SAN FRANCISCO, Mar. 19 (Xinhua) -- The global market for electric vehicle (EV) chargers is expected to rise 37.5 percent at a compound annual growth rate (CAGR) from 2017 to hit 1,786 billion U.S. dollars in 2023, an Oregon-based market research firm said Friday.
Allied Market Research (AMR), a market research and business-consulting firm based in Portland, Oregon state on the U.S. West Coast, said the market was valued at 163 billion dollars in 2016, and has been dominated by the Asia-Pacific with North America trailing behind.
China is the top leader in the Asia-Pacific market while Britain leads the overall market in the European region, it said.
The AMR report attributes the robust market growth to government regulations regarding the use of electric vehicles to curb environmental pollution, which drives the demand for electric vehicles.
Based on vehicle type, the market is divided into battery electric vehicles, plug-in electric vehicles and hybrid electric vehicles.
The market, besides, is also bifurcated into on-board chargers and off-board chargers by charging type.
In 2016, the on-board chargers segment dominated the global EV chargers market by generating the highest revenue, while hybrid electric vehicles led the global market, followed by plug-in hybrid electric vehicles.
In addition, the increasing penetration of luxury vehicles across the globe is expected to boost the EV chargers market.
The luxury vehicle segment grew 10.9 percent in 2016 over the previous year. Tesla Motors, a top U.S. EV automaker based in California, is one of the leading companies that manufactures luxury electric vehicles for end users.
However, the high prices of such electric vehicles and the absence of EV chargers at public places may hinder the growth of the overall market, the AMR said.