Heavy-Duty Electric Vehicle Charging Infrastructure Market

Market Overview

The Total Addressable Market (TAM) for Heavy-Duty Electric Vehicle Charging Infrastructure was valued at USD 2.45 billion in 2022. It is projected to reach USD 37.10 billion by 2031, growing at a CAGR of 35.25% during the forecast period (2023-2031). Factors like growing demand for electric vehicles and key player's strategic initiatives drive market growth.

Heavy-duty electric vehicles like e-buses and large trucks are the main drivers of heavy-duty electric vehicle charging infrastructure. Strategic measures taken by significant stakeholders also aid the development of EV charging infrastructure. The infrastructure for charging heavy-duty electric vehicles, such as e-buses and trucks, is a complete assembly for transferring electricity from the electric grid and distributing it to electric vehicles.

Additionally, the process of obtaining AC electricity from the AC electric grid, converting it to DC electricity, and storing it in the DC batteries of electric vehicles constitutes the process of charging an electric vehicle. In order to control battery charging and convert AC to DC, the charger is used as a power electronic. The demand for electric vehicles is rising, fueling demand for charging infrastructure in the automotive industry, which is a key driver driving the growth of the global heavy-duty electric vehicle charging infrastructure.

Market Dynamics

Market Drivers

Growing Demand for Electric Vehicles

The demand for electric vehicles has increased globally due to growing environmental consciousness regarding the effects of gasoline-powered automobiles. Government programs are also encouraging the use of electric cars. For instance, the Indian Ministry of Road Transport and Highways issued a list of non-fiscal incentives in September 2017 to guarantee that over the following five years, sales of electric vehicles will represent 15% of all vehicle sales in the nation. In addition, the Chinese government aims to build more electric vehicle charging infrastructure since more electric vehicles were sold in China than in the rest of the world combined in 2018.

Sales figures for electric buses have increased during the last few years in the heavy electric bus vehicle class. For instance, according to predictions from Wood Mackenzie Power & Renewables, the Chinese market will surpass the 1 million electric bus mark by 2023 and reach 1.3 million by 2025, making it the most important in this segment. China is the market leader in the heavy-duty electric vehicle (EV) segment, accounting for 98% of the global market for electric buses through 2018. The nation's need for heavy-duty EV charging infrastructure is growing to accommodate a large number of electric buses.

Market Restraint

High Demand for CNG and LPG Vehicles

A sizable portion of the population is switching to alternative fuel cars as their preferred mode of transportation as a result of the quick increase in crude oil prices over the past ten years and the steadily declining availability of crude oil. In recent years, developing nations like Pakistan, Iran, India, and China have seen significant annual rises in the market for CNG automobiles. In addition to developing countries, developed nations like the US and the UK have concentrated on developing the infrastructure to support CNG vehicles.

Additionally, governments worldwide have taken steps to boost the sale of CNG automobiles. Many CNG vehicle manufacturers have planned to build manufacturing facilities in nations including India, Singapore, Indonesia, Brazil, and nations in the Middle East and Africa. Nissan, Renault, General Motors, and Ford are at the front of the pack in the race to introduce CNG vehicles soon. These factors are expected to hinder market growth over the forecast period.

Market Opportunities

Key Players' Strategic Initiatives

Data from the US Department of Energy shows that to accommodate the 15 million electric vehicles expected to be in use in the US by 2030, about 27,000 DCFC and 600,000 level 2 public charging outlets would be required. Therefore, to install electric car charging infrastructure across the nation, government organizations, significant electric vehicle and system-creating firms, automakers, oil corporations, electrical utilities, and charging network companies are competing and working together.

A global collaborative strategy among businesses to fund and construct heavy-load EV charging infrastructure is gaining ground. For instance, Tesla Inc. is forming strategic alliances with UPS Inc. and Ryder System Inc to build a charging infrastructure to service the fleets of preordered tractors. Additionally, Volkswagen declared in 2018 that it would invest USD 2 billion in the nation's charging infrastructure and create 2,800 EV charging infrastructures in 17 of the biggest US cities by June 2019. Additionally, many European nations are constantly constructing incentive programs to promote the use of electric vehicles throughout the continent.

Regional Analysis

The global heavy-duty electric vehicle charging infrastructure market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA. 

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant shareholder in the global heavy-duty electric vehicle charging infrastructure market and is expected to grow at a CAGR of 38.90% during the forecast period. The demand for heavy-duty EV charging infrastructure in Asia-Pacific is expected to rise significantly due to the rising demand for electric buses and the initiatives taken by the governments of countries like China, Japan, and India in the region to promote the development of heavy-duty electric vehicles. The market in this region is expanding as a result of the growing need for the construction of charging infrastructure and the growing cooperation between the local car OEMs. For instance, ABB (Switzerland) and King Long Motor Group (China) inked a contract to build an e-bus and flash charger in China in September 2019.

Europe is expected to boost at a CAGR of 30.70% during the forecast period. One of the critical markets for heavy-duty electric vehicles worldwide is Europe. The increased demand and expansion of sales of electric buses and trucks principally influence the region's OEMs and aftermarket players' demand for charging stations. For instance, Transdev (France) placed an order for 157 electric articulated buses with Volvo Group (Sweden) in May 2019. In addition, the number of new electric buses registered in 2019 climbed from 594 units in 2018 to 1,607 units in 2019, according to the European Automobile Manufacturers Association. The region is witnessing an increase in concern over reducing automobile emissions, which is anticipated to drive up demand for EV charging stations.

Rising demand for heavy-duty electric vehicles has made North America a significant region in the global heavy-duty EV charging infrastructure market. Many heavy-duty electric vehicle manufacturers, including Tesla Inc., BMW AG, Volkswagen AG, and Volvo Group, primarily use the region's charging infrastructure. This region held most of the market share due to the widespread adoption of heavy-duty electric cars to suit the region's expanding demand. For instance, the Class 8 battery-electric project trucks were first made available in North America in February 2020 by the Volvo Group (Sweden). In addition, a deal to deliver Proterra battery-electric buses and charging infrastructure was signed between Proterra (US) and the California Department of General Services (US) in December 2019. These factors influence the need for heavy-duty electric car charging infrastructure.

The Middle East and Africa and South America make up the rest of the world. Heavy-duty electric vehicles like buses and trucks are more in demand in the region due to the presence of significant EV manufacturers. The creation of a charging infrastructure for the batteries of electric buses and vehicles is also being funded by manufacturers in the area. The demand for electric vehicles in the area is anticipated to rise due to the simple accessibility of charging stations and affordable batteries. Opportunities for manufacturers and new players in the region's heavy-duty vehicle charging infrastructure will be made possible by government measures highlighting the advantages of heavy-duty electric cars.

Segmental Analysis

The global market is segmented by charger type and charging method.

By Charger Type Analysis

Based on charger type, the global heavy-duty electric vehicle charging infrastructure market is bifurcated into DC and AC chargers.

The DC charger segment is the highest contributor to the market and is expected to grow at a CAGR of 38.10% during the forecast period. In order to enable quick charging at the charging stations, the term "DC charger" refers to the DC fast charging method, which transfers electricity straight into an EV's battery system. This kind of charger has a converter built right into it that transforms AC power into DC power before entering the car and provides the current needed to charge an electric vehicle's battery. Due to the expanding use of fast charging for heavy-duty electric cars, the need for DC chargers is anticipated to rise dramatically globally. Additionally, the Combined Charging System (CCS), CHAdeMO, and Tesla Superchargers are a few of the connector types used in DC charger types.x

AC chargers, also known as onboard chargers, have a lower power capacity than DC chargers. An AC charger typically consists of one or more converters that turn AC power within the car into DC power before putting it into an electric car's battery. In addition, this style of charger is more affordable and compatible than DC chargers. As a result, this kind of charger is frequently utilized to recharge electric automobiles. Businesses that sell AC chargers are concentrating on encouraging owners of heavy-duty electric vehicles to embrace AC chargers as the demand for electric vehicles rises. These elements are anticipated to propel the AC charger segment's growth in the global market over the forecast period.

By Charging Method Analysis

Based on the charging method, the global market is bifurcated into fast charging and slow charging.

The fast charging segment owns the highest market share and is expected to grow at a CAGR of 38.20% during the forecast period. Buses, trucks, and other heavy-duty vehicles can be charged quickly using the fast charging method. Compared to the long charging times involved with the slow charging approach, the fast charging method allows drivers of heavy-duty vehicles to replenish the battery in a significantly shorter time. A DC charger is typically required to fuel the battery of heavy-duty electric cars using this charging technique. The rapid charging method market is anticipated to experience significant expansion as the demand for heavy-duty electric vehicles increases globally. Some major companies that provide fast charging for heavy-duty electric cars are ABB, Siemens, Tesla Inc., and Kempower Oy.

The slow charging approach refers to overnight charging times for heavy-duty electric vehicles. Compared to fast charging, slow charging has several benefits, including affordability and ease. The slow charging category is anticipated to experience noticeable expansion as electric vehicles are used more frequently on the worldwide market.

Recent Developments

• November 2022- Schaltbau Holding AG, a well-known provider of charging infrastructure solutions for commercial electric vehicles, has finished buying SBRS GmbH, a 100% owned subsidiary of Shell Deutschland GmbH, a 100% owned subsidiary of Shell. The acquisition expands Shell's range of lower-carbon solutions for fleet solutions and commercial road transport customers by adding considerable expertise in electric bus charging and a significant pipeline in electric truck charging.
• October 2022- The launch of Mobilize Fast Charge, an ultrafast charging network, was announced by Mobilize and Renault dealerships. The majority of stations at Renault dealerships will be no more than a five-minute drive from an exit on a highway or expressway.