What is the potential of the European ev charger market? Compound growth rate exceeds that of China.

Among the "Five Nordic Countries", Sweden is the largest country with a total population of 10.54 million. It borders Norway to the west and Finland to the northeast. Its per capita GDP is about US$53,000.

Sweden not only leads Europe in the construction of charging infrastructure, but also continues to explore cutting-edge technologies. Sweden announced that it will build a 21-kilometer-long road that can charge moving cars and trucks. It is located in the middle of the logistics triangle between the capital Stockholm, the west coast city of Gothenburg and the southern city of Malmö. Moreover, the electric highway system can reduce the size of vehicle batteries by 70%, reducing the demand for raw materials such as lithium and nickel.

Since 2011, Sweden has provided subsidies for new energy vehicles, ranging from SEK 200 million to an allocation of SEK 3.5 billion in 2022. As long as new energy vehicles meet carbon emission requirements, they are exempt from annual circulation tax for five years. There is no doubt that Sweden is sparing no effort in developing electric vehicles and charging services.

Charge Amps acquired by Energy Chain benefited from Sweden's friendly electric vehicle environment. It was founded in 2012 and is headquartered in the capital Stockholm. It mainly provides independently developed charging pile products for homes, commercial real estate, offices and other public environments, as well as for C-end charging products and charging service solutions. The company accounts for 22% of the entire Swedish charging pile market sales. By the end of 2015, China's new energy vehicle sales were only 330,000, and public charging stations had just exceeded 60,000.

At that time, Charge Amps launched self-developed ev chargers. Currently, it has three core products and accessories, all of which are ac ev chargers. The prices range from 600 Euros to 1,100 Euros, with a total of 110,000 units sold. In addition to products, it is worth mentioning that Charge Amps has entered 13 European countries including Norway, Finland, the Netherlands, the United Kingdom, Spain, and Germany, and has a sales network of 52 distributors.

What's more the European charging service market is constantly accelerating.

According to data from the IEA (International Energy Agency), in 2022, there will be 1,082 electric vehicles sold in the world, of which 6.887 million vehicles will be sold in China, accounting for 64%. Europe ranks second, with 2.6 million vehicles sold last year, and the new car sales penetration rate is 23%. , this number is only 2.6% less than China. In the first half of 2023, the cumulative sales of electric vehicles in EU countries were 1.42 million, including 939,000 pure electric vehicles (BEV) and 480,000 plug-in hybrids (PHEV), a year-on-year increase of 26.7%, and the growth rate was 14% higher than in 2022. rebounded sharply.

Compared with China's public vehicle-to-pile ratio of 7.2:1, there is a huge gap in the European public ev charger market. The vehicle-to-pile ratio is as high as 16:1. It has risen instead of falling from 6.91:1 in previous years, but it also indicates huge market space.

According to IEA data, the number of public charging piles in Europe will increase from 116,100 units in 2016 to 474,700 units in 2022, with an annual compound growth rate (CAGR) of 26.4%. In contrast, the sales of electric vehicles in Europe increased from 212,000 to 2.6 million in the same period, with a CAGR of 51.9%, which is almost twice the growth rate of ev chargers. This means that only by accelerating the construction of public charging stations in Europe can we avoid hindering the sales of electric vehicles.

A Zhongtai Securities report predicts that from 2023 to 2025, the European public ev charger market demand will reach 259,000 units, 444,000 units, and 687,000 units. The ev charger station market size will be US$2.85 billion, US$4.57 billion, and US$7.18 billion, with a CAGR of 64%, which is already higher than the 43% growth rate of China's charging station market.