The global Electric Vehicle (EV) charging stations market size reached USD 6.72 Billion in 2021 and is expected to register rapid revenue CAGR during the forecast period, according to latest analysis by Emergen Research. Increasing investment from automakers in electronic vehicles is one of the major factors expected to drive market revenue growth.
Drivers:
Increasing investments from the automakers is expected to drive market revenue growth during the forecast period. Companies such as Tesla, Ford, Volkswagen, BMW, Nissan, and General Motors have significant Research and Development (R&D) budgets for the development of electric vehicles. In addition, increase in adoption of electric cars has emphasized the necessity to create charging infrastructure. Governments of countries such as China, Japan, the U.S., and Germany are spending considerably on electric vehicle charging infrastructure along with R&D for quicker and more efficient charging techniques, which is also expected to boost electric vehicle charging stations market growth during the forecast period.
Restraints:
Governments of different countries have developed stringent regulations that influence deployment of charging stations. Service providers are expected to follow a set of instructions while establishing charging stations. They require clearance from site owners when it needs to be installed on a private land. Permission from governments is also required in terms of regulatory obligations, and from utility companies for energy transmission. In addition, house owners or contractors need to submit plot plans, electrical plans, electrical load estimates, installation instructions, and charger specifications to local permitting authority to get permit for construction of household EV charging stations. Stringent rules and regulations for installation of EV charging stations are expected to hamper market revenue growth during the forecast period.
Growth Projections:
The global electric vehicle charging stations market is expected to register a CAGR of 38.7% over the forecast period and revenue is projected to increase from USD 6.72 Billion in 2021 to USD 123.12 Billion in 2030. Increasing use of Vehicle-to-Grid (V2G) technology for electric vehicles is one of the major factors propelling revenue growth of the market.
COVID-19 Impact Analysis:
The COVID-19 pandemic had a major impact on EV charging market in early 2020, due to lockdowns across the globe. Demand for EV charging stations surged in 2021, due to increasing initiatives and incentives provided by governments of various countries. Top network operators and charging station manufacturers extended their number of private and public EV chargers across the world. For instance, ABB formerly ASEA Brown Boveri reported a 34% rise in net profit to USD 502 million in first quarter of 2021. The company has so far delivered 400,000 electric chargers in 85 countries. Electric vehicle charging stations market is less impacted by COVID 19 pandemic due to increasing sale of electric vehicles and initiatives taken by various governments to phase out Internal Combustion Engine (ICE) vehicles around the world.
Current Trends and Innovations:
Vehicle-to-Grid (V2G) electric vehicle charging is a technique that provides a bi-directional electric power transmission between plug-in EVs and electrical grid. V2G technology allows EVs to retain unused electricity and release this to the grid. This can increase efficiency of electrical components and offer value for electric vehicle owners. Adoption of this technology has streamlined electric car charging operations and made EVs among the most desired modes of transportation. Steady advancement of V2G technology is expected to boost market revenue growth during the forecast period.
Geographical Outlook:
Europe is expected to register a steady revenue growth rate over the forecast period due to increasing focus on zero- or low-emission vehicles. In addition, Government of the U.K. announced plans to gradually eliminate petrol and diesel-based cars by 2030 and support adoption of EVs. Governments of other European countries have also established strategies for the shift to EVs, which is expected to drive revenue growth during the forecast period in this region.
Strategic Initiatives:
Major companies in the global market report include ABB Ltd., Tesla Inc., Chargepoint, Inc., BP Pulse, Schneider Electric SE, Semaconnect Network, EVGO Services LLC, EVBox Group, Eaton Corporation PLC, Shell PLC. Blink Charging Co., Siemens AG, Webasto SE, and Hyundai Motor Company.
- In February 2022, EVgo Services LLC the world’s biggest public fast-charging network for electric cars and first one to be powered entirely by renewable energy, announced that it has been chosen as Subaru of America, Inc.’s preferred electric vehicle charging partner. Subaru car owners can experience zero-emission driving and also ease of charging at over 800 public fast-charging stations and more than 1,200 Level 2 charging stalls throughout 68 metropolitan regions and 35 states due to EVgo’s network-powered by 100% renewable electricity.
