Electric Vehicle Charging Cables Market Trends

Growth Drivers

• Surging government initiatives to encourage EV adoption - Emissions from automobiles have notably impacted air quality across the globe. A report published by the U.S. Environmental Protection Agency in 2023 stated, that over 4.6 metric tons of carbon dioxide are released from passenger vehicles in the U.S. every year. Owing to this, the government is encouraging the adoption of electric vehicles.
  Several governments have introduced policies to incentivize lighter and smaller passenger car purchases. For instance, in Norway since 2023, electric cars have been given an exception from the weight-based purchase tax, unlike ICE counterparts. Furthermore, governments are implementing strict regulations and emission standards to boost EV sales and achieve the goal of net zero projects.
• Growing adoption of advanced technology in EV charging cables - One of the most advanced technologies experiencing deployment in EVs is vehicle-to-grid (V2G) infrastructure. V2G enables electric vehicles to serve as mobile batteries, with the capability of delivering electricity back to the grid as needed. Therefore, this bidirectional energy flow serves both owners of electric vehicles and the power grid.
  Since V2G offers bi-directional charging, EV owners can sell excess energy stored in their automobiles back to the electricity networks. The rising investments in smart energy storage and management systems has fostered the development of V2G infrastructure. For instance, on 17 October 2023, Phoenix Motor Inc. in collaboration with Fermata Energy LLC, announced the integration of V2G capabilities for all the medium-duty EVs manufactured by Phoenix motorcars. Consequently, this is anticipated to drive the expansion of the electric vehicle charging cable market.
• Development of high-speed charging infrastructure - Fast charging solutions have been growing in popularity among long-haul vehicles. Strategic public investments in installing charging stations are aiding in EV adoption. As part of the U.S. National Electric Vehicle Infrastructure (NEVI) program, the government has invested USD 7.5 billion to build 500,000 EV high-speed chargers along America’s major interstates and freeways by 2030. Another USD 2.5 billion is offered as competitive grants to states to fill gaps along charging corridors. The adoption of high-speed electric vehicle charging cables is fostering market expansion.

Challenges

• The rising price of EV charging cables - The expensive nature of EV production has served as a substantial barrier to their widespread use. Electric vehicles cost significantly more than ICE vehicles since they demand expensive rechargeable lithium-ion batteries. In addition, the cost of the cathode has an enormous effect on the price of the batteries. This is due to the high cost of the materials utilized in these batteries, including cobalt, nickel, lithium, and magnesium. As a result, the installation cost of charging stations incurs high capital expenditure. All of these factors are anticipated to hamper the market’s overall growth.
• Surging demand for wireless charging technology - With the advancement of technology, the popularity of wireless technology is also growing. As a result, the market is predicted to be hindering industry growth.