Electric Vehicle Charging Station Market Growing Demand, Globally – EQ Mag Pro
The latest study collated and published by Nova one advisor analyzes the historical and present-day scenario of the global Electric Vehicle Charging Station market to accurately gauge its growth potential. The study presents detailed information about important growth factors, restraints, future scopes, cost analysis and key trends during the forecast timeframe 2022 to 2030.
According to Nova one advisor, the global Electric Vehicle Charging Station market was valued at USD 35.50 billion in 2021 and it is expected to hit around USD 417.35 billion by 2030 with a CAGR of 31.5% during the forecast period 2022 to 2030.
Key Takeaway
As per a report published by International Energy Agency (IEA) in 2020, China own total 52% of slow chargers and 82% of fast chargers globally.
In 2021, the public chargers application segment accounted market share of around 85%
DC charging station segment garnered revenue share of around 73% in 2021
Based on mode of charging, the plug-in charging system segment hit largest revenue share 78.5% in 2021
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, and 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. The upcoming standardization (expected around 2025 with Tesla already providing ports for CCS, CHAdeMO already having GB/T ports as of December 2021) of charging ports and government regulations by the world’s top economies has been increasing the speed of setup of electric vehicle charging stations.
Driver: Rising EV sales worldwide will increase demand for EV charging stations
An increase in the adoption and use of electric vehicles has accentuated the need to develop charging infrastructure. Leading markets for electric vehicles such as China, the US, and Germany are investing significantly in EV charging infrastructure along with research & development for faster and more efficient charging methods. Significant investments by automakers are expected to cater to the rising demand for EVs and play a major role in the evolution of the market. Tesla, Volkswagen, Ford, Nissan, BMW, and General Motors have significant R&D budgets for the development of EVs. In 2020, the world saw a 41% growth with around 3 million EV sales despite the impact of COVID-19 in the market, while the overall automobile market reduced by 6%. This indicates a growing demand for electric vehicles., which will, in turn, boost the market for EV charging stations. While the majority of EV users install a Level 1 or Level 2 EV charging device in their home or residential complex, there has also been a growing demand for public charging stations around the world. With the growing EV sales around the world, the demand for EV charging stations will increase.
OEMs offer a wide range of electric vehicles, from small hatchbacks such as Leaf to high-end sedans such as Tesla model 3. The wide range of product offerings has attracted a high number of consumers, resulting in an increased market for electric vehicles. For instance, in October 2021, GM announced plans to invest USD 35 billion to develop and achieve more than one million EV sales and other technology by 2025. The company plans to go all electric by 2035. Similarly, Ford plans to increase its EV production capacity to 600,000 per annum by 2023 as announced in November 2021. It plans to make 40% of its vehicle offerings electric by 2030. Similarly, Volkswagen announced plans to invest USD 86.3 billion to speed up its EV plans by 2030. Other companies like Tesla, Nissan, and BMW, among others, have also made significant developments and plans for the upcoming EV demand in the coming 5-10 years. These investments and policies are expected to help boost the growth of the electric vehicle charging station market during the next decade.
Factors such as the growth of the electric vehicle market and variations in charging loads have emphasized the need for the standardization of electric vehicle charging stations. Certain EV charging stations may only be compatible with a certain type of voltage. For instance, AC charging stations provide a voltage of 120V AC through level 1 charging stations and 208/240V AC through level 2 charging stations. On the other hand, DC charging stations provide fast charging through 480V AC.
Governments need to standardize charging infrastructure for the development of a favorable ecosystem and an increase in the sales of EVs. Different countries use different standards for fast charging. Japan uses CHAdeMO; Europe, the US, and South Korea use CCS; and China uses GB/T. The Indian government had mandated the installation of both CHAdeMO and CCS methods since India has not reached standardization in fast charging methods. Though, this mandate increased the installation cost of charging stations, and, hence, in July 2019, the government changed the guidelines and allowed charging station developers to choose the method they prefer. The US-based electric car maker Tesla uses high-performance superchargers that are unique to Tesla and cannot be used for other EVs. The lack of standardization across countries may impact the installation of charging stations and hamper the growth of the market.
Opportunity: Use of V2G EV charging stations for electric vehicles
Vehicle-to-Grid (V2G) EV charging is a system that has a bi-directional electrical energy flow between plug-in EVs and the power grid. The V2G technology enables EVs to store unused power and discharge it to the grid. This can improve the electrical component’s performance and add value for EV owners. The introduction of this concept has eased electric vehicle charging operations and made EVs one of the most preferred modes of transportation. Thus, the entire charging station market plays a vital role in the connection of the grid to the electric vehicle to enable the vehicle’s charging.
Enel Energia S.p.A. installed 2 V2G electric car charging stations at the Genoa headquarters of the Italian Institute of Technology. The installation is a part of MOV-E, a corporate electric car sharing pilot project in collaboration with Nissan. Nissan provided two battery EVs (LEAF model) to the Italian Institute of Technology, as well as an app management platform, Glide. The agreement between Enel and Nissan signifies a change in the world of technology in terms of sustainable mobility. Thus, the V2G charging technology is a key opportunity for manufacturers as it is expected to transform the world of EVs and shape the future of EV charging. Although the V2G infrastructure is more valuable than smart charging, the initial cost for the installation of V2G charging stations is significantly high. The consistent and anticipated evolution of V2G technology is expected to offer opportunities for EV connector manufacturers to introduce advanced connectors to withstand electrical architecture.
Challenge: Stringent rules for installation of EV charging stations
Governments of different countries have implemented stringent rules that govern the installation of charging stations. Service providers are required to follow a certain set of instructions while installing charging stations. They require approval from plot owners when the installation is on private property, local governments in terms of regulatory mandates, and utility providers for energy transfer. For instance, homeowners or contractors are required to submit plot plans, electrical load calculations, electrical plans, installation instructions, and charger specifications to the local permitting office to obtain permits for the installation of residential EV charging stations. The procedures for the installation of EV charging stations are more complex in commercial locations than residential locations. A commercial installation requires permits, community or design guidelines, electrical source or metering, parking and signage requirements, zoning requirements, and inspection fees. Thus, the installation of charging stations is complex as many stages are involved in the value chain.
Charging Station Type Insights
DC charging station led the global electric vehicle charging station market with largest revenue share in the year 2021. This is mainly attributed to fast charging capacity and attractive pricing of DC charging stations. The DC charging station directly charges the battery by converting the power before it enters the car’s converter.
The DC charging station charges the battery directly as it converts the electricity prior to entering in the cars converter. Additionally, rapid increase in the adoption of technologies, such as Near-field Communication (NFC) and Radio Frequency Identification (RFID), in charging stations installed on highways also flourishes the DC charging market growth.
Application Insights
Public type charging stations held major revenue share in the year 2021 as they are more cost-effective to the manufacturers. In addition, they have sufficient parking space and are accessible to all public.
On the other hand, private type charging stations are basically workplace based or residential based station that are only accessible to the owners or limited public. As a result OEMs and different utilities are also focused towards building public charging station. Thus significant benefits offered by public type over private type fuels the market growth.
Regional Insights
Asia Pacific dominated the global electric vehicle charging station market in 2021 and is expected to be the most lucrative region during the forecast period. This is majorly attributed to the increasing investments by the government of China, South Korea, Japan, and other Asian countries for installation of charging infrastructures. For instance, in April 2020, China announced its plan to invest USD 1.43 billion in 2020 to maintain its leadership in EV adoption race. Similarly, Singapore, India, Korea, and Japan are also investing in the electric vehicle charging infrastructure to promote its adoption in their region. As per a report published by International Energy Agency (IEA) in 2020, China own total 52% of slow chargers and 82% of fast chargers globally.
The market for EV charging station in Asia-Pacific region is being driven by the growing government initiatives. As of the end of July, members of the Alliance claimed that around 566,000 public charging stations had been erected and were operational across the country, according to figures released by the China Electric Charging Infrastructure Promotion in August 2020. Furthermore, by 2050, the Japanese government plans to convert all new cars sold in the country to electric or hybrid vehicles. By 2050, the government wants to reduce carbon dioxide emissions and other greenhouse gas emissions by around 80% per car. Thus, the market growth in region is expected in the near future.
Europe and North America witness moderate growth in the global electric vehicle charging station market. This is mainly due to the government’s ambition in Europe & North America to curb the carbon emission and increase the adoption rate of electric vehicles. Nearly, 76% of total charging stations in Europe are just concentrated in four countries that are Germany, France, UK, and the Netherlands. In June 2019, Volkswagen Group announced its plan to install 36,000 electric vehicle charging points in various parts of Europe by 2025. Similarly in June 2018, three major states of U.S. that include New York, New Jersey, and California announced to spend USD 1.3 billion in the deployment of EV charging infrastructure to boost their EV adoption.
The U.S. is dominating the electric vehicle charging station market in the North America region. Electric vehicle use is fast expanding throughout North America. The U.S. is the third-largest market for electric vehicles, according to the International Council on Clean Transportation, with around 320,000 new electric vehicle sales in 2019. According to the International Energy Agency, about 1.8 million electric automobiles were recorded in the U.S. as of 2020, which is more than three times the number registered in 2016. The total number of electric vehicles registered in the U.S. increased from under 300,000 in 2016 to over 1.1 million in 2020. California began establishing charging station networks to help with the broad adoption of electric vehicles. As of 2021, there are more than 42,000 publicly accessible charging stations in the U.S.
Some of the prominent players in the Electric Vehicle Charging Station Market include: ABB Ltd., ChargePoint, Inc., EVgo Services LLC., Allego, Scheinder Electric, Blink Charging Co., Wi Tricity Corporation, Toshiba Corporation, AeroViroment, Inc., Mojo Mobility, Inc., General Electric, Robert Bosch GmbH
Source: pti
