The report by market researchers Technavio on the electric vehicle charging station market in China 2016-2020 sees growth of 116% over the next four years as the market opens up and 12,000 EV charging stations and 4.5 million charging points are installed.
China’s market for EV charging stations was until recently monopolized by the State Grid Corporation of China (SGCC) and the China Southern Power Grid (CSPG). SGCC was not only the manager of stations but also supplied electricity to these charging stations. The one key advantage of this model was that it was simple and easy to manage. However, its monopoly may have hindered the development of the EV market because of lack of competition. In 2014, SGGC initiated an ambitious reform to open up the market for constructing charging stations to private players.
“The overall opening up of the charging station construction market has been good news for automakers like BYD,” said Sayani Roy, a lead analyst at Technavio for tools and components research. “China also aims to build 12,000 EV charging stations and 4.5 million charging points wherein the central and local governments will aid private investors in the construction of charging points.”
The continuous introduction of various government policies and initiatives to promote the increased use of electric vehicles will be a major factor that will have a positive impact on the growth of this market in the next four years. Various government incentives and tax rebates continue to aid in the growth of the electric vehicle market, which in turn will contribute to the growth of the electric car charging station market. Furthermore, owing to the increasing awareness on climatic change and the rise in government investments, the demand for electric vehicles will increase substantially over the next few years.
The V2G (vehicle to grid) system enables the flow of power between a grid and electric drive vehicles and also provides a network to help the owner communicate with the power grid. This system also enables