An electric vehicle charging station recharges plug-in hybrids, neighborhood electric cars, and electric vehicles of all types. Although some charging stations are simpler, others include more sophisticated features like Smart meters, cellphone capability, and network connectivity.
In 2021, the market for electric vehicle charging stations was worth USD 12.41 billion, and by 2030 it will be worth USD 142.36 billion, growing at a 31.14% CAGR during the forecast period.
The need for electric vehicles has arisen due to the increase in carbon emissions and other hazardous compounds produced by transportation. Thus, EV charging infrastructure is becoming increasingly necessary in commercial and residential settings. The sector will grow due to increased agreements amongst automakers to provide charging stations utilizing a subscription model.
Market Dynamics
Drivers
The demand for charging infrastructure has grown as electric vehicle acceptance and use has risen. Major EV markets like China, the US, and Germany are spending heavily on EV charging infrastructure and R&D for quicker and more effective charging techniques. Automakers are anticipated to make large expenditures to meet the growing demand for EVs and to shape the industry. For EV development, companies like Tesla, Volkswagen, Ford, Nissan, BMW, and General Motors have large R&D budgets.
Due to the large number of consumers drawn by the variety of product options, the market for electric vehicles has grown. For instance, GM announced plans to invest USD 35 billion in October 2021, aiming to develop and sell more than one million EVs and other technologies by 2025.
Restraints
The necessity to standardize EV charging stations has increasingly grown due to factors including the increase in demand for the EV market and its variances in the charging loads. The growth of the electric vehicle charging sector is hampered by the fact that some EV charging stations can only work with a specific kind or range of voltage.
Opportunity
Governments from all over the world have invested a sizable sum in this industry as a result of the increase in demand for EV charging stations. Future growth opportunities for the market are likely to be abundant thanks to advancements in EV charging station technologies like bi-directional charging, portable charging stations, usage-based analytics, smart charging with load management, and an automated payment method. These advancements, along with the development of ultra-fast charging technology at EV stations and the rise in usage of V2G EV charging stations for EVs, will contribute to market expansion.
Market Segmentation
By Charging Station Type
DC charging stations ruled the market for electric vehicle charging stations worldwide in 2021. It is due to DC charging stations’ fast charging capability and competitive pricing. The DC charging station instantly charges the battery by transforming the power before it enters the converter in the automobile.
The DC charging station transforms the electricity before it enters the car’s converter, immediately charging the battery. The growing use of technologies like Near-field Communication (NFC) and Radio Frequency Identification (RFID) in highway charging stations is another factor boosting the development of the DC charging business.
By Application
In 2021, public charging stations accounted for a significant portion of revenue because they are more economical for manufacturers. Also, they are open to the public and offer enough parking space.
In contrast, private charging stations are typically located in homes or offices and are exclusively open to their owners or a few people. Because of this, OEMs and other utilities are concentrating on developing public charging stations. Hence, the market expansion is driven by the substantial advantages of the public type over the private type.
Regional Overview
In 2021, Asia Pacific ruled the global market for electric vehicle charging stations. This is mostly because of the rising investments made in the construction of charging infrastructure by the governments of China, South Korea, Japan, and other Asian nations. For instance, China declared in April 2020 that it would invest USD 1.43 billion in 2020 to keep the lead in the EV adoption race. Similar to Singapore, India, Korea, and Japan, these countries are likewise investing in the infrastructure needed to encourage the usage of electric vehicles in their areas.
The electric vehicle charging station market is expanding moderately in Europe and North America. This is mostly because of the government’s ambitions in North America and Europe to promote using electric vehicles and reduce carbon emissions. France, Germany, the United Kingdom, and the Netherlands account for over 76% of all European charging stations.
Key Players
- EVgo
- Schneider Electric
- Aero Vironment
- Blink Charging
- Alfen
- Tesla
- Engie
- Siemens
- ABB
- ChargePoint Inc.
In 2021, the market for electric vehicle charging stations was worth USD 12.41 billion, and by 2030 it will be worth USD 142.36 billion, growing at a 31.14% CAGR during the forecast period. The main drivers of the market’s expansion are rising demand for fast-charging electric vehicle infrastructure, an increase in the prevalence of range anxiety, and an increase in EV deployment by shared mobility operators.
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