Electric Vehicle Charging Station Market Size, Share & Industry Analysis, By Charger Type (Fast, Slow/Moderate), By Application (Commercial, Residential) and Regional Forecasts, 2021-2028

The global Electric Vehicle Charging Stations Market size stood at USD 24.16 billion in 2020. COVID-19 has had an unprecedented and devastating impact worldwide, with electric vehicle charging stations witnessing a negative demand shock across all regions due to the pandemic. Based on our analysis, the global market exhibited a significant decline of -39.11% in 2020 as compared to the average year-on-year growth during 2017-2019. The market is estimated to grow from USD 17.59 billion in 2021 to USD 111.90 billion in 2028 at a CAGR of 30.26% in the forecast period. The sudden rise in CAGR is attributable to this market's demand and growth, returning to pre-pandemic levels once the pandemic is over.

An Electric Vehicle (EV) charging station is a device that connects an EV to a source of electricity, permitting electric cars, neighborhood EVs, and plug-in hybrids to be charged. Some charging stations offer advanced features like smart metering, cellular connectivity, and network connectivity, while others are simpler.

The EV industry is growing rapidly around the world, especially in China and the United States. The EV charging industry is a dynamic industry with a wide range of applications. Government initiatives of several countries around the world play a vital role in the development of vehicle charging stations. For instance, the central government of China has approved the development of fast-charging stations by national policies. Similarly, in the United States, the government plays a vital role by providing mandatory standards and funds to develop EV charging stations. However, in some countries/regions, there is still a shortage of commercial charging stations, which leads the consumers to rely only on the charging methods available at the workplaces and homes.

Additionally, the growing advancement in communication technologies such as real-time information on all-electric vehicle charging stations for smart connectivity will help to propel the market growth. However, the increasing number of electric cars may affect the functioning of the charging stations, such as the amount of power generation, the load level of the transformer, and the load curve.

Sudden Halt in Production to Hamper Growth amid COVID-19 Pandemic

The COVID-19 pandemic has spread worldwide, posing a threat to the market for EV charging stations. COVID-19's global spread has impacted most industries. Lockdowns have been imposed by the governments of various countries, forcing people to stay at home and which, in turn, has reduced the physical interaction among people. Many companies have allowed their employees to work from home to ensure company continuity in business during the COVID-19 pandemic, which is projected to hinder the market over the forecast period. The increasing use of remote working practices is predicted to impede the growth of the automotive industry, limiting EV charging stations.

The COVID-19 crisis has caused manufacturing and supply chain disruptions in the worldwide automotive industry. Over the forecast timeframe, the shift in consumer preference toward essential products will likely influence this market. Furthermore, the COVID-19 pandemic has resulted in international borders being closed, resulting in a substantial drop in global demand for EVs.

Although most OEMs did not incur significant losses, few OEMs suffered from the pandemic. For instance, BYD's profit dropped by 85% in the first quarter of 2020. Companies such as Tesla, ChargePoint, BP, Shell, ABB, Schneider Electric, Siemens, and others suffered losses in Q1 2020. However, their EV charging business rebounded by Q3 2020 and has been expanding ever since.   

Although the pandemic's duration is difficult to predict, the arrival of COVID-19 vaccines in early 2021 is expected to benefit the automotive industry.

LATEST TRENDS

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Electrification of Automotive is a Prominent Trend

Through the move from conventional to electric transportation, intelligent mobility and electrification are reshaping the future of mobility. Several automobile manufacturers, power companies, and facility management companies are now constructing high-capacity EV charging stations. These are some market trends for electric vehicle charging stations that are expected to play a significant role in the charging infrastructure industry's expansion.

DRIVING FACTORS

Government Funding for Developing Charging Stations to Propel Demand

Many governments are funding up to 80% of the total cost of charging infrastructure installation. Governments of many countries are also collaborating with oil and gas companies in planning and developing charging stations and have helped establish the market for EV. The government intends to install charging stations every 100 kilometers along the national highway, enabling the Electric Vehicle Charging Stations Market growth during the forecast period.

Increasing Purchase of Electric Vehicles to Propel Market Growth

The government is providing automakers with subsidies, rebates, tax exemptions, and fixed quotas. Government subsidies for an electric car purchase are critical in influencing customer purchasing decisions. These factors have increased EV sales and production across the world. The growing stock of electric cars requires charging stations and established power grids to ensure that the cars run smoothly. Therefore, these factors are attributed to the growth of the market during the projected period. Moreover, the strict government vehicle emission regulations have prompted consumers to adopt EV, which further help boost the growth of the electric charging station market in the coming years.

RESTRAINING FACTORS 

Huge Initial set-up Cost for Fast Chargers May Hamper Growth

The high initial cost of level 3 and ultra-fast chargers is the greatest obstacle to the growth of this market. Consumers are prone to charging their fossil fuel vehicles in 5-7 minutes, whereas level 1 and level 2 chargers can take anywhere from 6 to 16 hours to charge fully. As a result, there is a market demand for fast chargers which can charge EVs in less than 30 minutes. However, the initial cost of a level 3 charging station can be pretty significant. This can be a restraint for people who may want to switch to EVs as charging for a long duration may affect the already busy life of most people.

SEGMENTATION 

By Charger Type Analysis

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Fast Charger Segment Dominates the Market Backed by Requirement of Lesser Time

Based on charger type, the market is segmented into fast and slow/moderate chargers.

The fast charger segment holds a significant share in the market. The segment fast charger will showcase an exponential growth owing to the charger's ability to charge vehicles in the short period during the projected period.  Moreover, its ability to protect car batteries while charging will favor market growth.

The slow/ moderate charger segment has low growth and low penetration in 2020. The slow/ moderate charger segment accounted for a 16.24% market share in 2020. The segment will show low growth during the projected period due to the high time required to charge EVs.

By Application Analysis

Residential Segment to Remain at the Forefront

Based on the application, this market is segmented into commercial and residential.

 The residential application segment accounts for a significant electric vehicle charging stations market share and is projected to dominate the forecast period. This is attributable to the growing sales of EVs, coupled with the increasing number of charging infrastructure.

The commercial segment will showcase significant growth backed by the rising government funding to develop public charging stations in the forthcoming years.

REGIONAL INSIGHTS

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The APAC region is projected to dominate the global EV Charging Station market during the forecast period. The Asia Pacific market is likely to be driven by large-scale growth of EV charging infrastructure in China, growing demand for affordable EVs for everyday use, and governments promoting EVs. During the forecast period, the country's fast-rising economy fuels the expansion of advanced technologies to improve electrification in China. China invested around USD 2.4 billion in improving the charging infrastructure in the country till 2020. Japan and Korea have declared a plan to considerably increase the number of electric vehicle charging stations in their respective countries in the coming years. In addition to this, the Indian government has announced plans to build 69,000 EV charging stations around the country as part of its first phase of EV infrastructural development, with a demand for 4 lakh charging stations expected by 2026.

Europe holds the second-largest position in the market for electric vehicle charging stations due to the presence of key market players in this area. Consumer adoption of EVs and autonomous vehicles, shared mobility is likely to fuel market expansion in this region.

North America stood at USD 3.46 billion in 2020 is projected to reach USD 13.64 billion in 2028, at a CAGR of 24.61% over the projected period. North America is expected to show prominent growth in this market over the forecast period. Owing to the rising stringent government regulation for vehicle emission, the fast adoption rate of new technology, and the high expenditure in product innovation are factors expected to propel the market in the North American region.

In the electric vehicle charging stations market, the rest of the world contributes very little compared to the other regions, and this is due to fewer electric vehicle OEMs, low adoption of technology, and less presence of the EVs. However, it is anticipated to grow in the future at a CAGR of 26.43%.

KEY INDUSTRY PLAYERS

High Capital and Strong Revenue to Help ChargePoint Inc. to Lead the Market

ChargePoint is a global leader in the charging station network having the world's largest network of charging stations. Additionally, they are planning a 50-fold increase in the current network in the upcoming years.

LIST OF KEY COMPANIES PROFILED:

• ChargePoint Inc. (California, U.S.)


• Schneider Electric (Rueil-Malmaison, France)


• Tesla Inc. (Palo Alto, California, U.S.)


• BP Chargemaster (Luton, UK)


• Shell International BV (The Hague, The Netherlands)


• Webasto Group (Stockdorf, Germany)


• Siemens AG (Munich, Germany)


• EVBox (Amsterdam, Netherlands)


• Eaton (Dublin, Ireland)

KEY INDUSTRY DEVELOPMENTS:

• July 2020: BSES Yamuna Power Limited (BYPL) and EV Motors India Pvt. Ltd (EVM) established a joint venture to build electric vehicle charging stations. The JV is anticipated to strengthen the company’s strategic position in the market.


• July 2021: ChargePoint Holdings, Inc., a leading E) charging network in North America and Europe, announced it has entered into a definitive agreement to acquire has·to·be, an e-mobility provider with a leading European charging software platform.

REPORT COVERAGE

An Infographic Representation of Electric Vehicle (EV) Charging Stations Market

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The market research report provides a detailed analysis and focuses on critical aspects such as leading companies, product types, and leading product applications. Besides this, the report offers insights into the market trends and highlights vital industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the market's growth rate over recent years.

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