From distributor to ecological integrator, Avnet has grown with electric vehicles in China

In recent years, electric vehicle charging technology has seen its rapid development and future growth space not only in China, but also in the world. Despite the obvious fluctuations in the entire global economy, the development speed of the automotive electronics industry and the industrial industry has not been affected in the slightest, or even bucked the trend.

As an internationally renowned distributor of electronic components, Avnet established an independent automotive team 20 years ago, and after long-term deep cultivation and accumulation, it has now developed into an ecosystem integrator, which can provide corresponding technical support, solution support and supply chain services from each stage of the automotive life cycle, and is committed to promoting the rapid development of China’s electric vehicle charging technology.

A booming electric vehicle market
From a global perspective, the market share of electric vehicles (xEVs, vehicles equipped with electric drivetrains) will grow from 8% in 2019 to 26% by 2024, driven by government policy guidance and incentives.
The use of electric vehicles must be inseparable from charging piles. From 2021 to 2028, the global electric vehicle charging pile market is expected to grow at a compound annual growth rate of 35%. By 2027, the number of public charging stations for electric vehicles will increase from 800,000 in 2019 to 6.4 million.
In contrast, in the Chinese market, the development speed of domestic electric vehicles and charging piles is much higher than the global level. On the one hand, the monthly increase of domestic charging piles can reach about 30,000, and it has maintained this growth trend; On the other hand, more and more excellent charging piles and public charging pile operators, new charging companies and State Grid and other participants have emerged in China, and it is believed that their active performance will drive more charging demand.
The rapid penetration of the electric vehicle market and the increase in application scenarios of charging piles have driven the explosion of demand for related automotive semiconductors. At present, electric vehicle charging is mainly divided into three levels:
Level 1 – electric vehicles are equipped with charging plugs that charge the car through a standard 220-volt socket (on-board charger);
Level 2 – requires a DC output voltage (DC-DC) from 300V to 600V;
Level 3 – DC fast charging (DCFC), which requires high-power fast charging of 800 volts or higher.
In the future, it is also possible to develop from the 350 kilowatts currently under development to a larger 750 kilowatts, or even higher 1000 kilowatts of charging guns and charging facilities.
Cao Yuelong, vice president of marketing and communications of Avnet Asia Pacific, said that Avnet is very optimistic about electric vehicle charging technology, and the global automotive semiconductor market size in 2022 has reached more than 60 billion US dollars, and it is growing at an annual rate of 10%, of which electric vehicles are the fastest growing field, and charging piles are also growing rapidly. In the future, we will see that the technology of the entire electric vehicle charging pile will become intelligent, networked and energy storage.
“We will seize the growth points in the field of new energy such as electric vehicle charging and energy storage, and combine Avnet’s advantages in technical support, solutions, personnel, supply chain and global layout to provide maximum support and empowerment to customers and their products, so that they can be brought to market faster and meet the needs of end customers.” Cao Yuelong said.
Avnet: From distributor to ecological integrator
Although the charging pile market is in a booming situation, there are also some challenges. Wang Hang, Sales Director of Avnet East China, summarized the challenges of the Chinese market into four points:

How to become an expert in the field of electric vehicle charging as soon as possible, with in-depth research and rich experience in system understanding, safety, cybersecurity and market trends?
How to introduce the world’s most advanced technology as soon as possible?
How to get a full range of technical support, covering electronic components, hardware, software and system integration?
In the Chinese market, how to improve the operational efficiency and charging speed of EV charging infrastructure?
How to break the game? Avnet has evolved from a traditional agent distributor to an integrator by building an ecosystem, providing advanced supply chain services and implementing proof-of-concept solutions.

First of all, Avnet has rich supply chain resources and can provide leading, professional and full set of supply chain services.
Founded in 1932, Avnet has a history of more than 100 years, with more than 300 offices around the world, providing design chains, supply chains and services covering the full product life cycle for more than 1 million customers in 140 countries around the world. This global network and large customer base are important assets and resources for Avnet, providing customers with the ability to reach the “nerve endings” and valuable experience to expand and deepen their business globally, making it a reliable and trustworthy distribution partner.
Secondly, Avnet also has a wide ecosystem, relying on a wealth of original manufacturers, OEM customers and partners, as well as strong industry chain integration capabilities, to provide customers with end-to-end one-stop solutions.
Generally speaking, an electronic hardware product will go through three stages of development, mass production, and expansion, of which there are many links in each stage, which are complex and cumbersome (see the figure below). Wang concluded: “Avnet can provide technical support, solution support and supply chain services at every stage. ”

“For example, at the beginning of the product development stage, Avnet will let engineers and customers work together to make component functional modules, and Avnet will provide software and hardware support, design support and solution support; After entering mass production, Avnet can also provide corresponding supply chain services, as well as corresponding inventory services. Even in the expansion period, Avnet also has corresponding support to customers. “Wang Hang Dao.
To reach this level, a strong and innovative team of engineers is required. According to reports, Avnet has more than 400 professional engineers throughout Asia, and they will provide technical support to customers at the front end. In addition, Avnet has deployed design engineers (AEs) throughout Asia, who have completed many high-quality solutions behind the scenes, providing some deeper technical support. Thanks to this, Avnet’s team itself will contact the technical needs of different local fields and support the needs of local engineers.
Finally, electronic hardware products change very quickly, so whether it is from the needs of technology or experience, as well as the safety standards of various countries, Avnet will actively invest or participate in the design process.
According to Cao Yuelong, at the beginning of this year, he visited the Zhongguancun Energy Storage Industry Technology Alliance on behalf of Avnet to effectively understand the future trend of energy storage standards and actively participate in the formulation of standards. In addition, Avnet joined the board of directors of the Shenzhen Internet of Things Association to prepare for the future of the Internet of Vehicles.
Not only that, as a global company, Avnet can help companies that are willing to go overseas and want to expand overseas markets, and they can help them migrate seamlessly. Avnet’s global supply chain, business network, technology, and talents can be “accessed” by overseas enterprises. The coverage and flexibility of “where the customer is, we are” has reduced the “friction coefficient” and reduced the “tuition fee” for the smooth layout and successful restructuring of enterprises and industries around the world.

Leading the future – Avnet’s strategy and direction
After the above layout and efforts, Avnet achieved outstanding results in fiscal 2022. In fiscal 2022, the company’s global revenue was $24.3 billion, up 24.5% year-over-year. The main business entities are from the Electronic Components Division (EM), which accounts for about 93% of the share; From a product perspective, nearly 3/4 of product revenue comes from semiconductors; In terms of industry, Avnet’s services basically cover electronics-related industries, as well as emerging industries such as industry, automotive, and healthcare.
Looking ahead, Avnet will focus on the following three business priorities and four China strategies to achieve “Driving the Future, Leading the Future”.
According to Wang Hang, Avnet’s business priorities in the next three to five years:
First, Avnet will continue to work closely and strongly with key suppliers to introduce more electric vehicles and EV charging solutions using its leading technologies.
Second, continue to expand Avnet’s customer base, which requires relatively strong support for warehousing and logistics, so it will continue to expand warehousing and logistics capabilities in the future.
Third, talent, Avnet will continue to invest in some related talent training programs of schools and colleges, hoping to send more new talents to the industry and companies through such investment.
For the Chinese market, Avnet will continue to be optimistic about its development trend and summarize the following four strategic measures:
First, Avnet has in-depth knowledge of the EV market and EV charging infrastructure in China and globally, enabling it to work with manufacturers and suppliers at the component, module and system level.
Second, Avnet has deep expertise and technical expertise from initial design through production. Avnet engineers are already helping suppliers at every step of the value chain develop the right solutions.
Third, Avnet’s global services and ecosystem can support Chinese customers to become part of the EV supply chain.
Fourth, improve and simplify customers’ EV charging systems to become smarter, safer, more efficient and more humane.