The reason for the hot charging pile market.

The reason for the hot charging pile market.

At present, the number of new energy vehicles in China has reached a certain scale, and the growth trend of the new energy market is strong. With this, a large number of equipment manufacturers have entered the charging pile industry. According to data released by the National Energy Administration, as of the end of June 2020, the number of various types of charging piles in China reached 1.322 million, including 558000 public charging piles, ranking first in the world in terms of quantity. However, the advantage in quantity cannot be equated with a comfortable user experience. Issues such as unreasonable site selection and layout, uneven equipment quality, and varying charging standards still result in low utilization rates of charging stations.

The reason for the hot charging pile market
The initial investment cost is high, and the later operation mode is vague. Some charging pile enterprises also face the pain point of "difficult profitability". The development of charging stations depends on the allocation of land and electricity resources. For example, a good geographical location may not be able to install charging stations due to property regulations, and management issues can also lead to low utilization of charging stations.
 
Charging stations are included in new infrastructure and gradually upgraded
 
The main reasons for the hot charging pile market are as follows.
 
Firstly, charging stations have become a must-have in the new era. Gas stations are essential for fuel vehicles, while charging stations are equally necessary for electric vehicles. With the increasing popularity of electric vehicles, the demand for charging stations from electric vehicle owners will continue to be released.
 
But before the technology of super fast charging and ultra large capacity batteries is widely applied, the range of electric vehicles will always be a major challenge for the entire industry. As the main means to alleviate car owners' range anxiety at this stage, charging piles are not only the choice of consumers, but also the focus of attention for many enterprises.
 
Secondly, the dividends released by the continuous promotion of national policies. In China, the construction of charging stations has been around for ten years, but it is only in recent years that investment has gradually increased. In addition, the inclusion of charging stations in the scope of new infrastructure by the government this year has provided a solid foundation for the stable development of this industry.
 
In March of this year, the central government proposed to accelerate the construction of new infrastructure, with new energy vehicle charging piles as one of the seven emerging industries for key investment in new infrastructure.
 
In April, Cai Ronghua, Deputy Director of the Industrial Development Department of the National Development and Reform Commission, stated that it is expected to complete an investment of 10 billion yuan this year, add about 200000 public charging piles, about 400000 private charging piles, and 48000 new public charging stations.
 
With the release of the "Notice on Issues Related to Electric Vehicle Electricity Price Policy" by the National Development and Reform Commission, supportive electricity pricing policies will be implemented for electric vehicle charging and swapping facilities, and financial subsidies or free allocation will be provided for construction land.
 
The notice mentions reducing the construction and operation costs of charging and swapping facilities, ensuring that the cost of using electric vehicles is significantly lower than that of fuel (or gas) vehicles, and enhancing the competitiveness of electric vehicles in the end market.
 
In the 2020 government work report, it was proposed to strengthen the construction of new infrastructure, build charging piles, promote new energy vehicles, stimulate new consumer demand, and assist in industrial upgrading.
 
The new infrastructure has significantly boosted market confidence, attracted many enterprises to actively layout, and accelerated the construction process of charging piles, which may accelerate the formation of a trillion dollar market in the industry.
 
According to the recently released "Development Plan for New Energy Vehicle Industry (2021-2035)", it is known that by 2025, the proportion of new energy vehicle sales will reach about 25%, and by 2035, all public sector vehicles in China will be fully electrified. According to the national goal of a 1:1 vehicle to pile ratio, there is still a huge potential for development in the charging pile market.
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