Electric Vehicle Charging Station Market Size is Projected to Reach USD 93 Billion By 2027 | CAGR 20%: Astute Analytica
NEW DELHI : The global Electric Vehicle Charging Station (EVCS) market has been fuelled by a growing awareness of environmental conservation and carbon emission reduction. Furthermore, there has been an increase in demand for electric vehicles all around the world.
The number of electric vehicle users is steadily increasing, particularly in the United States, Japan, and Western Europe. The sector has seen a substantial increase in the number of participants investing across the supply chain as different firms aim to set up improvised company plans and procedures.
Global EVCS market generated a considerable revenue amount of approximately US$23,000 in 2019 and is projected to grow at a compound annual growth of nearly 20 percent from 2021 to 2027. Analytical study shows that 819 thousand units of EVCS were sold in 2019 and the numbers are increasing at compound annual growth of 17.5 percent.
The adoption of electric vehicles has been accelerated by a movement in consumer choice toward environmentally friendly options in order to reduce carbon footprint. The constantly developing transportation sector and the increasing number of automobiles on the road throughout the world are the primary causes of rising carbon emissions. International aviation accounted for the largest percentage rise in greenhouse gas emissions above 1990 levels (+114%), followed by road transportation (+22%).
In addition, emissions from transportation (including aviation) grew by 1.5 percent in 2017. Furthermore, the government has enacted strict regulations to encourage the usage of electric vehicles. Both the supply and demand sides of the economy gain from government subsidies and other perks.
For example, the federal government funded $96.4 million on electric vehicle and hydrogen charging stations around the country through the Natural Resources Canada (NRCan) programme. EVs are more expensive than internal combustion engine (ICE) automobiles without these grants and subsidies, whereas due to these grants and subsidies, ICE cars are less expensive. As a result, consumers seeking to benefit from these types of laws are drawn to EVs, which offer a low-cost mobility alternative during this period of high fuel prices.
The high cost involved in construction of EVCS infrastructure is majorly hindering the overall market growth could be prohibitive to the creation of a well-functioning industry. For different sorts of vehicles, such as 2-wheelers, 3-wheelers, passenger vehicles, and commercial vehicles, different types of charging infrastructure are necessary.
Furthermore, the use of fast and wireless chargers is expected to increase significantly in order to provide a better consumer experience. Furthermore, electricity is necessary for the construction, financing, maintenance, and operation of power plants and electricity networks, and the cost of electricity required for EVCS fluctuates on a regular basis.
One of the biggest challenges faced by the EVCS market is the rapid deployment of changing technology, as adopting new technologies such as wireless charging, vehicle to grid (V2G), and vehicle to everything (V2X) charging technology will affect the cost infrastructure as well.
According to analysis, the cost of charging infrastructure components for level 2 commercial chargers ranges from US$ 2,500 to US$ 7,210, while 50kW fast DC charging infrastructure costs between US$ 20,000 and US$ 35,800.
There are several types of EV chargers available in the market, including slow chargers with less than 22 kW of power and fast chargers with more than 22 kW of power. However, the latter is growing at highest CAGR of 27.8% in the forecast period owing the capability of these chargers to reduce charging time. CCS is the most popular connector protocol since it offers reverse power transfer, inductive charging, and wireless charging capabilities.
This connector protocol valued US$ 12,640.2 million in 2019, which is about 55% of market share. Due to the deployment of charging stations in office areas, the commercial use is growing faster than the residential sector and dominated the market in 2019 with about 80 percent of share in the market. Furthermore, governments in countries such as Germany, Canada, and France are continually investing to boost the use of electric vehicles for public transportation.
Between, AC (alternating current) and DC (direct current) charging method, the latter one is growing at a CAGR of 20.3 percent. It is owed to the fact that DC chargers can supply electricity straight to the vehicle’s battery, bypassing the internal charger. Moreover, DC fast chargers convert AC power to DC within the charging station and supply DC power directly to the battery, resulting in faster charging.
North America, Europe, Asia Pacific, Middle East & Africa, and South America have been included in the global market’s regional study. Because of the large-scale expansion of the EV charging network in China, growing demand for inexpensive electric vehicles for everyday usage, and governments support to boost the adoption of electric vehicles, Asia Pacific is the leading area with about 80 per cent market share in 2019.
In addition, China’s advanced electrification technology, as well as government initiatives in Japan and Korea to increase the number of electric car charging stations, have boosted the market in the APAC region.
Furthermore, China will invest $1.2 billion to expand the country’s charging infrastructure. Furthermore, Tesla plans to install 4,00 additional superchargers in the country in the forthcoming years, nearly doubling its current number. As part of its initial phase of electric vehicle infrastructure development, the Indian government plans to install over 69,000 EV charging stations across the country.
In April 2019, ABB Limited, one of the market’s major companies, partnered with Porsche Japan to develop a dedicated high-power charger for Porsche’s electric cars (EVs) in Japan. BYD Auto, a major competitor of ABB Limited in the industry has partnered with Goldstone to install electric vehicle charging stations along their e-bus routes in India.
Chargemaster plc, ChargePoint, Inc., Eaton Corporation, Schneider Electric SE, Siemens AG, and Tesla Motors are among the other major participants in the market. The global EVCS market is segmented on the basis of following:
- By Charger Type
- By Connector Protocol
- By Charging Method
- By Application
- By Geography
Some of the key players in the market are:
- ABB Ltd.
- AeroVironment Inc.
- BYD Auto
- Chargemaster PLC
- ChargePoint, Inc.
- Eaton Corporation plc
- Leviton Manufacturing Co., Inc.
- Schneider Electric SE
- SemaConnect, Inc.
- Siemens AG
- Tesla Motors, Inc.
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