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EV Charging Connector Industry Category Intelligence

The global electric vehicle charging connecter market is expected to witness a boost as fuel prices are rising across the world. Electric vehicles have become the most obvious alternative for both consumer and automotive manufacturers. The global sales of electric vehicles in 2020 have crossed a 2 million mark despite the Covid-19 pandemic. Moreover, the sales are expected to increase by 20% to 30% in 2021. APAC and Europe are leading the market with 56% and 28% share respectively followed by North America (16%). This growth is majorly propelled by the favorable government policies in many countries. For instance, Chinese regulations enable the automakers in the country to meet their annual new vehicle efficiency standards by purchasing emissions credits that are generated by the sale of EVs, with the rate of credit higher for vehicles with advanced performance such as greater battery efficiency or range, but lower for plug-in hybrids.

As e-mobility continues to gain traction in both consumer and commercial markets, the role of EV charging connectors in protecting the electrical grid, vehicle functionality, and financial transactions from security breaches is becoming very important. Organizations such as UL, ISO, and IEC are working to standardize and meet these goals. Alongside protecting charging processes, safeguarding financial transactions is also important in charging infrastructure. Most EV drivers who charge on the road have to sign up in advance for charging networks to access paid chargers. Level 2 and Level 3 chargers require payment, often using membership cards that link charging networks to a financial network capable of processing credit card payments. To counter this challenge Tesla comes up with a connector pair that enables drivers to pull up to a Supercharger and plugin, instantly sharing information that allows the Supercharger to identify the specific car and link to the financial system for contactless payment. The intelligence embedded in Tesla’s proprietary connector configuration allows Tesla to set up Supercharging stations that do not have employees to manage cash or charge transactions.

EV Charging Connector Industry Category Intelligence Highlights:

• EV charging connector suppliers are collaborating with regional players to benefit from their knowledge of the local market, and maintain high profit margins, low overhead costs, and their overall competitiveness in the market

• The 3PL market features a highly fragmented competitive landscape and several small players are entering the market

• Suppliers widely prefer approved provider operating models to reduce risks and improve the potential for value creation

• Favorable government initiatives toward sustainable development and the rising demand for electric vehicles are aiding to the growth of EV charging connector market

• The global EV charging connector market is fragmented, with strategic partnerships between large and mid-sized or small-sized companies to leverage their regional manufacturing capabilities.

• Raw material costs make up the bulk of the cost head (~11%). The total cost of ownership is significantly influenced by the cost of integrating the charger with the charging station infrastructure.

• North America and Europe are the leading importers of connectors due to the increasing demand for electric vehicles within the region.

Grab your copy, or request for a free sample of the “EV Charging Connector Industry Procurement Intelligence Report, published by Grand View Research” for In-depth details regarding supplier ranking and selection, sourcing, and pricing criteria & strategies

EV Charging Connector Industry – Pricing and Cost Intelligence Highlights:

Grand View Research has identified the following key cost components for availing EV charging connector manufacturing:

• Raw Materials

o Thermoplastic

o Tough Pitch Copper

o Brass

o Stainless Steel

o Others

• Energy

• Labor

• SG&A Overheads and R&D

• Working Capital

• Taxes

• Profit

Raw material, labor, and energy are the major cost components of an EV Charging Connector, accounts more than 60% of the total cost of manufacturing.

EV Charging Connector Industry – Supplier Intelligence – Capability based ranking & selection criteria with weightage:

Operational Capabilities – Weightage

• Years in Service15%

• Geographical Service Presence25%

• Employee Strength5%

• Revenue Generated7%

• Key Industries Served34%

• Key Clients5%

• Certifications9%

Functional Capabilities – Weightage

Socket Type35%

• CHAdeMO

• GB/T

• Combined Charging System (CCS)

• Others

Charging Locations15%

• Individual house

• Collective building

• Corporate

• Public

Charging Time and Electricity Consumption50%

• Low

• Medium

• High

List of Key Suppliers in the EV Charging Connector Category

• TE Connectivity

• Robert Bosch GmbH

• Siemens

• Tesla

• Fujikura Ltd.

• HUBER+SUHNER

• YAZAKI Corporation

• Sumitomo Corporation

• ABB

• Schneider Electric

Add-on Services provided by Grand View Research Pipeline:

Should Cost Analysis

In the EV charging connector market procurement intelligence report, we have estimated and forecasted pricing for the key cost components. The body of the charging connector, which is majorly made up of thermoplastics, is one of the key raw materials for EV charging connector manufacturing. Other raw materials like copper, brass, and stainless steel also hold a significant cost-share in connector manufacturing. The overall raw material cost accounted for 11% of the overall manufacturing cost. The price of thermo-plastic has witnessed a slow growth over the last five years and it is expected to continue the trend during the forecast period. Hence, the impact of price disruption is mild to nil for EV charging connector manufacturing. Copper price reached its peak in 2017-2018, since then it has slowly declined and in 2020, this drop is fueled by Covid-19. Overhead costs (89%) like labor cost and energy cost, are the major cost component in EV charging connector manufacturing. On average, the cost of labor is witnessing an increase due to trends of market correction in salaries. However, the labor charges vary significantly from one region to another. Therefore, opting for sourcing options from LCC countries could result in a reduction in costs.

Rate Benchmarking

The type and voltage of the connectors are some of the most important aspects while analyzing the rate benchmarking of an EV charging connector. In the EV charging connector market procurement intelligence report, we have analyzed the rates of CHAdeMO, CCS, and Type 2 EV charging connectors by using rate benchmarking analysis. CHAdeMO comes with 50kw and 100kw power ratings, CCS comes with 50kw, 150kw, and 350kw power ratings, Type 2 connector comes with 150kw and 250kw power ratings. Among these, the cost of procuring CCS and Type 2 connectors is 5%-10% higher than CHAdeMO connectors. As all these connectors provide a similar range/power ratio per hour of charging, most automakers preferred a CHAdeMO type connector for their electric vehicles. Moreover, 350kw CCS connectors are very rare in the market due to their high cost, and 250kw Type 2 connectors are majorly supplied by only Tesla, creating a demand-supply gap.To gain a comprehensive understanding of the other aspects of rate benchmarking, please subscribe to our services for the complete report.

Salary Benchmarking

Labor is one of the key cost components incurred while offering a product or service. Understanding the pricing structure of salary is important for organizations in selecting the appropriate supplier and to build a good negotiation strategy. It is also an important factor in determining whether the category under focus should be outsourced or built in-house.Our electric vehicle charging connector market procurement intelligence report indicates that Tesla Senior Production Manager/Engineers earn 25%-30% higher salaries than Senior Production Manager/Engineers from other industry leaders like Bosch and TE Connectivity. However, the YoY increment rate in such companies largely depends on KRAs.

Supplier Newsletter

It is cumbersome for any organization to continuously track the latest developments in their supplier landscape. Our newsletter service helps them remain updated, to avoid any supply chain disruption which they may face, and keep a track of latest innovations from the suppliers. Outsourcing such activities help clients focus on their core offerings.

Brief about Pipeline by Grand View Research:A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain which helps in efficient procurement decisions.

Our services include (not limited to):

• Market Intelligence involving – market size and forecast, growth factors, and driving trends

• Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships

• Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing

• Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions

Browse through Grand View Research’s collection of procurement intelligence studies:

• Packaging Design Services Market – The global Packaging Design Services market is expected to be valued at USD 33.7 billion by 2025 has grown at a CAGR of 9.5% from 2020 to 2025. The marketing and branding cost of products, especially FMCG products which constitute a major part of the packaging design services, is high with companies focusing on lucrative and attractive designs and packaging styles to attract their customers and create a top-of-the-mind recall subliminally.

• Paraffin Market – The global production for paraffin was valued at 3.7 million MT in 2020. This demand is expected to increase by a CAGR of 1.6% between 2020 to 2025. OF the 3.7 million MT produced, APAC manufacturers approximately 1.5 million MT. However, this only represents 92% to 95% of the overall demand for paraffin in APAC. To improve the production capacity to meet the demand of the market, there were planned installations in Vietnam.

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