Driven by the carbon neutrality target, overseas countries gradually clarify their charger pile construction plans and gradually implement incentive and subsidy policies

Driven by the carbon neutrality target, countries around the world are accelerating the construction of clean energy. By the end of 2021, 136 countries around the world have made carbon-neutral commitments, covering 88% of global CO2 emissions, 90% of GDP as well as 85% of the population. Charger piles are the main equipment of new energy vehicles, and the integrated solution of light storage and charging is becoming mature. Overseas countries accelerate market construction by specifying the construction plan of charging piles and giving incentives and subsidies.

Global public charging piles are expected to reach 15 million by 2030

According to IEA's estimation, the global on board charger market is expected to complete the construction of 6.92 million public charging piles (including 2.13 million fast charging piles and 4.8 million slow charging piles) in 2025 and 15.37 million public charging piles (including 5.42 million fast charging piles and 9.95 million slow charging piles) in 2030, against the background of accelerated construction in China, Europe, America, Southeast Asia, and other countries or regions. Among them, the United States is expected to complete the construction of 1.32 million in 2030, and Europe is expected to complete the construction of 2.41 million.

The public on board charger market in Europe and the U.S. is expected to exceed $100 billion in 2030.

Based on IEA's forecast on the number of charging pile construction in Europe and America, we assume that the unit price of fast charging piles in Europe and America is 120,000-150,000 RMB, and the unit price of slow on board charger is 2500-3000 RMB.

Overseas charging pile market differs from domestic preference, and enterprises face cultural differences and technical certification barriers when going abroad

The overseas charging pile market differs from the domestic market in terms of classification, certification standards, consumer preferences, charging methods, profit concessions, etc. Domestic enterprises going abroad are faced with cultural differences and product certification barriers, which require a high understanding of overseas markets. Therefore, enterprises with strong technical strength, business layouts in overseas markets, close cooperation with overseas manufacturers, and a strong ability to combine software and hardware are expected to stand out in the process of going abroad.

Charging pile industry chain and upstream investment opportunities

Charging pile hardware cost composition

In the construction of charging stations, the main cost comes from the charging pile hardware equipment. Taking a DC charging pile with a common power of about 120kW as an example, its equipment composition includes charging modules, distribution filtering equipment, monitoring and billing equipment, battery maintenance equipment, etc. The charging module accounts for up to 50% of the cost. The main cost of the charging module comes from power devices (30%), magnetic components (25%), semiconductor ICs (10%), capacitors (10%), PCBs (10%), and other components such as chassis fans (15%).

Charging pile upstream components domestic market space estimation

Based on the cost composition of charging pile hardware equipment, we expect that by 2025, the incremental market space of charging pile upstream modules will be 33.5 billion yuan; among them, the incremental market space of power devices, magnetic components, semiconductor ICs, and capacitors will be 10/8.4/34/34 billion yuan respectively. Assuming the domestic DC gun price is RMB 3500-4000, AC gun price is RMB 200-300, and the charging pile connector price is RMB 600-1000, the corresponding incremental market space of charging gun/connector is RMB 4.8/2.7 billion respectively.