Market Overview
The global electric vehicle charging station market revenue was worth USD 5 billion in 2021. It is estimated to reach an expected value of USD 138 billion at a CAGR of 44.5% during the forecast period (2022-2030). Factors such as increase in electric vehicle sales and rise in electric vehicle investment, significantly drives the electric vehicle charging station market demand by 2030.
Electric vehicles are now a crucial component of the automotive industry. They serve as a route to improved energy efficiency and lower emissions of pollutants and greenhouse gases. Government incentives, the implementation of strict emission and fuel economy standards, and the rising sales of electric vehicles—creating a demand for charging stations—are some of the key factors propelling the growth of electric vehicle charging station market under study. The need for EV charging stations is anticipated to be driven in the near future by the significant investments in electric vehicles by leading automakers like Toyota, Honda, Tesla, General Motors, and Ford. Additionally, the evolving partnerships between various energy companies and governmental organizations are expected to expand the studied market.
Market Dynamics
Market Drivers
Increase in Electric Vehicle Sales
Several governments worldwide have launched various programs and initiatives to entice consumers to choose electric vehicles over conventional ones. One such initiative is the California ZEV program, which aims to have 1.5 million electric vehicles on the road by 2025. For those looking to purchase an electric vehicle, countries like Norway, the Netherlands, France, Germany, South Korea, Norway, China, India, and the United Kingdom offer a variety of incentives.
These initiatives have propelled the automakers to increase their expenditure on the R&D of electric vehicles, which eventually may push the growth of the electric vehicle charging station market. The government regulations and incentive schemes appear to substantially impact people, as there was a considerable change in the purchase pattern, from conventional IC engine vehicles to electric vehicles. The change has not resulted in a slump in IC engine vehicle sales but created a promising market for electric vehicles in the present and future.
Electric vehicles have become at par with (and sometimes surpassed) IC engine vehicles in terms of performance, maintenance, and initial purchase cost. Tesla has manufactured electric cars with more significant acceleration, power, and top speed than an average IC engine/hybrid car. The growth of electric vehicles is projected to generate a linear demand for the electric vehicle charging station market over the forecast period.
The Rise in Electric Vehicle Investment
The electric vehicle market is growing, likely accelerating further over the forecast period. This is because most vehicle manufacturers and the associated industries see electric vehicles as an investment opportunity. This growth is driving the electric vehicle and EV charging station market.
Vehicle manufacturers are planning to launch many electric vehicles and are entering partnerships, joint ventures, mergers and acquisitions, and increasing their investments to have the edge over their competitors. The UK-based companies are expected to spend more than GBP 12 billion by switching their fossil fuel vehicles for clean electric versions by 2022. A survey found that nearly half of the businesses in the United Kingdom are planning to invest in chargeable cars and vans in anticipation of the government’s ban on sales of new internal combustion engine vehicles by 2035. Currently, China is the most promising market for electric buses globally, which will likely drive e-bus demand over the forecast period. With over 400,000 new purchases anticipated by 2025, the nation's overall bus purchases are expected to remain stable. Sales of electric buses are predicted to rise due to ongoing government initiatives to support e-mobility. By 2040, it's anticipated that 40% of new buses sold worldwide will be electric buses.
Globally, companies plan to invest heavily in electric vehicles and charging networks. This is expected to drive the global electric vehicle charging station market growth.
Market Restraints
Challenges with Charging Infrastructure's High Costs and Compatibility
Depending on the chargers installed, installing an EV charging station can be quite expensive. A minimum infrastructure is needed to set up the EV charging infrastructure, and choosing the right vendor and location is critical. Both fixed (installation, utility service, transformers, and equipment) and variable (electricity charges) costs are included in the price of the charging infrastructure. Demand charges can dominate operating costs for commercial chargers. Unless fast-charging stations achieve high utilization rates, their total power costs are higher than residential chargers.
There are three types of chargers available for EVs. The standard 120V plug, often used for home appliances, charges slowly but can fill a battery to near-full capacity in about 8 to 12 hours. The 240V level-2 chargers generally provide 20 to 25 miles of charge in an hour, which shortens charging time to eight hours or less. In homes, level-2 chargers can use the same outlet type required for clothes dryers or electric ovens. Level-3 direct current (DC) fast chargers can charge a battery up to 80% in 30 minutes. According to a study by the Rocky Mountain Institute, the costs for a level-2 charger’s components range from USD 2,500 to USD 7,210. The costs for a DC fast charger can vary between USD 20,000 and USD 35,800. UBS reported that building a Tesla Supercharger station costs around USD 250,000.
Other auto manufacturers use three different varieties of DC fast chargers. Most manufacturers use the SAE Combined Charging System (CCS), Nissan and Mitsubishi use the CHAdeMO variant, and the Tesla Supercharger is used by only Tesla cars. This lack of vehicle compatibility restricts universal vehicle access to charging stations and could hinder electric vehicle charging station market growth.
Market Opportunities
Improvements in Charger Technology
In the upcoming years, charger technology advances are expected to significantly impact how long electric vehicles take to charge. Despite the setup for fast charging currently in place, there is still much room for improvement.
Companies are also working on revolutionary new technology, like utilizing robots to charge electric vehicles without human intervention. For instance, In December 2020, Volkswagen Group Components introduced its prototype of a mobile charging robot. The charging robot, through Car-to-X communication, can operate autonomously. It independently steers the vehicle to be charged and communicates with it; it starts from opening the charging socket flap to connecting the plug and decoupling it. In the case of charging several vehicles simultaneously, the mobile robot moves a mobile energy storage unit to the vehicle, connects it up, and then uses this energy storage unit to charge the electric vehicle battery. The energy storage unit stays with the vehicle during the charging process. In that duration, the robot charges other electric vehicles. Once the charging service has ended, the robot independently collects the mobile energy storage unit and returns it to the central charging station. Such developments provide lucrative electric vehicle charging station market opportunities.
Regional Analysis
By region, the global market for electric vehicle charging stations is segmented into North America, Europe, Asia-Pacific, and LAMEA.
Asia-Pacific's Electric Vehicle Charging Station Industry share is expected to grow at a CAGR of 44.5% during the forecast period. China's battery electric vehicle market, which enjoys generous government support, is a strong supporter of the country's market for the electric vehicle charging station. China's battery electric vehicle market, which enjoys excellent government support, strongly supports the country's market for electric vehicle charging station. The incentives for buying new energy vehicles (NEVs) have been extended in China until 2022. Tesla Motors opened a USD 2 billion facility in Shanghai in January 2020. By March 2020, when the electric vehicle giant's other global facilities were shut down due to the COVID-19 pandemic, this facility produced close to 3000 cars per week.
Moreover, according to a document Tesla submitted to the Shanghai authorities in November 2020, the company intends to begin producing electric vehicle chargers in China in 2021 after releasing its electric vehicle. The three main vehicle categories in China that use charging stations are taxis, buses, and electric light vehicles. In contrast to buses, which need specialized captive infrastructure, other vehicles primarily need public fast charging. The market under study is anticipated to grow due to the country's pro-EV policies and the rapid uptake of electric vehicles.
Europe stands second in the global market. This market is estimated to reach an expected value of USD 54 billion by 2030 at a CAGR of 44.5%. One of the crucial factors for the increase in the sales of electric cars is the growing presence of DC fast-charging stations, not only on the German autobahns but also along the highways that are adjacent to countries in much of the continent, led by the 125-kilowatt Tesla Supercharger network. Electric vehicles, with fast charging capabilities, are likely to drive demand for high-power chargers in the country during the forecast period. To capture the above demand, most EV charger manufacturers have already started focusing on establishing the requisite EV charging stations. For instance, In December 2020, Volkswagen announced that it is expanding its EV charging infrastructure in Germany over the coming years. The automaker plans to install around 750 new charging points next year, including the first High Power Charging stations with up to 300 kW power. Volkswagen stated that by the end of 2021, nearly 2,000 charging points are expected to be in operation. It has more than 1,200 charging points across ten sites in Germany. The biggest charging park with some 500 charging points is in Wolfsburg. All the above developments indicate that the German EV and EV charging stations market will grow exponentially over the coming years.
North America is the third largest region. The North American region has seen government expenditures for extending the charging network during the past few years. Many states declare investments in EV charging networks, and major electric vehicle manufacturers are participating in the market and offering various perks. In the upcoming years, several businesses will collaborate to provide nationwide charging networks. The demand for electric vehicle charging stations will rise during the forecast period due to the region's rapidly increasing electric vehicle sales and ongoing technological advancements.
Segmental Analysis
The global electric vehicle charging station market is segmented by vehicle type, charger type, application type, and region.
Based on vehicle type, the global market is bifurcated into passenger and commercial vehicles, where the passenger vehicles segment holds the most significant market share. The passenger vehicles segment dominates the market and is estimated to grow at a CAGR of 44.5% during the forecast period. In 2020, more than 70% of EV sales globally came from passenger automobiles. Due to demand from Asia-Pacific, North America, and Europe, the SUV segment in passenger cars has been expanding over the past few years (especially in China). Due to future e-SUV models from automakers worldwide, the electrification of SUVs is projected to continue during the projection period.
By Charger type, the global market is divided into AC and DC charging stations. The AC charging stations accounted for the largest market share and is expected to grow at a CAGR of 44.5% during the forecast period. The electrical grid is connected to the onboard charger in AC charging stations. The main advantage of AC stations is their affordability. They are significantly smaller, and their installation is simpler, faster, and less expensive. Such benefits drive segment growth.
By application, the global market is divided into private and public. The private segment accounted for the largest market share and is expected to grow at a CAGR of 44.7% during the forecast period. The private segment of the market studied was valued at USD 4.26 billion in 2020, and it is expected to reach USD 31.17 billion by 2026, growing at a rate of 44.42% during the forecast period. Private charging stations are gradually increased in the past few years as EV owners are inclined toward installing their chargers at home to get their home to decrease their dependence on public charging stations. For instance, various automakers also provide home charging solutions to their customers and electric vehicles. In June 2020, Volkswagen started the sale of the ID. Charger for home charging for electric vehicles. Based on the all-aforementioned factors, it is anticipated that the market for private charging stations is likely to grow rapidly during the forecast period.
Top Key Players
ABB
Chargepoint Inc
Schneider Electric SE
Siemens AG
Tesla Inc
Evbox (Engie)
Royal Dutch Shell Plc
EFACEC
Evgo
Webasto
BP Pulse
State Grid Corporation of China
Others
