The international market for Electric Vehicle (EV) charging stations is forecast to undergo rapid expansion, according to a report released Tuesday by business survey company MarketsandMarkets.
The study, “Electric Vehicle Charging Station Market” – by Level of Charging (Level 1, Level 2 & Level 3, By Charging Infrastructure (Normal Charge, Type-2, CCS, CHAdeMO and Tesla Supercharger), and DC fast charging, including fast and ultra-fast – is projected to grow from 2,115,000 units in 2020 to reach 30,758,000 units by 2027, at a CAGR of 46.6 percent.
“Factors such as growing demand for energy-efficient commuting and governments supporting electric vehicles through subsidies & tax rebates have led to automakers adopting to electric vehicles and growth of electric vehicle charging stations market,” the report said.
Adding, “Growing concerns over increased pollution by the automotive industry is the prime reason government bodies are promoting electric vehicles over conventional ones. They have recognized the need for promoting energy-efficient vehicles to reduce the increasing pollution.”
In order to attract and encourage people to buy electric vehicles and electric vehicle charging stations, government bodies of various countries are introducing incentives that include large-scale discounts, lower electricity cost for charging, lower set-up cost of EV chargers, and subsidies for setting up EV chargers which, in some countries, may go up to one-third of setup cost.
APAC to become largest market
The Asia Pacific region is home to some of the fastest-developing economies of the world, China and India, and as such the governments of these expanding economies have recognized the growth potential of the global EV charging station market.
The region has adopted various initiatives to attract major OEMs for the manufacture of electric vehicle charging infrastructure in domestic markets.
The study reported that charging network providers for EV charging stations have partnered with various OEMs to sponsor free EV charging to EV drivers. This has led to an increase in electric vehicle production in recent years, which caters to domestic as well as overseas demand.
Japan and China export electric vehicles and supply equipment solutions across the globe.
Europe well in second place
Europe is expected to be the second largest during the forecast period. The European EV charging station market is expected to grow at a high rate with countries such as Netherlands, Sweden, Switzerland, Austria, Denmark, Germany, and the UK leading the trend of faster adoption of EV charging infrastructure during the forecast period.
“Currently, countries such as Netherlands, Germany, France, UK, and Norway are most EV-ready countries in Europe. By the end of the forecast period, Netherlands, Germany, and the UK are expected to move towards the goal of phasing out fossil fuel vehicles,” the study reported.
The Super Charger segment
According to the report, APAC currently has the highest number of super chargers in the world, while Europe has the second highest. This is because fast charging is preferred for daily use in the Asia Pacific region, MarketsandMarkets found.
The super chargers segment is projected to grow at a high rate in all three regions, but majorly in the North American region due to the high-projected usage of EVs in the U.S. In the EU, super chargers are majorly used in countries such as Norway, Netherlands, and the UK.
In the Asia Pacific, super chargers are majorly used in China and to a lower extent in Japan, and South Korea.
The study reported that several countries have announced plans for significant expansions of EV charging stations of both types during the next five to ten years. In North America, various companies are collaborating with a myriad of states to speed up the development of super charging infrastructure.
During the forecast period, super chargers are expected to grow at the highest rate in the Asia Pacific region and the second highest in the North American region.
The global EV charging station market is currently dominated by major players such as ChargePoint (US), Shell (The Netherlands), Blink Charging (US), BYD (China), and Tesla (U.S.).
These companies offer extensive products and solutions for the electric vehicle charging stations industry and have strong distribution networks at the global level, and they invest heavily in R&D to develop new products, the study reported.
According to the IEA Global EV Outlook 2020, the sales of electric cars reached 2.1 million globally in 2019, surpassing 2018 – already a record year – to boost the stock to 7.2 million EVs by end of 2019.
The IEA reports that “In absolute terms, China remained the world’s largest EV market, with 2.3 million electric vehicles in active use.”
MarketsandMarkets is a B2B research firm which reports on growth opportunities in emerging technologies and risk analysis to a client list that includes 80 percent of Fortune 500 companies.