DC Piles in Public Piles

Since 2015, the vehicle-pile ratio in China has decreased year by year. which has dropped to 3.5:1 in 2019. At present, the rapid decline of the vehicle-pile ratio is mainly driven by private piles. The data shows that in 2019, the ratio of vehicles to piles is still 8.25:1 in public piles, which is 0.36 higher than that in 2018. The public piles are still in short supply. The convenience of charging is an important factor for setting public charging piles. In view of the higher charging effect of DC charging piles, as well as a low cost. High-power DC charging piles have larger charging capacity per unit time, which is a good choice for operators to increase revenue and dilute the cost of civil engineering. We believe that the proportion of DC charging piles in public power stations will increase. In 2019, the proportion of DC in the existing charging piles is 41.6 percent. We expect that the proportion of DC piles in the public charging piles is expected to reach 60 percent in 2020-2025.

State Grid Bidding: DC Charging Pile Is the Main Force

In 2019, the number of State Grid bidding is relatively low, and DC is the focus of State Grid bidding. There are two types of charging piles: AC and DC. The former is mostly 7KW with a low speed, which is mostly used in private areas. DC charging pile has high charging power and is mostly used in the field of public piles. According to statistics, in 2019, 3,165 charging piles of State Grid will be invited for bidding, which are all DC piles for the public pile. However, the concentration rate of DC charging piles in China is only 33.3 percent in 2015-2019, and Nari and Xuji are respectively in the second market share of DC charging piles. Once the charging pile industry develops rapidly, these enterprises with rich resources are more able to get rid of their competitors and occupy more share in the fierce competition.