The EV charging infrastructure market was valued at US$ 8,805.35 million in 2021 and is projected to reach US$ 23,395.77 million by 2028; it is expected to grow at a CAGR of 15% from 2021 to 2028.
The electric vehicle business is quickly expanding across the world, particularly in China and the US. The electric vehicle charging market is a fast-paced industry with a diverse set of applications. The growth of automobile charging stations is aided by government programs in a number of nations. The construction of fast-charging stations has been approved by China’s central government through national regulations.
Similarly, the government in the US plays an important role by establishing obligatory regulations and funding for the development of electric vehicle charging stations. However, in a few countries/regions, there are very few commercial charging stations, forcing consumers to rely on charging options available at their offices and residences.
Large-scale construction of EV charging infrastructure in China, growing demand for affordable EVs for everyday usage, and governments pushing EVs are projected to drive the Asia Pacific market. China’s fast-growing economy will stimulate the spread of sophisticated technologies to boost electrification during the projection period.
Until 2020, China committed roughly US$ 2.4 billion to develop its charging infrastructure. In the years to come, Japan and South Korea have announced plans to significantly increase the number of electric vehicle charging stations in their respective countries.
Over the forecast period, North America is expected to lead the market in terms of growth. The market in North America is predicted to grow owing to increased government regulations for car emissions, a rapid acceptance rate of new technologies, and a significant investment in product innovation.
The onset of the COVID-19 crisis in 2020 led to a slowdown in the automotive and its infrastructure activities worldwide. However, the pandemic accelerated the need for emission-free mobility, especially in the developed regions. According to estimations by IEA, the global electric car sales rose to more than 3 million, reaching a market share of over 4%. Notably, electric vehicle sales rose by a significant 160% in the first half of 2021 compared to 2020, representing 26% of total new sales in the global automotive market.
As the sales of EV worldwide sore to exceptional heights, major global EV charging infrastructure players have been implementing smart charging solutions in various countries to create a supporting ecosystem complementing the development of future-ready connected, hassle-free, and safer mobility. For instance, during the pandemic period of 2020-2021, EV charging infrastructure companies, such as EVBox and Tritium, entered into partnerships, acquired several significant players, and have strongly focused on the research and development of smart EV charging infrastructure solutions.
Furthermore, the systems supporting EV charging infrastructure reduces the operational costs and environmental impact for agencies and government departments compared to present ICE vehicle scenario, thereby amplifying the growth prospects of major global players. For instance, the US government released an EV Charging Action Plan to lay down steps for the federal agencies to support the development and deployments of chargers in American communities across the country. Therefore, there has been no major impact of COVID-19 pandemic on the EV charging infrastructure market, and it is witnessing steady progressive growth in major parts of the world.