An electric vehicle (EV) charging station is an infrastructure element that supplies electric energy for charging and recharging plug-in electric vehicles and plug-in hybrids.
The EV charger market is dynamic. It is witnessing significant growth, owing to the growing environmental concerns and rising demand for sustainable and energy-efficient transportation.
Some of the major factors driving the electric vehicle charging infrastructure market growth are the enactment of stringent emission and fuel economy norms, government incentives, and the increasing sales of electric vehicles, all of which have generated a demand for charging stations.
At the end of last year, the CEOs of Europe’s commercial vehicle manufacturers agreed that all new trucks sold must be fossil-free by 2040 in order for the sector to be fully carbon-free by 2050 at the latest. The electric vehicle charging station market is segmented by charger type (AC and DC charging stations), access type (public and private), and geography.
The global electric vehicle charging station market was valued at USD 15.06 billion in 2020. It is expected to grow at a compound annual growth rate (CAGR) of 33.4% from 2021 to 2028.
With the outbreak of the COVID-19 pandemic, governments around the world have shifted their focus from other activities to health care facilities in their countries. With the imposed lockdowns that forced people to stay at home to maintain social distancing and avoid the spread of the virus, the workforce availability was impacted and hence all infrastructure projects were diminished. Yet, now that economies are gradually opening up, infrastructure projects are also resuming, and it is expected that the EV charging station market share will witness growth from the second half of 2021.
An important driving factor for the EV charging station market growth is the providing of charging services to EV fleet operators. It assists in reducing the managing and procuring cost of charging services. EV adoption will definitely increase the demand for charging infrastructure. However, one of the major challenges for charging station operators is the reduction of EV charging time.
The electric vehicle charging station market is fairly consolidated. The market is led by a few companies, such as The State Grid Corporation of China, ABB, Siemens, Qingdao Tgood Electric Co., Ltd, and Tesla Inc.
As of now, ABB has integrated over 1 million charging stations covering 273 cities from 29 provinces. The company is expanding its presence by partnering with major automakers. For instance, ABB has completed the purchase of a majority stake in Chargedot Shanghai New Energy Technology Co., a Chinese supplier of EV battery charging facilities. Furthermore, in 2018 BMW and SGCC entered into a strategic partnership under which SGCC will enable BMW car drivers to access more than 270,000 charging pillars in China by the end of 2020. Siemens AG also continues to focus on developing the new technologies market for charging e-mobility. In September 2020, the company received an order from Go Bus, one of New Zealand's largest bus operators, to power two of their bus depots with charging infrastructure for e-Buses.
Although the electric vehicle charging station market is captured by a number of global players such as ChargePoint Inc., ABB, bpChargemaster, Webasto, Thermo & Comfort, Shell, International B.V., Schneider Electric, Blink Charging Co., Groupe Renault, Phihong USA Corp., EV Safe Charge Inc., Eaton., Tata Power, Tesla, SemaConnect Inc., Daimler AG., Siemens, EVgo Services LLC., ENGIE EV Solutions, the market is also attracting various new startups.
The electric vehicle market has witnessed healthy growth rates in recent years. The annual sales volume of electric passenger cars is projected to cross the 5 million mark by the end of 2025. Electric cars are expected to account for 15% of the overall vehicle sales by the end of that year, as well.
Governments across the world have introduced numerous schemes and initiatives to encourage buyers to choose electric vehicles over conventional ones. The California ZEV program, which aims to have 1.5 million electric vehicles on the road by 2025, is one such initiative. India, China, the United Kingdom, South Korea, France, Germany, Norway, and the Netherlands are some of the countries which have various incentives for people willing to buy an electric vehicle.
The commercial segment accounted for the largest revenue share of over 84% in 2020 owing to the initiatives and allocation of funding by the governments and automobile manufactures for expanding the public EVCI infrastructure. Furthermore, the development of supporting infrastructure in public places is necessary as overnight or at-home charging would not be sufficient for long-distance travel.
Europe’s truck and bus makers are working hard to deliver carbon-neutral road transport. And while the industry is ramping up its offer of zero-emission vehicles, more than having the right trucks and busses will be required for a successful transition. Transport operators need to be able to easily charge or re-fuel their vehicles along the road. Moreover, battery-electric and fuel-cell vehicles must also reach cost parity with diesel-fuelled ones soon in order for them to become operators’ preferred choice.
Geographically, Asia-Pacific, followed by Europe, is leading the electric vehicle charging station market. In Asia-Pacific, China is the largest market for electric cars and buses, and it sold 872 thousand units of New Energy Vehicles (both passenger and commercial) for the first nine months in 2019, with a growth rate of 20.8%.
The Chinese electric vehicle charging station market is backed by generous support from the government. China has extended the incentives relating to the purchase of new energy vehicles (NEVs) till 2022. In January 2020, Tesla Motors inaugurated a USD 2 billion facility in Shanghai that assembled nearly 3000 cars per week in March 2020 when all the electric vehicle giant’s other global facilities were shut down due to the COVID-19 pandemic.
The electric vehicle market in Japan has experienced growth since the demand for emission-free vehicles has been increasing, and the government has been investing heavily in this EV market. The Japanese government aims to transform all the new cars sold in the country, into electric or hybrid vehicles by 2050. The government has also set a target to reduce the emissions of carbon dioxide and other greenhouse gasses, by about 80% per vehicle, by 2050.
The adoption rate and interest in EVs are increasing among consumers across the world. Increasing investment in battery systems and high stakes in environment-friendly technology is driving the automakers’ interest in electric vehicles and makes them look for a target market for electric cars. Moreover, governments are devising policies to increase the adoption rate of EVs. However, if we forecast the expected EV growth rate with corresponding units of electricity and the average run time of vehicles, we find that high investments in the EV charging infrastructure market are essential. This charging infrastructure can be built at home, offices, and in public spaces.
The increasing number of electric vehicles affects the demand for new-generation charging stations. Charging time still remains the main hurdle to buying an electric vehicle. So, with the growth of the fast-charging station market share, EVs will spread even faster. It is no longer relevant to develop charging networks without smart management systems. Charging operators and governments should focus on implementing the latest solutions to provide EV owners with top service and thus stimulating the further spread of electric vehicles and following the CO2 emission allowances.
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So, don’t hesitate to switch to an EV or becoming a player in the global EV charging infrastructure. Just contact us if you have any questions about joining the “green” future.