Electric Vehicle Charging Station Market Set to Register Striking Growth
The global electric vehicle charging station market is projected to register a CAGR of 41.79% from 2023 to 2030 (forecast period). The report offers an extensive overview of the global situation, the economic situation, and COVID-19 analysis of the overall industry.
The electric vehicle charging station is a point for charging the battery of an electric vehicle, which varies from vehicle to vehicle. There are numerous types of technology used to charge vehicles on the basis of the battery’s input power, which is as follows: Type 1, Type 2, and Type 3. The charging stations can be DC or AC charging type or an inductive charging station.
These charging points can be installed either in residential or commercial applications and include the speed at which the electric vehicle can be charged depending on the type of technology used for the battery.
Market Dynamics
The global market for electric vehicle charging stations is increasing rapidly due to increased demand for electric vehicles and strategic initiatives by key players in the growth of the EV charging infrastructure. Nevertheless, market growth may be hampered by the demand for CNG and LPG vehicles.
Key Players
The industry giants in the global market of electric vehicle charging stations are Siemens, Leviton Manufacturing Co., Inc., Schneider Electric, ABB, Tesla, Eaton, EVgo Services LLC, ChargePoint, Inc., The New Motion B.V., and Webasto Group.
COVID-19 Impact on Global Electric Vehicle Charging Station Market
Among the most vulnerable verticals to the ongoing outbreak of COVID-19, the automotive and transportation market is currently facing unparalleled uncertainty. COVID-19 is expected to dramatically affect the supply chain and the market for goods in the automotive industry. The industry's concern has changed from focusing on China's supply chain disruption to the overall slump in demand for automotive goods.
Commercial vehicle demand is expected to drop, with all non-essential services shut down. In addition, changes in consumer buying behavior due to the uncertainty surrounding the pandemic may have significant implications for the near-future growth of the industry. In the meantime, the shortfall and cash crunch have already impacted fleet operators' sales, which are expected to grow further in the following months.
However, the production of electric vehicles seems to be considerably less impacted by the pandemic, as the projected production levels for EVs in 2020 are expected to be more or less close to those in 2019. As a result, demand for EV infrastructure is not anticipated to be significantly affected due to the current pandemic, as electric vehicles and their related charging infrastructure and sales originate from China, which has recovered from the pandemic to sustain its global supremacy in EV production. The Chinese government has also announced stimulus packages to boost the development of an electric vehicle charging station network.
Market Segmentation
The global market of electric vehicle charging station has been segmented into charging station, connector type, installation type, and vehicle type.
By charging station, the global electric vehicle charging station market has been segmented into inductive charging station, AC charging station, and DC charging station. The AC charging station segment captured the largest market share in 2018; it is expected to see considerable growth during the forecast period due to the increasing adoption of the AC charging station from the residential sector, as about 80% of EV owners charge their vehicles overnight at home using AC power.
By connector type, the global electric vehicle charging station market has been segmented into Combined Charging System, CHAdeMO, and Others (GB/T standard, Tesla Supercharger, SAE standard, and IEC standard). The CHAdeMO segment is expected to expand at the highest CAGR during the forecast period due to growing demand from the commercial sector.
By installation type, the global market has been segmented into residential and commercial segment. In 2018, the residential segment led the market; it is projected to be dominant throughout the forecast period due to the increasing overnight charging of EVs. The commercial segment is anticipated to witness the highest growth during the assessment period due to the increasing development of EV charging stations at traditional gas stations, parking garages, hotels, restaurants, and shopping centers, globally.
By vehicle type, the global electric vehicle charging station market has been segmented into battery electric vehicles and plug-in hybrid vehicle. The battery electric vehicle (BEV) segment is expected to be dominant throughout the forecast period due to the growing use of Level 1 charging stations in residences.
Regional Analysis
By region, the global market of electric vehicle charging stations has been segmented into North America, Europe, Asia Pacific (APAC), and the rest of the world (RoW).
The global market for electric vehicle charging stations was led by the Asia Pacific, followed by Europe and North America. The Asia Pacific dominates the global market due to effective measures taken by governments of countries such as China, Japan, India, and Singapore. The countries in the region concentrate mainly on investing money and time in the development of charging infrastructure, and increasing collaboration between vehicle OEMs and technology providers in the aftermarket will further fuel market growth.
North America is known for its rapid adoption of new technologies due to the increasingly growing GDP and high employment rates. This region has seen a substantial increase in demand for electric vehicles over the last few years. In North America, sales of electric cars have doubled since 2014, which shows that demand for electric cars has risen rapidly. This demand for electric cars will accelerate the installation of electric charging stations throughout the United States, Canada, and Mexico.
Europe is set to witness a significant rise in the global market for electric vehicle charging stations due to the latest emission standards regulated by the government. Manufacturers in Europe have taken two separate approaches for the development of models for electric vehicles, which are conversion and purpose approaches. The 'conversion' approach incorporates new technology (electric motor and battery) in the existing model. The 'purpose' approach includes the development of new vehicles integrating the latest technologies. These two approaches will enable manufacturers to install electric drives in vehicles, which, in turn, will drive the growth of the market for electric vehicle charging stations.
The rest of the world (RoW) comprises the Middle East, Africa, and South America. The presence of significant EV manufacturers will boost the demand for EVs in the region. Manufacturers are massively investing in the development of charging infrastructure and battery materials across the region. Moreover, the easy availability of charging stations and low-cost batteries will boost sales in the region due to their low material costs, which in turn drive this market.
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