An electric vehicle charging station helps to charge electric vehicles, electric cars, and plug in hybrid electric vehicles. The growing environmental concerns and growing demand for clean and green energy is driving the growth of global electric vehicle charging station market.
The surge in demand for zero or low emission vehicles is boosting the demand for electric vehicle charging station in the global market. In addition, favorable government regulations are also contributing towards the global electric vehicle charging station market.
What are the key trends in the electric vehicle charging station market?
One of the key trends in the electric vehicle charging station market is rising electric vehicle sales all around the globe. According to International Energy Agency (IEA), the demand for electric vehicles has increased at a rapid pace despite the COVID-19 pandemic. Electric vehicle sales surpassed 2.1 million globally in 2019, exceeding 2018's record year to bring the total stock to 7.2 million. In 2019, electric vehicles represented for 2.6% of global electric vehicle sales and around 1% of global vehicle supply, representing a 40% rise year over year. This statistic provides positive outlook for the expansion of global electric vehicle charging station market. The leading automobile manufacturers are significantly investing in the production of electric vehicles and electric vehicle charging infrastructure. Moreover, market players are heavily investing in research and development (R&D) for development of electric vehicle charging station. The major market leaders such as General Motors, Tesla, BMW, Volkswagen, Nissan, and Ford are taking efforts for the development of electric vehicles industry. This factor is providing growth prospects for the development of global electric vehicle charging station market.
Another factor driving the growth of global electric vehicle charging station market is growing government initiatives and funding for electric vehicle charging station. The governments all around the globe are taking initiatives for the growth and development of global electric vehicle charging station market. The major market players are collaborating with government for the development of electric vehicle charging station and infrastructure in the market. Some of the initiatives taken by government all over the world are California's Zero Emission Vehicle (ZEV) mandate, European Union CO2 emissions regulations for automobiles, and China's New Energy Vehicles (NEV) mandate. California was the first most nation to adopt a heavy-duty truck zero emission vehicle sales requirement in 2020. From 2024 onwards, the Advanced Clean Truck Regulation will be in place. The Netherlands, along with number of other nations, is establishing zero emission commercial vehicle zones and leading implementation initiatives. Thus, growing government activities in favor of electric vehicles is supporting the growth of global electric vehicle charging station market.
According to Precedence Research, the global electric vehicle charging station market size was estimated at USD 35.50 billion in 2021 and is projected to reach over USD 417.35 billion by 2030 and poised to grow at a compound annual growth rate (CAGR) of 31.5% during the forecast period 2022 to 2030.
- In 2021, the public chargers application segment has garnered revenue share of about 85%
- DC charging station segment registered 73% revenue share in 2021
- Based on mode of charging, the plug-in charging system segment accounted highest market share 78.5% in 2021
- Asia Pacific region has contributed highest revenue share in 2021
What are the challenges in the electric vehicle charging station market?
One of the biggest challenges the market for electric vehicle charging station is facing the high cost of setups of charging station. The cost of fast charging station or level 3 charging station is quite high as compared to fuel station. This factor hinders the growth of global electric vehicle charging station market on a large scale. In addition, due to lack of standards, the electric vehicle manufacturers are not able to set up electric vehicle charging station easily. The proper standards and rules in favor of electric vehicle charging station can provide growth prospects to the electric vehicle charging station market. The government of the U.S., Japan, Europe, China, India, and South Korea are trying to implement strict mandates for the deployment of electric vehicle charging station. But these standards are not enough for the development of electric vehicle charging station in the global market. As a result, this factor is restricting the growth of global electric vehicle charging station market.
Which regions are driving the electric vehicle charging station trend?
China is ahead in terms of electric vehicle sales all around the world. The country is adopting electric vehicles and hybrid vehicles on a large scale. According to Morningstar, in 2025 and 2030, China will have enough charging infrastructure to service its electric vehicle fleet, with electric vehicles per charging declining below the projected constraints of nine and fourteen electric vehicles per charger. Thus, this factor will drive the adoption of electric vehicle charging station in China.
In terms of electric vehicle sales, the European Union is currently second only to China. The number of electric vehicles in the region will increase from over 1.7 million in 2019 to more than 23 million by 2030. According to a European Union directive, each electric vehicle charger may only accommodate a maximum of 10 electric vehicles on the road. By 2030, there will be 2 million charging stations in existence, quite enough to serve the region's electric vehicle fleet.
The next region is the U.S. for shaping the market dynamics of electric vehicle charging station all around the globe. By 2030, electric vehicles will account for 15% of new automobile sales in the region, but the number of electric vehicles per charging outlet will be insufficient to maintain the fleet. The U.S. fleet will rise from over 1 million electric vehicles this year to slightly under 15 million by 2030.
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