Hong Kong Electric Vehicle Charging Stations Market - Forecasts from 2023 to 2028

Hong Kong Electric Vehicle Charging Stations Market - Forecasts from 2023 to 2028

The Hong Kong electric vehicle charging stations market is projected to witness a CAGR of 25.85% during the forecast period to reach a market size of US$118.002 million by 2028, from US$23.600 million in 2021.

An electric vehicle charging station is a device that connects an electric vehicle to a power source, allowing electric cars and plug-in hybrids to be charged. Some charging stations have advanced features like smart metering, cellular connectivity, and network access, while others are more basic. In Hong Kong, the electric vehicle industry is rapidly increasing. The growth of electric vehicle charging stations is aided by government programs as well as major companies. For instance, HK Electric, one of the country’s major power generation companies, has been pushing the use of electric vehicles to assist cut carbon emissions, enhance roadside air quality, and boost Hong Kong's growth into a low-carbon and smart city. In Hong Kong, HK Electric offers free electric vehicle charging. Within 15 minutes of driving distance, users may always find an HK Electric charging station. In addition to providing free Electric vehicle charging services to the public, HK Electric also provides a one-stop free service to help customers in installing electric vehicle charging solutions. ???As a result, these factors are linked to the market's expansion over the forecasted period.

Furthermore, developments in communications technology, such as real-time information on all-electric automotive charging stations for smart connectivity, are encouraging industry expansion. The presence of major conglomerates like Tesla that are actively investing in the development of electric car charging infrastructure in Hong Kong during the forecast period is fueling the growth of the electric vehicle charging stations market in Hong Kong. However, commercial charging stations are still few in some areas of Hong Kong, requiring users to rely on charging choices accessible at their workplaces and homes.

Growth factors:

Increasing adoption of electric vehicles

One of the prime reasons propelling the electric vehicle charging stations market is the surge in the number of electric vehicles in the country. Stringent government car emission regulations have encouraged consumers to transition to electric vehicles, which will boost the growth of the electric charging station market in the future years. According to the Legislative Council of Hong Kong, the total number of electric vehicle registrations in Hong Kong has climbed dramatically, from 162 in 2010 to 18,361 in 2020. Aside from increased mileage after battery charging, the popularity of electric vehicles can be partially attributed to the February 2018 scheme of the One-for-One Replacement. The Scheme provides electric vehicle purchasers who scraped their old private cars with a larger first registration tax rebate (from HK$97,500 in 2017 to HK$287,500 in 2021). Because of this tax incentive, the share of electric vehicles in the municipal vehicle fleet has increased from 0.02 percent to 2 percent during the last decade. This ratio was significantly greater than in neighboring cities like Seoul, Tokyo, and Singapore. In addition, the government is keen to enhance air quality and turn Hong Kong into a smart city while also aiming for carbon neutrality by 2050. Promoting the use of EVs is a critical step in achieving these objectives. The Steering Committee on Electric Vehicle Promotion has been aggressively advocating the usage of electric vehicles. The government developed the Roadmap for Electric Vehicle Popularization in March 2021 to comprehensively strengthen efforts to accelerate the use of EVs and prepare on all fronts for the new era of rapid and widespread adoption of EVs, to reach zero vehicular emissions by 2050, while boosting the number of public chargers to 5,000 or more by 2025. Furthermore, the government intends to construct more medium and rapid speed chargers to reduce charging time. They currently account for 43 percent and 19 percent of all public chargers, respectively.

Key developments:

China-based Desten, in October 2021, launched a 900-kW fast charger that can charge 0 to 80 percent in 4 minutes and 40 seconds, as mentioned in the October 2021 article by Green Car Congress.
In May 2021, the Hong Kong government introduced a US$ 2 billion “EV charging at Home Subsidy Scheme” (EHSS) for subsidizing the installment of EV charging-enabling infrastructure (EVCEI) for residential buildings’ car parks. Zero emissions coupled with government schemes along with innovative launches in the market are projected to boost the market growth of the Hong Kong electric charging stations market for the battery-electric vehicle (BEV) segment during the forecast period.

COVID-19 Impact on Hong Kong Electric Vehicle Charging Stations Market:

The COVID-19 pandemic had a negligible impact on the Hong Kong electric vehicle charging stations market in 2020. This is due to strong regulatory support and high electric vehicle sales in the country. According to government figures, there were 25,000 electric vehicles in operation in Hong Kong as of October 2021, accounting for 3.8 percent of all vehicles on the road. However, electric vehicles accounted for about 30% of new registrations in October 2021, rising from 21% in the first ten months of 2021, 12% in 2020, and 6% in 2019. According to Environment Protection Department, by 2025, this ratio will have risen to 50%. Furthermore, until March 2024, the government is offering reductions of up to HKD97,500 or US$12,500 on the first registration tax of electric vehicles, as well as lower annual license fees. It is also funding the development of a network of 110,000 electric vehicle charging outlets in private residential areas with HKD2 billion in subsidies. This has resulted in EVs being competitively priced in comparison to their equivalents, which, when combined with Hong Kong's increased wages, will see the EV sector remain resilient in 2020.

Market segmentation:

By Vehicle Type

Battery Electric Vehicle (BEV)
Plug-in Hybrid Electric Vehicle (PHEV)

By Application

Commercial, Government, and Industrial
Residential

By Charging Type

AC Charging (Level 1 and Level 2)
DC Charging