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Major Automakers Shift Towards Onboard Chargers with a Power Output Above 6 kW for Electric Vehicles Says Frost & Sullivan - To boost affordability, suppliers should manufacture components of onboard chargers in-house, says Frost & Sullivan - Automotive.Frost.com
Major Automakers Shift Towards Onboard Chargers with a Power Output Above 6 kW for Electric Vehicles Says Frost & Sullivan

 

PRZOOM - /newswire/ - London, United Kingdom, 2015/05/05 - To boost affordability, suppliers should manufacture components of onboard chargers in-house, says Frost & Sullivan - Automotive.Frost.com.

   
 
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Most battery and plug-in hybrid electric vehicle (PHEV) manufacturers in Europe and the United States (US) have been adopting onboard chargers with a power output between 3 to 3.7 kilowatts (kW). Now, EV manufacturers are moving towards onboard chargers with a power output greater than 6.6 kW to reduce charging time. While high-end PHEVs are contributing to this trend, lower-end models in this segment are still using 3.7 kW onboard chargers. Consequently, onboard chargers with power ratings between 3 to 3.7 kW are expected to remain dominant, accounting for 62 percent of sales even in 2020.

New analysis from Frost & Sullivan, Strategic Analysis of the US and European Onboard Chargers Market, finds that sale volumes of onboard chargers stood at 304,683 units in 2014 and estimates this to reach 2,235, 937 units in 2020.

More than 15 major companies supply onboard chargers globally, with Lear Corporation (lear.com) and Panasonic (panasonic.com) in key positions as suppliers for Chevrolet Volt and Nissan Leaf the top-selling EVs in Europe and North America. All these companies offer isolated chargers and many including Brusa (brusa.eu/en) and Panasonic are investing in R&D to introduce non-isolated chargers.

“Currently, over 60 percent of components required to make onboard chargers are being outsourced due to high in-house manufacturing costs,” said Frost & Sullivan Automotive & Transportation Senior Research Analyst Prajyot Sathe. “Tier I suppliers in Europe and the US have mainly been sourcing components such as electromagnetic interference filters, power factor controllers (PFCs), and direct current (DC)-DC converters from tier II suppliers.”

While most suppliers have the expertise to manufacture components in-house, they have refrained from doing so due to low demand for onboard chargers. Suppliers must, however, begin to manufacture DC-DC converters and PFCs themselves, as these components account for the maximum cost of onboard chargers and contribute to higher prices.

“To cope with the current scenario, major vehicle original equipment manufacturers (OEMs) such as Daimler (daimler.com) are expected to adopt the component sharing strategy, which will drive production volumes and reduce the cost of components,” noted Sathe. “Another strategy vehicle OEMs could consider is entering strategic alliances to pool the technical expertise of partners and decrease manufacturing costs.”

By way of high-volume manufacturing and strategic partnerships, onboard charger suppliers in Europe and the US will be able to lower the price of their products. While the current price of an onboard charger ranges from $130 to $230 per kW, prices are likely to fall by 20 to 25 percent within 2020.

The connected car, vehicle prognostics and cyber security are just a few of the current trends in the automotive and mobility space, which will be discussed during Frost & Sullivan’s annual industry event “Intelligent Mobility: Future Business Models in Connected and Automated Mobility”, taking place at the House of Lords and the Royal Garden Hotel in London on 1st and 2nd July 2015.

Strategic Analysis of the US and European Onboard Chargers Market is part of the Automotive & Transportation (automotive.frost.com) Growth Partnership Service program. Frost & Sullivan’s related studies include: Global Powertrain Outlook 2015, Opportunities in the Global Taxi Market, Toyota Motor Global Product Portfolio, and Financial Assessment of Global Automotive OEM Industry. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan
Frost & Sullivan (frost.com), the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our “Growth Partnership” supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.

The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organisation prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

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Strategic Analysis of the US and European Onboard Chargers Market (M9DA-18)

 
 
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Major Automakers Shift Towards Onboard Chargers with a Power Output Above 6 kW for Electric Vehicles Says Frost & Sullivan

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