According to Research and Markets, the world’s largest market research store, the global electric vehicle charging station market size is projected to grow from 2,354 thousand units in 2022 to 14,623 thousand units by 2027, an increase of 521% at a CAGR (compound annual growth rate) of 44.1%.
Factors such as rising sales of EVs around the world, along with the growing demand for zero emission transport will boost the demand for the electric vehicle charging station market. Developments in technologies like portable charging stations, bi-directional charging, smart charging with load management, usage based analytics and automated payment along with development of ultra-fast charging technology will create new opportunities for this market.
Public Chargers will be the fastest growing market during the forecast period
According to the study, public charging and access to fast charging are viewed as key criteria when buying an electric vehicle. This is anticipated to bolster revenue growth for the public charging segment.
The Asia Pacific region continues to install public chargers at a significant rate due to the rising number of EV users, especially in China, India, and South Korea. These countries have implemented policies to increase the usage of EVs by providing subsidies and reduced taxes. They also encourage the growth of EV manufacturers and related industries by providing grants or implementing preferential policies for EV-related companies to enable them to expand faster. A steady surge in economic growth, urbanization, travel demand, etc., coupled with increasing investments toward electric mobility to contribute to energy storage and environmental sustainability is anticipated to bolster the growth of the public charging station segment.
The North American public EV charging market has been driven by the US, which witnessed an increasing number of EV users, especially in 13 states, such as California, Maryland, etc., and the trend is expected to extend to other states, leading to the high growth of the public charging segment during the coming years. In the European region, the leading EV users include the UK, the Netherlands, Norway, France, and Germany. Other countries are also expected to increase the use of EVs during the coming years, subsequently leading to the growth of EV infrastructure.
Asia Pacific is expected to be the largest and fastest-growing market during the forecast period
The Asia Pacific region comprises of countries such as China, India, Japan and South Korea. The region is home to some of the fastest-developing economies of the world, such as China and India. The governments of these emerging economies have recognized the growth potential of the global electric vehicle charging station market and, hence, have adopted various initiatives to attract major OEMs for the manufacture of electric vehicle charging infrastructure in domestic markets. For instance, charging network providers for EV charging stations have partnered with various OEMs to sponsor free EV charging to EV drivers. This has led to an increase in electric vehicle production in recent years, which caters to domestic as well as overseas demand. Japan and China export electric vehicles and charging solutions across the globe.
Governments in the Asia Pacific region are also focusing on the introduction of electric commercial vehicles. For instance, in September 2020, the Indian Government announced plans to offer incentives worth USD 4.6 billion to companies establishing advanced battery manufacturing facilities as part of its plans to reduce oil imports while switching to EVs. Similarly, in 2019, China undertook measures such as sales tax exemptions. It also provided preferential financing and traffic management policies for electric vehicles besides optimizing its carbon credit program, which will be reduced appropriately in the coming years. The country currently has around 1.147 million EV charging points. Japan also plans to increase its share of EVs and plug-in hybrids by 20% to 30% by 2030 and has taken measures such as increasing subsidies for EV buyers. The South Korean government has been encouraging the usage of EVs through subsidies and tax rebates with the goal of having 430,000 EVs on the road by the end of 2022 and also invested in a program to invest for the improvement of charging infrastructure in the country. This has led to the high demand for charging infrastructure in the region for EVs.
Governments are also encouraging private players to introduce public charging points by providing subsidized electricity rates. China is investing significantly in the production of electric vehicle charging stations to provide charging solutions for the increasing number of EVs in the country. OEMs such as BYD also plan to establish production plants in other parts of the world for the manufacture of electric buses and electric trucks to meet the regional demand. These factors are expected to drive the market in the Asia Pacific region. Many new startups and existing top domestic companies have established their presence in this regional market. For instance, Star Charge has expanded to become one of China’s top EV charging providers. Similarly, Jio in India plans to work with BP to speed up the development of EV charging in the country.
Europe to be the second-largest region during the forecast period.
Research and Markets Study
European EV Leaders
The major EV markets in Europe are Austria, Denmark, France, Germany, the Netherlands, Norway, Spain, Sweden, Italy, and the UK. Europe accounted for 24.78% of the global electric vehicle charging station market in 2021 by volume. Normal chargers have a higher share than fast chargers. The top five countries account for more than 83% of all chargers, and the rest is utilized in the rest of the countries. By August 2020, Europe had implemented stringent emission regulation standards to reduce the rising emission levels. Several countries in the region are promoting electric vehicles through significant incentives. The demand for electric vehicle charging stations has increased significantly due to the focus on zero- or low-emission vehicles in the region. The region is home to electric vehicle charging station providers such as Schneider Electric, ABB, Siemens, Efacec, Engie, and various others. The UK announced plans to phase out petrol/diesel-based vehicles by 2030 and encourage the growth of EVs. Other European countries had implemented plans for the transition to EVs during the past decade.
Due to the rising demand for EVs in Europe, the demand for EV charging stations is also rising. According to a report by the European Environmental Agency in November 2021, in Europe, 11.41% of all new vehicle registrations have been EVs. The number of charging stations has grown by approximately 37% with the Netherlands, Norway, the UK, Germany, and France leading in Europe in terms of the growth of EV charging stations. In 2020, EV registrations increased drastically in top European markets. Norway had 75%, Iceland had 46%, Sweden had 33%, and the Netherlands had 28% of new vehicle registrations as EVs. As of December 2021, the EU has over 5 public fast chargers for every 100 km. Europe has set an ambitious goal of reducing CO2 emissions by 80% by 2030-2050 and has created a roadmap for the same. Governments of various countries in Europe are subsidizing electric infrastructure and the focus is expected to be on electric vehicles in the long run. However, countries in Eastern Europe still lag behind Western European countries such as the UK, Germany, France, and Spain in terms of vehicle norms and technology. Hence, there is a relatively low presence of electric vehicle manufacturers and electric vehicle infrastructure in Eastern Europe. This offers an opportunity for electric vehicle charging station providers as well as battery manufacturers to expand their footprint in Eastern Europe. This expansion is expected to increase the demand for electric vehicle charging stations in Europe — study says.
Research and Markets Study reports that the EV charging station market is dominated by major charging providers including ABB (Switzerland), Shell (Netherlands), ChargePoint (US), Tesla (US), and BYD (China). They develop products and provide service offerings for the electric vehicle charging ecosystem. They have initiated partnerships to develop their EV charging technology and provide finished products and charging services to their respective customers for the electric vehicle charging station market.