The electric vehicle charging station market is a rapidly growing industry closely tied to the increase in the adoption of electric vehicles (EVs). The market includes both public and private charging stations, as well as residential charging options.
The market for electric vehicle charging station in 2021 was
USD 12.41 billion, and by 2030 it will reach USD 142.36 billion, growing at a 31.14% CAGR during the forecast period.
One of the key drivers of this market is the push toward reducing carbon emissions and the transition to cleaner energy sources. Governments and private companies are rapidly investing in infrastructure to support the increasing demand for EVs, with many countries setting ambitious targets for phasing out gasoline and diesel-powered vehicles.
Market Dynamics
Drivers
- Government incentives and mandates: Many governments around the world are providing incentives to encourage the adoption of EVs, such as tax credits, rebates, and exemptions from tolls and congestion charges. Some governments have also implemented mandates requiring a certain percentage of new cars sold to be electric, driving demand for charging infrastructure.
- Environmental concerns: The increasing awareness of the harmful effects of greenhouse gas emissions is leading many individuals and organizations to switch to EVs. As a result, the demand for charging stations is increasing to support this growing fleet of electric vehicles.
- Lower operating costs: Electric vehicles have lower operating costs than traditional gas-powered vehicles. This is due to the lower cost of electricity than gasoline and the lower maintenance costs associated with EVs. As a result, many consumers are switching to EVs, driving demand for charging infrastructure.
- Technological advancements: The development of new battery technologies and charging technology advancements is making EVs more practical and appealing to consumers. Faster charging times and longer ranges are increasing the appeal of EVs, driving demand for charging infrastructure.
Restraints
Strict guidelines controlling the location of charging stations have been adopted by several countries. Service providers are required to follow a set of rules while building charging stations. When the installation is on private land, the plot owners, the local government for regulatory requirements, and utility providers for energy transmission all need their consent.
Opportunity
The growing popularity and use of electric cars have brought attention to the need to construct a charging infrastructure. Leading electric car markets are investing extensively in infrastructure for charging electric vehicles and R&D to create quicker and more efficient charging techniques.
Market Segmentation
By Charging Station
With the biggest revenue share in 2021, DC charging stations ruled the entire market. The largest share is due to DC charging stations’ quick charging capability and competitive cost. The DC charging station instantly charges the battery by converting the electricity before it enters the converter in the automobile.
The DC charging station transforms the power before it enters the car’s converter, immediately charging the battery. The growing use of technologies like Near-field Communication (NFC) and Radio Frequency Identification (RFID) in highway charging stations is another factor boosting the development of the DC charging business.
By Application
In 2021, public charging stations accounted for a significant portion of income since they are more economical for manufacturers. Additionally, they are open to the public and offer enough parking space.
In contrast, private charging stations are typically located in homes or offices and are exclusively open to their owners or a few people. Because of this, OEMs and other utilities are concentrating on developing public charging stations. Thus, the market expansion is driven by the substantial advantages of the public type over the private type.
Regional Analysis
In 2021, Asia Pacific ruled the worldwide market for electric car charging stations. This is mostly because of the rising expenditures made in the construction of charging infrastructure by the governments of China, South Korea, Japan, and other Asian nations. For instance, China declared in April 2020 that it will invest USD 1.43 billion in 2020 to keep the lead in the EV adoption race. Similar to Singapore, India, Korea, and Japan, these countries are likewise investing in the infrastructure needed to encourage the utilization of electric vehicles in their areas.
Key Players
- Engie
- ChargePoint Inc.
- ABB
- Tesla
- EVgo
- Siemens
- Schneider Electric
- AeroVironment
- Alfen
- Blink Charging
The market for electric vehicle charging station in 2021 was USD 12.41 billion, and by 2030 it will reach USD 142.36 billion, growing at a 31.14% CAGR during the forecast period. The growing levels of carbon emissions and other dangerous substances resulting from transportation have prompted the requirement to use electric cars. As a result, there is an expanding need for an electric vehicle (EV) charging infrastructure in both business and residential settings. Additionally, expanding collaborations between automakers to provide charging stations using a subscription model will fuel industry expansion.
Related Reports:
Energy Management Systems Market Report – The global energy management systems market will witness a robust CAGR of 16.73%, valued at
$37.33 Billion in 2021, and expected to appreciate and reach $43.57 Billion in 2022 and $162.03 Billion by 2030, confirms Strategic Market Research.