SEOUL, South Korea, Sept. 23, 2014 /PRNewswire/ -- The electric vehicle charging infrastructure market in South Korea is expected to grow rapidly due to strong government support, says Frost & Sullivan.
Ms. Samjeen Yun, Senior Industry Analyst, Automotive & Transportation Practice, Asia Pacific at Frost & Sullivan said that the South Korean Government has extended its subsidy for electric vehicles to private purchasers starting from 2014.
New analysis from Frost & Sullivan (http://www.automotive.frost.com), Strategic Analysis of the Electric Vehicle Charging Infrastructure Market in South Korea, showed that the number of charging station is expected to reach 90,000 stations by 2020, growing at a compound annual growth rate (CAGR) of 72.7 per cent (2013-2020).
For complimentary access to more information on this research, please visit: http://corpcom.frost.com/forms/APAC_PR_AChia_P7D8-18_18Sept14.
Ms. Yun said that the Government's subsidies for hardware and installation costs will act as a driver for the growth of electric vehicle charging infrastructure in South Korea. She noted that it usually takes 8-12 hours for full charging by level 1 (slow-charging method where the car battery is charged overnight) and by level 2 (fast method of charging the battery in 4-8 hours) or DC type charging (rapid charging method in which battery is fully charged in 30 minutes).
She added that the Ministry of Environment South Korea has a 100 per cent subsidy scheme for level 2 charging and installation fee for DC chargers will act as a driver to increase the number of charging stations in South Korea.
"A shorter charging time is one of end users' desired factors in EVs, and the increased availability of more of level 2 or DC charging in residences or local communities, which will lead to a higher customer acceptance and demand," she added.
Ms. Yun said that the installation of charging systems will also help drive growth. She added that currently only 2 models of electric vehicles, the Kia Ray and Renault Samsung SM3 ZE, have been introduced in the South Korean market. "More number of electric vehicles and plug-in hybrid electric vehicles, especially in the small and medium segment, will likely drive the demand for charging stations," she said.
However, Ms. Yun said that a long charging time for battery vehicles is likely a setback for the growth of electric vehicles. "There are various types of business models adopted by different participants in the market. However, due to high installation cost, high maintenance cost and low utilization rate, it is resulting in lower profit for the businesses," she added.
She said that automakers are currently investing more in the development of hybrid electric vehicles and fuel cell electric vehicles, which do not need charging infrastructure, therefore restricting the demand for charging stations.
About Frost & Sullivan
Frost & Sullivan, 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. 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 organization 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? Contact Us: Start the discussion
Corporate Communications – Asia Pacific
Mi Ok Lee
Corporate Communications – South Korea
SOURCE Frost & Sullivan