The rise of electric vehicles represents more than just a simple vehicle replacement—it signifies a profound transformation affecting energy systems and infrastructure upgrades. As new energy vehicles enter an era of "annual sales exceeding 10 million," a massive hidden market emerges: charging infrastructure. The rapid growth of China's new energy vehicle exports suggests an imminent explosion in global charging pile construction. How to seize this historic opportunity will be crucial for investors and corporate strategic planning.
I. Surging NEV Exports Drive Charging Demand
China's new energy vehicle industry has established global leadership. In 2022, China exported 679,000 NEVs, with figures reaching 457,000 in just the first five months of 2023—a 60% year-on-year increase. These climbing export numbers not only demonstrate China's technological advantages but also foreshadow enormous overseas demand for charging infrastructure.
Major global economies have established clear charging infrastructure targets. The European Commission's 2021 "Fit for 55" plan calls for 3.5 million new charging stations by 2030. The UK government's 2022 strategy aims for 300,000 public chargers by the same deadline, while the U.S. proposed building 500,000 charging stations by 2030. These policy goals provide clear direction for global charging infrastructure development.
II. Charging Pile Industry: A Complete Supply Chain Perspective
As pure electric vehicles' "energy stations," charging piles are indispensable. Without adequate infrastructure, EV convenience suffers dramatically, hindering mass adoption. Accelerating global charging infrastructure deployment has become imperative.
Mainstream charger types include AC (slow charging, smaller size, lower battery impact—ideal for homes) and DC (fast charging, larger size, higher battery impact—suited for public stations). Charging configurations vary from single-port to multi-port units, serving different scenarios from public stations to private residential installations.
The cost structure comprises hardware (93%), manufacturing (4%), and labor (3%). Hardware includes power devices, magnetic components, semiconductors, capacitors, PCBs, and enclosures.
The supply chain divides into upstream component manufacturers, midstream charger producers/construction firms, and downstream operators. Some companies like Shenghong and Lvnen span both midstream and downstream operations.
III. Operational Models: Diversified Competitive Landscape
Downstream participants include operators, automakers, and third-party platforms. Operator-led models handle investment, construction, and maintenance, profiting from service fees and value-added services—a model with high site investment but strong profit potential.
Automaker-built chargers face challenges like high costs, limited user bases, and low utilization, making operator partnerships common—automakers provide customers while operators supply energy and technology.
Third-party platforms aggregate multiple operators' resources into unified service interfaces, improving utilization but requiring strong integration capabilities.
IV. Going Global: Chinese Chargers' Prospects and Hurdles
Overseas markets present vast demand but face cost, certification, and policy challenges. Previously weak profitability due to low demand and high expansion costs is improving with NEV adoption.
With no monopoly yet formed overseas, cost reduction and market capture dominate operators' strategies—creating opportunities for cost-competitive Chinese firms. Data shows overseas gross margins (45% for complete units, 40% for modules) exceed domestic figures (35% and 20% respectively).
However, international expansion requires navigating strict safety certifications (CE for Europe, FCC/UL for the U.S.) and localization policies. For example, U.S. rules mandate domestic production for government-funded chargers with 55% local content, prompting some Chinese firms to establish American factories. European and Southeast Asian markets prove more accessible.
V. Emerging Overseas Demand Patterns
Western housing and automotive cultures favor private and vehicle-bundled chargers. McKinsey data shows 64% of U.S. EV charging occurs at home, while Europe's bundled-charger rate reaches 70%—creating new market opportunities. As China's auto exports (surpassing Japan in Q1 2023) spread globally, charging infrastructure follows proportionally.
VI. Investment Considerations
The charging industry approaches a golden development phase. Key focus areas include:
- Technology: Master core charging technologies like high-power and smart charging
- Cost efficiency: Optimize design and supply chains
- Certification: Secure international market access approvals
- Diversification: Explore automaker partnerships and value-added services
- Policy awareness: Monitor government initiatives for strategic alignment
The EV revolution is unstoppable, and charging infrastructure—as its critical backbone—will experience explosive growth. Capturing this historic moment promises substantial returns for forward-looking investors.